XGIMI(SH:688696) Sou Hu Cai Jing·2025-10-22 10:37Core Viewpoint - The company XGIMI, which had a market value of 43 billion yuan at its IPO in 2021, has seen its value plummet to 7.644 billion yuan by October 2025, a decline of over 80%. Recently, it submitted an application for a listing on the Hong Kong Stock Exchange. Group 1: Company Background and Performance - XGIMI was founded in Chengdu in 2012 by alumni of the University of Electronic Science and Technology of China, with initial success stemming from its innovative projector products [2] - The company achieved significant sales growth, with revenue from 20 million yuan during the 2014 Double Eleven shopping festival to over 2 billion yuan by 2017, and a market share of 22% in 2020 [4] - However, in 2023, XGIMI reported a revenue of 3.557 billion yuan, a year-on-year decrease of 15.77%, and a net profit decline of 76.09% [4] Group 2: Operational Challenges - Employee count decreased from 2,715 in 2021 to 2,225 in 2024, with R&D personnel dropping by 22.56% to 580 by June 2025 [6] - Despite a net profit surge to 88.662 million yuan in the first half of 2025 due to cost-cutting measures, the company faced negative cash flow of approximately -440 million yuan [6] - Inventory levels reached 1.184 billion yuan in the first half of 2025, accounting for 21% of total assets, indicating slow receivables and cash being tied up in stock [10] Group 3: Market Competition and External Factors - The television market has posed a significant challenge, with 13.75 million units sold in the first half of 2025, a 1.8% increase, and high-end MiniLED TVs priced lower than XGIMI's projectors [8] - XGIMI's DLP technology competes against cheaper LCD projectors, which are available for around 1,000 yuan, capturing the entry-level market [8] Group 4: Strategic Initiatives - To address its challenges, XGIMI is focusing on the automotive sector and international expansion, establishing a vehicle division in 2024 and securing multiple projects with major automotive manufacturers [12] - The company's overseas revenue reached 1.09 billion yuan in 2024, accounting for 31.9% of total revenue, nearly doubling from 18.7% in 2022 [12] Group 5: Future Outlook - The upcoming IPO in Hong Kong aims to leverage market liquidity to attract investors and raise funds for overseas marketing, R&D, and operations [16] - The success of XGIMI's strategy in the automotive and international markets remains uncertain, as the projector industry faces significant challenges [16]