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Physix Frontier · News Briefing Card (TMTPost · Oct 10, 2026)

XSKY Renews Hong Kong IPO Bid as Appliance Margin Falls to 18.9%

KEY FACTS

  • XSKY recently updated its prospectus and again filed an application for a main board listing on the Hong Kong Stock Exchange.
  • The company turned profitable in 2025, but profit in the first half of 2026 was only 307,000 yuan.
  • In the first half of 2026, the gross margin on its appliance business fell to 18.9%, dropping below 20%.
  • The company's R&D expense ratio fell from 65.9% in 2023 to 22.3% in the first half of 2026.
  • If the listing fails, founders Xu Xin and Wang Haomai will face pressure from share redemption obligations.

KEY DATA

307,000 yuanH1 2026 profit
18.9%H1 2026 appliance gross margin
22.3%H1 2026 R&D expense ratio
4.58 billion yuanPost-Series F valuation

PHYSIX OBSERVATION

XSKY uses high-margin software to keep up appearances, but its appliance gross margin falling below 20% exposes runaway hardware costs. The R&D expense ratio has halved in three years, cash flow continues to bleed, and the IPO looks more like life support than expansion. Although the AI storage track is hot, independent vendors have weak bargaining power under pressure from Huawei and Inspur, and investors need to watch out for redemption risk from valuation adjustment agreements.

Source: TMTPost report