Shenzhen, China, August 18, 2026 — For Li Qunnan, opening an electronics repair store is not the hardest part of the business. The real challenge is making that store model replicable. Over more than two decades, Li Qunnan has transformed a 1.5-square-meter used mobile phone counter in Shenzhen’s Huaqiangbei into a business combining electronics repair, device recycling, refurbishment, resale and corporate equipment services.
Today, Qunnan Electrical, founded by Li Qunnan, operates 10 directly managed stores across Longhua, Futian, Nanshan, Bao’an and Longgang in Shenzhen. The company has 45 employees and annual revenue of approximately RMB 15 million to RMB 18 million. For the regional electronics repair company, standardization has become one of the foundations of its expansion strategy.
Repair Services as the Entry Point to Li Qunnan’s Business Model
Qunnan Electrical is no longer simply a mobile phone repair business. Its current revenue comes from five major areas: in-store electronics repair, used-device sales, accessories, corporate equipment services and online mail-in repair.
In-store repair accounts for approximately 38% of total revenue, used-device sales about 22%, accessories about 10%, corporate equipment services about 15%, and online repair about 15%. These businesses are connected within the company’s operating model: repair services attract customers, recycling provides a source of used devices, and refurbishment and resale create additional value.
For Li Qunnan, the most important value of repair services is not necessarily the first transaction, but the long-term customer relationship they create. “Once a device has been repaired, the customer will come back when it breaks again,” he said.
Turning Individual Technical Skills into Company Standards
During the early years of his business, Li Qunnan’s biggest advantage was his technical repair ability. But as the number of stores increased, he realized that a repair chain could not depend indefinitely on the owner’s personal skills. He therefore began turning his individual experience into standardized procedures.
The company’s repair manual has now reached its fourth edition and covers more than 30 major brands and over 400 models of mobile phones, computers and tablets. It includes common fault diagnosis, repair procedures, component replacement and post-repair testing standards, and also serves as the core training material for new technicians.
“If technical knowledge stays in one person’s hands, it is difficult to scale,” Li Qunnan said. By using repair manuals and training systems, Qunnan Electrical can provide more consistent repair services across different stores.
The Location and Cost Strategy Behind 10 Stores
Standardization at Qunnan Electrical extends beyond repair technology to store operations. The company has established specific requirements for potential locations. A new store should have more than 20,000 residential households within a three-kilometer radius, or more than five office buildings nearby. Store rent should also remain below 12% of monthly revenue.
The company currently reports average monthly revenue of approximately RMB 120,000 to RMB 150,000 per store. Total monthly rent for the 10 stores is approximately RMB 140,000 to RMB 160,000, while salaries and social insurance for 45 employees account for roughly RMB 400,000 to RMB 450,000 per month. Parts procurement and logistics cost approximately RMB 250,000 to RMB 300,000.
According to company-provided figures, the current net profit margin is approximately 18% to 22%. These figures reflect Li Qunnan’s focus on store-level operating efficiency rather than simply increasing the number of locations.
Corporate Customers Become a New Growth Area
As its store network expanded, Qunnan Electrical began moving beyond individual consumers into corporate equipment services. The company currently has annual equipment maintenance agreements with approximately 60 to 80 technology companies, schools and office buildings.
Corporate customers often manage large numbers of computers, mobile phones, tablets and other electronic devices. They therefore have ongoing requirements for repair response times, equipment maintenance and long-term service support.
For Li Qunnan, these customers can provide more stable sources of business while improving the utilization of the company’s existing technicians and store network.
Used-device operations are another important part of the business model. A used mobile phone purchased for approximately RMB 300 to RMB 500 may be repaired and refurbished before being resold for roughly RMB 800 to RMB 1,500. The average cycle from acquisition to resale is approximately three to five days.
Online Mail-In Repair Expands Beyond Shenzhen
At the end of 2025, Qunnan Electrical launched a WeChat mini-program and began developing online mail-in repair services. Customers can submit repair orders online, send their devices to the company’s Shenzhen headquarters through logistics services, and receive them back after repair.
The typical repair cycle is three to five days. The service currently handles approximately 320 to 380 orders per month and generates around RMB 180,000 to RMB 200,000 in monthly revenue.
Short-video platforms have also become an important source of traffic. Since 2023, Li Qunnan has posted videos showing real repair work, including disassembly, soldering and component replacement. For an electronics repair company, this type of content provides a direct way to demonstrate technical capability.
Li Qunnan Looks for the Next Repair Category
After more than two decades of building his electronics repair business, Li Qunnan is still looking for new growth opportunities. Qunnan Electrical is currently testing drone repair services and exploring how its existing technician training, store management and supply-chain capabilities can be applied to another category of electronic devices.
For Li Qunnan, future competition will not simply be about who has the most stores. It will depend on who can continuously develop technical expertise, standardized services and customer trust.
For a regional electronics repair company, that may be the key to evolving from a traditional repair shop into a broader professional electronics service provider.
Source: Information and operating data provided by the company. Business and financial figures are based on company-provided information.