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]

Core Viewpoint - The article discusses the IPO plans of Xipuni Precision Technology Co., Ltd., which aims to list on the Hong Kong Stock Exchange, highlighting its position as a leading manufacturer of gold watches in China and its recent innovations in smart gold watches [2][3]. Group 1: Company Overview - Xipuni was established in 2013 and operates as a designer, manufacturer, and brand owner of precious metal watches, primarily generating revenue through its flagship brand "HIPINE" [2]. - The company has two main watch brands under its OBM business model: the core brand "HIPINE" and the sub-brand "Jinxiong," with over 10,000 SKUs in its product portfolio as of December 31, 2024 [2]. - According to Zhaosheng Consulting, Xipuni is the largest gold watch brand and the largest foot gold watch brand in China, holding market shares of 24.98% and 35.83% respectively [2]. Group 2: Revenue Streams - In addition to its OBM business, Xipuni also generates income as an ODM manufacturer for third-party domestic jewelry brands, developing and producing private label precious metal watches and accessories [3]. - Notable ODM clients include well-known brands such as Laofengxiang and China Jewelry, with a stable supply relationship established [3]. - A limited edition smart watch gift set designed for a leading Chinese liquor brand contributed approximately 6.2 million yuan in revenue in 2024 [3]. Group 3: Product Innovation - Xipuni is recognized as the first company in China to design and manufacture foot gold watches and to apply supermolecular hard gold technology in their production [4]. - The company launched China's first mass-produced foot gold watch in 2014 and introduced a new series of smart gold watches equipped with Huawei's smart chip in 2023, reflecting a growing trend in the market [4]. Group 4: Financial Performance - Xipuni's revenue for the years 2022 to 2024 was 324 million yuan, 445 million yuan, and 457 million yuan respectively, while net profits for the same period were 25 million yuan, 52 million yuan, and 49 million yuan [4]. Group 5: IPO Fund Utilization - The net proceeds from the IPO will primarily be used to enhance production capacity, strengthen research and development capabilities, expand and optimize the sales network, and improve brand influence and recognition [5].