ShenZhen Hipine Precision Technology (2583) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 27.2% YoY to RMB287.5m; profit increased 108.8% to RMB56.5m, supported by a higher gross margin and a favorable product mix.

• The business designs, manufactures and sells HIPINE-branded gold-case and gold-bezel watches, alongside ODM watch and accessory manufacturing and processing services.

Financial highlights

• Revenue was RMB287.5m, up 27.2% YoY; gross profit was RMB89.8m, up 58.2%, and gross margin expanded to 31.2% from 25.1%.

• Net profit was RMB56.5m versus RMB27.1m, up 108.8%; adjusted profit, excluding listing expenses and ECL impairment losses, was RMB61.1m versus RMB27.4m, up 123.2%.

• Basic EPS was RMB1.17 versus RMB0.56; profit before tax reached RMB69.2m versus RMB31.5m.

• Cost of sales increased 16.8% to RMB197.7m, below revenue growth; listing expenses were RMB4.3m versus nil in H1 2024.

Outlook and guidance

• Domestic OBM products have reached more than 3,000 offline retail outlets; expansion efforts include distribution in Malaysia and plans to explore the Middle East over the coming years.

• Listing proceeds are intended to expand production capacity, strengthen R&D, and develop marketing and service networks and brand recognition, including pursuit of smart-watch and accessories opportunities.

• China’s gold-watch demand is supported by gold’s cultural significance, investment value and appeal to younger consumers; brand, craftsmanship, innovation and distribution relationships are cited as competitive strengths.