Core Viewpoint - Nobikang, a company founded by Liao Yu, has rapidly developed its business in "AI + Transportation" after meeting a key investor, Zheng Sanzhong, despite facing significant challenges such as high customer concentration and cash flow issues [1][2]. Company Overview - Nobikang's core business focuses on "AI + Transportation," "AI + Energy," and "AI + Urban Governance," with revenue contributions in 2024 being 52%, 43.3%, and 4.7% respectively [15]. - The company achieved revenues of 253 million RMB, 364 million RMB, and 403 million RMB from 2022 to 2024, with net profits of 63.16 million RMB, 88.57 million RMB, and 115 million RMB respectively [2][15]. Financial Performance - Nobikang's gross margin peaked at 92.5% in 2023, with an overall gross margin of 58.9% projected for 2024 [16][17]. - The company has faced cash flow challenges, with operating cash flow being negative despite increasing revenues, leading to accounts receivable reaching 475 million RMB in 2024, which is 118% of that year's revenue [20][21]. Customer Concentration and Risks - The company has a high customer concentration, with sales to the top five customers accounting for 61.1%, 85.9%, and 66.6% of total revenue from 2022 to 2024 [18]. - A significant drop in revenue from the AI + Urban Governance segment, which fell 83% in 2024, highlights the volatility of project-based business models [19]. Shareholder Structure and Incentives - Nobikang's shareholder structure includes several external advisors and independent third parties, with a unique equity incentive platform primarily benefiting these external parties rather than employees [3][8]. - The company has undergone multiple rounds of financing, with a valuation of 2.13 billion RMB before its IPO [12][10].

Core Viewpoint - Nobikang, an AI and digital twin enterprise, is preparing for an IPO on the Hong Kong Stock Exchange, showcasing steady revenue growth and a diversified business model in AI applications across transportation, energy, and urban governance [2][3]. Financial Performance - Nobikang's revenue from 2022 to 2024 is projected to grow from 253 million yuan to 403 million yuan, with net profits increasing from 63.16 million yuan to 115 million yuan [2]. - The company has a market share of 6.9% in the AI-powered power system detection and monitoring solutions market, ranking second, and 1.3% in the AI detection and monitoring solutions market for rail transportation, ranking seventh [2]. Revenue Breakdown - In 2024, the AI+ transportation segment contributed the most to Nobikang's revenue, accounting for 52% of total revenue, while the AI+ energy segment's revenue share increased from 36.6% in 2022 to 43.3% in 2024 [3]. - The AI+ urban governance segment's revenue share decreased significantly by 25.8 percentage points from 2023 to 2024, now representing only 4.7% of total revenue [3]. Market Potential - The market size for AI+ transportation solutions in China is projected to reach 300 billion yuan, AI+ energy solutions at 500 billion yuan, and AI+ urban governance solutions at 700 billion yuan by 2024 [3]. Profitability Analysis - The AI+ transportation segment has the highest gross margin at 70.9%, while AI+ energy and AI+ urban governance have gross margins of 49.6% and 12.3%, respectively [4]. - The high gross margin in AI+ transportation is attributed to lower hardware procurement costs compared to other segments, which involve more complex and customized procurement processes [4]. Credit Risk - Nobikang faces credit risks related to customer payment delays and defaults, with trade receivables increasing from 176 million yuan in 2022 to 474 million yuan in 2024, and the provision for trade receivables losses rising correspondingly [5]. - The average turnover days for trade receivables have significantly increased from 192 days in 2022 to 352 days in 2024 [5].