Core Viewpoint - Shenzhen Huafu Technology Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange, indicating a focus on AI technology solutions and outlining its financial performance and risks associated with its operations [1][2]. Group 1: Company Overview - Huafu Technology, established in 2015, operates as a full-stack AI service provider, offering AI intelligence, vertical industry applications, and AI computing technology services [2]. - The company has developed the "Unicorn AI" integrated technology platform, which provides "algorithm + computing power" solutions to enhance business intelligence across various applications [2]. - The company has expanded its services from AI intelligence to include algorithm platforms and AI computing technology services, positioning itself as a comprehensive AI service provider [2]. Group 2: Financial Performance - The company's revenue for 2022, 2023, 2024, and the first half of 2025 is projected to be 422 million, 391 million, 386 million, and 169 million respectively, with net profits of 55 million, 37 million, 66 million, and 25 million [3]. - Gross profit figures for the same periods are 180 million, 160 million, 175 million, and 75 million, with corresponding gross profit margins of 42.7%, 41%, 45.3%, and 44.5% [3]. - The funds raised from the IPO are intended for enhancing R&D capabilities, improving AI computing service delivery, potential strategic investments, and general corporate purposes [3]. Group 3: Market Position and Competition - The AI technology solutions industry is highly competitive, with significant revenue dependence on a few major clients; the top five clients contributed 46.4%, 35.3%, 35.3%, and 43.0% of total revenue over the specified periods [4]. - The largest client accounted for 28.6%, 18.1%, 15.5%, and 16.8% of total revenue, indicating a concentrated client base [4]. - The company’s procurement is also concentrated, with the top five suppliers accounting for 32.8%, 30.9%, 34.1%, and 54% of total procurement costs [4].

Core Viewpoint - Shenzhen Huafu Technology Co., Ltd. (referred to as "Huafu Technology") is preparing for an IPO on the Hong Kong Stock Exchange, aiming to leverage its position as a leading provider of full-stack AI technology solutions in China [2][12]. Business Overview - Established in 2015, Huafu Technology focuses on integrating advanced AI algorithms, powerful computing capabilities, and cutting-edge hardware and software technologies to provide AI intelligent solutions across various industries [2][3]. - The company is recognized as one of the top ten full-stack AI technology solution providers in China according to a report by Frost & Sullivan [2]. Product and Service Offerings - Huafu Technology has developed a proprietary integrated technology platform called "Unicorn AI," which supports model development, large-scale distributed training, real-time inference services, and elastic computing resource scheduling [3]. - The company offers three main service categories: - **AI Intelligence**: Multi-scenario intelligent recognition solutions with an accuracy rate exceeding 99% [5]. - **AI Vertical Industry Applications**: Tailored solutions for specific industry challenges, covering feasibility studies, infrastructure planning, and deployment [5]. - **AI Computing Technology Services**: Custom technology services for computing infrastructure to meet the demands of large model applications and scientific computing [5]. Shareholder Structure - Prior to the IPO, the major shareholders include Mr. Zhang Huan (29.94% ownership) and a group of individuals holding 11.02% through voting rights delegation, collectively controlling approximately 40.96% of the voting rights [4][6]. - Other notable shareholders include various investment firms and capital management companies [4][6]. Board of Directors - The board consists of nine members, including four executive directors led by Mr. Zhang Huan as Chairman and General Manager, and three independent non-executive directors with significant academic and professional backgrounds [8][9]. Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first half of 2025 was reported as RMB 422 million, RMB 391 million, RMB 386 million, and RMB 169 million respectively, with corresponding net profits of RMB 55.38 million, RMB 36.80 million, RMB 66.11 million, and RMB 25.09 million [10][11].