Core Viewpoint - XunCe Technology is preparing for an IPO in Hong Kong with a valuation exceeding 60 billion RMB, despite facing significant financial losses in recent years [2][11]. Group 1: Company Overview - XunCe Technology, established in 2016, specializes in real-time data infrastructure and analytics solutions, targeting institutional asset managers and expanding into various sectors such as financial services, urban management, and telecommunications [3][4]. - The company has completed a total of 7 financing rounds since its first round in 2017, with the latest round resulting in a valuation of approximately 62.2 billion RMB [11][13]. Group 2: Financial Performance - Revenue for XunCe Technology from 2022 to 2024 is projected to be 288.99 million RMB, 530.46 million RMB, and 631.98 million RMB, respectively, while gross profit for the same years is expected to be 224.61 million RMB, 419.18 million RMB, and 484.63 million RMB [5]. - The company has reported significant losses over the same period, with net losses of 96.51 million RMB, 63.39 million RMB, and 97.85 million RMB for 2022, 2023, and 2024, respectively [5][6]. - In the first half of 2025, XunCe Technology achieved revenue of 198.45 million RMB, a decrease of approximately 30% from the previous year, with a net loss of 108 million RMB, resulting in a net loss margin of 54.6% [6][10]. Group 3: Expenditure Analysis - The company's losses are closely linked to high expenditures in research and development, administrative, and sales and distribution costs [7][8]. - R&D expenses have consistently increased, accounting for 90%, 72%, and 71% of total revenue from 2022 to 2024, with 85% in the first half of 2025 [9]. - Sales and distribution expenses rose from 24.14 million RMB in 2022 to 41.04 million RMB in 2024, primarily to expand the sales team and marketing activities [10]. Group 4: Market Position and Challenges - XunCe Technology's net revenue retention rate has shown a declining trend, dropping from 98% in 2023 to 36% in the first half of 2025, attributed to a slowdown in the financial sector due to global political and economic conditions [10]. - As of July 31, 2025, the company held cash and cash equivalents amounting to 226 million RMB [10].