XGIMI Technology, the "first projector stock," is weathering a storm of declining sales, rising receivables, frequent shareholder sell-offs, and severe operating cash flow pressure. Can its upcoming Hong Kong IPO solve these immediate woes?
Despite maintaining its dominance as China’s top-selling projector brand for seven consecutive years and ranking as the world’s second-largest projector brand with a 5.6% market share in 2024, XGIMI is grappling with internal challenges. On October 10, post-market, the company announced that co-founders Zhong Chao and Liao Yang planned to sell shares for "personal funding needs." Zhong offloaded 1.2% (retaining 2.4%), while Liao divested 0.78%, exiting entirely. At the closing price of ¥115.95/share, their combined sell-off exceeded ¥150 million ($21M). This follows their April 2024 divestment of 700K and 350K shares, respectively.
Notably, Baidu’s entities—including Hong Kong Securities Clearing (holding 5.94%, down 0.61% QoQ) and Baidu Online Network Technology (controlled by Robin Li, holding 4.37%, down 2.68% QoQ)—have aggressively reduced stakes. Since 2022, Baidu-affiliated entities have cashed out ¥915 million ($128M) via six sell-offs. Employee持股 plans also trimmed holdings by 1.6% to 3.3%.
XGIMI’s stock has plummeted 82% from its peak of ¥614.43 to ¥113.70 (market cap: ¥7.96B/$1.1B). ASPs for its projectors fell 20.59% (long-throw), 57.14% (short-throw), and 13.33% (innovative products) from 2022–2024. Domestic revenue slid annually to ¥22.29B in 2024, while overseas sales grew to ¥1.09B.
Alarmingly, operating cash flow turned negative (-¥507M in Q1–Q3 2025 vs. +¥52.1M YoY), attributed to delayed collections and inventory costs. Receivables surged to ¥270M (H1 2025), inventory swelled to ¥1.15B, and short-term debt hit ¥690M. A ¥25M patent licensing fee to Appotronics also looms.
For its Hong Kong IPO (targeting $100M), XGIMI plans to fund overseas expansion,车载投影 R&D, and production upgrades. Its车载投影 unit, supplying Seres, JAC, and BAIC, remains sub-5% of revenue. Despite R&D spending rising to 12.15% of revenue (¥300M in 9M 2025) and 418 patents, competition from坚果,当贝,小米, and Epson pressures margins.
Recent accolades (EISA Awards, VGP 2025 wins) and a new Vietnam factory (1M-unit capacity) bolster its global push. Yet, with mounting costs, the IPO appears critical for survival. Will markets endorse XGIMI’s turnaround bid? The answer hinges on its港股 debut.