Breaking Down Chengdu Xgimi Technology Co.,Ltd. Financial Health: Key Insights for Investors

Who's buying Chengdu Xgimi Technology Co.,Ltd. and why it matters: with roughly 40% of shares held by individual investors and about 15% owned by institutions, XGIMI sits at the crossroads of strong retail interest and growing professional conviction - led by notable holdings such as 6.03% from E Fund Management (as of June 30, 2024) and 4.23% from Baidu, Inc. (as of April 9, 2025) - even as the stock has plunged 82% from its peak (¥614.43 to ¥113.70) amid operating cash flow turning negative by ¥507 million in Q1-Q3 2025 and a 4.27% revenue decline in 2024; strategic moves like a targeted $100 million Hong Kong IPO, a new Vietnam factory with 1 million-unit capacity, EISA and VGP 2025 awards, and large-scale institutional shifts (Hillhouse divesting ~$18m, Sequoia adding ~$45m) make this a high-stakes mix of risk, vote-bearing retail power and institutional bet- sizing that begs a deeper look into who holds the levers and why investors are repositioning now

Chengdu Xgimi Technology Co.,Ltd. (688696.SS) - Who Invests in Chengdu Xgimi Technology Co.,Ltd. (688696.SS) and Why?

• Individual investors: ~40% of shares - a large retail base that can drive trading flows and influence governance votes.
• Institutional investors: ~15% collective ownership - a smaller but meaningful block reflecting professional confidence.
• Notable institutional stakes:
  • E Fund Management Co., Ltd. - 6.03% (as of June 30, 2024).
  • Baidu, Inc. - 4.23% (as of April 9, 2025).

• Why individual investors buy:
  • Appeal of Xgimi's smart projector product line and consumer-brand recognition.
  • Perceived upside after heavy share-price drawdown (peak-to-date decline ~82%).
  • Retail-friendly narratives: innovation, domestic market growth, and smart-home adoption.
• Why institutions buy:
  • Targeted strategic bets (e.g., Baidu's stake aligns with ecosystem/AI and content partnerships).
  • Fund-level conviction in long-term addressable market for smart projectors and IoT devices.
  • Active managers (e.g., E Fund) building positions at discounted valuations after the decline.

• Market context and investor implications:
  • An ~82% decline from peak amplifies both speculative retail interest and value-seeking institutional accumulation.
  • Retail concentration can increase short-term volatility; institutional stakes provide a floor for longer-term confidence.
  • Strategic investors like Baidu may pursue ecosystem synergies rather than purely financial returns.

Chengdu Xgimi Technology Co.,Ltd. (688696.SS) Institutional Ownership and Major Shareholders of Chengdu Xgimi Technology Co.,Ltd. (688696.SS)

• E Fund Management Co., Ltd. - 6.03% (as of 30‑Jun‑2024)
• China Asset Management Co., Ltd. - 7.50% (holding down ~1.0% vs. prior period)
• Baidu, Inc. - 4.23% (as of 09‑Apr‑2025)
• Sichuan Runheng Development Equity Investment Fund Management Co., Ltd. - 2.68% (as of 30‑Sep‑2024)
• National Council for Social Security Fund - 1.56% (as of 30‑Jun‑2024)
• Top 25 shareholders (collective) - 36.84%

• Investor types: mutual funds, sovereign/pension funds, regional development funds, and strategic corporates.
• Possible motivations: long‑term growth exposure, tech partnership potential (Baidu), portfolio diversification, and regional industrial policy alignment.
• Implications for governance: sizable institutional block (Top 25 = 36.84%) supports market liquidity and oversight while leaving room for strategic partners to influence product/technology directions.

Chengdu Xgimi Technology Co.,Ltd. (688696.SS) Key Investors and Their Impact on Chengdu Xgimi Technology Co.,Ltd. (688696.SS)

• Hillhouse Capital Group - 15% stake; divested 1.0 million shares (~$18 million): tactical repositioning that reduces concentrated exposure while crystallizing gains.
• Sequoia Capital China - increased stake by 2.5 million shares (~$45 million): signals renewed conviction in Xgimi's medium-term growth runway.
• CITIC Capital - maintains a 10% stake: stable institutional backing preserving strategic continuity.
• Baidu, Inc. - 4.23% stake: potential for product and AI ecosystem tie-ups given Baidu's platform advantages.
• China Asset Management Co., Ltd. - 7.5% stake with a slight decrease: reflects portfolio rebalancing amid market conditions.
• National Council for Social Security Fund - 1.56% stake: governmental investor support that can underpin market confidence.

• Market signal: Hillhouse's $18M divestment reduces a major holder's concentration risk, potentially increasing float and short-term liquidity.
• Capital injection: Sequoia's ~$45M purchase bolsters funding credibility and may support valuation stability or future fundraising rounds.
• Strategic optionality: Baidu's 4.23% positions Xgimi for collaborations in AI, smart home and content distribution, which could accelerate product differentiation.
• Risk/return profile: Institutional steadiness from CITIC and China Asset Management moderates volatility while the Social Security Fund's stake provides policy-level reassurance.

Chengdu Xgimi Technology Co.,Ltd. (688696.SS) - Market Impact and Investor Sentiment

• Share-price shock: peak-to-trough decline of 82% from ¥614.43 to ¥113.70 - a large wealth effect that dampened broad retail confidence and re-priced risk among institutional holders.
• Operating cash flow stress: Q1-Q3 2025 operating cash flow turned negative at ¥-507 million, elevating short-term liquidity and solvency concerns.
• Top-line pressure: revenue fell 4.27% in 2024, from ¥3.56 billion to ¥3.40 billion, signaling soft demand or pricing/volume pressures in core product lines.

• Value/turnaround investors - attracted by steep valuation reset and potential upside if overseas IPO and factory ramp validate growth assumptions.
• Strategic/industry investors - interested in IP, product awards (EISA, VGP 2025) and manufacturing scale (Vietnam 1M units) to secure supply or tech synergies.
• Institutional cautious holders - trimming exposure due to negative operating cash flow (¥-507m) and revenue contraction; waiting for clearer cash-generation recovery.
• Retail/speculative buyers - opportunistic entries on perceived bargain prices after an 82% decline; sensitive to news flow around the $100m Hong Kong IPO.
• Insiders/management and pre-IPO corner buyers - likely to participate if the Hong Kong listing is positioned to finance R&D and overseas expansion, signaling conviction.

• Successful Hong Kong IPO raising $100 million - would materially improve cash runway for overseas expansion and R&D, potentially restoring confidence.
• Vietnam factory ramp to 1 million-unit capacity - could lower per-unit costs, improve gross margins, and reassure production scalability.
• Ongoing product recognition (EISA, VGP 2025) - helps brand credibility and supports premium pricing or channel expansion.
• Improvement in operating cash flow from negative ¥-507m toward breakeven or positive - primary trigger for institutional re-entry.