Core Viewpoint - xTool, a high-end consumer technology brand, is set to go public on the Hong Kong Stock Exchange, having submitted its prospectus on January 1, 2026, with plans to raise funds for R&D, brand building, and supply chain development [5][6]. Group 1: Company Overview - xTool's main business focuses on laser-based personal creative tools and material printers, targeting individual consumers, small and medium-sized enterprises (SMBs), and retail brands [7]. - The company achieved a revenue of over 2 billion RMB in 2024, with a significant growth trajectory [4]. Group 2: Market Position and Growth - xTool holds the leading position in the global laser personal creative tools market, with a market share of 37% in the first nine months of 2025, and 47% in the laser engraving machine segment, significantly outpacing competitors [7]. - Revenue growth from 2023 to 2024 is projected to increase from 14.6 billion RMB to 24.8 billion RMB, representing a 70% year-on-year growth [7]. Group 3: Financial Performance - The company's gross margins for 2023, 2024, and the first nine months of 2025 are reported at 59.2%, 54.4%, and 56.0% respectively, with adjusted net profit margins of 12.6%, 10.4%, and 9.7% [8]. - The average selling price of core products increased from approximately 12,000 RMB in 2023 to 21,000 RMB in the first nine months of 2025, exceeding industry averages by 10%-30% [8]. Group 4: User Engagement and Community - Approximately 80% of users engage with their devices monthly, with 40% using them daily. The company has established 470 communities across 32 countries, with over 210,000 active users on its self-operated overseas community platform [9]. - The global market for technology-enabled personal creative tools is expected to grow from 6.8 billion USD in 2024 to 39.1 billion USD by 2030, with a compound annual growth rate (CAGR) of 33.8% [9]. Group 5: Future Outlook - The personal creative tools sector is seen as having significant growth potential, with xTool's IPO marking a notable event in the industry, potentially making it the first publicly listed company in the consumer-grade laser engraving machine market [10].

Core Viewpoint - xTool Innovate Limited, a leading global high-end consumer technology brand, is preparing for an IPO on the Hong Kong Stock Exchange, aiming to leverage its strong market position in the laser personal creative tools sector [2]. Business Overview - xTool was established in 2013 and focuses on consumer and commercial-grade laser personal creative tools and material printers, enabling users to efficiently turn ideas into high-quality products [5]. - According to a report by ZhiShi Consulting, xTool holds a 37% market share in the global laser personal creative tools market and is the largest and fastest-growing brand in laser engraving and cutting machines with a 47% market share, significantly surpassing its competitors [5]. - The company has sold products to over 80 countries and regions, with more than 405,000 connected devices worldwide as of September 30, 2025 [5]. - xTool offers a flagship software, xTool Studio, which simplifies the creative workflow from design to engraving, cutting, and printing [5]. Sales Channels - xTool primarily sells its products online through its official website and third-party e-commerce platforms, with 62.1% of total revenue coming from its official website in 2024 [6]. Financial Performance - The company's revenue for the years 2023, 2024, and the first nine months of 2025 was RMB 1.456 billion, RMB 2.476 billion, and RMB 1.777 billion, respectively, with corresponding net profits of RMB 111 million, RMB 149 million, and RMB 83 million [12]. - The revenue breakdown shows that laser personal creative tools and accessories accounted for 89.1% of total revenue in 2024, while materials printers and accessories contributed 5.7% [8]. Shareholder Structure - Prior to the IPO, the largest shareholder of xTool is Mr. Wang Jianjun, holding 31.38% of the shares [10]. - Other notable investors include Tencent and various venture capital firms [9]. Board of Directors - The board consists of 7 members, including 4 executive directors and 3 independent non-executive directors, with Mr. Wang Jianjun serving as the founder, chairman, and CEO [11]. IPO Advisory Team - The IPO advisory team includes J.P. Morgan and Huatai International as joint sponsors, with KPMG as the auditor and various legal advisors for different jurisdictions [14].

Company Overview - xTool is a global high-end consumer technology brand focused on empowering creative creation from digital to physical [2] - It holds a 37% market share in the laser personal creative tools segment by GMV as of the first nine months of 2025, and a 47% market share in laser engraving and cutting machines, significantly surpassing its competitors [2] - The company has sold over 405,000 connected devices worldwide as of September 30, 2025, and aims to become a global leader in personal creative tools [2] Product Offerings - xTool's core product line includes laser engraving machines, laser cutting machines, laser welding machines, and CNC cutting machines [3] - In 2025, xTool began selling garment printers as part of its new material printing business line, marking the start of a broader product roadmap [3] - The company offers a flagship software, xTool Studio, which simplifies the creative workflow from design to engraving, cutting, and printing [3] Financial Performance - For the fiscal years ending in 2023, 2024, and the nine months ending September 30, 2025, the company reported revenues of approximately RMB 1.46 billion, RMB 2.48 billion, and RMB 1.78 billion respectively [4] - The net profit for the same periods was approximately RMB 111 million, RMB 149 million, and RMB 83 million [5] - The gross profit margins for these periods were 59.2%, 54.4%, and 56.0% respectively [8] Market Overview - The global market for technology-enabled personal creative tools is expected to grow from USD 6.8 billion in 2024 to USD 39.1 billion by 2030, with a CAGR of 33.8% [10] - The non-additive personal creative tools market is projected to expand significantly, driven by material printing tools, which are expected to grow from USD 100 million to an estimated USD 20.4 billion by 2035 [13] - The global penetration rate of laser personal creative tools is anticipated to rise from approximately 11.2% in 2022 to about 15.3% in 2024 [16]

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]

香港交易及結算所有限公司、香港聯合交易所有限公司與證券及期貨事務監察委員會對本申請版本的內容 概不負責，對其準確性或完整性亦不發表任何意見，並明確表示概不就因本申請版本全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 xTool Innovate Limited 重要提示：閣下如對本文件的任何內容有任何疑問，應徵求專業獨立意見。 （於開曼群島註冊成立的有限公司） 的申請版本 警告 本申請版本乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監 會」）的要求而刊發，僅用作提供資料予香港公眾人士。 本申請版本為草擬本，其內所載資料並不完整，亦可能會作出重大變動。 閣下閱覽本文件， 即代表 閣下知悉、接納並向xTool Innovate Limited（「本公司」）、本公司的聯席保薦人、整體 協調人、顧問或包銷團成員表示同意： 本公司招股章程根據香港法例第32章公司（清盤及雜項條文）條例送呈香港公司註冊處處長登記 前，本公司不會向香港公眾人士提出要約或邀請。倘在適當時候向香港公眾人士提出要約或邀 請，有意投資者務請僅依據於香港公司註冊處處長註冊的本公司招股章程作出投資 ...

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of xTool Innovate Limited (A company incorporated in the Cayman Islands with ...