Core Viewpoint - The interim financial results of Xiangjiang Electric (02619) for the six months ending June 30, 2025, show a decline in performance, marking the company's first financial report since its listing [1] Group 1: Financial Performance - The company's revenue for the reporting period was 543 million yuan, a decrease of 11.7% from 614 million yuan in the same period last year [1] - Gross profit fell from 137 million yuan to 108 million yuan, representing a decline of 21.7% [1] - Net profit decreased from 60.5 million yuan to 25.3 million yuan, a drop of 58.2% [1] Group 2: Reasons for Decline - The primary reason for the revenue decline was the uncertainty caused by U.S. trade policies [1] - The drop in gross profit was attributed to a decrease in both sales volume and overall gross margin [1] - The sales volume decreased by 15.4%, from 10.6 million units in the six months ending June 30, 2024, to 9 million units in the same period of 2025 [2] Group 3: Operational Costs - Administrative expenses increased by 20.9% to 55.4 million yuan, up from 45.8 million yuan in the previous year, mainly due to the addition of management personnel for production facilities in China and Indonesia [2] - Sales expenses decreased by 17.1% to 12.4 million yuan, down from 14.9 million yuan, primarily due to reduced sales personnel costs resulting from lower sales volume [2] - Exchange gains fell by 49.2% to 4.5 million yuan due to overall currency fluctuations during the reporting period [2] Group 4: Historical Performance - Prior to the listing, the company's net profit showed consistent growth, with figures of 71.8 million yuan, 80.26 million yuan, 121.5 million yuan, and 140.4 million yuan from 2021 to 2024 [3]

Core Viewpoint - Hubei Xiangjiang Electric Appliance Co., Ltd. (Xiangjiang Electric) listed on the Hong Kong Stock Exchange, opening below the issue price and closing at a significant loss on its first day of trading [1][2]. Group 1: Company Overview - Xiangjiang Electric specializes in the research, design, production, and sale of electrical and non-electrical household products [1]. - The company issued a total of 68,220,000 shares, with 34,110,000 shares allocated for both the Hong Kong public offering and international offering [2]. Group 2: Financial Details - The final offer price was set at 2.860 HKD per share, raising a total of 195.11 million HKD, with net proceeds of 155.57 million HKD after deducting estimated listing expenses of 39.54 million HKD [2][3]. - The company plans to use the net proceeds for establishing a factory in Thailand, purchasing and installing machinery, setting up a new R&D center, and for general working capital [3]. Group 3: Key Investors - Major cornerstone investors include Hubei Shunjie Investment (Hong Kong) Co., Ltd., Hong Kong Xinghuang Holdings Limited, and Hong Kong Yunxing Technology Trade Management Co., Ltd., with respective allocations of 15,008,000 shares (22.00%), 11,256,000 shares (16.50%), and 3,752,000 shares (5.50%) [4][5]. Group 4: Financial Projections - Revenue projections for Xiangjiang Electric from 2022 to 2024 are 1.10 billion RMB, 1.19 billion RMB, and 1.50 billion RMB, respectively, with net profits of 80.26 million RMB, 121.46 million RMB, and 140.43 million RMB for the same years [6][7].