image credit: Bamboo Works
Key Takeaways:
Fairland has filed for a Hong Kong listing, disclosing it fell into the red last year with a 120 million yuan loss
The smart swimming pool equipment supplier's gross margin has fallen steadily in the last three years, as it lowers prices to stay ahead of the competition
Market optimism over a deal to end the U.S. and Israeli war against Iran, combined with strong recent trading debuts, are keeping the Hong Kong stock market rally alive well into its second year. Into that mix comes a new IPO application by Fairland Corp. Ltd., which hopes to seize on strong appetite for high-tech and robotic offerings to attract investors to its business selling equipment to make swimming pools just a tad smarter.
While its concept is relatively unique, the company still lacks many of the hot themes that have captured investor imaginations lately. But that hasn't stopped Fairland from trying to boost its appeal by positioning itself as the latest technology play for Hong Kong investors. Its preliminary prospectus describes Fairland as a technology company building an "integrated smart garden ecosystem" focused on the "garden vertical scenario."
In simpler English, the company makes products that do things like manage energy, pump and heat water, clean and chlorinate swimming pools. Such products currently account for about 80% of its revenue.
That's not to say Fairland isn't high-tech. Its equipment leverages internet of things (IoT) capabilities to integrate various combinations of its products, enabling more efficient and lower-cost pool maintenance. Fairland developed its iGarden ecosystem to address common issues like seasonality, high energy consumption and expensive upkeep for swimming pools. The system uses IoT technology to coordinate water pumps, heat pumps, salt chlorinators and other equipment, which it says maintains water cleanliness and slashes maintenance costs, allowing people to operate their pools year-round.
Robotic offerings
The company ...
