This nearly doubled earnings forecast is strong evidence that Xipuni's long-term commitment to its 'dual-driver' business model and its strategic upgrade of 'branding + intelligence' has entered the harvest phase.
According to Zhitong Finance APP, on December 23, 2025, Shenzhen Xipuni Precision Technology Co., Ltd. (Stock Code: 02583) issued an encouraging positive profit forecast. The data shows that based on the unaudited management accounts for the eleven months ended November 30, 2025, the group recorded a net profit of over RMB 90 million, and expects the full-year net profit for 2025 to be significantly higher than the approximately RMB 49 million level in 2024.
This nearly doubled earnings forecast is powerful evidence that Xipuni's long-term commitment to its 'dual-driver' business model and its strategic upgrade of 'branding + intelligence' has entered a harvest phase. It clearly sends a signal to the market: the company's financial foundation is undergoing qualitative changes, with growth becoming more resilient and sustainable.
Core drivers of profit growth: Structural optimization replaces cyclical dependence
The announcement attributes growth to two factors: an increase in jewelry sales revenue and an improvement in the gross margin of watch sales. Behind these seemingly simple points lies the direct result of the company’s proactive optimization of its product structure and profitability model, marking a shift in its growth drivers from what may have been a heavier reliance on gold prices and single-category products to healthier, more controllable endogenous drivers.
Xipuni was historically known for its pure gold watches, but management had already proactively developed the jewelry business line. The significant increase in jewelry sales revenue is a successful reflection of this strategy. Jewelry products are characterized by rapid design iteration, diverse consumption scenarios, and a broader audience, forming perfect synergy and complementarity with the watch business. This not only represents a new growth curve but, more importantly, effectively smooths out performance fluctuations caused by precious metal price volatility or watch consumption cycles, making the company’s revenue base more stable and diversified. This transformation from 'a watch company' to 'a precision technology consumer goods company focused on precious metals' opens up broader market capitalization potential.
The improvement in the gross margin of watch sales is another major highlight of this profit alert. It directly reflects the comprehensive enhancement of the company’s product added value, brand premium, and cost control capabilities. This is mainly due to the following three factors:
Firstly, the high-end orientation of the product mix, with the company continuously launching products with more sophisticated designs and higher technological content, such as the series co-branded with the Palace Museum Cultural Creativity and high-end intelligent gold watches. These products not only command higher prices but also significantly enhance the gross margin through the cultural and technological value they carry.
Secondly, 'gold craftsmanship and intelligent manufacturing' empowers cost optimization. The company’s long-accumulated precision manufacturing techniques and unique pure gold hardening technology have brought about efficiency improvements and material optimization on the production side. The market’s focus on the 'reduce gold without reducing price' strategy essentially reflects an upgrade in the product value composition through superior craftsmanship and design, meaning that the proportion of gold raw material costs decreases while the proportions of craftsmanship, design, and brand value increase. This is a classic path for manufacturing enterprises climbing to both ends of the smile curve, indicating enhanced competitiveness.
Finally, economies of scale and channel bargaining power have become evident. As sales volume expands and brand influence grows, the company’s economies of scale in supply chain procurement and production have become increasingly prominent, while its bargaining power over downstream channels has also strengthened, jointly driving the expansion of overall profitability.
“OBM+ODM” dual-track model: Synergistic evolution from a solid foundation to a growth engine
Xipuni's unique model of combining 'own brand manufacturing (OBM) with original design manufacturing (ODM)' has proven to possess significant resilience and strategic flexibility during this period of explosive performance. This model is far more than a simple business categorization; it is a dynamic and balanced strategic system that integrates offensive and defensive capabilities, maximizing the company’s manufacturing capacity, diversifying market risks, and continuously accumulating brand equity through efficient synergy between internal brand operations and external manufacturing services.
On the owned-brand side (i.e., OBM), the release of brand power constructs a solid value moat. The self-owned brand business centered on 'Xipuni (HIPINE)' serves as the company’s brand pinnacle and profit core. Through continuous brand building, channel deepening (covering over 3,000 retail points nationwide), and collaboration with tech giants like Huawei on smart movement technology, the premium pricing ability of the OBM business has continuously improved. This directly supported the notable improvement in watch gross margins mentioned earlier, proving the company’s success in transforming its manufacturing advantages into brand value.
Meanwhile, the ODM (original design manufacturing) business provides design and manufacturing services for leading jewelry brands such as Chow Tai Seng and Lao Feng Xiang. The rapid growth of this segment is not merely basic contract manufacturing but reflects the widespread recognition of the company as a 'high-end precious metal precision manufacturing solutions platform.' It validates the company’s industry-leading R&D and manufacturing capabilities, contributing not only substantial revenue and cash flow but also enhancing the insights of the owned brand into market trends through collaborations with various brands, thus forming a virtuous cycle. The dual-track approach is no longer a simple risk hedge but has evolved into a flywheel effect characterized by mutual empowerment and synergistic growth.
The parallel operation of OBM and ODM creates synergies that go beyond simple addition. First, contracting for numerous well-known brands ensures production scale, enabling Xipuni to achieve economies of scale in raw material procurement and core technologies (such as hardened gold techniques), thereby reducing marginal costs for owned-brand products. Second, the ODM business acts as an 'information antenna' maintaining broad market touchpoints, allowing the company to understand product preferences across different channels and consumer groups, providing valuable intelligence for product innovation and iteration within the owned-brand portfolio. This synergy is transforming Xipuni from a pure manufacturer into a platform offering 'precious metal precision manufacturing solutions' to the industry.
In summary, Xipuni’s OBM+ODM model is essentially a sophisticated commercial framework anchored in deep manufacturing capabilities and core technologies. While pursuing the maximization of long-term brand value, it flexibly responds to short-term market fluctuations and ensures operational stability. This allows the company to enjoy premium pricing space brought by brand growth while securing stable cash flow and risk mitigation provided by manufacturing operations, forming its core competitive advantage in navigating complex market environments.
Intelligent Transformation and Internationalization: Unfolding Wings for Future Growth
If the positive earnings announcement affirms past strategies, the company’s future-oriented layout provides a clear roadmap for sustained growth.
In terms of intelligent transformation, the company’s deep collaboration with Huawei has opened up a new track, making Xipuni the first globally to launch pure gold watches equipped with smart movements, successfully creating an entirely new category that blends luxury, wearable electronics, and emotional connection—'smart gold watches.'
This positioning not only attracts traditional gold consumers but also crosses over to appeal to younger consumers seeking technology and quality. Despite a small base, revenue from the smartwatch business grew by over 80 times in 2024, validating its blockbuster potential and marking a critical step for the company to break through industry ceilings and integrate into the Internet of Everything ecosystem.
In terms of internationalization, Xipuni is actively positioning itself for future expansion. The company has successfully introduced its products into the Malaysian market, receiving positive feedback, which has provided valuable overseas operational experience. Precious metal culture has deep roots in markets along the 'Belt and Road,' as well as in Southeast Asia and the Middle East. With its unique product offerings blending gold, intelligence, and Eastern aesthetics, Xipuni’s products have the potential to become cultural exports and symbols of consumption upgrades. Expansion into overseas markets will be a key growth driver in the future.
Notably, in November this year, Xipuni received national-level certification as a 'specialized, refined, unique, and innovative little giant.' While this certification is not a direct cause of its profit growth, it provides authoritative endorsement of the company’s technological attributes and further solidifies its competitive barriers at a deeper level.
Specifically, Xipuni's acquisition of this certification signifies that its decade-long dedication to the niche field of precision processing of pure gold precious metals and watch manufacturing, along with the technical moat built by its unique pure gold hardening technology, has gained formal recognition from the national evaluation system. This indicates that the company is not merely a simple gold processor but rather a technology-driven innovative manufacturing enterprise powered by materials science and precision engineering. This sufficiently distinguishes it from traditional jewelry processing enterprises.
Currently, Xipuni is in a critical transitional phase of upgrading from traditional manufacturing to a 'technology + consumer' brand. The core concept of being 'specialized, refined, unique, and innovative' aligns deeply with the company’s transformation direction, and the 'specialization' model it encourages has strengthened the company’s resolve to focus on its main track of advanced technology for precious metals.
It can be said that the certification as a specialized, refined, unique, and innovative little giant externally affirms the strategic vision of the company’s management, while internally reinforcing its commitment to deepening technological innovation and adhering to a high-end strategy. This makes the 'intelligent' transformation not an adventurous exploration but a rational extension based on its core capabilities, supported by national industrial policy.
Empowerment through Listing: Concentrated Release of Brand Elevation and Channel Dividends
When analyzing the internal drivers of Xipuni’s performance growth, the external empowerment brought by the milestone event of its successful listing on the Hong Kong Stock Exchange in September 2025 cannot be overlooked. The listing itself constitutes a globally intensive brand exposure, and the enthusiastic market response, reflected by a 258.11% surge in share price on the first day, greatly enhanced the visibility and credibility of 'Xipuni (HIPINE)' among the public and business partners.
The funds raised through the listing provided ample resources for the company’s strategy. According to the prospectus, approximately 33.24% of the net proceeds are planned to be used for expanding and optimizing the sales network, strengthening brand building, and enhancing brand influence. This means the company now possesses unprecedented resources to systematically shape its brand image and narrate the story of technology-empowered gold products. This transition from 'industry-renowned' to 'publicly recognized' directly enhances consumer trust and terminal pricing power, serving as a significant amplifier for driving performance growth.
This elevation in brand momentum has yielded immediate feedback in sales channels, particularly in the online e-commerce segment. In the past, the company’s revenue mainly relied on a vast offline distribution network. The brand credibility and market attention brought by the listing effectively translated into traffic and trust advantages in online channels. Consumers tend to have higher quality expectations and purchasing confidence in products from a listed company. It is foreseeable that, with the company’s continued investment in brand building and omnichannel optimization, the online e-commerce business is expected to evolve from a supplementary channel into a rapidly growing new engine that directly connects with users, further optimizing the company’s channel structure and enhancing profitability.
The Macro Narrative of Surging Gold Prices: Seizing Opportunities and Meeting Challenges to Achieve Technology Empowerment and Brand Elevation
As is widely known, in 2025, the international gold market experienced a spectacular super bull run, with the annual increase in London gold prices exceeding 70%, once breaking through $4,400 per ounce. This round of price movement transcended the conventional logic of safe-haven or inflation hedging. Its core driver was the market's deep pricing of the global macro landscape, reflecting concerns about the credibility of the US dollar and the high debt levels of the US government, prompting global capital (especially long-term allocation funds) to treat gold as a core asset for systematic allocation. Looking ahead to 2026, the market generally expects gold prices to maintain a volatile yet upward-biased trend at historically high levels.
Behind this round of the gold bull market lies a profound shift in macroeconomic narratives, which has significantly reinforced consumers' perception of gold as a "hard currency" and a store of wealth. For Xipuni, this represents not only a cost cycle to navigate but also a strategic window for driving its own transformation. In short, it is both an opportunity and a challenge. Judging from Xipuni’s announcement of positive earnings, the company has seized the opportunity presented by the 2025 gold bull market to upgrade its products from "decorative jewelry" to "precise technological consumer goods with value preservation functions." The company's unique technology for hardening pure gold, along with the smart gold watch developed in collaboration with Huawei, allows Xipuni to tell a differentiated story of "technology enhancing the value of gold" amidst the "gold rush," attracting a new generation of consumers who value material worth while pursuing intelligent experiences.
This significant increase in net profit will substantially enhance the company’s net assets and optimize various financial ratios, providing more robust internal funding support for subsequent R&D investment, market expansion, and capacity upgrades, thereby reducing reliance on external financing and fostering a healthier development cycle. For the capital markets, these are crucial factors that underpin the company’s ability to weather cycles and achieve value re-rating in the future.
Conclusion: A report card heralding the beginning of a new phase
Xipuni’s positive earnings forecast carries significance far beyond a mere financial figure. It serves as a concentrated report of achievements, announcing that the strategic transformation initiated several years ago has achieved breakthrough, phased success—marking an evolution from an outstanding precious metals manufacturer to a precision technological consumer goods company with a strong brand, diversified product portfolio, and advanced technological integration capabilities.
This demonstrates the foresight and execution capability of the management team, validates the vitality of the "OBM+ODM" dual-driven model, and showcases the company’s agility and boldness in product innovation and market development.
For investors, this announcement not only strengthens confidence in the company’s current valuation but, more importantly, clearly outlines a credible path for sustained growth through intelligence and internationalization. Xipuni’s recent performance leap is not an isolated peak but rather a solid starting point for a more competitive new phase.
