Specializing in building a new foundation, breaking the two-track strategy: Sipni (02583)'s path to upgrading technology consumption to double profits
The Zhitong Finance App learned that on December 23, 2025, Shenzhen Sipni Precision Technology Co., Ltd. (stock code: 02583) released a positive profit forecast that excited the market. According to the data, based on unaudited management accounts for 11 months ended November 30, 2025, the Group recorded a net profit of over RMB 90 million, and the net profit for the full year of 2025 is expected to be significantly higher than the level of about 49 million yuan in 2024.
This nearly double performance forecast is a strong proof that the “two-wheel drive” business model and “branding+intelligence” strategic upgrade that Sipney has been adhering to for a long time have entered a period of harvest. It clearly sends a signal to the market that the company's financial fundamentals are undergoing qualitative changes, and growth is more resilient and sustainable.
The core driver of profitable growth: structural optimization instead of cyclical dependency
The announcement attributed the increase to two points: an increase in revenue from jewelry sales and an increase in gross margin from sales of watches. Behind these two simple points is a direct result of the company taking the initiative to optimize its product structure and profit model, which indicates that its growth momentum has changed from being more dependent on gold prices and a single category in the past to a healthier and more controllable endogenous drive.
Sipney has historically been famous for pure gold watches, but management has long been forward-looking to lay out the jewelry business line. The significant increase in jewelry sales revenue this time is a reflection of the success of this strategy. Jewelry products have the characteristics of rapid design iteration, diverse consumption scenarios, and a wider audience, and form perfect collaboration and complementarity with the watch business. Not only is it a new growth curve, but more importantly, it has effectively smoothed out performance fluctuations caused by fluctuations in precious metal prices or watch consumption cycles, making the company's revenue base more stable and diversified. This shift from “a watch company” to “a precision technology consumer goods company focusing on precious metals” has opened up a wider space for market capitalization imagination.
The increase in gross margin of watch sales is another highlight of this year's earnings. It directly reflects the overall improvement of the company's product added value, brand premium and cost control capabilities. This is mainly due to the following three factors:
The first is the high-end product structure. The company continues to launch products with more exquisite designs and higher technological content, such as the Forbidden City Cultural and Creative Co-branded Series and high-end smart gold watches. Not only are these products more expensive, but the cultural and technological value they carry has also significantly increased gross profit margins.
Second, “intelligent metalworking” enables cost optimization. The company's long-accumulated precision manufacturing technology and unique full-metal hardening technology have brought efficiency improvements and material optimization on the production side. The essence of the “money reduction without price reduction” strategy that the market is concerned about is to upgrade the product value composition through excellent process and design, that is, the share of raw material costs of gold decreases, while the share of process, design and brand value increases. This is a classic path for manufacturing companies to climb to both ends of the smile curve, and is a sign of increased competitiveness.
Finally, scale effects and channel bargaining power are evident. With the expansion of sales scale and the increase in brand influence, the scale effect of the company on the procurement and production side of the supply chain is becoming more and more remarkable. At the same time, its bargaining power over downstream channels is also increasing, which has jointly promoted the expansion of overall profit space.
“OBM+ODM” Dual Track Model: Co-Evolution from Robust Cornerstone to Growth Engine
Sipney's unique “private label (OBM) combined with OEM (ODM)” model proved to be extremely resilient and strategically flexible in this performance explosion. This model is by no means a simple business classification. It is a dynamic and balanced strategic system that maximizes the company's manufacturing capacity, diversifies market risks, and continuously accumulates brand assets through efficient collaboration between internal brand operations and external manufacturing services.
Among them, the private brand side (OBM) builds a solid value moat through the release of brand power. The independent brand business with “HIPINE (HIPINE)” as the core is the company's brand highland and profit core. Through continuous brand building, channel cultivation (covering more than 3,000 retail locations nationwide), and cooperation with technology giants such as Huawei on smart devices, the brand premium capacity of the OBM business continues to improve. This directly supports the significant improvement in the gross margin of the aforementioned watch and proves the company's success in transforming manufacturing advantages into brand value.
The ODM (OEM) business, on the other hand, provides design and manufacturing services for leading jewelry brands such as Zhou Dasheng and Lao Fengxiang. The rapid growth of this business is by no means a simple OEM, but a reflection of the company's value as a “high-end precious metals precision manufacturing solution platform” that is widely recognized. It has verified the company's leading position in R&D and manufacturing capabilities. It has not only contributed considerable revenue and cash flow, but also formed a virtuous cycle through cooperation with many brands to feed back its own brands' insight into market trends. The dual track is no longer a simple risk hedging; it forms a flywheel effect that empowers each other and grows collaboratively.
The parallel tracks of OBM and ODM have created a synergy effect that goes beyond simple addition. First, foundry has guaranteed production scale for many well-known brands, enabling Sipni to form a scale advantage in raw material procurement and core process research and development (such as full gold hardening technology), and to reduce the marginal cost of its own brand products. Second, the ODM business is an “information antenna” that maintains a broad reach with the market, enabling the company to gain insight into the product preferences of different channels and consumer groups, and providing valuable intelligence for product innovation and iteration of its own brands. This partnership is upgrading Sipney from a pure manufacturer to a platform for exporting “precious metal precision manufacturing solutions” to the industry.
In summary, Sipney's OBM+ODM model is essentially a set of precise commercial frameworks based on deep manufacturing capabilities and core technology to maximize the long-term value of the brand while flexibly responding to short-term market fluctuations and ensuring stable operation. It enables the company not only to enjoy the premium space brought about by brand growth, but also to obtain stable cash flow and risk buffers provided by the manufacturing business, which is its core competitiveness in dealing with complex market environments.
Intelligence and Internationalization: Expanding Wings for Future Growth
If Yingxi's announcement is an affirmation of past strategies, then the company's future-oriented layout provides clear guidance for its continued growth.
In terms of intelligent transformation, the company cooperated deeply with Huawei to open up a new racetrack, enabling Sipney to be the first in the world to launch an all-gold watch equipped with a smart movement, and successfully pioneered the “smart gold watch”, a new category integrating luxury goods, wearable electronics, and emotional connections.
This positioning has not only attracted traditional gold consumers, but also attracted young consumers seeking a sense of technology and quality. The revenue of the smartwatch business increased more than 80 times in 2024. Although the base is still small, it has proven its potential to explode, becoming a key step for the company to break the ceiling of the industry and connect to the Internet of Everything ecosystem.
In terms of internationalization, Sipney has an active layout and is ready to go. At present, the company has successfully introduced its products to the Malaysian market and received a positive response, which has accumulated valuable overseas operation experience. Precious metals culture has a deep foundation along the “Belt and Road” and in the Southeast Asia and Middle East markets. With its unique product strength, Sipney combines gold, intelligence and Oriental aesthetics. Its products have the potential to become a representative example of cultural export and consumption upgrading, and its overseas market expansion will be an important growth pole in the future.
It is worth noting that in November of this year, Sipney obtained the national “Specialized, Special and New Little Giant” certification. Although this certification was not a direct reason for its profit growth, it provided an authoritative endorsement of the company's technological attributes and consolidated its competitive barriers at a deeper level.
Specifically, Sipney's certification means that its deep cultivation in the field of precision processing of pure gold precious metals and watch manufacturing for more than ten years, as well as the technical moat built by its unique pure gold hardening technology, has been officially recognized by the national review system. It means that the company is not just a gold processor, but a technology-innovative manufacturing enterprise driven by material science and precision technology. This is enough to clearly distinguish it from traditional jewellery processing enterprises.
Currently, Sipni is in a critical transition period from traditional manufacturing to a “technology+consumer” brand upgrade. The core concept of “specialization, excellence and innovation” is in deep agreement with the company's transformation direction. The “specialization” model it encourages has strengthened the company's determination to focus on the main channel of precious metals precision technology.
It can be said that the certification of a giant that specializes in special technology affirms the strategic vision of the company's management from the outside, while internally it strengthens its confidence in deepening technological innovation and adhering to the high-end route, so that the “intelligent” transformation is no longer a risky test, but a rational extension based on its own core competencies and encouraged by the national industrial policy.
Listing Empowerment: Brand Growth and Centralized Release of Channel Dividends
When analyzing the endogenous dynamics of Sipney's performance growth, the external empowerment brought about by the company's successful listing on the Hong Kong Stock Exchange in September 2025 cannot be ignored. The listing itself was a high-intensity global brand exposure. The stock price surged 258.11% on the first day, and the market's enthusiastic response greatly increased the popularity and reputation of “HIPINE (HIPINE)” among the public and partners.
The capital raised from the listing provided sufficient “ammunition” for the company's strategy. According to the prospectus, about 33.24% of the net capital raised is planned to expand and optimize the sales network, strengthen brand building, and enhance brand influence. This means that the company has received unprecedented resources to systematically shape the brand image and tell the brand story of technology empowering gold. This brand transition from “industry fame” to “public recognition” directly enhances consumer trust and terminal premium capabilities, and is an important amplifier for performance growth.
This increase in brand power received immediate feedback on sales channels, especially in the online e-commerce business sector. In the past, the company's revenue mainly relied on a huge offline distribution network. The brand credibility and market attention brought about by the listing were effectively transformed into an advantage in online channel traffic and trust. Consumers often have higher quality expectations and consumer confidence in the products of a listed company. It is foreseeable that as the company continues to invest resources to strengthen brand building and omnichannel optimization, the online e-commerce business is expected to grow more rapidly from an auxiliary channel to a new engine that directly connects users, further optimizing the company's channel structure and improving profitability.
The macro-narrative of the sharp rise in gold: seizing opportunities to meet challenges and achieve technological empowerment and brand improvement
As we all know, in 2025, the international gold market experienced a spectacular super-bull market. The price of gold in London increased by more than 70% a year, breaking through 4,400 US dollars per ounce at one point. This round of the market has surpassed traditional risk aversion or inflation logic. Its core driving force is the market's deep pricing of the global macro landscape, concerns about US dollar credit and the US government's high debt, which prompted global capital (especially long-term allocation funds) to view gold as a core asset to systematically increase allocation. Looking ahead to 2026, the market generally believes that the price of gold will remain volatile at a historically high level.
Behind this round of the gold bull market is a profound macro-narrative shift, which has greatly strengthened consumers' perception of gold as a “hard currency” and a means of storing wealth. For Sipney, this is not only a cost cycle to deal with, but also a strategic window period to drive its own transformation. Simply put, it's both an opportunity and a challenge. Judging from Sipney's announcement of Yingxi, the company seized the opportunity window of the 2025 gold bull market and upgraded its products from “decorative jewelry” to “precision technology consumer goods with value preservation functions.” The company's unique pure gold hardening technology and the smart gold watch launched in collaboration with Huawei happen to be able to tell a differentiated story of “technology empowers the value of gold” in the “gold fever,” attracting a new generation of consumers who value both the value of materials and pursue an intelligent experience.
This sharp increase in net profit will significantly increase the company's net assets, optimize various financial ratios, provide more adequate endogenous financial support for subsequent R&D investment, market expansion and capacity upgrades, reduce dependence on external financing, and form a more virtuous development cycle. For the capital market, these are all important supporting factors for companies to cross the cycle and achieve value revaluation in the future.
Conclusion: A report card announcing the beginning of a new phase
The significance of Sipney's positive profit forecast far exceeds a financial figure. It is a centralized report on results, announcing that the company's strategic transformation, which began a few years ago, has achieved breakthrough and phased success. That is, the upgrade from an excellent precious metals manufacturer to a precision technology consumer goods company with a strong brand, diversified product matrix, and cutting-edge technology integration capabilities has been realized.
This proved the forward-looking nature and execution of the management strategy, verified the vitality of the “OBM+ODM” two-wheel drive model, and demonstrated the company's agility and vigor in product innovation and market development.
For investors, the announcement not only strengthened their confidence in the company's current values, but more importantly, clearly delineated a credible path for its continued growth through intelligence and internationalization. This jump in Sipney's performance is not an isolated high point, but a solid starting point for a new phase of more competitiveness.