Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for 11 companies, including Yuntian Lifei, regarding their overseas listing applications, focusing on compliance with foreign investment policies and operational norms [1][2]. Group 1: Company Operations - Yuntian Lifei is required to clarify its business scope, specifically regarding its operations in value-added telecommunications, electronic publishing, economic information consulting, and advertising, ensuring compliance with foreign investment restrictions and necessary licenses [1][2]. - The company must provide a detailed explanation of its business model and the involvement of large models, including whether it has completed the necessary filings for these models [1][2]. Group 2: Regulatory Compliance - Yuntian Lifei is instructed to supplement its legal opinion with information about its business operations and compliance with regulations, particularly concerning its subsidiaries [2]. - The company must disclose whether it develops or operates websites, apps, or other digital products, and detail the types of information content provided to third parties, including user data collection and protection measures [2]. Group 3: Financial Performance - Yuntian Lifei is recognized as a leading AI company in China, focusing on the research, design, and commercialization of AI inference chips, with a complete closed-loop from infrastructure to product development [3]. - The company's financial performance shows revenues of approximately 546 million RMB, 506 million RMB, and 917 million RMB for the years 2022, 2023, and 2024 respectively, with corresponding losses of about 448 million RMB, 384 million RMB, and 572 million RMB [3].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for 11 companies, including Yuntian Lifei, regarding their overseas listing applications, focusing on compliance with foreign investment policies and operational norms [1][2]. Group 1: Company Operations - Yuntian Lifei is required to clarify its business scope, specifically regarding its operations in value-added telecommunications, electronic publishing, and advertising, ensuring compliance with foreign investment restrictions and necessary licenses [1][2]. - The company must provide a detailed explanation of its business model and the involvement of large models, including whether it has completed the necessary registrations for these models [1][2]. Group 2: Regulatory Compliance - Yuntian Lifei must confirm whether it or its subsidiaries are involved in developing or operating websites, apps, or other digital products, and detail the types of information content provided to third parties, along with user data protection measures [2]. - The company is required to ensure compliance with the regulations regarding overseas issuance and listing, specifically checking for any prohibitive circumstances [2]. Group 3: Financial Performance - Yuntian Lifei reported revenues of approximately 546 million RMB, 506 million RMB, and 917 million RMB for the fiscal years 2022, 2023, and 2024, respectively, with losses of about 448 million RMB, 384 million RMB, and 572 million RMB during the same periods [3]. - For the three months ending March 31, 2024, and 2025, the company recorded revenues of approximately 98.4 million RMB and 264 million RMB, with losses of about 13.8 million RMB and 85.8 million RMB, respectively [3].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for 11 companies, including Yuntian Lifei, regarding their overseas listing applications, focusing on compliance with foreign investment policies and operational details [1][2]. Group 1: Company Operations - Yuntian Lifei is required to clarify its business scope, specifically regarding its operations in value-added telecommunications, electronic publishing, economic information consulting, and advertising, ensuring compliance with foreign investment restrictions [2][3]. - The company must provide a detailed explanation of its business model and the specifics of its large model applications, including whether it has completed the necessary registrations [2]. Group 2: Regulatory Compliance - Yuntian Lifei is instructed to confirm whether it and its subsidiaries are in compliance with the prohibitive conditions for overseas issuance and listing as outlined in the relevant regulations [3]. - The company must detail its operational compliance, including the status of its major subsidiaries and any involvement in developing websites, apps, or other digital products, along with user data protection measures [2][3]. Group 3: Financial Performance - Yuntian Lifei reported revenues of approximately 546 million RMB, 506 million RMB, 917 million RMB, 98.448 million RMB, and 264 million RMB for the years 2022, 2023, 2024, and the first three months of 2025, respectively [3]. - The company experienced losses of approximately 448 million RMB, 384 million RMB, 572 million RMB, 13.8 million RMB, and 85.801 million RMB during the same periods [3].

Company Dynamics - On August 12, the Hong Kong Stock Exchange disclosed that Shenzhen Yuntian Lifei Technology Co., Ltd. appointed GF Securities and China Merchants Securities as overall coordinators for its upcoming IPO, indicating a move towards a dual listing after its debut on the Sci-Tech Innovation Board in 2023 [2] - Yuntian Lifei is an AI company focused on the research, design, and commercialization of AI inference chips, aiming to create a complete closed loop from AI infrastructure to product design and commercialization [2] - According to a report by Zhaoshang Consulting, Yuntian Lifei ranks among the top three providers of all-scenario AI inference chip products and services in China for 2024, and is ranked second among NPU-driven AI inference chip providers [2] Research and Development - Yuntian Lifei emphasizes R&D, having registered 1,052 patents, 242 software copyrights, and 572 trademarks in China [3] - The company allocates approximately half of its annual revenue to R&D, with expenditures of RMB 346.5 million, RMB 294.8 million, RMB 399.9 million, RMB 78.4 million, and RMB 83.9 million for the years 2022, 2023, 2024, and the first three months of 2024 and 2025, respectively, representing 63.4%, 58.3%, 43.6%, 79.7%, and 31.8% of total revenue [3] Financial Performance - Yuntian Lifei's revenue for 2022, 2023, and 2024 was RMB 550 million, RMB 510 million, and RMB 920 million, respectively, with gross profits of RMB 170 million, RMB 120 million, and RMB 190 million, leading to gross margins of 31.9%, 23.5%, and 20.9% [3] - The company is projected to experience an 81.3% year-on-year revenue growth in 2024, driven by accelerated commercialization of AI inference chips and successful expansion into consumer applications [3] Losses and Challenges - Despite impressive revenue growth, Yuntian Lifei has been operating at a loss, with losses of RMB 450 million, RMB 380 million, and RMB 570 million for the years 2022, 2023, and 2024, respectively, and a loss rate of 82%, 75.9%, and 62.4% [4] - The high R&D expenditures and operational costs are significant contributors to the ongoing losses, with R&D spending in 2024 reaching RMB 399.9 million, accounting for 43.6% of revenue [4] - The company faces challenges in sustaining its business model, as continuous high R&D investments are necessary before achieving large-scale product sales, and future profitability remains uncertain [5]

Core Viewpoint - The company, Yuntian Lifei, is preparing for its IPO in Hong Kong after facing significant losses, indicating a potential necessity for capital infusion to sustain operations [1][6]. Company Overview - Yuntian Lifei, established in August 2014, is a leading AI company in China focused on the research, design, and commercialization of AI inference chips [4]. - The company offers a complete closed-loop solution from AI infrastructure to product design and commercialization, targeting enterprise, consumer, and industry applications [4]. Market Growth - The AI inference chip market in China is rapidly growing, with a projected market size increase from RMB 11.3 billion in 2020 to RMB 162.6 billion by 2024, reflecting a compound annual growth rate (CAGR) of 94.9% [4]. - By 2029, the market is expected to reach RMB 1.383 trillion, with a CAGR of 53.4% from 2024 to 2029 [4]. Financial Performance - Yuntian Lifei's revenue for the years 2022 to 2024 was approximately RMB 546 million, RMB 506 million, and RMB 917 million, respectively, while adjusted losses were RMB 313 million, RMB 300 million, and RMB 383 million, totaling RMB 996 million in losses [6][7]. - The company has accumulated losses exceeding RMB 1.7 billion from 2018 to 2020 and the first half of 2021, indicating a significant financial strain [6]. Recent Developments - In Q1 2025, the company reported revenue of RMB 264 million with an adjusted net loss of RMB 59.51 million, alongside negative cash flow from operating activities [7]. - The company acquired Qiancheng Technology for RMB 180 million to enhance its consumer segment, with the first phase of payment being RMB 60 million [7]. Shareholder Structure - The largest shareholder group, controlled by Chen Ning, holds approximately 25.01% of the voting rights, comprising 23.32% directly and 1.7% through a wholly-owned entity [8].

Core Viewpoint - Yuntian Lifei is a leading AI company in China, focusing on the research, design, and commercialization of AI inference chips, aiming to create a complete closed-loop from infrastructure to product design and commercialization [3]. Industry Overview - The AI inference chip market in China is experiencing rapid growth, with the market size projected to increase from RMB 11.3 billion in 2020 to RMB 162.6 billion by 2024, representing a compound annual growth rate (CAGR) of 94.9%. It is expected to continue growing at a CAGR of 53.4% from 2024 to 2029, reaching RMB 1,383 billion by 2029 [3]. - Yuntian Lifei ranks among the top three providers of AI inference chip products and services in China based on revenue projections for 2024 [3]. Company Products and Technology - Yuntian Lifei's IFIC platform enables algorithm chip integration, allowing the company to develop optimized chips for various applications. The company has launched NPU products such as Nova, DeepEye, DeepEdge, and is working on DeepVerse and DeepXBot [4]. - The Hy3 CAN hardware tool and IFIE software platform support the operation of AI inference chips, providing a unified programming interface and a controlled development environment for large model applications [4]. Financial Performance - For the fiscal years ending March 31, 2022, 2023, 2024, and the first quarter of 2025, Yuntian Lifei reported revenues of approximately RMB 546.2 million, RMB 506.0 million, RMB 917.4 million, and RMB 264.0 million, respectively. Corresponding gross profits were approximately RMB 174.1 million, RMB 119.0 million, RMB 192.1 million, and RMB 76.0 million [5][6]. - The company has shown a trend of increasing revenue, with a notable jump in 2024, while gross profit margins have varied, indicating potential challenges in cost management [5][6].