Core Viewpoint - The company, Xunce Technology, is making a third attempt to list on the Hong Kong Stock Exchange, highlighting its status as a unicorn in the real-time data infrastructure and analytics sector, despite facing significant financial challenges [1][2]. Financial Performance - Xunce Technology's revenue has shown substantial growth, increasing from 288.99 million RMB in 2022 to 631.98 million RMB in 2024, reflecting over 100% growth in three years [2][3]. - However, the company has reported continuous losses, with a cumulative loss of 366 million RMB over three and a half years, and the loss for the first half of 2025 is projected to exceed that of the entire year of 2023 [2][3]. Business Diversification - The company has successfully diversified its revenue streams, with the share of income from the asset management sector dropping from 74.4% in 2022 to 47.3% in the first half of 2025, while income from diversified industries has increased from 25.6% to 52.7% during the same period [5][6]. - The average revenue per user (ARPU) for non-asset management clients is significantly higher at 704.6 million RMB compared to 138.1 million RMB for asset management clients, indicating a shift towards more lucrative customer segments [6][7]. Challenges in Core Business - Despite diversification, the company faced a decline in revenue in the first half of 2025, primarily due to a reduction in the number of paying clients in the asset management sector, which decreased by nearly 30% year-on-year [7][8]. - The gross margin has dropped to 66.7% in the first half of 2025, attributed to increased demand for customized solutions from asset management clients, which typically have lower margins compared to standardized solutions [8][9]. Financial Risks - The company has high research and development expenditures, which accounted for 89.93% to 71.2% of revenue during the reporting period, contributing to ongoing losses [9][10]. - Trade receivables have surged, with the proportion of receivables to revenue reaching 128.28% in the first half of 2025, indicating a significant risk in cash flow management [9][10]. Strategic Importance of IPO - The upcoming IPO is seen as a critical opportunity for the company to alleviate cash flow pressures and secure funding for continued R&D and market expansion [10]. - The company needs to present a clear narrative to investors that its current losses are strategic and manageable, while also demonstrating the potential for profitability through its diversified business model [10].

Core Viewpoint - The company, Xunce Technology, is making a third attempt to list on the Hong Kong Stock Exchange after two previous applications lapsed, highlighting its status as a unicorn in the real-time data infrastructure and analytics sector in China, backed by major investors like Tencent and Yunfeng Fund [1][2] Financial Performance - Xunce Technology has shown significant revenue growth, with projected revenues increasing from 288 million RMB in 2022 to 632 million RMB in 2024, reflecting over 100% growth in three years [2][3] - Despite revenue growth, the company has faced continuous losses, with cumulative losses reaching 366 million RMB over three and a half years, and the loss for the first half of 2025 exceeding the total loss for 2023 [2][3] Business Diversification - The company has successfully diversified its revenue streams, reducing its reliance on the asset management sector from 74.4% in 2022 to 47.3% in the first half of 2025, while increasing revenue from diversified sectors from 25.6% to 52.7% [5][6] - The average revenue per user (ARPU) in non-asset management sectors is significantly higher at 704.6 million RMB compared to 138.1 million RMB in asset management, indicating a stronger revenue potential from diversified clients [6] Challenges in Core Business - In the first half of 2025, the company experienced a revenue decline to 198 million RMB, primarily due to a reduction in paying clients in the asset management sector, which decreased by nearly 30% year-on-year [7] - The company's high gross margin, which fluctuated between 76% and 79%, dropped to 66.7% in the first half of 2025, attributed to increased demand for customized solutions from asset management clients [8] Financial Risks - The company has maintained high R&D expenditures, which accounted for 89.93% to 71.2% of revenue during the reporting periods, contributing to ongoing losses [9] - Trade receivables have surged, with the ratio of receivables to revenue reaching 128.28% in the first half of 2025, indicating a significant portion of sales is not converting into cash flow [9] - Cash reserves have drastically decreased from 749 million RMB at the end of 2022 to 222 million RMB by mid-2025, raising concerns about the company's liquidity [9] Strategic Importance of IPO - The upcoming IPO is seen as a critical opportunity for the company to alleviate cash flow pressures and secure funding for continued R&D and market expansion [10] - The company needs to present a clear narrative to investors that its current losses are strategic and manageable, with a focus on transitioning to a more profitable market through its diversification efforts [10] - Balancing growth with financial health will be essential, as investors will increasingly scrutinize profitability, cash flow management, and customer retention metrics [10]