HIPINE Precision Technology Co., Ltd. (02583) unveiled a market-energizing positive profit forecast on December 23, 2025. According to unaudited management accounts for the eleven months ending November 30, 2025, the group recorded a net profit exceeding RMB 90 million, with full-year 2025 net profit expected to significantly surpass the approximately RMB 49 million achieved in 2024. This near-doubling performance serves as compelling evidence that HIPINE’s long-standing "dual-wheel drive" business model and "branding + intelligentization" strategic upgrade have entered a harvest period. It sends a clear signal to the market: the company’s financial fundamentals are undergoing a qualitative transformation, with growth becoming more resilient and sustainable.
The core drivers behind this profit surge lie in structural optimization replacing cyclical dependence. The announcement attributes the growth to two key factors: rising jewelry sales revenue and improved gross profit margins from watch sales. Behind these seemingly simple metrics lies the direct outcome of the company’s proactive optimization of its product mix and profit model, marking a shift from potential over-reliance on gold prices and single product categories toward healthier, more controllable endogenous growth drivers. Historically renowned for its solid gold watches, HIPINE’s management foresightedly expanded into the jewelry business line. The notable increase in jewelry sales revenue stands as a testament to this strategic success. Jewelry products, characterized by rapid design iterations, diverse consumption scenarios, and a broader consumer base, form a perfect synergy and complement to the watch business. Not only do they represent a new growth curve, but crucially, they effectively smooth out performance fluctuations caused by precious metal price volatility or watch consumption cycles, rendering the company’s revenue base more stable and diversified. This transformation—from "a watch company" to "a precision technology consumer goods firm specializing in precious metals"—unlocks vast market capitalization growth potential.
Another highlight of this profit alert is the improved gross profit margin on watch sales, directly reflecting comprehensive enhancements in product added value, brand premium, and cost control capabilities. This improvement stems from three key factors. Firstly, the upgrading of product structure: the company has continuously launched exquisitely designed, high-tech products such as collaborative series with the Palace Museum Cultural and Creative and high-end smart gold watches. These products command higher prices while their cultural and technological value significantly boosts gross margins. Secondly, "gold craftsmanship and intelligent manufacturing" empower cost optimization. HIPINE’s long-accumulated precision manufacturing techniques and proprietary solid gold hardening technology have driven efficiency gains and material optimization in production. The market-focused "reducing gold without reducing price" strategy essentially upgrades the product value composition through superior craftsmanship and design—lowering the proportion of gold raw material costs while increasing the share of craftsmanship, design, and brand value. This classic trajectory of manufacturing enterprises moving up the smile curve’s两端 marks a clear sign of enhanced competitiveness. Finally, scale effects and channel bargaining power are coming to the fore. As sales scale and brand influence expand, the company is reaping growing scale effects in supply chain procurement and production, alongside strengthened bargaining power over downstream channels—collectively widening overall profit margins.
The "OBM + ODM" dual-track model: synergistic evolution from a stable foundation to a growth engine. HIPINE’s unique "owned brand (OBM) and original design manufacturing (ODM) simultaneously" model has proven to possess immense resilience and strategic flexibility amid this performance surge. Far more than a simple business classification, this model operates as a dynamically balanced, offense-defense integrated strategic system. By efficiently synergizing internal brand operations with external manufacturing services, it maximizes the company’s manufacturing capabilities, diversifies market risks, and continuously accumulates brand equity. On the OBM front, the release of brand power builds a solid value moat. Centered on the "HIPINE" core brand, the proprietary brand business serves as the company’s brand high ground and profit core. Through sustained brand building, in-depth channel development (covering over 3,000 retail points nationwide), and collaborations with tech giants like Huawei on smart movements, the brand premium capacity of OBM operations has steadily risen—directly underpinning the aforementioned significant improvement in watch gross margins and validating the successful conversion of manufacturing advantages into brand value. Meanwhile, the ODM business provides design and manufacturing services to top jewelry brands such as Chow Tai Seng and Lao Feng Xiang. The rapid growth of this segment is no mere代工 but a reflection of the industry-wide recognition of HIPINE as a "high-end precious metal precision manufacturing solutions platform." It validates the company’s industry-leading R&D and manufacturing capabilities, contributing substantial revenue and cash flow while, through collaborations with numerous brands, feeding market trend insights back to the proprietary brand—creating a virtuous cycle. The dual tracks have evolved beyond simple risk hedging to form a mutually reinforcing, synergistic growth flywheel effect.
The parallel development of OBM and ODM generates synergistic effects exceeding mere addition. Firstly, manufacturing for renowned brands ensures production scale, enabling HIPINE to build scale advantages in raw material procurement and core technology R&D (e.g., solid gold hardening technology)—in turn reducing the marginal costs of proprietary brand products. Secondly, the ODM business acts as a "market antenna," providing valuable intelligence on product preferences across different channels and consumer groups to fuel proprietary brand innovation and iteration. This synergy is transforming HIPINE from a pure manufacturer into an industry platform输出 "precious metal precision manufacturing solutions." In essence, HIPINE’s OBM + ODM model is a sophisticated business framework grounded in advanced manufacturing capabilities and core technologies. It pursues long-term brand value maximization while flexibly navigating short-term market fluctuations to ensure operational stability. This allows the company to enjoy premium returns from brand growth while securing stable cash flow and risk buffers from manufacturing operations—constituting its core competitiveness in navigating complex market environments.
Intelligentization and internationalization: spreading wings for future growth. If the profit alert affirms past strategies, HIPINE’s future-oriented布局 provides clear guidance for sustained growth. In intelligent transformation, deep collaboration with Huawei has opened new horizons, enabling HIPINE to pioneer the global launch of solid gold watches equipped with smart movements—successfully creating the "smart gold watch" category that merges luxury, wearable electronics, and emotional connection. This positioning not only attracts traditional gold consumers but also captivates younger consumers seeking technological sophistication and quality. Smart watch revenue surged over 80-fold in 2024; though the base remains small, it has validated blockbuster potential, representing a crucial step in breaking industry ceilings and integrating into the Internet of Everything ecosystem. Internationally, HIPINE is actively positioning for expansion, having successfully introduced products into the Malaysian market with positive feedback—gaining valuable overseas operational experience. Precious metal culture enjoys deep roots along the "Belt and Road" and in Southeast Asian and Middle Eastern markets. With its unique product strength融合 gold, intelligence, and Oriental aesthetics, HIPINE’s offerings hold potential as cultural export and consumption upgrade icons, with overseas expansion poised to become a key future growth driver.
Notably, in November this year, HIPINE received the national-level "Specialized, Sophisticated, Distinctive, and Novel Little Giant" certification. While not a direct driver of profit growth, this certification provides authoritative endorsement of the company’s technological attributes and reinforces its competitive barriers. Specifically, it formally recognizes HIPINE’s over-decade-long深耕 in the niche field of solid gold precision processing and watch manufacturing, as well as its technological moat built on proprietary solid gold hardening technology—establishing the company not as a mere gold processor but as a tech-driven manufacturing enterprise propelled by materials science and precision craftsmanship, distinctly differentiating it from traditional jewelry processors. Currently, HIPINE stands at a critical转型 juncture from traditional manufacturing to a "technology + consumption" brand. The core philosophy of "specialized, sophisticated, distinctive, and novel" deeply aligns with its转型 direction, with its emphasis on "specialization" reinforcing the company’s commitment to the precious metal precision technology main track. This certification externally affirms management’s strategic foresight while internally strengthening confidence in deepening technological innovation and pursuing high-endization—making "intelligentization" not a risky experiment but a rational extension of core capabilities supported by national industrial policies.
Listing empowerment: concentrated release of brand elevation and channel dividends. When analyzing HIPINE’s internal growth drivers, the milestone of its successful Hong Kong Stock Exchange listing in September 2025 cannot be overlooked for its external empowerment. Listing itself constituted a global high-intensity brand exposure, with the market’s enthusiastic response—including a 258.11% surge in the first-day stock price—dramatically elevating "HIPINE"’s visibility and credibility among the public and partners. The funds raised provide ample "ammunition" for strategic execution: per the prospectus, approximately 33.24% of net proceeds are earmarked for expanding and optimizing sales networks, strengthening brand building, and enhancing brand influence. This grants the company unprecedented resources to systematically shape its brand image and tell the story of "technology empowering gold"—a brand leap from "industry-renowned" to "publicly recognized" that directly strengthens consumer trust and terminal premium capacity, acting as a powerful amplifier of performance growth.
This brand momentum has yielded immediate feedback in sales channels, particularly in online e-commerce. Historically reliant on an extensive offline distribution network, the brand credibility and market attention from listing have effectively translated into online traffic and trust advantages. Consumers typically harbor higher quality expectations and purchasing confidence in listed companies’ products. Looking ahead, as HIPINE continues investing in brand building and omnichannel optimization, online e-commerce is poised to evolve from a supplementary channel into a faster-growing, direct user-connecting engine—further optimizing channel structure and boosting profitability.
Macro narrative of surging gold prices: seizing opportunities, meeting challenges, and achieving tech empowerment and brand upgrading. As widely known, the international gold market experienced a spectacular bull run in 2025, with London gold prices surging over 70% annually to exceed $4,400 per ounce. This rally transcends traditional safe-haven or inflation-driven logic, rooted instead in a profound macro narrative shift: market concerns over the global macro landscape, U.S. dollar credit, and high U.S. government debt have prompted global capital—especially long-term allocators—to systematically increase gold allocations as a core asset. Looking to 2026, markets generally anticipate gold prices will remain oscillating strongly at historical highs. This macro narrative shift has reinforced consumer perception of gold as "hard currency" and a wealth storage tool. For HIPINE, this represents not merely a cost cycle to navigate but a strategic window for transformation—both opportunity and challenge. As evidenced by the profit alert, HIPINE has capitalized on the 2025 gold bull market, upgrading products from "decorative jewelry" to "precision tech consumer goods with value preservation." Its unique solid gold hardening technology and Huawei-collaborative smart gold watches enable a differentiated "tech empowering gold value" narrative, appealing to a new generation of consumers valuing both material worth and smart experiences. This substantial net profit growth will significantly boost net assets, optimize financial ratios, and provide ample internal funding for R&D, market expansion, and capacity upgrading—reducing reliance on external financing and fostering a healthier development cycle. For capital markets, these factors serve as critical support for the company to navigate cycles and achieve value revaluation.
Conclusion: a report card宣告 the start of a new phase. HIPINE’s positive profit forecast signifies far more than a financial figure—it constitutes a concentrated progress report,宣告 the breakthrough,阶段性 success of the strategic transformation initiated years ago. This transformation marks an upgrade from an outstanding precious metal manufacturer to a precision tech consumer goods company boasting a strong brand, diversified product matrix, and cutting-edge technology integration capabilities. It validates management’s strategic foresight, the vitality of the "OBM + ODM" dual-drive model, and the company’s agility and dynamism in product innovation and market开拓. For investors, this announcement not only strengthens confidence in current value but, more importantly, delineates a credible path for sustained growth through intelligentization and internationalization. HIPINE’s performance leap is not an isolated peak but a solid starting point for a more competitive new phase.
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