There were 425 million mobile phones sold in China last year. But only 57 million consumers signed a contract, according to the Ministry of Industry and Information Technology.

This disparity shows that a large number of mobile phone users simple switch off their old devices after buying a new one. "Only 1 percent of the 180 million phones that are not used each year are recycled," Li Nan, vice-president of smartphone manufacturer Meizu Technology Co, said.

About 62 percent of Chinese consumers keep their old phones, while 20.8 percent give them away or sell them. A small percentage simple dump their phones in the trash can.