Projector Giant XGIMI's Hong Kong Listing Clouded by Shareholder Sell-Off
XGIMI Technology, China’s leading projector manufacturer, is facing a wave of insider selling that casts a shadow over its strategic push for a Hong Kong listing, raising questions about its growth prospects as it grapples with a market slowdown and wavering performance.
The latest development came on Oct. 10, when the company announced that two early shareholders, Zhong Chao and Liao Yang, plan to sell a combined 1.98% stake. The move occurred just 11 days after XGIMI filed its application for an initial public offering in Hong Kong on Sept. 29, a critical step in its plan to secure more capital for global expansion.
The timing of the divestment, valued at approximately RMB 160 million yuan, has triggered market concerns about shareholder confidence during the sensitive pre-IPO window. Following the transaction, Liao Yang will have completely exited his position in the company.
This sell-off compounds the challenges for the once high-flying firm, which has seen its market value evaporate by over RMB 30 billion yuan from its 2021 peak. After two consecutive years of declining revenue, the company is now navigating a highly competitive market where its core home projector business is struggling with slowing consumer demand.
A Pattern of Exits
The planned divestment by Zhong and Liao is part of a broader trend of early investors cashing out. The two had previously reduced their holdings in April 2025, selling a combined 1.50% stake. While the company stated the sales were for "personal capital needs," the moves coincide with a significant rebound in XGIMI’s stock price.
After hitting a low of RMB 50.71 per share in August 2024, XGIMI's stock surged over 128% to trade around RMB 115.98 as of Oct. 10, 2025, creating a window for early backers to lock in profits.
Institutional investors have also been trimming their positions. Baidu-affiliated entities, an early backer, have been consistently selling shares since XGIMI’s lock-up period expired in 2022, including another reduction in April 2025. In February 2025, several partner firms linked to the company also announced plans to sell a combined 2.83% stake.
In a notable contrast, founder Zhong Bo has maintained his 18.79% stake, serving as an anchor for the company’s ownership structure and providing a measure of stability amid the exits.
Performance Under Pressure
The shareholder departures come as XGIMI’s financial performance remains under duress. The company's revenue fell 15.77% in 2023 and a further 4.27% in 2024. Net profit plummeted nearly 76% in 2023 and remained flat in 2024. XGIMI attributes the slump to a slow recovery in China's consumer market and a demand shift towards lower-priced, entry-level projectors, which has eroded its average selling price.
This is not an isolated issue. According to market research firm RUNTO, global projector shipments fell 4.2% year-over-year in the first half of 2025, while sales value declined 8.6%. XGIMI's heavy reliance on projector hardware and accessories—which accounted for 91.44% of its H1 2025 revenue—makes it particularly vulnerable to such market downturns.
However, the company showed signs of a turnaround in the first half of 2025, posting a 1.63% rise in revenue and a 2062% surge in net profit to RMB 88.66 million yuan, albeit from a low base.
Searching for New Growth
To reduce its dependency on a single market segment, XGIMI is actively pursuing two new business areas: automotive-grade projectors and overseas expansion. Both initiatives, however, face significant headwinds.
The push into the automotive sector requires substantial upfront R&D investment to meet the industry’s stringent safety and hardware standards. Furthermore, the in-car projector market is still nascent, with uncertain consumer demand and profitability.
Meanwhile, its global ambitions have yet to deliver a new growth curve. Despite entering major offline channels in Europe, North America, and Japan, XGIMI's overseas revenue fell 10.94% year-over-year in the first half of 2025 to RMB 399 million yuan, indicating a challenging path to becoming a second pillar of growth.
A Dual-Listing Gambit
XGIMI’s Hong Kong IPO plan is a key part of its strategy to navigate these challenges. The company, which listed on Shanghai's tech-focused STAR Market in 2021 with a valuation exceeding RMB 40 billion yuan, has seen its market capitalization shrink to just RMB 7.6 billion yuan.
By pursuing an "A+H" dual-listing structure, XGIMI aims to tap international capital markets for "ammunition" to fund global brand promotion, product R&D, and working capital. The move is seen as a strategic pivot to enhance its financing capabilities and support its internationalization efforts.
In a bid to counter market pessimism from the shareholder sell-offs, the company completed a share buyback program in May 2025, spending a total of RMB 299 million yuan (approximately US$41.5 million) to repurchase 4.60% of its total shares. The repurchased stock is slated for employee incentive plans, a move intended to signal confidence in its long-term value. Whether these capital maneuvers can successfully restore investor confidence and fuel a sustained recovery will depend on the outcome of its Hong Kong listing and its ability to deliver tangible growth in its new ventures.