Group 1: Market Overview - The Hong Kong stock market has seen a significant recovery in IPO sentiment, with total fundraising exceeding 130 billion HKD by the end of August 2025, marking a nearly sixfold year-on-year increase and ranking first globally [1] - Gold-related stocks have become particularly favored among investors, driven by soaring gold prices [1] Group 2: Company Profile - Xipuni - Xipuni, a prominent player in the gold watch sector, is based in Putian and was founded in Shenzhen, focusing on the design and manufacturing of precious metal watches [3] - The company holds a 27.08% market share in China's gold watch market, making it the largest brand by GMV in 2024 [3] Group 3: Financial Performance - Xipuni's revenue has shown a recovery, with a 21.6% year-on-year increase to 231 million CNY in the first five months of 2025, reversing a slowdown in growth observed in 2024 [4] - The company's net profit has also rebounded, reaching 42.8 million CNY in the first five months of 2025, which is 86.7% of the total net profit for 2024 [5] - Gross margin has improved from 19.8% in 2022 to 31.01% in the first five months of 2025, indicating better product mix and cost management [5] Group 4: Revenue Structure and Growth Drivers - Xipuni's revenue is primarily driven by its own brand (OBM), which accounts for 80%-90% of sales, while ODM business contributes supplementary income [6] - The company has diversified its product offerings, reducing reliance on traditional gold watches, with the share of gold jewelry and products rising from less than 10% in 2023 to 46.6% in 2025 [6] Group 5: Market Trends and Opportunities - The precious metal watch market in China is projected to grow at a compound annual growth rate (CAGR) of 5.19% from 2024 to 2029, reaching 340.8 billion CNY by 2029 [8] - The dual nature of gold as both a consumer and investment product is driving demand, particularly in uncertain economic conditions [8] Group 6: Challenges and Risks - Xipuni faces challenges such as high inventory levels of 656 million CNY and a turnover period of 708 days, which are significantly above industry norms [9] - The company has a high dependency on a few major clients, with sales to the top five clients accounting for over 87% of total revenue, which poses risks to revenue stability [9] - Brand recognition remains a challenge compared to larger competitors in the jewelry and watch sectors, necessitating a shift from being a "channel brand" to a "consumer brand" [9]

Group 1 - The core point of the article is that Xipuni Precision Technology Co., Ltd. is attempting to list on the Hong Kong Stock Exchange after multiple attempts to go public on other exchanges, highlighting its status as a leading designer and manufacturer of precious metal watches in China [1] - Xipuni was established in July 2013 and has undergone several changes, including a previous listing on the New Third Board in 2016 and a failed attempt to list on the Beijing Stock Exchange [1] - The company primarily generates revenue from its flagship brand "HIPINE" and has been recognized as a well-known brand in Shenzhen since 2022 [1] Group 2 - Xipuni is the largest gold watch brand and the largest foot gold watch brand in China, with market shares of 27.08% and 28.96% respectively, according to data from Zhaoshang Consulting [2] - The company has developed proprietary technology for ultra-molecular gold hardening, which addresses the inherent softness of foot gold, and launched China's first mass-produced foot gold watch in 2014 [2] - Xipuni is expanding its production capabilities with a new operational complex in Putian, which will focus on smart watches and accessories, while its Shenzhen base will concentrate on traditional precious metal watches [2] Group 3 - From 2017 to 2023, Xipuni conducted multiple targeted placements, with significant investments from various entities, including Jin Yin Gu Investment, which currently holds a 20% stake [3] - The company's revenue figures for 2022 to 2024 are 324 million yuan, 445 million yuan, and 457 million yuan, with corresponding net profits of 24.54 million yuan, 52.09 million yuan, and 49.34 million yuan [3] - Notably, the net profit for the first five months of 2025 reached 86.72% of the total net profit for 2024, indicating a strong short-term growth momentum [3]

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 - 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]