ShenZhen Hipine Precision Technology (2583) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 33.8% YoY to RMB610.8m; net profit increased 106.5% to RMB101.9m, supported by accessory sales growth and higher watch gross margin.

• Adjusted profit, excluding listing expenses, was RMB117.1m, up 96.3% YoY.

Financial highlights

• Revenue was RMB610.8m vs RMB456.6m; gross profit rose 55.1% to RMB192.6m, and gross margin expanded to 31.5% from 27.2%.

• Profit before tax was RMB124.1m vs RMB58.7m; net profit was RMB101.9m vs RMB49.3m, while income tax expense increased to RMB22.2m from RMB9.3m.

• Basic EPS was RMB2.00 vs RMB1.02; profit attributable to owners was RMB101.9m.

• Cash and cash equivalents increased to RMB203.3m from RMB14.0m; inventories were RMB845.1m, trade receivables RMB87.8m and bank borrowings RMB139.6m.

Outlook and guidance

• Strategy targets channel deepening, international expansion, cultural and brand development, and product innovation; online investment will support JD.com, Tmall and Douyin channels.

• Planned R&D priorities include smart wearables, health monitoring, AI interaction and new materials; smart rings and smart jewelry are identified as potential growth categories.

• Malaysia distribution and retail partnerships provide a base for expansion in Hong Kong and Southeast Asia; Huawei cooperation and customized industry channels remain priorities.