New Stock News | xTool submits application to Hong Kong Stock Exchange as a globally leading brand of laser-based personal creative tools.

According to the disclosure by the Hong Kong Stock Exchange on January 1, xTool Innovate Limited (referred to as xTool) has submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with Morgan Stanley and Huatai International as its joint sponsors. Company Profile The prospectus shows that xTool is a global high-end consumer technology brand dedicated to empowering creative creations from digital to physical. xTool is the world's leading laser-based personal creative tool brand, holding 37% market share by GMV in the first nine months of 2025. xTool is also the largest and fastest-growing brand in laser engraving and cutting machines, with a 47% market share by GMV in the first nine months of 2025, six times larger than the second-largest brand and surpassing the market share of brands ranked second to tenth combined. Since the launch of its first semiconductor laser engraving and cutting machines in 2021, the company's products have quickly gained global attention, with over 405,000 networked devices worldwide as of September 30, 2025. With the continuous expansion of its product portfolio, the brand is increasingly recognized by global creators. The company aims to become a global leader in the field of personal creative tools and redefine the way creations are made in the physical world through technology empowerment. xTool develops and sells laser personal creative tools and material printers to customers (mainly including individual consumers, small business owners, and brand retailers), as well as related compatible accessories and consumables. These technology-empowered products help users efficiently and creatively transform ideas into precise and high-quality products. As of December 23, 2025, the company's products have been sold to more than 80 countries and regions. During the historical period, laser personal creative tools were the core product category of xTool, including laser engraving and cutting machines, as well as laser welding machines and CNC cutting machines. Building on the success of its laser products, xTool began selling garment printers in 2025 as part of its new material printing machine business line. The introduction of garment printers marks the beginning of a broader product roadmap, with xTool planning to launch more material printers and complementary solutions to further enrich the company's product portfolio. In addition to core machine product categories, xTool also sells a variety of consumables to drive customer repurchase. xTool provides users with flagship software xTool Studio for free, a comprehensive desktop software designed to simplify the entire creative workflow from design to engraving, cutting, and printing. The software features a clean, easy-to-navigate interface, with a centralized homepage showcasing popular project templates and integrating a creative assistant AIMake, which is designed to help users easily create project designs that can be directly produced. xTool Studio supports precise project customization and real-time processing preview. Financial Information Revenue For the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company recorded revenues of approximately RMB 14.57 billion, RMB 24.76 billion, and RMB 17.77 billion, respectively. Net Profit For the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company reported net profits of approximately RMB 1.11 billion, RMB 1.49 billion, and RMB 83.12 million, respectively. Gross Margin For the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company's gross margins were 59.2%, 54.4%, and 56.0%, respectively. Industry Overview Technology-empowered personal creative tools are a range of advanced technical equipment that enables individual creators and small businesses to transform creative ideas into tangible physical products through digital and intelligent means. By GMV, the global market size of technology-empowered personal creative tools is rapidly growing, expected to expand from USD 6.8 billion in 2024 to USD 39.1 billion in 2030, with a compound annual growth rate of 33.8%, further expanding to USD 87.0 billion in 2035, with a compound annual growth rate of 17.3%. By GMV, the global market size of non-additive personal creative tools is expected to grow significantly, from USD 1.7 billion in 2022 to USD 38.4 billion in 2035. This expansion is mainly driven by material printing personal creative tools (expected to grow from USD 100 million to an estimated USD 20.4 billion by 2035). Laser-based personal creative tools also show strong growth, increasing from USD 400 million in 2022 to USD 7.9 billion in 2035. The global penetration rate of laser-based personal creative tools is expected to increase from approximately 11.2% in 2022 to around 15.3% in 2024. With the expanding market demand and continuous technological advancements, this segment is expected to achieve further growth in the coming years. The global market for material printing personal creative tools is expected to experience rapid growth, increasing from USD 200 million in 2024 to USD 20.4 billion in 2035, corresponding to a compound annual growth rate of 77.0% from 2024 to 2030, and a compound annual growth rate of 22.1% from 2030 to 2035. Among these tools, UV printers demonstrate particularly strong expansion potential in the long term, with a compound annual growth rate of 169.6% from 2024 to 2030, and 20.0% from 2030 to 2035. Board Information The board of directors consists of seven directors, including four executive directors and three independent non-executive directors. Equity Structure Founder, chairman, CEO, and executive director Mr. Wang has the right to exercise approximately 31.38% of the company's total voting rights through WRC Vitality Eager Limited (a company owned 88.06% by Freedom EvoTech Limited, 10.94% by JinQiu Tenacity Ltd, and 1% by Fly EvoTech Limited). Freedom EvoTech Limited is fully owned by Vistra Trust (Singapore) Pte. Limited as the trustee of the Freedom EvoTech Trust (established by Mr. Wang as the settlor and protector), with Fly EvoTech Limited, fully owned by Mr. Wang, as the beneficiary. Intermediary Team Joint Sponsors: Morgan Stanley Asia Limited, Huatai Financial Holdings (Hong Kong) Limited. Company Legal Advisors: For Hong Kong and US law: Davis Polk & Wardwell; For Chinese law: JunHe LLP; For Cayman Islands law: Walkers. Joint Sponsors' Legal Advisors: For Hong Kong and US law: Ropes & Gray International LLP; For Chinese law: Jia Yuan Law Offices. Auditors and Reporting Accountants: KPMG. Industry Consultant: Zhishi Enterprise Management Consulting (Shanghai) Co., Ltd. Compliance Advisor: Wharf Capital Limited.