With the rapid evolution of China's digital payment industry, Xgd Inc. (300130.SZ) is accelerating its transformation into a global payment technology service provider. A critical step in its internationalization strategy—listing in Hong Kong—has now been officially initiated. On November 26, Xgd Inc. submitted its listing application to the Hong Kong Stock Exchange's main board, with CITIC Securities acting as the sole sponsor.
According to its prospectus, as a pioneer in the payment industry with nearly 15 years of experience, the company has sold over 50 million electronic payment terminals globally, with its business network spanning most countries and regions worldwide. As of November 28, its A-share market capitalization approached RMB 14.5 billion.
**Strategic Transformation & Business Restructuring: Xgd Inc.'s Evolution into a Global Payment Tech Provider** The prospectus reveals that this payment industry veteran is undergoing strategic restructuring, optimizing its business model while expanding globally. Xgd Inc. is a leading payment technology service provider with deep roots in China and a growing global footprint. By strategically deploying comprehensive, multi-scenario, and multi-format digital payment services, the company offers an integrated "payment hardware + payment services" model, delivering end-to-end digital payment solutions to users within its ecosystem.
Specifically, Xgd Inc. primarily engages in payment processing and value-added services, electronic payment products, and other related services. Its product portfolio includes smart POS terminals, QR code scanners, payment audio devices, and next-gen payment terminals, catering to diverse commercial and cross-border trade scenarios.
Financially, Xgd Inc.'s revenue has shown phased adjustments. Revenue declined from RMB 4.315 billion in 2022 to RMB 3.799 billion in 2023, with H1 2024 revenue at RMB 1.527 billion. This shift reflects intensified domestic competition and the company’s proactive strategic realignment toward higher-margin segments.
Notably, Xgd Inc.'s gross margin performance stands out. Full-year 2023 gross profit reached RMB 1.437 billion, a significant increase from RMB 1.038 billion in 2022. In H1 2025, despite revenue of RMB 1.527 billion, gross profit remained strong at RMB 515 million, underscoring effective cost control and product mix optimization.
The margin improvement stems from two factors: 1. Higher-margin electronic payment devices now account for 35.2% of revenue (up from 22.8% in 2022). 2. Technological innovation and supply chain optimization have reduced production costs.
**Revenue Restructuring: A Shift in Strategic Focus** Xgd Inc.'s revenue composition highlights a significant "weight swap" between its two core businesses, signaling both strategic redirection and broader industry trends.
- **Payment Processing & Value-Added Services**: The traditional pillar, its revenue share has steadily declined from 70.9% in 2022 to 61.9% in H1 2024. - **Electronic Payment Devices**: This segment is now the growth engine, with revenue share surging from 22.8% in 2022 to 35.2% in H1 2024. In H1 2025 alone, it generated RMB 538 million—already exceeding half of its 2023 full-year revenue (RMB 993 million). This aligns with the company’s milestone of selling over 50 million payment terminals globally, demonstrating its hardware competitiveness.
**Global Expansion: Breaking Through Barriers** In today’s globalized digital payment landscape, internationalization is no longer optional but essential for survival and growth. Xgd Inc.'s strategy follows a clear, phased approach:
1. **Hardware First**: Electronic payment devices serve as the entry point, bypassing saturated pure-payment service markets. 2. **"Hardware + Services" Model Replication**: Moving beyond low-margin hardware sales, the company aims to replicate its China-tested integrated model globally.
Yet, challenges remain: - Localization complexities ("slow grind"). - Regulatory compliance ("high-voltage lines"). - Global resource allocation ("systematic warfare").
**Countermeasures & Hong Kong Listing as a Catalyst** To address these hurdles, Xgd Inc. is: - Deepening localization (e.g., local teams, tech support networks, strategic partnerships). - Leveraging its Hong Kong IPO as a strategic accelerator—not just for funding but also for global branding, credibility, and talent attraction.
Proceeds will fuel R&D, market expansion, and M&A, equipping the company to tackle its three core challenges. Ultimately, the Hong Kong listing serves as a pivotal lever in Xgd Inc.'s transformation—from a China-centric payment processor to a globally integrated payment technology platform with robust resource allocation and innovation capabilities.
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