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].

众所周知，数字化与智能化是未来工业发展的关键方向。国家层面亦连续出台多项政策，推动工业互联 网与实体经济深度融合，目标是实现"智能制造"和产业数字化升级。而工业互联网作为其核心应用领 域，正充分享受这一轮行业发展红利。 根据工信部等机构数据，中国工业互联网产业规模已超过万亿元人民币，并预计在未来数年将保持年均 两位数的高速增长。 值此之际，一家深耕AIoT(智能物联网)领域的"隐形冠军"也因积极冲刺港股IPO的动作，闯进大众视线 中。 据智通财经获悉，11月14日，北京德风新征程科技股份有限公司(以下简称"德风新征程")正式向港交所 递交主板上市申请，独家保荐人为SUNNY FORTUNE。该公司是一家长期服务于国家电网、石油巨头 等大型国企的工业AIoT的生产优化软件解决方案技术开发商。据弗若斯特沙利文报告，按2024财年收 入计，该公司是中国第五大独立专业AIoT服务提供商，市场份额约为1.8%，是中国能源行业第三大独 立专业AIoT服务提供商，市场份额约为9.9%。 不过，隐匿于行业发展红利及强劲的市场地位下，则是公司常年"增收不增利"的具体表现。 可以看到，此次IPO不仅是德风新征程谋求"更好增长"的 ...

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].

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