Core Viewpoint - Soulgate Inc. is preparing for an IPO on the Hong Kong Stock Exchange, with Tencent as its largest shareholder holding 49.9% of the shares [1][11]. Company Overview - Soul is a leading AI and immersive social platform in China, focusing on "soul matching" to create a virtual social experience that emphasizes emotional connections rather than physical appearance [4][7]. - The platform has attracted a significant user base, with 78.7% of daily active users (DAU) being from Generation Z, and a total of 390 million registered users [7]. IPO Details - Soul plans to issue 10%-15% of new shares, aiming to raise between $250 million and $300 million, which corresponds to a post-IPO market valuation of $2 billion to $2.5 billion [2]. - The proceeds from the IPO will be allocated as follows: 40% for the development of the Soul X model and multimodal AIGC, 25% for customer acquisition and localization in overseas markets, 15% for expanding IP derivatives and virtual clothing, and 20% for operational funds and strategic acquisitions [2]. Financial Performance - Soul's revenue for 2022, 2023, and projected for 2024 are 1.667 billion, 1.846 billion, and 2.211 billion yuan respectively, with gross profits of 1.439 billion, 1.578 billion, and 1.851 billion yuan, reflecting gross margins of 86.3%, 85.5%, and 83.7% [7]. - In the first eight months of this year, Soul generated revenue of 1.683 billion yuan, a 17.86% increase from 1.428 billion yuan in the same period last year [7]. Investment History - Over the past decade, Soul has completed seven rounds of financing, with notable investors including Tencent, which has significantly increased its stake over time [12][13]. - The company has seen its valuation grow from $15 million in its angel round to $2.2 billion in its Pre-IPO round [12]. Shareholding Structure - Tencent is the largest shareholder with 49.9% ownership, while the founder, Zhang Lu, holds 8.9% of the shares but retains 63.3% of the voting rights due to the company's dual-class share structure [11][15]. - Other major shareholders include miHoYo, Genesis Capital, and Wuyuan Capital, holding 5.9%, 5.4%, and 4.7% respectively [14].