Core Viewpoint - xTool is preparing for an IPO on the Hong Kong Stock Exchange, aiming to raise funds for R&D, brand building, and international expansion, following significant growth in the personal creative tools market driven by AI technology [1][4] Company Overview - xTool submitted its prospectus for an IPO on January 1, 2026, with Morgan Stanley and Huatai Securities as joint sponsors [1] - The company completed a Pre-IPO financing round in 2025, raising approximately $200 million, led by Tencent [1] - xTool specializes in laser-based personal creative tools and material printers, targeting individual consumers, small and medium-sized businesses (SMBs), and brand retail stores [1] Market Position - xTool holds the leading position in the global market for laser personal creative tools, with a market share of 37% in the first nine months of 2025 [2] - In the laser engraving machine segment, xTool's market share is 47%, significantly higher than its closest competitor [2] Financial Performance - Revenue is projected to grow from RMB 1.46 billion in 2023 to RMB 2.48 billion in 2024, representing a year-on-year increase of 70% [2] - The company reported a gross margin of 59.2% in 2023, which is expected to be 54.4% in 2024 and 56.0% in the first nine months of 2025 [2] Product Pricing and Technology - xTool's average product price is 10%-30% higher than the industry average, with the average selling price of its core products increasing from approximately RMB 12,000 in 2023 to RMB 21,000 in the first nine months of 2025 [3] - The company has developed a unified software platform, xTool Studio, integrating optical, CNC control, and AI algorithms [3] User Engagement and Community - Approximately 80% of users engage with their devices monthly, with 40% using them daily [3] - xTool has established a community of over 210,000 active users across 32 countries, with 470 local communities [3] Industry Growth Potential - The global market for technology-enabled personal creative tools is expected to grow from $6.8 billion in 2024 to $39.1 billion by 2030, with a CAGR of 33.8% [4] - The search volume for the xTool brand has surpassed that of "laser engraving machine" since 2023, indicating strong brand recognition and growth potential [4]