Recently, SKG's parent company Future Wear Health Technology Co., Ltd. (“Future Wear”) once again submitted a Main Board listing application to the Hong Kong Stock Exchange. The sole sponsor is CITIC Construction Investment International.
This is the fourth time in four years that this Shenzhen health consumer company has hit the capital market: sprinting to GEM in 2022, terminating Beijing Stock Exchange mentoring in 2025, the first Hong Kong Stock Exchange filing failed in December 2025, and now it has broken through Hong Kong stocks once again by updating financial data.
From A-shares to the Beijing Stock Exchange to Hong Kong stocks, knocking on the door four times in four years — the future path to the listing of wearables reflects not only a company's capital obsession, but also the collective anxiety of the consumer technology circuit from traffic drive to value verification.
Revenue increased by 52% vs. net profit increased by 30.1%. The difference in growth rate rips apart the quality of profit
According to Zhitong Finance, as the operator of the SKG brand, which is well known to the public, the future will be deeply involved in smart and soothing wear tracks, focusing on shoulder, neck, waist, and eye massage equipment and fitness recovery equipment. It is an absolute leader in the domestic segment. It also takes the lead in participating in the formulation of national standards in the industry. The brand's influence is deeply rooted in the hearts of the people.
According to Frost & Sullivan, in terms of total product transactions, the company ranked first among domestic participants in China's smart and comfortable wearable device industry, with a domestic market share of 21.6% in 2025.
As the absolute leader in the segment, just looking at the prospectus, the book data for future wear is not bad.
From 2023 to 2025, the company achieved revenue of 1,046 billion yuan, 1,045 billion yuan, and 1,218 billion yuan respectively. The revenue scale exceeded 1 billion yuan. Revenue growth in 2024 was almost zero, but revenue rebounded 16.5% year-on-year in 2025. As of the first five months of 2026, the company's revenue was 646 million yuan, a sharp increase of 52% over the previous year. The short-term revenue recovery trend is obvious.
It is worth noting that what supports growth is no longer the popular massager that made SKG famous in World War 1.
The share of smart wearable devices, which contributed absolute revenue, fell all the way from 85.3% in 2023 to 70.9% in 2025, and fell further to 69.2% in the first five months of 2026. Revenue from core shoulder and neck massagers fell 8.6% year-on-year in the first five months of 2026. The increase was driven by fitness recovery and shaping equipment such as abdominal exercise machines and fascia guns. The share of revenue jumped from 9.4% in 2023 to 24.2% in 2025, with a year-on-year increase of 123% for the full year of 2025.
The problem, however, is that the profit margin for fitness equipment is far lower than that of massagers. In 2025, the gross margin of smart soothing wearables was 53.2%, and fitness recovery and shaping devices were only 42.1%. The latter was 11.1 percentage points lower than the former. As the revenue contribution of this category rises, overall gross margin continues to be under pressure. The gross margin for the first five months of 2026 was 48.2%, down from 50.7% in the same period in 2025.
The smart health watch business is in an even more difficult situation. In a context where mobile phone manufacturers such as Huawei and Xiaomi rely on their own strong ecology to lay out smartwatches, it is difficult for SKG without a terminal foundation to break through. The business will still sell for 48 million yuan in 2023, leaving only 5.56 million yuan in the first five months of 2026.
More goods are being sold, and profits are even thinner — this is the cost of future clothing diversification strategies.
This can also be seen from its net profit, which has almost “stepped back in place.” From 2023 to 2025, the company's profit for the period was 127 million yuan, 136 million yuan and 132 million yuan respectively. In the first five months of 2026, net profit increased 30.1% year on year to 61.6 million yuan, and the growth rate is still far below the 52% increase in revenue.
What is alarming is that the current profit level of future clothing is not even as high as the historical high from 2019 to 2020: at that time, the company's net profit to mother was 213 million yuan and 143 million yuan, respectively. From 213 million yuan in 2019 to 132 million yuan in 2025, revenue increased by more than 50% in six years, but net profit shrunk by nearly 40%. Increased revenue and no increase in profit have become a structural problem throughout the company's development history.
Furthermore, the most popular aspect of this IPO is the large dividend for future wear in 2025. The company declared a dividend of $199 million for the year and paid in September and October 2025. The dividend amount of 199 million yuan has exceeded the current annual net profit of 132 million yuan. Meanwhile, the actual controllers Liu Jie and Xu Siying hold a total of 85.94% of the voting rights, which also means that the vast majority of these dividends went to the actual controller's family.
Meanwhile, in the year of dividends, future interest-bearing bank loans increased from 70 million yuan in 2024 to 180 million yuan in 2025. The company's cash and cash equivalents also fell from $313 million at the end of 2023 to $95 million at the end of 2025. The financial operation of “left-handed dividends and right-handed borrowing” is clearly testing Hong Kong stock investors' bottom line of trust in corporate governance, while putting 180 million yuan in loans hanging in the balance.
As can be seen from the above performance, although future wearables are the absolute leader in the domestic smart and comfortable wearable device industry, concerns about profit quality and governance may still be the core pain point limiting the company's valuation.
The track is “long slopes and heavy snow”, but it is struggling with heavy sales over research
From an industry perspective, the smart and healthy wearable circuit where future wearables are located is in the development stage of “long slope, heavy snow, and intensifying internal roll”. The beta dividends of the industry are sufficient, but the pattern is scattered and competition is fierce, and the difficulty for leaders to break through continues to increase.
According to the prospectus data, China's smart wearable health device market grew from 36.4 billion yuan in 2020 to 71.1 billion yuan in 2025, with a compound annual growth rate of 14.4%. It is expected that from 2025 to 2030, the smart wearable health device market in China will grow at a CAGR of 14.9% to reach 142.1 billion yuan. The global market rose from US$26.4 billion in 2020 to US$46.6 billion in 2025, with a CAGR of 12.1%.
In the future, as public health awareness is upgraded and the number of sub-healthy people expands, light home health care and fragmented health care have become new consumer trends, and the growth logic of the smart health wearable circuit will also become more solid.
However, in the context of a prosperous industry, the core shortcomings of the racetrack are also prominent, putting a continuous pressure on future wear.
On the one hand, the industry landscape is highly fragmented, and internal competition continues to intensify. There are many entrants to the smart health wearable circuit. There are not only local competitors such as Pieasy and Aojiahua for many years, but also established overseas companies such as Philips and Panasonic to seize the high-end market. At the same time, technology giants such as Huawei have entered the market across borders, relying on ecological advantages to reduce the impact. Product homogenization in the industry is serious. Small and medium-sized manufacturers frequently launch price wars, continuing to reduce the overall profit space of the industry. Track dividends are shared by a large number of participants, making it difficult for leaders to monopolize the market with the advantage of scale.
On the other hand, track properties have natural ceilings. Smart massage wearable devices are optional consumer hardware. The characteristics of not immediate demand and low repurchases are remarkable. After the consumer's sense of freshness fades, their intention to make repeated purchases is low, making it difficult for enterprises to continue to generate revenue from existing users. Unlike smartwatches with high frequency consumption and continuous iteration, massage wearables are slow to iterate, function homogenize, and a business model that simply relies on hardware sales. Naturally, there is an upper limit on growth.
However, in this market environment where internal volume is intensifying, future wearables will still have a common problem in the “heavy marketing and light R&D” industry.
According to the prospectus, from 2023 to 2025, the company's R&D expenses fell from 95.51 million yuan to 73.28 million yuan, and the share of revenue shrunk from 9.1% to 6%, while the share of sales and marketing expenses increased from 20.6% in 2023 to 23.7% in 2025. In the first five months of 2026, future wearable R&D expenses fell further to 5.9%. Sales and marketing expenses during the same period were about 153 million yuan, which is about 4 times the R&D investment of 38 million yuan.
Since 2019, Future Wear has signed contracts with artists such as Yang Yang, Wang Yibo, Gulinaza, and Zhang Linghe, and has also sponsored “This! It's popular variety shows such as “Street Dance 3” and “The Sister Who Rides the Waves”. In August 2025, Wang Yibo was officially upgraded to SKG's “Global Spokesperson”.
It holds 1,554 patents (including 306 authorized invention patents), but is known as a “consumer product integrator” — the thickness of the technical barrier never depends on the thickness of the patent certificate, but on the depth that competitors cannot replicate. However, in this Hong Kong stock IPO, the primary use of future wearable capital raising is to “enhance basic research and development of health technology,” including smart wearable AI technology and digital medical platform construction. In other words, the company needs to use money from the secondary market to make up for technical courses that should have been consolidated during the development period.
Facing the “long slope, heavy snow, and intensification of internal circulation” industry environment, it will be difficult to build a strong moat for future wearables based on marketing and patent numbers alone. This also means that IPO fund-raising is only the starting point. The company still needs to continue to increase technology, products, and ecology, and change the depth of patents to the depth of competition in order to enhance competitiveness and achieve a breakthrough among the leaders.
epilogue
Looking at the fundamentals and industry pattern of future wearables, the company is a typical small but beautiful consumer segment leader: it has a national brand, a solid revenue base, a mature channel network, a stable foothold on the segmentation circuit, and has the basic ability to cross the industry cycle.
However, it is undeniable that the shortcomings in the company's growth are also clear. A business model that relies on marketing rather than technology, relies on inventory rather than growth, and relies on individual products rather than innovation, making it difficult for the company to break through the scale of segmented racetracks.
As a result, future wear is a typical “complex of contradictions” for investors. In the short term, future wearables can be recognized by the market's basic valuation with a stable basic market; however, in the long run, whether the company can break growth bottlenecks, reduce marketing dependency, increase R&D innovation, and cultivate a real second growth curve will determine its valuation height after listing.