Group 1 - The Hong Kong IPO market is experiencing a surge of applications from A-share companies, indicating a trend of cross-border listings [1][2] - Multiple A-share companies, including Three Squirrels, Kexing Pharmaceutical, and Junsheng Electronics, have disclosed their latest progress on H-share listings on the Hong Kong Stock Exchange, covering key sectors such as snacks, biopharmaceuticals, and automotive technology [2][3] Group 2 - Three Squirrels plans to issue up to 81.55 million shares for its H-share listing, positioning itself as the largest Chinese snack company based on projected 2024 sales, with the fastest growth rate among the top five companies in the sector from 2022 to 2024 [3] - Junsheng Electronics aims to issue up to 284 million shares, recognized as the second-largest provider of intelligent cockpit domain control systems in China and the fourth globally, according to Frost & Sullivan [3] Group 3 - Ruiming Technology has submitted its listing application to the Hong Kong Stock Exchange, focusing on AI solutions for commercial vehicles, leveraging over 20 years of industry experience [4] - Other companies like Kexing Pharmaceutical and Kote Power are also planning H-share listings to enhance their international presence and competitiveness [4] Group 4 - The Hong Kong IPO market has seen significant activity this year, with notable new listings such as Zijin Gold International, which raised approximately HKD 24.98 billion, making it the second-largest IPO in Hong Kong this year [7] - A total of 68 new stocks have been listed in Hong Kong this year, with over 70% recording gains on their first trading day, indicating strong market performance [8]

Core Viewpoint - Shenzhen Xipuni Precision Technology Co., Ltd. is set to launch an IPO from September 19 to September 24, 2025, with a target net fundraising of up to HKD 310 million [1][5] Company Overview - Shenzhen Xipuni primarily engages in the design, R&D, production, and sales of precious metal watches and gold jewelry, providing ODM services to well-known domestic brands and operating its own brands "HIPINE Xipuni" and "GOLDBEAR" [3] - The company has established long-term stable supply relationships with notable clients such as Lao Feng Xiang, China Jewelry, and Zhou Dazheng [3] Market Position - Shenzhen Xipuni holds a significant leadership position in the Chinese precious metal watch market, with its brand HIPINE being the largest gold watch brand and the largest pure gold watch brand in China, capturing market shares of 27.08% and 28.96% respectively in 2024 [3] Financial Performance - The company's net profits for the years 2022, 2023, 2024, and the first five months of 2025 were RMB 24.5 million, RMB 52.1 million, RMB 49.3 million, and RMB 42.8 million respectively, indicating that the net profit in 2023 doubled compared to 2022 [5] IPO Utilization Plan - The expected net proceeds from the IPO will be allocated to four main areas: enhancing production capacity, establishing a R&D center in Putian, expanding and optimizing the sales network, and general working capital [5]

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. is attempting to navigate a challenging financial landscape characterized by fluctuating gold prices and high inventory levels while exploring new growth avenues through smart watch products [1][2][4]. Financial Performance - In 2022, the company's revenue was 324 million yuan, with a net profit of 25 million yuan. In 2023, revenue increased to 445 million yuan, and net profit doubled to 52 million yuan. However, in 2024, revenue slightly rose to 457 million yuan, while net profit decreased to 49 million yuan [2]. - The average selling price of gold watches rose from 2,064 yuan to 3,083 yuan in 2023 due to soaring international gold prices, but this led to a significant drop in sales volume in the first half of 2024, which fell to 53,000 units, a decrease of 30,000 units compared to the same period [2]. - The cost structure reveals that gold accounts for over 80% of total material costs, resulting in a gross margin consistently hovering between 20% and 25%, significantly lower than competitors like Ebolu and Guancheng, which have gross margins close to 50% [2]. Inventory and Liquidity Issues - Inventory turnover days increased from 457 to 680 days, with inventory reaching 638 million yuan, nearly 1.4 times the company's annual revenue. Cash on hand was only 37 million yuan, indicating liquidity pressure [2]. - The top three distributors contributed 65.7% of revenue, with payment cycles extending from 3 days to 30 days, highlighting high customer concentration and weakened bargaining power [2]. Strategic Initiatives - To address growth limitations in its core gold business, the company launched a series of smart gold watches in 2023, priced between 1,999 and 2,699 yuan, aiming to position itself as a "Huawei smart gold watch alternative" [3]. - The smart product initiative has shown initial success, generating 6.2 million yuan in revenue from a limited edition smart watch set designed for a leading Chinese liquor brand in 2024 [3]. - However, smart watch revenue accounted for only 6.3% of total revenue in the first half of 2024, with sales of 10,000 units, indicating a significant gap compared to traditional gold watch sales [3]. Market Outlook - The gold watch market in China was valued at 28.1 billion yuan in 2023, with an expected growth to 44.4 billion yuan by 2028, reflecting a compound annual growth rate of 9.58%. However, gold watches represent less than 3.4% of the overall watch industry [3]. - The company plans to enhance production capacity and establish a research center in Putian while also seeking to expand into overseas markets, including the Middle East, through partnerships with Malaysian distributors [3]. Capital Market Sentiment - The company's valuation increased from 500 million yuan in 2016 to 773 million yuan in 2024, a growth of 54.6% over seven years, which is significantly lower than the 8.71 times valuation increase of its competitor, Laopuyin [4]. - The capital path designed by the Li family reflects the common challenges faced by Chinese precious metal manufacturing companies, where gold provides value but also constrains valuation [4].