Company Dynamics - Shenzhen Xipuni Precision Technology Co., Ltd. (referred to as "Xipuni") submitted its prospectus to the Hong Kong Stock Exchange on June 3, planning to list on the main board with China Ping An Capital (Hong Kong) Limited as the sole sponsor [2] - Established in 2013, Xipuni focuses on the design, manufacturing, and brand operation of precious metal watches, primarily generating revenue through sales of its flagship brand "HIPINE" [2] - Xipuni operates under an OBM business model with two self-owned watch brands: the core brand "HIPINE" and the sub-brand "Jinxiong" [2] - As of December 31, 2024, Xipuni's OBM product portfolio will cover over 10,000 SKUs [2] Financial Performance and Future Plans - In 2024, Xipuni generated approximately 6.2 million yuan from a limited edition smart watch gift box designed for a leading Chinese liquor brand [3] - Since January 2025, Xipuni has signed framework agreements with ODM clients to develop and sell customized smart watches equipped with Huawei smart chips, including a subsidiary of a Hong Kong-listed pharmaceutical company [3] - The net proceeds from the IPO will primarily be used to enhance production capacity, solidify the company's leading position in the traditional precious metal watch market, and seize opportunities in the smart precious metal watch and jewelry market [3] - Additional funds will be allocated to build a research and development center in Putian to enhance R&D capabilities, expand and optimize the sales network, strengthen brand building, and serve as working capital or for general corporate purposes [3] Challenges - Xipuni's path to listing has faced challenges, having attempted to list on the New Third Board twice and unsuccessfully tried to enter the Beijing Stock Exchange before turning to the Hong Kong market [3] - The company has experienced high inventory levels due to fluctuations in gold prices, with inventory balances at the end of reporting periods being 513 million yuan, 634 million yuan, and 656 million yuan, nearly 1.4 times its annual revenue [3] - The high inventory accumulation has resulted in an inventory turnover period of 708 days by the end of 2024 [3]