Core Viewpoint - The largest gold watch company in China, Xipuni Precision Technology Co., Ltd., is preparing for an IPO on the Hong Kong Stock Exchange, facing challenges such as slowing revenue growth, high inventory, and decreasing gold content in its products [2][8][32]. Group 1: Company Overview - Xipuni submitted its prospectus to the Hong Kong Stock Exchange on June 3, 2025, with Ping An Securities (Hong Kong) as the sole sponsor [2]. - As of 2023, Xipuni holds a market share of approximately 24.98% in the gold watch segment, with a GMV of about 582 million yuan [2][11]. - The company has undergone several name changes since its establishment in 2013, with its current name adopted in July 2023 [3]. Group 2: Financial Performance - Xipuni's revenue for the fiscal years 2022, 2023, and 2024 was approximately 324 million yuan, 445 million yuan, and 457 million yuan, respectively, with growth rates of 37.6% and 2.5% in 2023 and 2024 [11][14]. - The company's gross profit margin improved from 18.1% in 2022 to 29% in 2024, despite a decline in the average gold weight of its traditional gold watches [20][21]. Group 3: Inventory and Sales Challenges - Xipuni's inventory has been increasing, with balances of approximately 513 million yuan, 633 million yuan, and 656 million yuan at the end of each fiscal year from 2022 to 2024 [17]. - The average selling price of traditional gold watches rose from 2,651 yuan in 2022 to 2,856 yuan in 2023, while the average gold weight decreased significantly [18][19]. Group 4: Market Position and Strategy - The company relies heavily on its top five customers and suppliers, with sales from the top five customers accounting for over 87% of total revenue [22][23]. - Xipuni is focusing on two main strategies to overcome challenges: expanding into the smart watch market and entering overseas markets, including a partnership with a Malaysian distributor [25][29]. Group 5: Future Outlook - The company plans to invest in a production base for smart watches and establish a research lab, aiming to increase its presence in the smart wearable sector [25][27]. - Xipuni's online sales remain minimal, contributing only 3.2% of total revenue in 2024, indicating a need for improvement in digital sales channels [31][32].