Comprehensive Evaluation of the Investment Value of Haizhi Technology's Hong Kong IPO

(abbreviated as “Haizhi Technology”) was founded on August 23, 2013, with its headquarters in Beijing Economic and Technological Development Zone. It is a leading enterprise in China’s [1].

• June 17, 2025: Formally submitted a main board listing application to the Hong Kong Stock Exchange, with CMB International, BOC International, and Shenwan Hongyuan Hong Kong serving as joint sponsors
• December 23, 2025: Updated the prospectus, adding business data as of June 30, 2025
• January 5, 2026: Obtained the “full circulation” filing from the China Securities Regulatory Commission (CSRC) for overseas issuance and listing and domestic unlisted shares, planning to issue no more than
  47,584,600
  overseas listed ordinary shares [1][2]

Haizhi Technology’s core competitiveness lies in using

to develop AI systems that are both intelligent and reliable:

1. DMC Data Intelligence Platform
   : Processes data from different sources and types to achieve integrated data governance and analysis
2. Atlas Knowledge Graph Platform
   : Deeply mines and explores graph data
3. AtlasGraph Graph Database
   : Provides a foundation for knowledge graph storage and complex graph computing
4. Atlas Agent
   : AI agent developed based on graph-model fusion technology (launched in September 2023)

• Does not develop proprietary large language models; mainly develops and adapts based on
  open-source large language models
  (such as DeepSeek and Tongyi Qianwen), commercial large language models, and industry-specific large language models
• Adopts a pragmatic business model of “free first, then charge”: Accumulates users through open-source in the early stage, then sells advanced tools, customized solutions, and technical support in the later stage

Financial Indicator	2022	2023	2024	H1 2025
Revenue (RMB 100 million)	3.13	3.76	5.03	1.73
Growth Rate	-	+20.1%	+33.8%	-
CAGR (2022-2024)	26.8%	-	-	-

• Revenue share of Atlas knowledge graph solutions: Decreased from 100% in 2022 to 72% in H1 2025
• Revenue of Atlas Agent: Grew from RMB 0 in 2023 to
  RMB 86.6 million
  in 2024, a year-on-year increase of
  872.2%
  , accounting for 28% of revenue [4]

Profitability Indicator	2022	2023	2024	H1 2025
Net Loss (RMB 100 million)	1.76	2.66	0.937	1.28
Gross Profit Margin	30.9%	35.2%	36.3%	38.5%

• Cumulative loss of RMB 664 million over three and a half years, but
  loss magnitude shows a narrowing trend
• Gross profit margin continues to improve, from 30.9% in 2022 to 38.5% in H1 2025, mainly due to:
  • Progress in AI technologies such as LLMs
  • Strategic optimization of cost structure
  • Improvement in operational and fulfillment efficiency

• As of the end of June 2025, the company has
  640 employees
  in mainland China
• 489 members
  in R&D and technical teams, accounting for
  76.4%
  of total employees
• Large early-stage investment, mainly used to upgrade existing products or technologies and accelerate commercialization

According to Frost & Sullivan data:

• Based on 2024 revenue, Haizhi Technology holds over
  50% market share
  in
  China’s graph-core AI agent market
  , continuing to lead the industry
• Occupies a
  top position
  among cross-industry AI agent providers [4]

• As of the end of 2024, has cooperated with
  more than 300 customers
• Customer groups include many
  leading financial institutions
  and
  large state-owned enterprises

• Industrial AI solutions are widely applied in over
  100 practical scenarios
  such as
  anti-fraud, intelligent marketing, risk identification, and intelligent manufacturing
• Services cover multiple industries including
  finance, energy, and healthcare

1. Technology Moat
   : Graph-model fusion technology that combines knowledge graphs with large language models
2. First-mover Advantage
   : Holds over 50% market share in the graph-core AI agent market
3. High-quality Customer Base
   : Leading financial institutions and state-owned enterprise customers with strong stickiness
4. Star Team
   : Academician Zheng Weimin of the Chinese Academy of Engineering serves as chief scientist
5. Top Capital Endorsement
   : Has received investments from multiple top investment institutions such as Legend Capital, Hillhouse Capital, IDG, and CNCIC

Market	2025 Size	2029 Forecast	CAGR
China’s Industrial AI Solutions	65.4 billion yuan	286.1 billion yuan	44.6%
Industrial AI Agents (Segment)	-	-	71.3%

• Industrial AI agents are a
  high-growth segment
  , with an expected CAGR of
  71.3%
  from 2024 to 2029
• Haizhi Technology is in this high-growth track and has established a market leadership position

2025 Hong Kong Stock AI Company IPO Boom:

• Zhipu AI
  : Launched招股 on December 30, plans to list on January 8, 2026, with an expected market value exceeding
  HK$51.1 billion
  , the “world’s first large model stock”
• MiniMax
  : Launched招股 on December 31, with a valuation of
  HK$46.1-50.4 billion
• Pony.ai and WeRide
  : Listed on the same day (November 6), the new stocks with the highest fundraising amount in the Hong Kong AI field in 2025
• Biren Technology
  : Domestic GPU enterprise, raised
  HK$5.583 billion
  in IPO [3]

: Multiple AI enterprises such as SenseTime, 4Paradigm, and Minerva Intelligence have formed a cluster effect [5]

For AI companies,

:

• Price-to-Earnings Ratio (PE)
  : Most AI companies are not yet profitable, so it cannot be used
• Price-to-Sales Ratio (PS)
  : US AI leader OpenAI has a valuation of US$830 billion based on expected 2025 revenue of US$13 billion, with a PS ratio as high as
  63x
• Domestic AI Companies Are Generally Undervalued
  : Compared with US peers, domestic AI companies are often at an undervalued node [5]

Based on web search data and market information:

• Goldman Sachs maintains a “Buy” rating with a target price of
  HK$3.53
• Forecasts
  turning profitable in 2026
  with EBITDA reaching
  RMB 205 million
• Generative AI revenue contribution rate will reach
  91% in 2030
• Valuation method: Adopts
  two-stage DCF model
  and
  2026 expected EV/Sales ratio
• Has an
  upside potential of 73%
  compared to the current stock price [6]

• Market value has been surpassed by companies like Meitu and Unisound
• As an AI software company, mainly uses
  PS multiple
  for valuation
• The market’s PS valuation range for AI software companies is approximately
  5-10x
  (inferred from search results) [5]

• Price-to-Sales ratio as high as
  102.69x
• Price-to-Earnings Ratio (TTM)
  365.25x
• Market value
  US$400.084 billion
• Shows that the US market gives extremely high valuation premiums to AI data intelligence companies [5]

Compared with other global markets,

:

• Even after stock price increases, the valuations of Hong Kong AI leaders such as Alibaba and Baidu (about
  20x PE
  ) are still far lower than US peers like NVIDIA, whose PE ratios are often
  50-60x
• This huge “
  valuation discount
  ” is the key source of attractiveness for Hong Kong’s new economy assets [5]

• Strong revenue growth with a
  26.8% CAGR
  (2022-2024)
• Atlas Agent revenue grew
  872.2% year-on-year
  in 2024, showing explosive growth
• The track it is in (industrial AI agents) has a CAGR of
  71.3%
  over the next 5 years

• Business is significantly affected by seasonality, with revenue usually higher in the second half of the year
• Revenue in H1 2025 was RMB 173 million; need to pay attention to full-year completion

• Gross profit margin continues to improve, from 30.9% to 38.5%
• Loss magnitude narrowed: Net loss in 2024 was RMB 93.7 million, a decrease of 64.8% compared to 2023

• Has not yet achieved profitability; cumulative loss of RMB 664 million over three and a half years
• Large early-stage investment for product upgrades and accelerating commercialization
• Accounts receivable period has extended
  , facing certain pressure [2]

• Graph-model fusion technology has uniqueness
• Holds over
  50% market share
  in the graph-core AI agent market
• Academician Zheng Weimin of the Chinese Academy of Engineering serves as chief scientist
• Has a complete independent technology stack (data platform + knowledge graph + graph database + agent)

• Does not develop proprietary large language models, relying on open-source and commercial LLMs, which may face technology dependence risks
• LLM technology iterates rapidly; needs to continuously maintain technological leadership

• China’s industrial AI solutions market has a CAGR of
  44.6%
  from 2025 to 2029
• AI agent segment has a CAGR of
  71.3%
• Strong digitalization demand in industries such as finance, energy, and healthcare
• Has served more than 300 customers, including leading financial institutions and state-owned enterprises

• Intensified competition: Tech giants and AI unicorns are entering the market one after another
• Customer concentration risk (e.g., high proportion of leading financial institutions)

• Founder Ren Xuyang is a serial entrepreneur and serves as chairman
• CEO Yang Zaifei is a successful serial entrepreneur
• Received investments from top institutions such as Legend Capital, Hillhouse Capital, IDG, and CNCIC
• The board of directors includes senior professionals like Li Jiaqing (President of Legend Capital) and Long Yu (Founder of Bertelsmann Capital)

• Whether the management team can handle public company governance and large-scale operations after listing
• Equity dilution risk: Founder team’s shareholding ratio after multiple rounds of financing

1. Sustained Loss Risk
   : Cumulative loss of RMB 664 million over three and a half years, not yet profitable

2. Accounts Receivable Risk
   : Extended accounts receivable period may affect cash flow and asset quality [2]

3. Technology Dependence Risk
   : Does not develop proprietary large language models, relying on third-party LLMs, which may face technology supply risks

4. Intensified Market Competition
   : AI track is hot, with large companies and unicorns entering the market, leading to increasingly fierce competition

5. Hong Kong Stock Liquidity Risk
   : Hong Kong market has relatively low liquidity, which may affect stock liquidity

6. Valuation Bubble Risk
   : The AI industry has high overall valuations, with potential correction risks

Impact of “full circulation” of domestic unlisted shares:

• Positive
  : Increases the supply of tradable shares, improves stock liquidity; original shareholders can cash out, increasing listing motivation
• Negative
  : May bring short-term selling pressure; dilutes the shareholding ratio of public shareholders

Based on comparable company valuation methods:

• Assume full-year 2025 revenue is RMB 600 million (based on H1 173 million, considering higher proportion in the second half due to seasonality)
• Valuation = 600 million ×5 =
  RMB 3 billion
  (approximately
  HK$3.2 billion
  )

• Valuation =600 million ×8=
  RMB4.8 billion
  (approximately
  HK$5.1 billion
  )

• Valuation=600 million ×12=
  RMB7.2 billion
  (approximately
  HK$7.7 billion
  )

The above valuations are only rough estimates based on limited information; actual valuations are subject to the official disclosure in the prospectus

• Long-term Value Investors
  : Believe in the long-term trend of the AI industry and can bear short-term fluctuations
• Growth Investors
  : Focus on leading companies in high-growth tracks
• Hong Kong Stock Tech Enthusiasts
  : Familiar with the Hong Kong market and optimistic about the AI sector

• Short-term speculators
• Investors with low risk tolerance
• Investors with little understanding of the AI industry

• If the issuance valuation corresponds to a PS multiple in the
  5-8x
  range, consider active subscription
• If the issuance valuation corresponds to a PS multiple exceeding
  10x
  , need to evaluate carefully
• Pay attention to the
  cornerstone investor
  lineup and subscription ratio

• Long-term Holding
  : Optimistic about the long-term trend of the AI industry, can hold for 3-5 years
• Band Operation
  : Pay attention to AI industry catalytic events and performance inflection points
• Stop-Loss Discipline
  : Set a reasonable stop-loss level (e.g., -20% to -30%)

After listing, focus on:

1. Sustainability of Revenue Growth
   : Whether it can maintain a CAGR of over 30%
2. Progress of Profitability Improvement
   : When to achieve break-even
3. Changes in Gross Profit Margin
   : Whether it can be maintained or improved
4. Customer Expansion
   : Number and quality of new customers
5. Accounts Receivable Turnover
   : Recovery of accounts receivable
6. Cash Flow Status
   : Whether operating cash flow improves
7. Industry Policies
   : Changes in AI industry regulatory policies

1. Track Advantage
   : Industrial AI agent market has a CAGR of71.3%, in the early stage of explosion
2. Market Position
   : Holds over50% market share in the graph-core AI agent market, with a solid leading position
3. Technical Differentiation
   : Graph-model fusion technology has uniqueness, building a moat
4. Customer Quality
   : Leading financial institutions and state-owned enterprise customers with strong stickiness and high customer unit price
5. Hong Kong Stock AI Ecosystem
   : Hong Kong AI sector has obvious cluster effect, with room for valuation improvement
6. Valuation Depression
   : Compared with US AI companies, Hong Kong AI enterprises are generally undervalued

1. Not Yet Profitable
   : Sustained losses affect investor confidence
2. Accounts Receivable Risk
   : Extended period and cash flow pressure
3. Intensified Competition
   : AI track competition is white-hot
4. Hong Kong Stock Liquidity
   : Relatively low liquidity
5. Valuation Bubble
   : The AI sector has high overall valuations, with potential correction risks

• Long-Term Investment Value
  : ★★★★☆ (4/5 Stars) - Industry leader, high-growth track, technical barriers
• Short-Term Investment Value
  : ★★★☆☆ (3/5 Stars) - Loss pressure, competition intensification, market volatility
• Risk-Adjusted Return
  : ★★★★☆ (4/5 Stars) - High risk and high return, suitable for investors with higher risk appetite

Haizhi Technology, as a leading enterprise in China’s graph-model fusion AI field, holds a leading position in the high-growth industrial AI agent market and has long-term investment value. However, the company is not yet profitable and faces risks such as accounts receivable and intensified competition. It is recommended that consider participating in the reasonable valuation range and prepare for long-term holding.

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[0] Jinling API Data
[1] Sina Finance - “Haizhi Technology’s Hong Kong IPO Obtains CSRC Filing” (https://finance.sina.com.cn/roll/2026-01-05/doc-inhfhicm7976476.shtml)
[2] AASTOCKS - “Haizhi Technology Impacts IPO, Focuses on Industrial AI Application Field, Faces Accounts Receivable Pressure” (https://www.aastocks.com/tc/stocks/news/aafn-con/GLH5140532N/ipo-news/GLH)
[3] Sina Finance - “Haizhi Technology Updates Prospectus: China’s Graph-Model Fusion AI Leader Sprints to Capital Market” (https://finance.sina.com.cn/roll/2025-12-23/doc-inhcucqt5552135.shtml)
[4] DoNews Column - “2025 for AI Startups: Half Sea Water, Half Flame” (https://www.donews.com/article/detail/5153/94983.html)
[5] Xinhuanet - “2025 Hong Kong Stock Observation: First Public Offering Scale Increases, Trading Becomes More Active” (http://www.news.cn/finance/20260104/e008cb8aeca543e786d753ad200a8217/c.html)
[6] Sina Finance - “2025 Technology and Capital Report | Artificial Intelligence Takes the Exam” (https://finance.sina.com.cn/jjx