Core Viewpoint - Future Health Technology Co., Ltd. is preparing for an IPO in Hong Kong, aiming to raise funds for enhancing its health technology R&D capabilities, brand building, and multi-channel marketing [1][11]. Company Overview - Future Health is a leading company in the smart wearable health device sector in China, known for its massage device brand "SKG" [1][2]. - The company has focused on smart wearable health devices since 2016, utilizing medical-grade technologies such as medium-frequency pulse and transcutaneous electrical nerve stimulation (TENS) [2]. Financial Performance - For the first three quarters of 2025, the company reported a profit of 106 million yuan, with a revenue of 878 million yuan, reflecting a year-on-year growth of 16.22% in revenue and 24.92% in profit [5]. - The company’s revenue for the years 2022, 2023, and 2024 was 904 million yuan, 1.046 billion yuan, and 1.045 billion yuan respectively, with corresponding profits of 119 million yuan, 127 million yuan, and 135 million yuan [4]. Product Segmentation - The core product, neck and shoulder relief wearable devices, accounted for over 40% of revenue but saw a decline in revenue by 1.85% year-on-year in the first three quarters of 2025, generating 385 million yuan [6]. - Revenue from fitness recovery and shaping devices surged by 122.8% year-on-year, reaching 200 million yuan, increasing its revenue share to 23% [6]. R&D and Marketing Expenditure - R&D expenditure as a percentage of revenue decreased from 9.1% in 2022 to 6.6% in the first three quarters of 2025, while sales and marketing expenses increased from 18.2% to 22.6% during the same period [8]. Dividend Distribution - The company has a history of high dividend payouts, distributing 199 million yuan to shareholders in the first nine months of 2025, following previous distributions of 50 million yuan and 30 million yuan in 2022 and 2023 respectively [11].

Core Viewpoint - Future Health, the parent company of SKG, has submitted a listing application to the Hong Kong Stock Exchange, but its significant dividend distribution prior to the IPO has raised concerns among observers [1][4]. Group 1: Dividend Distribution - The company declared a dividend of 199 million RMB to its equity shareholders for the nine months ending September 30, 2025, which has already been paid in September and October 2025 [1]. - The net profit for the same period was only 106 million RMB, resulting in a dividend payout ratio of 187.74% of the net profit [1]. - The primary beneficiaries of this dividend are the founders Liu Jie and Xu Siying, who hold 8.82% and 5.45% of the company's shares, respectively, and collectively own 83.94% of the company [1][2]. Group 2: Company Background and Market Position - Future Health has a history of dividend payments, distributing 50 million RMB in 2022 and 30 million RMB in 2023, totaling 235 million RMB for the period from 2022 to the first nine months of 2025 [3]. - The founders established SKG in 2007, initially focusing on home appliances, but pivoted to the health market in 2016, launching a neck massager as their first product in the wearable health device sector [3]. - According to Frost & Sullivan, the company is projected to hold a 4.1% market share in the global smart soothing wearable device market and a 21.5% share in the Chinese market by 2024 [3]. Group 3: IPO Challenges - The company has faced scrutiny from regulatory bodies regarding its cash dividend practices, which contributed to its withdrawal from the ChiNext IPO in 2023 and the termination of its guidance for the Beijing Stock Exchange in August [3]. - The uncertainty surrounding SKG's ability to successfully navigate the Hong Kong Stock Exchange listing process raises questions about whether the dividend distribution is a strategic move for future growth or a premeditated cash-out scheme by the founders [4].

Core Viewpoint - After two unsuccessful attempts to list on the A-share market, the parent company of SKG, Future Wearable Technology Co., Ltd., has turned its attention to the Hong Kong stock market by submitting its IPO application to the Hong Kong Stock Exchange [1][3]. Group 1: Company Performance - Future Wearable has shown steady growth in net profit for the first three quarters of 2023, 2024, and 2025 [1]. - The company achieved revenues of approximately 9.04 billion, 10.46 billion, and 10.45 billion for the years 2022, 2023, and 2024, respectively, with corresponding net profits of about 1.19 billion, 1.27 billion, and 1.35 billion [3]. - For the first three quarters of 2025, the company reported revenues of approximately 8.78 billion and a net profit of about 1.06 billion, both showing year-on-year growth [3]. Group 2: Product and Market Position - Future Wearable ranks first in China's smart soothing wearable device industry, with a projected market share of 21.5% in 2024 [3]. - The product matrix includes smart soothing wearable devices, fitness recovery and shaping devices, smart health watches, and health home products, with sales figures for the first three quarters of this year being approximately 6.3 billion, 2 billion, 553.1 million, and 340.18 million, respectively [3]. Group 3: Financial Strategy and Concerns - The company has been criticized for its heavy marketing and light R&D approach, with sales and marketing expenses rising while R&D costs have decreased [6]. - In the first three quarters of this year, the company's sales and marketing expenses were approximately 1.98 billion, which is 3.4 times the R&D costs of 581 million [7]. - The company declared a significant dividend of 1.99 billion for the first three quarters, which accounted for 187.74% of its net profit during that period [8]. Group 4: Corporate Governance and Control - The controlling shareholders, including Liu Jie, Xu Siying, and others, hold approximately 85.94% of the voting rights due to a concerted action arrangement [9].

Core Viewpoint - After two unsuccessful attempts to list on A-shares, the parent company of SKG, Future Wearable Technology Co., Ltd., has turned its attention to the Hong Kong stock market by submitting its IPO application to the Hong Kong Stock Exchange [1][3]. Financial Performance - Future Wearable's revenue for 2022, 2023, and 2024 is approximately RMB 904.23 million, RMB 1.05 billion, and RMB 1.04 billion respectively, with corresponding net profits of about RMB 119 million, RMB 127 million, and RMB 135 million [2][3]. - For the first three quarters of 2025, the company reported revenue of approximately RMB 878 million and a net profit of about RMB 106 million, showing year-on-year growth in both revenue and net profit [3]. Marketing and R&D Expenditure - Sales and marketing expenses have been increasing, accounting for 18.2%, 20.6%, 21.6%, and 22.6% of total revenue from 2022 to the first three quarters of 2025 [5][6]. - In contrast, R&D costs have decreased, representing 9.1%, 9.1%, 7.6%, and 6.6% of revenue during the same periods [6][7]. Dividend Distribution - In the first three quarters of this year, Future Wearable declared dividends totaling RMB 199 million, which is 187.74% of its net profit for the period [1][8]. - The company also distributed dividends of RMB 50 million and RMB 30 million in 2022 and 2023, respectively, which accounted for approximately 42.02% and 23.62% of net profits for those years [8]. Market Position and Product Categories - Future Wearable ranks first in China's smart soothing wearable device industry, with a projected market share of 21.5% in 2024 [3]. - For the first three quarters of this year, the sales breakdown by product category includes approximately RMB 630 million from smart soothing wearable devices, RMB 200 million from fitness recovery and shaping devices, RMB 5.53 million from smart health watches, and RMB 34.02 million from health home products [3].

Core Viewpoint - Future Wearable Health Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities International as the sole sponsor [1]. Company Overview - Future Wearable has been focused on the smart wearable health device sector since 2016 and has become a leader in the industry, integrating professional medical technology into consumer electronics to simplify health management [3]. - The company offers a diverse product matrix, including smart soothing wearable devices, recovery and shaping equipment, smart health watches, and health home products, aimed at enhancing daily health and quality of life [3][4]. - The company is actively involved in setting industry standards, having led the drafting of national standards for low-frequency massagers, contributing to the standardization of the smart soothing wearable device industry in China [3]. Market Position - According to Frost & Sullivan, Future Wearable ranks first in China's smart soothing wearable device market with a projected market share of 21.5% in 2024, and it also holds a 4.1% share in the global market [5]. - The global smart soothing wearable device market is characterized by a relatively fragmented competitive landscape, while the Chinese market has a slightly higher concentration [5]. Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the nine months ending September 30, 2025, were approximately RMB 904 million, RMB 1,046 million, RMB 1,045 million, and RMB 879 million, respectively [6]. - The profit figures for the same periods were approximately RMB 119 million, RMB 127 million, RMB 135 million, and RMB 106 million [7]. - The gross profit margins for these years were 50.4%, 49.1%, 48.9%, and 50.2%, respectively [8]. Industry Overview - The global smart wearable health device market was valued at USD 22.6 billion in 2019 and is expected to grow to USD 41.7 billion by 2024, with a compound annual growth rate (CAGR) of 13.0% from 2019 to 2024 [10]. - The Chinese smart wearable health device market is projected to grow from RMB 30.9 billion in 2019 to RMB 61.5 billion by 2024, with a CAGR of 14.7% [14]. - The demand for smart wearable health devices is driven by the increasing prevalence of chronic diseases and the growing need for proactive health management solutions [10][14].

Company Overview - Future Wearable Health Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CITIC Securities International as the sole sponsor [1] - The company has been focused on the smart wearable health device sector since 2016 and has become a leader in the industry, integrating professional medical technology into consumer electronics [3][4] - The company offers a diverse product matrix, including smart soothing wearable devices, recovery and shaping equipment, smart health watches, and health home products, aimed at enhancing daily health and quality of life [3][4] Market Position - According to Frost & Sullivan, the company ranks first in China's smart soothing wearable device market with a projected market share of 21.5% in 2024 [3][5] - The global smart soothing wearable device market is competitive but relatively fragmented, with the company holding a 4.1% market share, making it the leader in this segment as well [5] Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the nine months ending September 30, 2025, were approximately RMB 904 million, RMB 1,046 million, RMB 1,045 million, and RMB 878 million respectively [6] - The profit figures for the same periods were approximately RMB 119 million, RMB 127 million, RMB 135 million, and RMB 106 million [7] - The gross profit margins for these years were 50.4%, 49.1%, 48.9%, and 50.2% respectively [8] Industry Overview - The global smart wearable health device market was valued at USD 22.6 billion in 2019 and is expected to grow to USD 41.7 billion by 2024, with a compound annual growth rate (CAGR) of 13.0% from 2019 to 2024 [10] - The Chinese smart wearable health device market is projected to grow from RMB 30.9 billion in 2019 to RMB 61.5 billion by 2024, with a CAGR of 14.7% [14] - The demand for smart wearable health devices is driven by the increasing prevalence of chronic diseases and the growing need for proactive health management solutions [10][14]