Core Viewpoint - After regaining positive growth, the global projection industry leader, XGIMI Technology, embarks on its journey to list in Hong Kong, aiming to raise funds for international expansion, R&D enhancement, and operational needs [1]. Company Overview - XGIMI Technology, established in 2013, focuses on the R&D, production, and sales of consumer, automotive, and engineering-grade smart projection products, including long-focus, short-focus, and innovative projectors [2]. - As of September 2025, XGIMI's products are sold in over 100 countries and regions, with more than 6,000 offline sales points and cumulative shipments exceeding 7 million units. The company has been the top seller in China's projection industry for seven consecutive years since 2018 and has held the revenue champion title domestically for five years since 2020, achieving a market share of 30.2% in the mid-to-high-end segment in 2024 [5]. Business Performance - XGIMI's business scale remains leading, supported by its differentiated technological advantages in optical engine R&D and interactive experience. The company has expanded its product offerings from consumer-grade to automotive and engineering-grade products, with successful applications in various new energy vehicle models [7]. - Financially, XGIMI has faced revenue pressure and profit volatility, with revenues of 4.22 billion RMB in 2022, declining to 3.55 billion RMB in 2023 and 3.4 billion RMB in 2024. The first half of 2025 saw a slight revenue increase of 1.63% to 1.623 billion RMB, but still significantly lower than the 2.036 billion RMB in the same period of 2022 [8][11]. Profitability and Market Challenges - Profitability has fluctuated significantly, with profits dropping from 501 million RMB in 2022 to 12 million RMB in 2023, stabilizing at 120 million RMB in 2024. The first half of 2025 saw profits rebound to 88 million RMB, aided by supply chain optimization and cost control [11]. - The average selling price of long-focus projectors has decreased from 3,400 RMB in 2022 to 2,600 RMB in the first half of 2025, reflecting significant price pressure in the consumer market due to increased competition and changing consumer preferences [11]. Industry Growth Potential - The global projection industry is in a steady growth phase, with the market expected to reach 17.01 million units and 53.19 billion RMB in revenue by 2024. The compound annual growth rates for volume and revenue from 2024 to 2029 are projected at 13.0% and 11.4%, respectively [15]. - The consumer-grade projection segment remains the core growth driver, while automotive projection is emerging rapidly, with a projected revenue of 600 million RMB in 2024 and a compound annual growth rate of 57.2% from 2024 to 2029 [18]. Strategic Initiatives - XGIMI's strategy includes expanding its product matrix across all price segments in the consumer-grade market and enhancing user engagement through its GMUI system, transitioning from a "hardware sales" model to a "hardware + service" model [18]. - The company plans to increase investments in North America and Southeast Asia, replicating its success in Europe and Japan, while exploring innovations such as AI integration in projection technology [19]. Conclusion - XGIMI Technology possesses core advantages in technology, market share, and global layout, with the projection industry still in a growth phase. The company is well-positioned for sustainable growth through deepening its presence in the consumer market and breakthroughs in automotive and engineering-grade segments [19].

Core Viewpoint - After regaining positive growth, the global projection industry leader, XGIMI Technology (688696.SH), has embarked on the journey to list in Hong Kong, with plans to use the raised funds for global branding, R&D enhancement, and working capital [1][20]. Company Overview - XGIMI Technology, established in 2013, focuses on the R&D, production, and sales of consumer-grade, automotive-grade, and engineering-grade smart projection products, including long-focus, short-focus, and innovative projectors [2][5]. - As of September 2025, XGIMI's products are sold in over 100 countries and regions, with more than 6,000 offline sales points and cumulative shipments exceeding 7 million units. The company has been the sales champion in China's projection industry for seven consecutive years since 2018 and has held the revenue championship for five years since 2020 [5][8]. Financial Performance - XGIMI's financial data shows a trend of revenue pressure and significant profit fluctuations. Revenue for 2022, 2023, and 2024 was 4.22 billion, 3.55 billion, and 3.4 billion RMB, respectively, indicating a decline due to changing consumer preferences towards entry-level products [8][10]. - In the first half of 2025, revenue slightly increased by 1.63% to 1.62 billion RMB, but still showed a significant gap compared to 2.04 billion RMB in the same period of 2022 [8][10]. - Profit figures for 2022, 2023, and 2024 were 501 million, 120 million, and 120 million RMB, respectively, with a notable 76% year-on-year decline in 2023. The profit rebounded to 88 million RMB in the first half of 2025, attributed to supply chain optimization and cost control [10][11]. Market Position and Competitive Landscape - XGIMI maintains a leading position in the market due to its differentiated technological advantages, including self-developed optical engines and interactive experiences [7][19]. - The company faces significant competition in the consumer-grade market, with many new entrants and pressure from the trend towards larger screen televisions, leading to a decline in average selling prices [11][18]. - The average selling price of long-focus projectors dropped from 3,400 RMB in 2022 to 2,600 RMB in the first half of 2025 [11]. Industry Growth Potential - The global projection industry is in a phase of steady growth, with projected sales of 17.01 million units and revenue of 53.19 billion RMB in 2024. The compound annual growth rates for sales and revenue from 2024 to 2029 are expected to be 13.0% and 11.4%, respectively [15][18]. - The consumer-grade projection segment remains the core growth driver, while automotive-grade projection is emerging as a significant growth area with a projected compound annual growth rate of 57.2% from 2024 to 2029 [18][19]. Strategic Initiatives - XGIMI plans to enhance its product matrix across all price segments in the consumer-grade market and transition from a "hardware sales" model to a "hardware + service" model through the GMUI system [18][19]. - The company aims to expand its presence in North America and Southeast Asia, leveraging successful experiences from Europe and Japan, while exploring innovations such as AI integration in projection technology [19][20].

Core Insights - The article highlights the significant changes in revenue and profit metrics for the company, along with challenges in business expansion and technology development [1] Business Diversification and Sales Channels - The company engages in the research, production, and sales of projectors and related internet value-added services, with products sold in over 100 countries and regions, and a cumulative shipment of over 7 million units [2] - It has maintained the top sales position in China's projector industry for seven consecutive years since 2018 and has been the domestic revenue champion for five years since 2020 [2] Business Model - The company's revenue primarily comes from product sales and value-added services, utilizing both direct sales and distribution channels to reach consumers [3] - Value-added services include internet services through the GMUI platform in China and collaborations with game developers and streaming platforms internationally [3] Financial Performance - Revenue showed a downward trend from 42.2 billion yuan in 2022 to 35.52 billion yuan in 2023, a decrease of 15.81%, and further down to 34.0 billion yuan in 2024, a decline of 4.30% [4] - In the first half of 2025, revenue slightly increased to 16.23 billion yuan, a growth of approximately 1.56% compared to the same period in 2024 [4] - Net profit fluctuated significantly, dropping from 5.01 billion yuan in 2022 to 1.2 billion yuan in 2023, a decline of 76.10%, and remaining stable in 2024 [5] - The first half of 2025 saw a substantial increase in net profit to 0.88 billion yuan, up 2166.67% from the same period in 2024 [5] Profitability Metrics - Gross margin fluctuated from 35.0% in 2022 to 29.8% in 2023, a decrease of 14.86%, then slightly increased to 30.3% in 2024 [6] - Net margin also showed instability, dropping from 11.9% in 2022 to 3.4% in 2023, with a slight recovery to 3.5% in 2024 [7] Revenue Composition - The revenue from projectors remains dominant, with long-focus projectors accounting for a significant portion of total revenue [8] - Revenue from mainland China is decreasing, while overseas revenue is gradually increasing, indicating successful international expansion [8] Related Party Transactions - The company has transactions with related parties, conducted at normal commercial terms, with amounts decreasing over the years [9] Market Challenges - The projector industry faces intense competition, with a shift in consumer preference towards entry-level products impacting revenue and profit [9] - Cost control remains a challenge due to fluctuations in raw material costs and potential increases in operational costs as the business expands [10] International Business Risks - The expansion into overseas markets presents risks due to varying consumer preferences, regulatory environments, and potential international trade issues [11] Competitive Landscape - The company ranks as the second-largest projector brand globally by revenue and has maintained a leading position in China [12] - While it has advantages in technology and market share, continuous innovation is necessary to stay competitive [12] Customer and Supplier Concentration - The company has a high customer concentration, with significant revenue generated from a few major clients, which poses risks if these clients reduce orders [14] - Supplier concentration is also high, with a significant portion of procurement from a limited number of suppliers, which could impact production stability [15] Management and Governance - The major shareholders are stable, but there is a risk of decision-making concentration [16] - The core management team has extensive experience in the electronics and technology sectors, contributing to strategic planning and operational stability [17]