Core Viewpoint - Haizhi Technology is set to become the first company to go public in Hong Kong focusing on solving the "hallucination" problem of large language models, marking a significant milestone in the AI industry in China [1][4]. Company Overview - Founded in 2013 by Ren Xuyang, a veteran from Baidu, Haizhi Technology aims to create world-class software with a focus on AI solutions [4]. - The company has a strong management team with an average age of under 45, including CEO Yang Zaifei and CTO Yang Juan, emphasizing a technology-driven approach [8]. Technology and Innovation - Haizhi Technology's core technology is based on a deep collaboration with Tsinghua University, leading to the development of the AtlasGraph, a high-performance distributed graph database that set a world record in 2023 [8][10]. - The company launched the Atlas intelligent agent solution in September 2023, integrating knowledge graphs with large language models to effectively address the hallucination issue [8]. Financial Performance - The revenue for Haizhi Technology is projected to grow significantly, with the Atlas intelligent agent business expected to increase from 8.9 million RMB in 2023 to 86.66 million RMB in 2024, marking a growth rate of 872.2% [9]. - The company reported revenues of 312.99 million RMB, 375.57 million RMB, and 503.13 million RMB for the years 2022, 2023, and 2024 respectively, with a compound annual growth rate of 26.8% [14]. Market Position and Growth Potential - The market for industrial-grade AI solutions in China is expected to grow from 65.4 billion RMB in 2025 to 286.1 billion RMB by 2029, with a compound annual growth rate of 44.6% [16]. - Haizhi Technology holds over 50% market share in the AI intelligent agent sector in China, positioning itself as a leader in this rapidly growing market [16].

Core Viewpoint - Haizhi Technology is preparing for an IPO on the Hong Kong Stock Exchange, aiming to leverage its innovative AI solutions and significant market presence in the industry [2][12]. Company Overview - Founded in 2013, Haizhi Technology focuses on developing industrial-grade intelligent agents and providing AI solutions through graph-model fusion technology [4]. - The founder and chairman, Ren Xuyang, is a notable figure in the tech industry, having previously held senior positions at Baidu and co-founded iQIYI [3]. Technology and Solutions - Haizhi Technology is recognized as the first AI company in China to effectively reduce hallucinations in large models using knowledge graphs, enhancing the accuracy and interpretability of its AI solutions [5]. - The company offers two main AI solutions: the Atlas Graph Solution and the Atlas Intelligent Agent, which are designed to meet diverse enterprise needs across various application scenarios [6]. Market Position - According to Frost & Sullivan, Haizhi Technology ranks fifth among industrial-grade AI providers in China and holds the top position among AI providers focused on graph technology, commanding over 50% of the market share [7]. Financial Performance - Revenue figures for Haizhi Technology from 2022 to 2024 are as follows: 313 million CNY, 376 million CNY, and 503 million CNY, reflecting a compound annual growth rate of 26.8% [9]. - The company achieved a significant revenue increase in 2024, largely attributed to the launch of the Atlas Intelligent Agent, which saw revenue rise from 8.9 million CNY in 2023 to 86.6 million CNY in 2024, marking an increase of 872.2% [9]. - Gross profit margins for the same period were 30.9%, 35.2%, and 36.3% respectively [10]. Profitability and Investment - In 2024, Haizhi Technology turned a profit with an adjusted net profit of 16.93 million CNY, achieving a net profit margin of 3.4% [11]. - The company has attracted investments from several prominent firms, including Junlian Capital and IDG Capital, and has a current valuation of 3.3 billion CNY following its latest funding round [12]. Future Plans - The funds raised from the IPO will primarily be allocated to enhancing research and development of graph-model fusion technology, optimizing the Atlas Intelligent Agent, expanding customer collaborations, exploring new application scenarios, and strategic investments [12].