Core Viewpoint - The company, Silicon-based Intelligence, is set to become the first digital human operator to go public in Hong Kong by submitting its prospectus to the Hong Kong Stock Exchange, aiming for profitability through AI-driven digital human solutions [1]. Group 1: Company Overview - Silicon-based Intelligence was founded in August 2017 by entrepreneur Si Ma Huapeng, capitalizing on the AI boom initiated by AlphaGo, with a focus on voice technology for customer service in finance and telecommunications [2]. - The company has evolved through three technological leaps, introducing its first AIGC digital human in 2019, which integrated voice and image technologies [3]. - By 2024, the company launched a multimodal large model, DUIXONE, transitioning its business model from selling tools to providing comprehensive API platforms for various applications [3]. Group 2: Financial Performance - The company reported revenues of RMB 2.23 billion, RMB 5.31 billion, RMB 6.55 billion, and RMB 3.26 billion for the years 2022, 2023, 2024, and the first half of 2025, respectively, with growth rates of 138.12%, 23.40%, and 11.26% [6]. - In 2025, Silicon-based Intelligence achieved an adjusted net profit of approximately RMB 529 million, marking a turnaround from previous losses [1][11]. - The average customer value increased significantly from RMB 380,000 in 2022 to RMB 1,130,000 in the first half of 2025, reflecting a strategic focus on large clients [11]. Group 3: Market Position and Competition - Silicon-based Intelligence holds a leading position in China's digital human market with a 32.2% market share as of 2024, amidst increasing competition from major players like Baidu, Tencent, and Huawei [5][15]. - The company has completed eight rounds of financing since its inception, raising over RMB 1 billion, with significant investments from Tencent and other notable funds [5]. - The digital human market is projected to grow to RMB 155 billion by 2030, but current demand remains below the "100 billion level," posing challenges for the company [11][17]. Group 4: Strategic Focus and Challenges - The company employs a "small but beautiful" strategy, focusing on B-end markets and offering standardized products to meet the needs of small and medium-sized enterprises [8]. - Despite achieving profitability, the company faces challenges such as reliance on a few large clients, with the top five clients contributing over 64.4% of revenue in 2023 [10]. - The competitive landscape is intensifying, leading to price reductions that have pressured profit margins, with gross margins declining from 45.8% in 2023 to 31.6% in the first half of 2025 [14][15].