Core Viewpoint - The capital market is witnessing a convergence of AI and industrial upgrades, with Beijing Defeng New Journey Technology Co., Ltd. (Defeng New Journey) applying for an IPO in Hong Kong, highlighting the dual nature of investment logic in the AIoT sector, which relies on long-term technological accumulation and client relationships rather than rapid growth [1] Group 1: Company Overview - Defeng New Journey focuses on AI-enabled industrial IoT production optimization software solutions and has served over 200 state-owned enterprises, delivering more than 600 projects [1] - The company reported cumulative revenue exceeding 1.24 billion yuan from 2023 to September 2025, but also accumulated losses of nearly 640 million yuan [1] - The growth trajectory is characterized by steady revenue increase, with revenue projected to grow from 313 million yuan in 2022 to 525 million yuan in 2024, reflecting a compound annual growth rate of over 29% [2] Group 2: Financial Performance - Despite revenue growth, Defeng New Journey has not achieved profitability, with net losses continuing from 2022 to 2024, totaling 700 million yuan over three years [2] - The gross margin improved from approximately 22% in 2022 to about 26% in the first half of 2025, indicating the emergence of scale effects [2] - The company's revenue structure heavily relies on AIoT solutions, which contributed approximately 93.9% of revenue in the first half of 2025, highlighting the challenges of high R&D and market development costs [3] Group 3: Industry Context - The AIoT market in China is projected to grow from approximately 54.1 billion yuan in 2020 to about 111.9 billion yuan in 2024, with expectations to reach around 220.9 billion yuan by 2029 [4] - Defeng New Journey ranks fifth among independent AIoT service providers in China, with a market share of about 1.8%, and third in the energy sector with a market share of approximately 9.9% [4] - The industry is characterized by high fragmentation and intense competition, with no clear market leader, posing challenges for Defeng New Journey against established competitors [4] Group 4: Business Model and Challenges - The company faces a dilemma between scale economy and customization, as industrial AIoT solutions require tailored development, leading to high delivery costs and long project cycles [7] - Transitioning from a project-based revenue model to a subscription-based model is essential for improving financial health, but this depends on changes in customer purchasing habits and product standardization [8] - Key factors for potential value reassessment post-IPO include effective cash flow management, the ability to lower delivery costs through platform modularization, and successful market expansion beyond the energy sector [8]

Company Overview - Defeng Technology is a developer of AI-enabled Industrial Internet of Things (AIoT) production optimization software solutions, focusing on enhancing energy efficiency, operational excellence, safety, and sustainability in China's energy, manufacturing, and mixed industries [4] - The company has completed over 500 projects, primarily serving state-owned enterprises, with around 150 clients, including leading firms in the electricity, public utilities, oil and gas, and tobacco sectors [4] - Defeng Technology has established an integrated Delt@AIoT platform that enables rapid development and large-scale deployment of AIoT applications, featuring over 300 software applications applicable across various industries and use cases [4] Financial Performance - For the fiscal year 2023, 2024, the first nine months of 2024, and the first nine months of 2025, the company reported revenues of approximately RMB 442 million, RMB 525 million, RMB 216 million, and RMB 275 million, respectively [6] - The gross profit for the same periods was approximately RMB 105 million, RMB 131 million, RMB 52 million, and RMB 70 million, with corresponding gross profit margins of 23.8%, 24.9%, 24.2%, and 25.3% [7][8] - Operating losses were recorded at RMB 8.16 million, RMB 10.64 million, RMB 35.12 million, and RMB 30.47 million for the respective periods [9] Industry Overview - The Industrial Internet of Things (IIoT) market in China is expected to grow from approximately RMB 9 trillion in 2020 to about RMB 14 trillion by 2024, and is projected to reach around RMB 20 trillion by 2029 [13] - The penetration rate of AI in the IIoT sector is anticipated to rise from about 6.1% in 2020 to approximately 7.8% in 2024, and further to around 11.0% by 2029, indicating a growing integration of AI applications in various industrial processes [16] - The AIoT market in China has seen rapid growth, expanding from approximately RMB 54.1 billion in 2020 to an estimated RMB 111.9 billion by 2024, with projections of reaching about RMB 220.9 billion by 2029 [19]

香港聯合交易所有限公司與證券及期貨事務監察委員會對本申請版本的內容概不負責，對其準確性或完整 性亦不發表任何意見，並明確表示概不就因本申請版本全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 BEIJING DELTAPHONE TECHNOLOGY CO., LIMITED 北京德風新征程科技股份有限公司 （「本公司」） （於中華人民共和國註冊成立的股份有限公司） 的申請版本 警告 本申請版本乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監會」）的要求 而刊發，僅用作提供資訊予香港公眾人士。 本申請版本為草擬本，其內所載資訊並不完整，亦可能會作出重大變動。 閣下閱覽本文件，即代表 閣 下知悉、接納並向本公司、其獨家保薦人、整體協調人、顧問或包銷團成員表示同意： 倘於適當時候向香港公眾人士提出要約或邀請，準投資者務請僅依據呈交香港公司註冊處處長註冊的本公 司招股章程作出投資決定；有關文本將於發售期內向公眾刊發。 (i) 本文件僅為向香港公眾人士提供有關本公司的資料，概無任何其他目的。投資者不應根據本文件中 的資料作出任何投資決定； (ii) 在聯交所網站登載 ...

Core Viewpoint - Defeng New Journey Technology Co., Ltd. is shifting its focus from the A-share market to the Hong Kong capital market, aiming to address its development challenges through an IPO [2] Group 1: Company Overview - Defeng New Journey is a developer of AI-enabled industrial IoT production optimization software, focusing on digital needs in energy, manufacturing, and mixed industries [3] - The company has a three-tier business structure consisting of solutions, services, and products, centered around its self-developed Delt@AIoT platform [3] Group 2: Market Position and Financial Performance - As of the 2024 fiscal year, Defeng New Journey ranks as the fifth largest independent AIoT service provider in China, holding a market share of approximately 1.8% [5] - The company has received investments from notable institutions, including China Merchants Innovation and SAIC Jinshi, prior to its IPO [5] - In the first half of 2025, revenue from state-owned enterprise clients accounted for 53.4% of total revenue, with major clients including State Grid and China National Petroleum [5] - Revenue grew from 313 million RMB in 2022 to 525 million RMB in 2024, reflecting a compound annual growth rate of 29.7% [5] Group 3: Profitability and Losses - Despite revenue growth, the company has faced significant losses, totaling 730 million RMB from 2022 to the first half of 2025 [7] - The losses are attributed to low gross margins, high R&D expenses, and changes in the fair value of redeemable liabilities [7] - Adjusted net profit for 2024 was 5.52 million RMB, indicating potential for profitability in core operations [7] Group 4: Cash Flow and Financial Health - The company has experienced negative operating cash flow, with net cash flows of -173 million RMB in 2022 and -64 million RMB in the first half of 2025 [8] - Accounts receivable have increased significantly, reaching 214 million RMB by June 2025, a 92% increase from the end of 2022 [8] - Cash and cash equivalents were only 43.99 million RMB as of June 2025, against current liabilities of 1.714 billion RMB, indicating substantial short-term debt pressure [9] Group 5: Industry Outlook - The AIoT market in China is projected to grow from approximately 128.7 billion RMB in 2025 to 220.9 billion RMB by 2029, with a compound annual growth rate of about 14.5% [11] - The energy sector's AIoT market is expected to grow at a rate of 15.7%, indicating long-term growth potential for the industry [11] - The IPO is seen as a crucial step for the company to alleviate financial pressure and enhance its brand and talent acquisition [11]

Core Viewpoint - Beijing Defeng New Journey Technology Co., Ltd. (Defeng Technology) has submitted its IPO application to the Hong Kong Stock Exchange, aiming to enter the capital market amid fierce competition in the AIoT sector. The company faces challenges such as low market share, significant cumulative losses, and high reliance on state-owned enterprises for revenue [2][10][15]. Company Overview - Defeng Technology was founded in 2015 by Wang Qingjie, who has a background in technology from IBM and other major firms. The company specializes in AIoT production optimization software solutions and has generated over 500 million RMB in revenue for 2024 [2][3][10]. - The company has developed the Delt@AIoT platform, which includes application suites and technical platform suites, and has been recognized as a national key software enterprise for three consecutive years [4][6]. Financial Performance - Defeng Technology has reported cumulative losses exceeding 730 million RMB over the past three and a half years, with annual losses of 165 million RMB, 297 million RMB, 228 million RMB, and 39.9 million RMB for 2022, 2023, 2024, and the first half of 2025, respectively [11][12]. - Revenue has shown growth, with figures of approximately 313 million RMB, 442 million RMB, 525 million RMB, and 159 million RMB for the respective years [13]. The revenue breakdown indicates that AIoT solutions account for the largest share, with a significant increase from 80.3% in 2022 to 93.9% in the first half of 2025 [14]. Market Position - Defeng Technology holds a market share of 1.8% in the independent professional AIoT platform sector in China, ranking fifth, with the leading company holding a market share of 10.2% [16][18]. In the energy sector, it ranks third with a market share of 9.9% [21]. Customer Base and Revenue Concentration - The company heavily relies on state-owned enterprises, which contributed approximately 60.6% to 78% of its revenue during the reporting period. The top five customers accounted for about 51.6% to 68.9% of total revenue [15][16]. - The high customer concentration poses risks, as changes in government budgets or the loss of a major client could significantly impact performance [16]. Funding and Financial Obligations - Defeng Technology has raised a total of 656 million RMB through multiple funding rounds, with a post-investment valuation of 2.35 billion RMB during the C round [6][10]. However, the company faces increasing redemption liabilities, projected to rise from 936 million RMB in 2022 to 1.46 billion RMB by mid-2025 [9][10]. - The company has signed an agreement to extend its IPO target date to December 31, 2026, and has terminated the redemption rights prior to submitting the IPO application [10]. Compliance and Operational Challenges - Defeng Technology has faced compliance issues, including a fine for software copyright violations, highlighting the need for improved internal management and compliance practices [25][26]. The company has also experienced extended accounts receivable turnover days, indicating cash flow challenges [22][23]. Strategic Recommendations - To mitigate risks, Defeng Technology should diversify its customer base beyond state-owned enterprises and enhance its internal controls to avoid compliance issues. The upcoming IPO represents a critical opportunity to alleviate redemption liability risks and secure necessary funding for future growth [27].

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 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 - Defeng Technology is an AI-enabled Industrial Internet of Things (AIoT) software solution developer focused on enhancing energy efficiency, operational excellence, safety, and sustainability in China's energy, manufacturing, and mixed industries [2][3]. Company Overview - Defeng Technology has completed over 600 projects, primarily serving state-owned enterprises in China, with around 200 clients, including major players in the electricity, public utilities, oil and gas, and tobacco industries [2]. - According to a Frost & Sullivan report, the company is the fifth largest independent AIoT service provider in China by revenue for the fiscal year 2024, holding a market share of approximately 1.8%. In the energy sector, it ranks third with a market share of about 9.9% [2]. Product Offerings - The company has developed an integrated Delt@AIoT platform that enables rapid development and large-scale deployment of AIoT applications. This platform includes proprietary software, systems, and solutions embedded with relevant connected devices [2]. - The application suite focuses on three main areas: - **Energy Management**: The Delt@EM system monitors and analyzes real-time energy consumption to reduce costs and enhance sustainability [3]. - **Health, Safety, Environment, and Quality (HSEQ)**: The Delt@HSEQ system conducts real-time monitoring and hazard detection in industrial settings to prevent accidents and ensure regulatory compliance [3]. - **Smart Manufacturing**: The Delt@MOM system optimizes production processes from planning to supply chain management, improving efficiency and reducing costs [3]. Financial Performance - Revenue for Defeng Technology in the fiscal years 2022, 2023, 2024, and the first six months of 2025 was approximately CNY 313 million, CNY 442 million, CNY 525 million, and CNY 159 million respectively [4]. - The company reported losses of CNY 165 million, CNY 297 million, CNY 228 million, and CNY 40 million for the same periods [4]. - Gross profit margins for the fiscal years 2022, 2023, 2024, and the first six months of 2025 were 22%, 23.8%, 24.9%, and 26% respectively [6]. Industry Overview - China's IIoT market has rapidly expanded, with its market size growing from approximately CNY 9 trillion in 2020 to an estimated CNY 14 trillion by 2024, and projected to reach around CNY 20 trillion by 2029 [8]. - The AI penetration rate in the IIoT sector is expected to rise from about 6.1% in 2020 to approximately 11.0% by 2029, indicating a significant increase in AI applications across various industrial processes [8]. - The AIoT market in China has also seen substantial growth, expanding from approximately CNY 54.1 billion in 2020 to an estimated CNY 111.9 billion by 2024, with projections of reaching around CNY 220.9 billion by 2029 [12]. Market Applications - AIoT solutions are expected to be widely applied in key sectors such as energy, petrochemicals, automotive, engineering machinery, mining, tobacco, mold manufacturing, and equipment manufacturing [16]. - The market for HSEQ solutions is projected to grow from approximately CNY 500 million in 2020 to about CNY 3.1 billion by 2024, and further to around CNY 8.6 billion by 2029 [16]. - The energy management market is anticipated to increase from approximately CNY 6.3 billion in 2020 to CNY 14.5 billion by 2024, and to about CNY 32.7 billion by 2029 [17]. - The smart manufacturing market is expected to grow from approximately CNY 38.3 billion in 2020 to CNY 73.9 billion by 2024, reaching around CNY 146 billion by 2029 [17].

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].

香港聯合交易所有限公司與證券及期貨事務監察委員會對本申請版本的內容概不負責，對其準確性或完整 性亦不發表任何意見，並明確表示概不就因本申請版本全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 BEIJING DELTAPHONE TECHNOLOGY CO., LIMITED 北京德風新征程科技股份有限公司 （「本公司」） （於中華人民共和國註冊成立的股份有限公司） 的申請版本 本申請版本乃根據香港聯合交易所有限公司（「聯交所」）及證券及期貨事務監察委員會（「證監會」）的要求 而刊發，僅用作提供資訊予香港公眾人士。 本申請版本為草擬本，其內所載資訊並不完整，亦可能會作出重大變動。 閣下閱覽本文件，即代表 閣 下知悉、接納並向本公司、其獨家保薦人、整體協調人、顧問或包銷團成員表示同意： 倘於適當時候向香港公眾人士提出要約或邀請，準投資者務請僅依據呈交香港公司註冊處處長註冊的本公 司招股章程作出投資決定；有關文本將於發售期內向公眾刊發。 (i) 本文件僅為向香港公眾人士提供有關本公司的資料，概無任何其他目的。投資者不應根據本文件中 的資料作出任何投資決定； (ii) 在聯交所網站登載本文件 ...