On August 28th evening, Xgimi Technology Co.,Ltd. released its semi-annual report, showing revenue of 1.626 billion yuan for the first half of 2025, a modest increase of 1.63% year-over-year. Non-recurring net profit attributable to shareholders reached 77 million yuan, surging 616.8% compared to the same period last year.
Despite the significant net profit growth, Xgimi Technology's operating cash flow turned sharply negative at -440 million yuan, representing a severe cash drain that starkly contradicts the soaring net profit. In comparison, the company's operating cash flow was positive at 171 million yuan in the first half of 2024, making this year's performance particularly concerning both horizontally and vertically.
Recently, Xgimi Technology has been planning a Hong Kong stock listing to raise funds. However, after reaching its performance peak in 2022, the company has experienced consecutive declines in revenue and net profit. Profitability has dropped more than 70% from its peak, and the current stock price has fallen nearly 80% from its historical high. Notably, the company has conducted layoffs for three consecutive years, continuing its downsizing mode in the first half of 2025, with R&D personnel decreasing sharply by 22%. Whether such performance can attract Hong Kong investors remains questionable. During the stock price decline, Baidu, formerly the company's second-largest shareholder, continuously reduced its holdings, cashing out over 1 billion yuan (earning at least 700 million yuan in profits). Former management associates of the controlling shareholder cashed out approximately 120 million yuan, while employee stock ownership plans also conducted large-scale reductions totaling about 200 million yuan.
**Net Profit Surge Contradicts Negative Operating Cash Flow**
Xgimi Technology's main business involves the research, development, production, and sales of intelligent projection products, while providing consumers with accessories and internet value-added services related to smart projectors. Additionally, the company continuously expands projection application scenarios, entering the automotive intelligent cockpit and smart headlight sectors, providing vehicle optical solutions for customers. Main products and services include intelligent projection products and related accessories, internet value-added services, and automotive optical solutions.
In March 2021, Xgimi Technology successfully listed on the Science and Technology Innovation Board, raising 1.672 billion yuan and becoming the "first projection stock."
The company's performance peaked in its first and second years after listing. In 2022, revenue reached 4.222 billion yuan, and net profit attributable to shareholders hit 501 million yuan, both historical highs.
In 2023 and 2024, Xgimi Technology's revenue and net profit declined consecutively. Net profit particularly plummeted 76% in 2023, with the company's net profit attributable to shareholders reaching only 120 million yuan in 2024, 76% lower than the 2022 peak.
Xgimi Technology attributed the 2023 performance decline to macroeconomic factors affecting slow recovery in domestic projection market consumer demand. With domestic markets being the company's main revenue source, domestic projection product sales declined, leading to overall revenue reduction. Simultaneously, the company adjusted pricing for some products, causing gross margins and net margins to decline.
Clearly, Xgimi Technology faces a "double kill" situation of declining sales volume and prices in the domestic market. In the first half of 2024, the company even posted losses, with non-recurring net profit attributable to shareholders at -15 million yuan.
For the first half of 2025, Xgimi Technology achieved revenue of 1.626 billion yuan, up 1.63% year-over-year, and non-recurring net profit attributable to shareholders of 77 million yuan, surging 616.8%.
Despite the dramatic net profit increase, Xgimi Technology's operating cash flow surprisingly turned negative. Operating cash flow for the first half of 2025 was -440 million yuan, severely diverging from the 77 million yuan non-recurring net profit attributable to shareholders.
Historical comparison shows the company's operating cash flow was positive at 171 million yuan in the first half of 2024. Despite significant net profit growth this year, operating cash flow not only declined substantially but turned negative, representing severe "bleeding."
The divergence between net profit and operating cash flow indicates that Xgimi Technology's net profit hasn't converted to "real cash," suggesting insufficient quality in the profit surge.
Xgimi Technology explained that changes in operating cash flow were mainly due to settlement cycle impacts, with reduced cash receipts from goods sales and increased payments for strategic inventory building.
By the end of the first half of 2025, Xgimi Technology's inventory balance reached 1.184 billion yuan, growing 23% from 957 million yuan at the beginning of the period, far exceeding revenue growth (1.63% year-over-year) and cost changes (-4.4% year-over-year).
From inventory subcategories, finished goods and raw materials showed significant increases. By the end of the first half of 2025, finished goods inventory reached 616 million yuan, increasing 122 million yuan from 494 million yuan at the beginning of the period, a 24.69% growth rate exceeding revenue and cost growth rates.
Raw materials inventory reached 473 million yuan by the end of the first half of 2025, increasing 227 million yuan from the beginning of the year, a growth rate of 92.28%, far exceeding revenue and cost growth rates. Whether such large-scale inventory building is reasonable requires future performance validation.
**R&D Staff Reduced by 22%, Three Consecutive Years of Layoffs**
As of June 30, 2025, Xgimi Technology employed 580 R&D personnel, down 22.56% from 749 in the same period last year.
It's puzzling that Xgimi Technology is currently planning a Hong Kong IPO and operates as a Science and Technology Innovation Board listed company, where R&D work is crucial, yet significantly reduces R&D staff.
In fact, Xgimi Technology has been reducing staff for three consecutive years since 2022. According to Wind data, total employees at year-end from 2021-2024 were 2,715, 2,635, 2,448, and 2,225 respectively.
Although the semi-annual report doesn't disclose total employee numbers, calculations based on R&D staff proportions are possible. As of June 30, 2025, with 580 R&D personnel representing 28.84% of total staff, the company's estimated total workforce is 2,011, down 214 from year-end 2024. Xgimi Technology continued its layoff mode in the first half of 2025.
From recent overall performance, Xgimi Technology's revenue and net profit still lag behind 2022 peaks. This year's modest revenue growth of 1.63% and turnaround in non-recurring net profit don't necessarily indicate the company has completely escaped its performance decline trend, awaiting validation from full-year 2025 results. With performance not yet definitively out of the downward channel, continuous layoffs and sharp R&D staff reductions don't send positive signals for the company's Hong Kong IPO fundraising.
**Baidu Frequently Reduces Holdings, Cashing Out Over 1 Billion Yuan with Minimum 700 Million Profit**
Similar to overall performance decline trends, Xgimi Technology's stock price reached its historical peak of 614.43 yuan (ex-rights) in June 2021, then declined to a low of 50.71 yuan per share. As of August 20th closing, the stock price was 128.36 yuan per share, down nearly 80% from its historical high.
Interestingly, during Xgimi Technology's stock price decline, Baidu (Beijing Baidu Netcom Technology Co., Ltd. and its acting-in-concert party Beijing Baidu Biwei Enterprise Management Center, referred to as "Baidu Netcom" and "Baidu Biwei"), continuously conducted large-scale reductions.
From March 24 to May 20, 2022, Baidu Netcom cumulatively reduced 477,058 shares through block trades and centralized competitive trading, cashing out approximately 445 million yuan; Baidu Biwei cumulatively reduced 74,294 shares through centralized competitive trading, cashing out about 79 million yuan, totaling 525 million yuan.
From July 11 to August 24, 2022, Baidu Netcom cumulatively reduced 623,000 shares through block trades and centralized competitive trading, cashing out 210 million yuan; Baidu Biwei cumulatively reduced 312,033 shares through block trades and centralized competitive trading, cashing out 101 million yuan, totaling 311 million yuan.
From May 27 to August 25, 2024, Baidu Biwei reduced 240,741 shares through competitive trading and block trades, cashing out 91 million yuan; Baidu Netcom reduced 980,253 shares through competitive trading and block trades, cashing out 22 million yuan, with both shareholders totaling 114 million yuan.
In April 2025, Baidu Netcom transferred 700,000 shares through inquiry transfer at 111.06 yuan per share, cashing out 77.74 million yuan.
In summary, Baidu Netcom and Baidu Biwei cashed out over 1 billion yuan after Xgimi Technology's listing. According to the prospectus, in December 2017, Baidu Netcom subscribed to 711,699 yuan in company capital contribution, and Baidu Biwei subscribed to 237,233 yuan, with capital increase prices at 210.76 yuan per contribution unit, costing approximately 200 million yuan. In March 2018, shareholder Jiarui Commerce transferred 647,223 yuan in contribution units to Baidu Netcom at approximately 179.15 yuan per contribution unit, costing about 116 million yuan.
Currently, Baidu still holds 4% of Xgimi Technology shares but has already cashed out 1.029 billion yuan through reductions, earning 700 million yuan compared to its 316 million yuan investment cost. If Baidu reduces its remaining shares, the cash-out amount would be substantial.
Notably, Xgimi Technology's stock price began a strong rebound after bottoming out, partially related to the company's large-scale buybacks. On September 30, 2024, the company planned to repurchase shares through centralized competitive trading, with total funding between 150 million yuan (inclusive) and 300 million yuan (inclusive).
Xgimi Technology first implemented share repurchases on October 9, 2024. By May 30, 2025, the company completed repurchases, actually buying back 3.218 million shares using 298.58 million yuan (excluding stamp taxes and transaction commissions), approaching 300 million yuan.
The 300 million yuan repurchase was a significant driver of Xgimi Technology's stock price growth. On October 8, 2024, the stock closed at 90.15 yuan per share, reaching 116.58 yuan per share by May 30, 2020, with a peak of 136.98 yuan per share during the period.
During the stock repurchase period, numerous Xgimi Technology shareholders conducted large-scale reductions, including the aforementioned Baidu, plus Zhong Chao (cousin and former acting-in-concert party of controlling shareholder Zhong Bo), Liao Yang (former acting-in-concert party, former director, CFO and secretary of controlling shareholder Zhong Bo), Liao Chuanjun (former acting-in-concert party of controlling shareholder Zhong Bo), and employee stock ownership plans Chengdu Xgimi Enterprise Management Consulting Partnership (Limited Partnership) ("Chengdu Xgimi") and Chengdu Kaixin Mihua Enterprise Management Consulting Partnership (Limited Partnership) ("Kaixin Mihua").
Among these, Zhong Chao and Liao Yang transferred 700,000 and 350,000 shares respectively in April 2025 at 111.06 yuan per share, cashing out 77.74 million yuan and 38.87 million yuan respectively.
In February 2025, Chengdu Xgimi transferred 1,505,959 shares at 102.00 yuan per share, while Kaixin Mihua transferred 402,948 shares, with both employee stock platforms totaling 195 million yuan in cash-outs.
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