XGIMI(SH:688696) Feng Huang Wang Cai Jing·2025-09-05 02:38Core Viewpoint - The company, XGIMI Technology, is taking significant steps towards an IPO in Hong Kong to enhance its international brand recognition and competitiveness, despite facing challenges such as cash flow issues and shareholder sell-offs [1][2]. Financial Performance - In the first half of 2025, XGIMI reported revenue of 1.626 billion yuan, a slight increase of 1.63% year-on-year, while net profit surged to 88.66 million yuan, a dramatic increase of 2062.34% compared to the previous year [4][5]. - However, the company experienced a severe cash flow crisis, with net cash flow from operating activities at -440 million yuan, a decline of 357.61% year-on-year, indicating a significant divergence between net profit and cash flow [3][5]. Market Challenges - XGIMI's reliance on projector sales is evident, with 92% of its revenue coming from projector products in the first half of 2025 [7]. - The company is attempting to diversify into automotive and overseas markets, but both sectors are under pressure. Revenue from overseas markets fell by 10.94% year-on-year to 399 million yuan [7][8]. Shareholder Activity - The company's major shareholder, Baidu, has been reducing its stake, with a decrease from 6.61% to 4.53% as of April 2025, raising concerns about the company's outlook [10][11]. - Overall, shareholders have collectively reduced their holdings by nearly 900 million yuan, which is approximately 10% of the company's current market value [16]. Operational Issues - XGIMI has faced a decline in employee numbers, with total staff decreasing from 2715 in 2021 to 2225 in 2024, and a notable reduction in R&D personnel by 22.56% [6]. - Consumer complaints regarding product quality and after-sales service have also been a significant issue, with 1377 complaints recorded, highlighting potential trust issues in the brand [9].