Core Viewpoint - Manycore Tech is pursuing an IPO in Hong Kong, aiming to become the "first global space intelligence stock," with significant investments in product upgrades expected to lead to substantial costs and losses in the short term, projecting a net loss in 2025 [1] Company Overview - Manycore Tech, one of the "Six Little Dragons of Hangzhou," provides cloud-native space design software, leveraging AI technology and specialized graphics processing unit clusters to assist designers and enterprises [3] - The company's main products include the domestic software KuJiaLe and the international software Coohom [3] - According to Frost & Sullivan, Manycore Tech holds a 23.2% market share in China's space design software market, which is projected to grow from 3.3 billion yuan in 2024 to 6.6 billion yuan by 2029, while the global market is expected to increase from 19.2 billion yuan in 2024 to 31.7 billion yuan by 2029 [3] Business Performance - Manycore Tech's losses have gradually improved, with net losses of 703.7 million yuan in 2022, 646.1 million yuan in 2023, 513.5 million yuan in 2024, and 226.1 million yuan in the first half of 2025 [6] - The company reported adjusted net losses of 337.5 million yuan in 2022, 241.9 million yuan in 2023, and 70 million yuan in 2024, with a net profit of 17.8 million yuan in the first half of 2025 [6] - Revenue has been on the rise, with figures of 600.6 million yuan in 2022, 663.5 million yuan in 2023, 754.8 million yuan in 2024, and 399.1 million yuan in the first half of 2025, reflecting a year-on-year growth of 9.4% in the first half of 2025 [6] Financial Metrics - The gross margin for Manycore Tech has improved, with rates of 72.7% in 2022, 76.8% in 2023, 80.9% in 2024, and 82.1% in the first half of 2025 [7] - Operating costs have decreased from 164 million yuan in 2022 to 154 million yuan in 2023, and further to 144 million yuan in 2024, with costs dropping to 71.5 million yuan in the first half of 2025 [7] - R&D and marketing expenses have been significant, with R&D expenses as a percentage of revenue at 72.9% in 2022, 58.9% in 2023, 44.7% in 2024, and 37.5% in the first half of 2025 [7] Emerging Business Drivers - Manycore Tech launched the 3D AI design tool "KuJiaLe E-commerce Studio" in 2023, which has led to a 188% year-on-year revenue growth in e-commerce AI solutions [9] - The company introduced the "AI Smart Design Platform" in March 2023, generating over 16 million yuan in orders within three months [9] - Manycore Tech's software utilized AI to generate approximately 1.1 billion design images in the first half of 2023, marking the initial commercialization of AI technology [9] Strategic Developments - The company has upgraded its "Space Intelligence" strategy, focusing on three core areas: space editing tools, space data, and space large models, to create a positive feedback loop [3] - Manycore Tech has opened its spatial language model, SpatialLM, which generates physically accurate 3D scene layouts from video, addressing limitations of traditional large language models [10] - The company has also released the 3D Gaussian semantic dataset, InteriorGS, and has secured investments from multiple venture capital firms [11]

Core Viewpoint - Manycore Tech is pursuing an IPO in Hong Kong, aiming to become the "first stock in global spatial intelligence," with significant investments in product upgrades expected to lead to net losses in 2025 [1][2]. Market Expansion - Manycore Tech is a leading provider of cloud-native spatial design software in China, holding a 23.2% market share, with the industry projected to grow from 3.3 billion yuan in 2024 to 6.6 billion yuan by 2029 [2]. - The global market for spatial design software is expected to increase from 19.2 billion yuan in 2024 to 31.7 billion yuan by 2029 [2]. - The company has diversified its solutions to cover various virtual scenarios, including e-commerce displays and intelligent training [2]. - Manycore Tech's "Spatial Intelligence" strategy focuses on three core areas: spatial editing tools, spatial data, and spatial large models [2]. Financial Performance - Manycore Tech's losses have been gradually improving, with net losses of 703.7 million yuan in 2022, 646.1 million yuan in 2023, and projected losses of 513.5 million yuan in 2024 [4]. - The company reported revenues of 600.6 million yuan in 2022, 663.5 million yuan in 2023, and 754.8 million yuan in 2024, with a 9.4% year-on-year revenue growth in the first half of 2025 [4]. - The majority of subscription revenue comes from enterprise clients, contributing 90.1% in 2022 and decreasing to 84.4% in the first half of 2025 [4]. Profitability and Cost Management - The gross margin has improved from 72.7% in 2022 to 82.1% in the first half of 2025 [5]. - Operating costs have decreased from 164 million yuan in 2022 to 71.5 million yuan in the first half of 2025 [5]. - R&D expenses as a percentage of revenue have declined from 72.9% in 2022 to 37.5% in the first half of 2025, aided by AI technology [5]. Emerging Business Drivers - Manycore Tech launched a 3D AI design tool for e-commerce in 2023, resulting in a 188% year-on-year revenue growth for its e-commerce AI solutions [6]. - The company introduced the "AI Intelligent Design Platform," generating over 16 million yuan in orders within three months [6]. - Manycore Tech's AI capabilities have produced approximately 1.1 billion design images, facilitating commercialization in spatial design and e-commerce marketing [6]. - The company is collaborating with various enterprises in the embodied intelligence sector through its SpatialVerse platform [6]. Technological Advancements - Manycore Tech open-sourced its SpatialLM model, enabling the generation of physically accurate 3D scene layouts from video [7]. - The company also released the InteriorGS dataset, integrating 3D Gaussian data into AI spatial training [8].

Core Insights - Manycore Tech Inc. is advancing its IPO process on the Hong Kong Stock Exchange, aiming to become the world's first publicly listed company focused on spatial intelligence, with significant backing from Morgan Stanley and Jianyin International [1] - The company reported a notable turnaround in performance, achieving an adjusted net profit of 17.83 million yuan in the first half of 2025 [1] - Manycore Tech has upgraded its "spatial intelligence" flywheel strategy, focusing on three core areas: spatial editing tools, spatial data, and spatial large models, which are interlinked to create a positive feedback loop [1] Financial Performance - For the first half of 2025, Manycore Tech achieved revenue of 400 million yuan, serving over 433,000 individual customers and 47,000 enterprise customers, with net revenue retention rates of 101.6% for enterprise clients, 110.0% for large clients, and 92.3% for individual clients [2] - The company has demonstrated scale efficiencies, with a significant reduction in operating costs from 164 million yuan in 2022 to 71.5 million yuan in the first half of 2025, resulting in a gross margin increase to 82.1% [2] AI Business Growth - Manycore Tech's AI-related vertical solutions are experiencing rapid growth, particularly in e-commerce, where the revenue from its 3D AI design tool "Cool Home E-commerce Studio" increased by 188% year-on-year [2] - The company generated approximately 1.1 billion design images using AI in the first half of the year, focusing on empowering industries such as spatial design and cross-border e-commerce marketing [3] Ecosystem Development - Manycore Tech's SpatialVerse platform is gaining attention for its ability to create highly realistic and physically accurate synthetic datasets, which are essential for AI applications in physical environments [4] - The company has established partnerships with various firms in the embodied intelligence sector, enhancing the capabilities of AI-generated content models and intelligent systems [4] Open Source Initiatives - In March, Manycore Tech open-sourced its spatial language model, SpatialLM, which has gained significant traction among developers, ranking among the top three on the Hugging Face trends list [5] - The company also released the 3D Gaussian semantic dataset, InteriorGS, which has been recognized for its innovative approach to AI spatial training, achieving the top position on the Hugging Face trends list in July [5]

Core Viewpoint - Manycore Tech Inc. is advancing its IPO process on the Hong Kong Stock Exchange, aiming to become the world's first publicly listed company in the space intelligence sector, with a projected adjusted net profit of 17.83 million yuan by mid-2025 [1] Group 1: Company Overview - Manycore Tech has evolved from a space editing tool provider to the largest space design platform globally, accumulating over 441 million 3D models and more than 500 million structured 3D spatial scenes as of June 30, 2025 [1] - The company has attracted investments from notable firms including IDG Capital, GGV Capital, and Hillhouse Capital among others [1] Group 2: Financial Performance - Manycore Tech reported a revenue of 400 million yuan in the first half of this year, serving over 433,000 individual customers and 47,000 enterprise customers, with net revenue retention rates of 101.6% for enterprise clients, 110.0% for large clients, and 92.3% for individual clients [2] - The company's operating costs have decreased from 164 million yuan in 2022 to 154 million yuan in 2023, and further to 144 million yuan in 2024, with operating costs dropping to 71.5 million yuan in the first half of 2025, resulting in a gross margin of 82.1% [2] Group 3: AI Business Growth - Manycore Tech's AI-related vertical solutions are experiencing rapid growth, with its e-commerce AI solution, "Cool Home E-commerce Studio," achieving a revenue increase of 188% year-on-year in the first half of this year [3] - The company generated approximately 1.1 billion design images using AI in the first half of this year, focusing on empowering space design and cross-border e-commerce marketing [3] Group 4: Ecosystem Development - The SpatialVerse platform, developed by Manycore Tech, leverages its extensive structured spatial data to create realistic synthetic datasets for training AI models, enhancing the capabilities of intelligent robots and AR/VR systems [4] - Manycore Tech has established partnerships with companies in the embodied intelligence sector, including Zhiyuan Robotics and Galaxy General [4] Group 5: Open Source Initiatives - In March, Manycore Tech open-sourced its spatial language model, SpatialLM, which ranked among the top three on the Hugging Face trends list, enabling the generation of physically accurate 3D scene layouts from video inputs [5] - The company also released the 3D Gaussian semantic dataset, InteriorGS, which topped the Hugging Face trends list, marking a significant advancement in AI spatial training [5]