LFX(SH:600612) Zhi Tong Cai Jing·2025-09-15 23:51Core Viewpoint - Shenzhen Xipuni Precision Technology Co., Ltd. (hereinafter referred to as Xipuni) is preparing for its listing on the Hong Kong Stock Exchange, with Ping An Securities (Hong Kong) as its sole sponsor [1]. Company Overview - Xipuni is a designer, manufacturer, and brand owner of gold watch cases and gold bezel watches in China. The company's revenue primarily comes from sales of gold watch cases and bezels designed and manufactured under its flagship brand HIPINE [4]. - The company also generates income by acting as an ODM manufacturer for third-party domestic jewelry brands and wholesalers, developing and producing private label watches and jewelry, and providing entrusted processing services [4]. - Xipuni has established long-term stable supply relationships with several well-known domestic jewelry brands, including Laofengxiang, China Jewelry, and Zhou Dasheng [4]. Technological Achievements - The company has developed proprietary supramolecular gold hardening technology, addressing the inherent softness of pure gold. This technology led to the launch of China's first mass-produced pure gold watch in 2014, which is considered a significant technological achievement in the watch manufacturing industry [5]. - In 2023, Xipuni developed a series of smart watches with pure gold components using Huawei's smart chip technology [5]. Brand Recognition and Sales Strategy - The flagship brand HIPINE has been recognized as a well-known brand in Shenzhen since 2022 and is expected to be listed among the top 100 brands in Shenzhen by the Shenzhen Quality Strong City Promotion Association in 2024 [5]. - The company's sales strategy primarily relies on a distribution network, utilizing over 3,000 offline retail points across the country to penetrate the market effectively and respond quickly to consumer preferences [5]. International Expansion - In the 2024 fiscal year, Xipuni began its overseas expansion by partnering with an experienced distributor and retailer in Malaysia to distribute and retail its HIPINE watches [6]. - The company aims to expand its presence in the Middle East in the coming years based on its momentum in overseas expansion [6]. Market Outlook - According to Zhaoshang Consulting, the Chinese precious metal watch market is expected to grow from RMB 26.46 billion in 2024 to RMB 34.08 billion by 2029, with a compound annual growth rate (CAGR) of 5.19% [8]. - The gold precious metal watch market in China is projected to reach RMB 32.11 billion by 2029, with a CAGR of 5.36% from 2024 to 2029 [8]. Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the first five months of 2025 was approximately RMB 324 million, RMB 445 million, RMB 456 million, and RMB 231 million, respectively [9]. - The net profit and total comprehensive income for the same periods were RMB 24.54 million, RMB 52.10 million, RMB 49.35 million, and RMB 42.80 million, respectively [9].