XGIMI(SH:688696) 3 6 Ke·2025-09-05 03:42Core Viewpoint - 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 [2][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 [4][6]. Market Challenges - XGIMI's reliance on projector sales is evident, with 92% of its revenue coming from projector units and accessories in the first half of 2025 [8]. - The company is attempting to diversify into the automotive and overseas markets, but both sectors are under pressure. The overseas revenue fell by 10.94% year-on-year to 399 million yuan in the first half of 2025 [11][12]. Shareholder Activity - The major shareholder, Baidu, has been reducing its stake in XGIMI, with a decrease from 6.61% to 4.53% as of April 2025, raising concerns about the company's outlook [15][18]. - Overall, shareholders have collectively reduced their holdings by nearly 900 million yuan, which is approximately 10% of the company's current market value [19].