Core Viewpoint - Defeng Technology is seeking to go public on the Hong Kong Stock Exchange, aiming to leverage its position as a leading AIoT service provider in China, despite facing significant financial challenges and uncertainties related to its IPO process [3][4]. Group 1: Company Overview - Defeng Technology specializes in AI-enabled industrial IoT (AIoT) production optimization software solutions, focusing on enhancing energy efficiency, operational excellence, safety, and sustainability in China's energy, manufacturing, and mixed industries [3]. - According to Frost & Sullivan, Defeng Technology ranks as the fifth largest independent AIoT service provider in China, with a market share of approximately 1.8% based on 2024 fiscal year revenue [3][20]. - The company holds over 300 software copyrights, 50 patents, and approximately 10 trademarks as of June 30, 2025 [3]. Group 2: Financial Challenges - Defeng Technology has accumulated redemption liabilities of RMB 1.22 billion, RMB 1.45 billion, and RMB 1.46 billion for the years 2023, 2024, and the first three quarters of 2025, respectively, indicating a rising trend [5]. - The company reported a cumulative net loss exceeding RMB 700 million from 2022 to the first half of 2025, primarily driven by changes in the fair value of redemption liabilities [5]. - As of June 30, 2025, the company's cash and cash equivalents were only RMB 43.99 million, a significant decrease of approximately 51% from the beginning of the year, with current liabilities reaching RMB 17.14 billion [10]. Group 3: Revenue and Cash Flow - Revenue increased from RMB 313 million in 2022 to RMB 525 million in 2024, reflecting a compound annual growth rate of 29.7%, but the company has faced continuous net losses [8]. - The average collection period for trade receivables has extended from 139 days in 2022 to 653 days in the first half of 2025, indicating severe cash flow issues [14]. - The company's operating cash flow has been negative, with net outflows totaling approximately RMB 467 million from 2022 to the first half of 2025 [8]. Group 4: Customer Dependency and Market Position - Defeng Technology's revenue heavily relies on state-owned enterprises, with over 78% of its revenue coming from this sector in 2023, leading to long payment cycles and high accounts receivable [12]. - The company has a concentrated customer base, with the top five customers contributing approximately 68.9% of revenue in the first half of 2025 [16]. - Despite the growth in the AIoT market, Defeng Technology's market share remains low compared to competitors, with the leading company holding a market share of 10.2% [20].

Core Viewpoint - Defeng Technology has submitted an IPO application to the Hong Kong Stock Exchange after terminating its A-share listing guidance in October 2024, aiming to raise funds for AI capabilities, industrial robotics solutions, overseas expansion, strategic investments, and general operational funding [1][12]. Group 1: Financial Performance - Defeng Technology has reported cumulative losses exceeding 730 million yuan over the past three and a half years, with no profitability achieved during the reporting period [6][7]. - The company’s revenue has consistently been in the billions, but it has faced significant losses due to the fair value changes of redeemable liabilities, which have been recorded as losses under accounting rules [7]. - As of the first half of 2025, the company’s accounts receivable and notes receivable amounted to approximately 214 million yuan, with an adjusted average trade receivables turnover days reaching 653 days [3][8]. Group 2: Market Position and Client Base - Defeng Technology holds a market share of only about 1.8%, making it the fifth-largest independent AIoT service provider in China according to a Frost & Sullivan report [4]. - The majority of the company’s revenue comes from state-owned enterprises and government clients, with this segment accounting for over 90% of revenue in the first half of 2024 [4][8]. - The company’s primary business segments include AIoT solutions, AIoT services, and AIoT product sales, with AIoT solutions consistently contributing over 80% of total revenue during the reporting period [4]. Group 3: Research and Development - The term "independent" appears over 20 times in the prospectus, emphasizing that Defeng Technology's core AIoT technologies are self-developed [5]. - The R&D outsourcing costs for the reporting period were 3.08 million yuan, 100,000 yuan, 17.1 million yuan, and 20.69 million yuan, with R&D expenses in the first half of 2025 amounting to 38.1 million yuan, indicating that over 50% of R&D costs were outsourced [5]. Group 4: Shareholder Dynamics - Just days before the IPO application submission, a major shareholder,招商盈趣, sold its shares at cost, indicating a lack of profit from its investment over approximately four and a half years [11]. - The company has undergone several rounds of financing, raising a total of 656 million yuan, with significant valuation increases noted between funding rounds [10]. Group 5: Strategic Intentions - The shift from A-shares to H-shares is intended to access international markets for viable funding sources to support business development and attract more investors [12].

Core Viewpoint - The AI industry chain has gained significant attention in the capital market this year, with various companies at different stages of listing, particularly in the AI chip and application sectors [1][2]. Company Overview - Beijing Defeng New Journey Technology Co., Ltd. (Defeng New Journey) has submitted its prospectus to the Hong Kong Stock Exchange on November 14, 2023, focusing on "AI-enabled Industrial Internet of Things" [3][4]. - Founded in March 2015, the company completed its share reform in September 2022 and has attracted investments from notable firms such as China Merchants Innovation and CICC [5][6]. - The company has a valuation of approximately 2.35 billion RMB following its equity financing in March 2022 [5]. Business Model and Solutions - Defeng New Journey specializes in AI-enabled Industrial IoT production optimization software solutions, offering end-to-end solutions that process data from sensors and devices to enhance operational efficiency [7][8]. - The company has developed the Delt@AIoT platform, which includes over 300 software applications applicable across various industries [8][9]. - Key application areas include energy management, health, safety, environment and quality (HSEQ), and smart manufacturing [9]. Financial Performance - The company has reported revenues of 313 million RMB, 442 million RMB, 525 million RMB, and 159 million RMB for the years 2022, 2023, 2024, and the first half of 2025, respectively [12]. - Net losses for the same periods were 165 million RMB, 297 million RMB, 228 million RMB, and 39.93 million RMB, totaling a cumulative loss of 730 million RMB over three and a half years [12][11]. - The gross profit margins have shown a gradual increase from 22% in 2022 to 26% in the first half of 2025 [12]. Market Position and Competition - The AIoT solutions market in China is highly competitive, with Defeng New Journey holding a market share of approximately 1.8% [21][29]. - The company ranks as the fifth largest independent AIoT service provider in China and the third largest in the energy sector, with a market share of about 9.9% [30][32]. - The overall AIoT solutions market in China is projected to grow from approximately 54.1 billion RMB in 2020 to about 111.9 billion RMB by 2024, with a compound annual growth rate of around 19.9% [26]. Industry Trends - The industrial internet of things (IIoT) market in China is rapidly expanding, with a projected market size of approximately 1.4 trillion RMB by 2024 [26]. - The penetration rate of AI in the IIoT sector is expected to rise from about 6.1% in 2020 to around 11% by 2029, driven by increasing demand for digital and intelligent industrial solutions [26].

Core Insights - The article highlights the significance of digitalization and intelligence in the future of industrial development, with a focus on the industrial internet as a key application area benefiting from government policies aimed at achieving "smart manufacturing" and digital upgrades [1][2] Company Overview - Beijing Defeng New Journey Technology Co., Ltd. (referred to as "Defeng New Journey") has submitted its IPO application to the Hong Kong Stock Exchange, aiming to leverage its position in the AIoT (Artificial Intelligence of Things) sector [1][2] - Defeng New Journey is recognized as the fifth largest independent AIoT service provider in China, with a market share of approximately 1.8%, and the third largest in the energy sector with a market share of about 9.9% [1] Financial Performance - The company has shown rapid revenue growth, with revenues of 313 million yuan in 2022, 442 million yuan in 2023, and projected revenues of 525 million yuan in 2024, reflecting significant year-on-year increases [3][4] - Despite revenue growth, Defeng New Journey has faced strategic losses, reporting losses of 165 million yuan in 2022, 297 million yuan in 2023, and 228 million yuan in 2024, with a cumulative loss of 729 million yuan over three and a half years [5][6] Market Potential - The AIoT market in China is projected to grow from approximately 54.1 billion yuan in 2020 to about 111.9 billion yuan by 2024, with an expected market size of around 220.9 billion yuan by 2029, driven by policy support and increasing demand for digital transformation in manufacturing [7][8] - The energy sector, where Defeng New Journey has a strong presence, is expected to see its AIoT solutions market grow from about 1.8 billion yuan in 2020 to approximately 3.7 billion yuan by 2024, with a compound annual growth rate of 19.7% [8] Competitive Landscape - The AIoT industry is characterized by a fragmented and competitive landscape, with over 1,000 domestic providers, none of which dominate the market [8] - Defeng New Journey aims to differentiate itself by providing customized AIoT solutions to leading state-owned enterprises, particularly in the energy sector, which may enhance its competitive edge [9] Investment Highlights - Defeng New Journey is positioned as an "invisible champion" in its niche, with potential for value re-evaluation if it can resolve its profitability issues [9] - The company operates in a high-growth sector supported by national strategies, indicating substantial long-term investment value [9]

Core Insights - The article highlights the rapid growth and potential of the industrial internet sector in China, driven by government policies and the push for "smart manufacturing" and digital transformation [1][9] - The company, Defeng New Journey Technology Co., Ltd., is preparing for an IPO in Hong Kong, positioning itself as a key player in the AIoT (Artificial Intelligence of Things) market, particularly in the energy sector [1][2] Industry Overview - The industrial internet industry in China has surpassed 1 trillion RMB and is expected to maintain a double-digit annual growth rate in the coming years [1] - The AIoT market in China is projected to grow from approximately 54.1 billion RMB in 2020 to about 111.9 billion RMB by 2024, with a forecasted market size of around 220.9 billion RMB by 2029 [7] Company Positioning - Defeng New Journey ranks as the fifth largest independent AIoT service provider in China, with a market share of approximately 1.8%, and is the third largest in the energy sector with a market share of about 9.9% [1] - The company has a strong client base, serving over 600 state-owned enterprises, including major players in the energy and manufacturing sectors [3] Financial Performance - Despite significant revenue growth, the company has faced persistent losses, with cumulative losses of 729 million RMB over three and a half years [5] - Revenue figures show a rapid increase from 313 million RMB in 2022 to an expected 525 million RMB in 2024, with a 38.8% year-on-year growth in the first half of 2025 [3][4] Product and Service Insights - AIoT solutions are the primary revenue source for the company, accounting for 93.9% of total revenue in the first half of 2025 [4] - The company has invested heavily in R&D, with expenses reaching 68.43 million RMB in 2024, representing 19.92% of revenue, which is significantly higher than the industry average [6] Competitive Landscape - The AIoT market is characterized by intense competition, with over 1,000 providers in China, none of which dominate the market [8] - Defeng New Journey's focus on customized AIoT solutions for leading state-owned enterprises positions it well to capitalize on emerging market opportunities [8] Investment Highlights - The company is viewed as an "invisible champion" in its niche, with the potential for significant value appreciation if it can resolve its profitability issues [8][9] - The industrial internet sector is supported by national strategies and offers vast market opportunities, making it a promising area for investment [9]

Core Viewpoint - Beijing Deltaphone Technology Co., Limited (德风新征程) is preparing for an IPO on the Hong Kong Stock Exchange, focusing on AI-enabled Industrial Internet of Things (AIoT) solutions to enhance efficiency and sustainability in various industries [2][3]. Business Overview - Established in 2015, the company specializes in AIoT production optimization software solutions, targeting the energy, manufacturing, and mixed industries in China [3]. - The company has completed over 600 projects, serving approximately 200 clients, including major state-owned enterprises in sectors like electricity, oil and gas, and tobacco [3]. - According to a Frost & Sullivan report, the company ranks as the fifth largest independent AIoT service provider in China with a market share of about 1.8% in 2024 [3]. Product and Service Offerings - The company has developed the Delt@AIoT platform, which supports rapid development and large-scale deployment of AIoT applications, featuring over 300 software applications adaptable to various industries [4]. - The primary services include providing AIoT solutions, maintenance and technical support, and selling AIoT-related hardware and software products [7]. Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the first six months of 2025 were RMB 312.64 million, RMB 442.22 million, RMB 525.46 million, and RMB 159.45 million, respectively [15]. - The net losses during the same periods were RMB 165 million, RMB 297 million, RMB 228 million, and RMB 40 million [14]. Shareholder Structure - The major shareholder, Mr. Wang Qingjie, holds 27.74% directly and an additional 16.64% through incentive platforms, totaling approximately 44.38% [11][10]. - Other investors include various venture capital firms, with notable stakes from Yunqi Capital and Innovation Works [10]. Management Team - The board consists of nine members, including three executive directors and three non-executive directors, with Mr. Wang Qingjie serving as the Chairman and CEO [13][14].

Group 1: Trade Performance - Suzhou achieved a record high in foreign trade with total imports and exports reaching 1,295.88 billion yuan, a year-on-year increase of 5.7% [1] - The growth is attributed to the improvement in export product quality, rapid growth in emerging markets, and effective measures taken to stabilize orders and develop new markets [1] Group 2: Support for Enterprises - Suzhou established a "Stabilizing Foreign Trade" task force, consisting of 43 professionals from 24 departments, to provide 24-hour support for enterprises [2] - The task force has served 1,660 key enterprises, achieving a 95.2% resolution rate for their requests [2][3] Group 3: Market Expansion Initiatives - The "Hundred Groups and Thousand Enterprises Going Abroad" initiative has successfully organized nearly 20 trade delegations, helping around 300 enterprises explore new markets in Europe, the Middle East, South America, and Southeast Asia [4] - Suzhou's textile industry has also made significant strides in North Africa, securing approximately 3 million USD in intended orders during a recent trade exhibition [5] Group 4: New Business Models and Technologies - Suzhou's cross-border e-commerce imports and exports surged by 185.3% in the first half of the year, with a focus on innovative products and new technologies [7] - Key export products such as integrated circuits and lithium-ion batteries saw substantial growth, with increases of 25.3% and 44.3% respectively [7] Group 5: Innovation and Competitiveness - Companies like Kafei Mei have significantly increased their R&D investment, leading to improved product longevity and a sixfold increase in revenue since 2021 [7][8] - Fast Home Intelligent Technology secured six project orders in Saudi Arabia, demonstrating the competitive edge gained through AIoT solutions and a strong focus on innovation [8]