Core Viewpoint - Shenzhen Haijing Zhiyuan Technology Co., Ltd. has officially launched its IPO plan on the Hong Kong Stock Exchange after terminating its A-share listing plan four years ago, facing multiple challenges including market liquidity and revenue volatility [2][3][4]. Company Overview - Haijing Zhiyuan, founded in 2013 and headquartered in Shenzhen, specializes in multi-spectral AI perception and intelligent detection, with a comprehensive technology and market layout in industrial inspection, public safety, and traffic monitoring [2][3]. - The company completed a D-round financing of 50 million yuan in July 2023, with a post-transaction valuation of 3.55 billion yuan [3]. Financial Performance - Revenue figures for Haijing Zhiyuan are as follows: approximately 225 million yuan in 2022, 117 million yuan in 2023, 523 million yuan in 2024, and 82.42 million yuan in the first three months of 2025. The net profit figures were -4.93 million yuan, -18.41 million yuan, 40.41 million yuan, and 14.14 million yuan respectively [3][4]. - The company experienced a revenue growth of 346.4% year-on-year in 2024, marking its first profitable year [3][4]. Market Challenges - The company faces challenges such as low liquidity in the Hong Kong tech sector, fluctuating revenue and profit, and a highly concentrated customer base, which increases operational risks [2][4][8]. - The overall market for tech IPOs in Hong Kong has seen a decline, with many new listings facing price drops shortly after going public [4][5]. Industry Dynamics - The multi-spectral AI industry is projected to grow significantly, with a market size expected to increase from 20 billion yuan in 2025 to 58.8 billion yuan in 2029, reflecting a compound annual growth rate of 31.0% [5]. - Haijing Zhiyuan holds a leading position in the Chinese multi-spectral AI market, ranking first in market share among multi-spectral AI companies in 2024 [5]. Competitive Landscape - The company’s competitive advantage lies in its vertical integration capabilities, providing a comprehensive solution that includes hardware sensors, AI algorithms, and system integration [5][6]. - However, the industry is characterized by rapid technological advancements and increasing competition, with new entrants able to quickly offer low-cost products due to the lowering of barriers in AI algorithms [5][6]. Research and Development - The R&D team constitutes over 40% of the company's total workforce, with R&D expenditures amounting to approximately 19.8 million yuan, 11.1 million yuan, 25.2 million yuan, and 4.7 million yuan over the respective periods [6][7]. - The company plans to use the funds raised from the IPO to enhance R&D capabilities, expand production capacity, and accelerate global market penetration [6][9]. Customer Concentration - A significant challenge for Haijing Zhiyuan is its high customer concentration, with revenues from the top five customers accounting for 42.1%, 38.3%, 59.0%, and 64.8% of total revenues in the respective years [8][9]. - The company is actively working to diversify its customer base and optimize its product and service offerings to mitigate risks associated with customer concentration [9][10].