Core Viewpoint - Soul App is actively exploring a "social metaverse" tailored for young users, focusing on user safety within an open interaction environment, particularly through anti-fraud initiatives [1][9]. Group 1: Anti-Fraud Initiatives - Soul App collaborated with the Pudong Public Security Bureau's Anti-Fraud Center to launch an interactive anti-fraud chat party aimed at integrating fraud prevention knowledge into daily social interactions for young users [1][3]. - The event reached over 11,000 users, with a peak online participation of 1,200, demonstrating a successful engagement and positive feedback from participants [3]. - The Pudong police acknowledged the effectiveness of this initiative in combining anti-fraud messaging with social interaction, enhancing young users' ability to identify risks [3]. Group 2: User Safety and Governance - Soul App is committed to user safety through institutional development and technological upgrades, as evidenced by its Q3 2025 ecological safety report and the minor protection responsibility report [2][4]. - The platform enforces strict registration rules for users under 18 and employs AI models to enhance identity verification, achieving a 99% contribution rate in identifying users impersonating adults [4]. - During peak periods, the platform has addressed over 50 instances of harmful content and established a psychological support mechanism in collaboration with authoritative medical institutions [4]. Group 3: Technological Enhancements - Soul App has improved its anti-fraud risk management system, with an 80% reduction in false positives and over 90% coverage in identifying fraudulent images [5]. - The platform's automated content moderation has intercepted 4.39 million instances of violations in Q3, with an average of over 5,600 daily blocked violations [5]. - Soul has also provided over 100 leads on illegal activities to law enforcement, facilitating necessary technical and informational support for public safety [5]. Group 4: Overall Security Strategy - The evolving nature of social interactions necessitates that safety is not just a management responsibility but a foundational element for stable social ecosystems [9]. - Through collaboration with law enforcement, technological advancements, and strict policy enforcement, Soul App is enhancing the security of its social metaverse, ensuring a trustworthy environment for user engagement [9].

Core Viewpoint - The quality of IPO application documents in Hong Kong is declining, prompting regulatory concerns from the Hong Kong Securities and Futures Commission and the Stock Exchange of Hong Kong regarding non-compliance and inadequate document quality [1] Group 1: Regulatory Concerns - The joint letter from the Hong Kong Securities and Futures Commission and the Stock Exchange highlights a decline in the quality of new IPO applications, with issues such as poor document quality and insufficient review [1] - Specific concerns include unclear descriptions of business models and excessive use of promotional language in the submitted documents [1] Group 2: Case Studies of Companies - Shenzhen Huaxida Technology Co., Ltd. (Huaxida) presents itself as an "AI Home" concept, but its core product is essentially a TV box, which is a specific type of Android TV smart terminal [2][3] - Soul, a stranger social networking company, has altered its business model description multiple times during its IPO attempts, shifting from a "metaverse" focus to an "AI + immersive social platform" without changing its core service of matching users based on interests [4][5] Group 3: Operational Issues - The prevalence of "over-packaging" by sponsoring institutions is noted, where they exaggerate the business capabilities of issuers to attract investment [2] - The regulatory letter also points out that some sponsors failed to respond timely to regulatory inquiries, indicating a lack of understanding of basic facts regarding their cases [5] - Overwork and a focus on market expansion by investment banks may lead to neglect of quality control, resulting in errors in document submissions [6][8]

Core Viewpoint - Soulgate Inc., the parent company of the AI+ immersive social platform Soul, has submitted its prospectus to the Hong Kong Stock Exchange for the third time, marking its fourth attempt to enter the capital market, amidst a competitive landscape with other social platforms like MiLian Technology also aiming for an IPO [1][4]. Financial Performance - Soul's total revenue for 2022, 2023, and 2024 is projected to be 1.667 billion, 1.846 billion, and 2.211 billion RMB respectively, with the first eight months of 2025 showing a revenue of 1.683 billion RMB, reflecting a year-on-year growth of 17.86% [6]. - The adjusted net profit transitioned from a loss in 2022 to a profit of 286 million RMB in 2023, with the first eight months of 2023 showing a net profit of 286 million RMB, a 73% increase year-on-year [6][7]. - Despite high gross margins above 80%, the company faces challenges as over 90% of its revenue comes from virtual gifts and membership services, indicating a lack of diversification in its revenue streams [6][8]. User Metrics - As of August 31, 2025, Soul is expected to have approximately 390 million registered users, with daily active users reaching 11 million, of which 78.7% belong to Generation Z [4][5]. - The monthly active users peaked at 29.4 million in 2022 but have since declined, indicating a potential stagnation in user growth [12][13]. Market Position and Competition - Soul ranks first among Chinese AI+ immersive social platforms in terms of average daily active users, user engagement, and 30-day retention rates for new installations [5]. - In comparison, MiLian Technology's platforms, targeting a different demographic, have shown higher revenue figures despite a smaller user base, highlighting Soul's weaker monetization per user [18][19]. Business Model and Risks - The company's business model heavily relies on emotional value services, which raises concerns about sustainability and profitability, especially given the increasing user complaints related to automatic renewals and inducements to recharge [8][11]. - Soul's marketing and sales expenses have been significant, accounting for over 50% of total revenue in previous years, which has pressured profit margins [14][16]. Future Plans - The upcoming IPO aims to raise funds for technology development, global market expansion, user growth, and brand building, alongside content creation initiatives [20].

Core Viewpoint - Soul, a social app aimed at alleviating loneliness among young people, is facing significant challenges as it attempts to go public for the fourth time, highlighting a shift from a "metaverse" narrative to an "AI + immersive social" focus amid ongoing user growth and financial losses [1][4]. Company Overview - Founded in 2015 in Shanghai, Soul differentiates itself from traditional social platforms by allowing users to create virtual identities (Avatars) and express themselves without revealing their real identities [3]. - The company employs a "soul test" during registration to match users with similar interests, fostering a unique social environment [3]. Financial Performance - Soul has reported continuous losses over six years, totaling over 3 billion yuan, despite increasing revenues from 71 million yuan in 2019 to 2.211 billion yuan in 2024 [8]. - The average monthly revenue per paying user reached 104.4 yuan, ranking first among AI + immersive social platforms in China [3][5]. - Revenue from emotional value services accounted for 90.8% of total income for the eight months ending August 31, 2025 [3]. User Metrics - Soul's monthly active users peaked at 31.6 million in 2021 but have since declined to 26.2 million by 2024 [7]. - The company has experienced fluctuating growth rates, with revenue growth slowing down significantly in recent years [8]. Strategic Shifts - Soul's narrative has shifted from focusing on the "metaverse" to emphasizing "AI," with the term "AI" appearing 210 times in the latest prospectus, compared to 23 mentions of "metaverse" in the previous one [4]. - The introduction of technologies like 3D Avatars and the Soul X model has expanded its social ecosystem, creating various interactive scenarios [4]. IPO Attempts - Soul has made four attempts to go public, initially targeting the U.S. market before shifting to Hong Kong, with the latest submission occurring in November 2025 [13][17]. - The company faced legal challenges and competitive pressures that have complicated its IPO journey, including a lawsuit from competitor Uki [15][16].

Core Viewpoint - Soul App has submitted its third prospectus to the Hong Kong Stock Exchange, marking its fourth attempt to go public after previous rejections and withdrawals in the U.S. market [1][2] Group 1: Listing Attempts - Soul's journey to IPO has been tumultuous, with the company initially aiming for a NASDAQ listing in 2021 but pausing the process due to internal considerations and support from major shareholder Tencent [2] - Legal challenges, including a lawsuit from Uki over unfair competition, have also hindered Soul's listing efforts, resulting in a freeze of 26.93 million yuan shortly after the IPO application [2] - After two failed submissions to the Hong Kong Stock Exchange in 2022 and 2023, Soul is now making another attempt after more than two years [1][2] Group 2: Financial Performance - In 2023, Soul achieved a profitability turning point, projecting an adjusted net profit of 337 million yuan for 2024, with revenue for the first eight months of 2025 nearing the total revenue of 2022 at 1.683 billion yuan [3] - Revenue figures from 2020 to 2022 show a growth trajectory: 498 million yuan in 2020, 1.2812 billion yuan in 2021, and 1.6674 billion yuan in 2022, with gross margins increasing from 79.9% to 86.3% during the same period [3] - The majority of Soul's revenue comes from emotional value services, which account for over 90% of total revenue, while advertising and other business revenues contribute less than 10% [3][4] Group 3: User Engagement and Demographics - As of August 31, 2025, Soul has approximately 390 million registered users, with daily active users averaging 11 million, 78.7% of whom are from Generation Z [4] - Users spend an average of over 50 minutes daily on the platform, with an 86% engagement rate and a monthly retention rate of 80% [4] - The average monthly revenue per paying user is 104.4 yuan, indicating a stable but potentially stagnant user base in terms of growth [5] Group 4: Strategic Positioning and AI Integration - Soul has shifted its positioning over the years, evolving from "soul social" to "social metaverse for youth," and now to "AI + immersive social" [5][6] - The company emphasizes AI as a core competitive advantage, leveraging its self-developed emotional value model and AI recommendation systems to enhance user experience [5][6] - However, the high costs associated with AI development have risen significantly, from 187 million yuan in 2020 to a projected 546 million yuan in 2024, with 407 million yuan already spent in the first eight months of this year [6][7] Group 5: Regulatory and Compliance Challenges - The integration of AI into Soul's platform raises concerns regarding compliance and regulatory risks, particularly around content generation, copyright issues, and user data privacy [7] - The ongoing debate about the authenticity of AI interactions on the platform highlights the complexities and challenges faced by the company in navigating technological advancements and user expectations [7]

Core Viewpoint - Soul, the anonymous virtual social platform founded by Zhang Lu in 2016, has submitted its prospectus for an IPO in Hong Kong after previous attempts in the U.S. and Hong Kong failed. The company claims to have turned a profit in 2023 after incurring approximately 1.5 billion yuan in adjusted net losses from 2020 to 2022, with a projected maximum adjusted net profit of 360 million yuan in 2025 [1][2][12]. Group 1: Financial Performance - Soul's revenue projections for 2022 to 2025 are 1.67 billion, 1.85 billion, 2.21 billion, and 1.68 billion yuan, with over 90% of revenue coming from "emotional value services" and only 10% from advertising [8]. - Despite a high gross margin of 81.5% for "emotional value services," Soul's net profit margin has been declining due to high sales and marketing expenses, which accounted for 40% to 50% of total revenue from 2022 to 2025 [9][11]. - The company has accumulated significant financial liabilities, with redeemable shares and obligations reaching 11 billion, 11.66 billion, 12.27 billion, and 12.4 billion yuan from 2022 to 2025, impacting net profit due to high financial costs [14]. Group 2: User Engagement and Challenges - Soul's monthly active users peaked in 2022, with a projected decline to 28 million by August 2025, down from 29.4 million in 2022 and 31.6 million in 2021 [10][9]. - The average revenue per paying user increased from 75.3 yuan in 2022 to 104.4 yuan by August 2025, but user complaints regarding automatic renewals and refund difficulties have surged, with over 5,600 complaints reported [15][16]. - The platform has faced scrutiny for its governance, with issues related to scams and inappropriate content leading to regulatory challenges, including a previous suspension in 2019 due to violations [21][22].