Core Viewpoint - Xipuni Precision Technology Co., Ltd. is preparing for its IPO, showcasing strong financial performance and growth potential in the precious metal watch sector, while also facing challenges related to cash reserves [1][4]. Financial Performance - The company’s revenue is projected to grow from 324 million yuan in 2022 to 457 million yuan in 2024, indicating a steady increase [1]. - Gross profit is expected to rise from 64.13 million yuan in 2022 to 124 million yuan in 2024, with gross margin improving from 19.8% to 27.2% during the same period, reflecting strong profitability and effective cost management [1]. Business Partnerships - Xipuni has established long-term ODM partnerships with well-known domestic jewelry brands such as Laofengxiang, China Jewelry, and Zhou Dsheng, which enhances its market reach and provides stable revenue streams [3]. - The collaboration with these brands allows the company to leverage their market influence while improving its design and manufacturing capabilities [3]. Challenges - As of December 31, 2024, the company holds only 13.98 million yuan in cash and cash equivalents, indicating a tight cash position that could hinder business expansion and R&D investment [3]. - The competitive market environment and rapid industry changes necessitate sufficient funding for the company to enhance its market competitiveness [3]. Future Outlook - The IPO represents a significant milestone for the company, with the potential to optimize its financial structure and overcome cash reserve challenges [4]. - The company's future performance in brand building, business expansion, and capital utilization will be critical not only for its own success but also for the development of the precious metal watch industry [4].

Core Viewpoint - Xipuni Precision Technology Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, aiming to raise funds for capacity enhancement, establishing a research and development center in Putian, and expanding its marketing network [1][3] Company Background - Xipuni was established in July 2013, originally as Shenzhen Zunshang Watch Co., Ltd. The company has undergone multiple listings, including on the New Third Board in 2016 and 2022, and has now shifted its focus to the Hong Kong Stock Exchange [3] - The company has a registered capital of 48.225 million yuan, with major shareholders including Li Yongzhong and Putian Jin Ying Gu Investment Development Co., Ltd. [3] Employee Information - As of the end of 2024, Xipuni has 331 employees, primarily located at its Shenzhen headquarters and Putian production base. The workforce includes 133 production staff (40.18%) and 75 sales and marketing personnel (22.66%) [7][8] Financial Performance - Xipuni's revenue for 2022, 2023, and 2024 was approximately 324 million yuan, 445 million yuan, and 457 million yuan, respectively. Gross profits were about 64 million yuan, 108 million yuan, and 124 million yuan, with net profits of approximately 25 million yuan, 52 million yuan, and 49 million yuan [9][10] - The company's revenue growth rate for 2024 is approximately 2.49%, a significant slowdown compared to previous years, with net profit declining by 5.28% [10] Product Revenue Breakdown - In 2024, revenue from watches decreased to approximately 351 million yuan, down 12.97% from 403 million yuan in 2023. Traditional gold watches saw a 19.86% decline, with their contribution dropping from 90.4% to 70.7% [11][12] - Xipuni is expanding into the jewelry sector, with revenue from jewelry products increasing from approximately 34 million yuan in 2022 to 106 million yuan in 2024, representing a contribution rise from 10.6% to 23.2% [12][13] Business Model - Xipuni's revenue is derived from both OBM (Own Brand Manufacturing) and ODM (Original Design Manufacturing) models. In 2024, OBM revenue was approximately 338 million yuan, a decrease of 16.13%, while ODM revenue surged to about 119 million yuan, a growth of 176.74% [13] - The decline in OBM revenue is attributed to decreased sales driven by low consumer demand, although the gross margin for watch products improved from 18.1% in 2022 to 28.1% in 2024 [13] Dividend History - Xipuni has a history of dividend payments, declaring dividends of 24.3 million yuan, 24.1 million yuan, and 20.3 million yuan for the years 2022, 2023, and 2024, respectively [14]