Group 1 - Soulgate Inc. is attempting its fourth IPO, having previously submitted applications in the US and Hong Kong, with a registered user base of nearly 400 million and annual revenue exceeding 2.2 billion [2][4][28] - The company has redefined its positioning from "social metaverse" to "AI + social," targeting Generation Z while leveraging the AI trend [4][28] - Soul's redemption liabilities have accumulated over 12.4 billion, raising concerns about cash flow if the IPO fails [4][28] Group 2 - Financial data shows that Soul's revenue for 2022, 2023, and 2024 is projected to be 1.667 billion, 1.846 billion, and 2.211 billion respectively, with operating profits turning positive in 2023 [7][31] - The company reported a revenue of 1.683 billion in the first eight months of 2025, a year-on-year increase of 15.15%, with operating profit at 239 million, up 14.2% [7][31] Group 3 - Approximately 90% of Soul's revenue comes from "emotional value services," primarily through the purchase of Soul coins or subscriptions, with virtual gifts accounting for about 60% of total revenue [9][33] - Advertising revenue growth has slowed, with a 9.3% increase in the first eight months of 2025 compared to a compound annual growth rate of 27% in the previous three years [9][33] Group 4 - Soul faces challenges similar to competitors like Tinder, with user growth slowing and a current paid user rate of 6.5%, which raises questions about potential growth ceilings [38] - The company has been involved in multiple compliance issues, including scams and inappropriate content, leading to regulatory scrutiny and user complaints [14][40][44] Group 5 - Soul has invested heavily in AI, launching features like dynamic image recognition and the Soul X model, which aims to enhance user engagement through personalized interactions [21][46] - The AI Booster feature, which provides users with chat suggestions, has seen daily active users reach 4.6 million, accounting for about 40% of total daily active users [21][46]

Core Viewpoint - Soulgate Inc., the parent company of Soul, has submitted its fourth application for a mainboard listing on the Hong Kong Stock Exchange after three previous unsuccessful attempts, aiming to leverage AI-driven emotional social networking to regain investor interest while showcasing profitable financial data [1][10]. Financial Performance - Soul reported revenues of 16.67 billion in 2022, increasing to 19.82 billion in 2023, and projected to reach 22.11 billion in 2024, reflecting a compound annual growth rate of approximately 15.2% [5]. - The adjusted net profit for 2023 is 3.61 billion, with projections of 3.37 billion for 2024 and 2.86 billion for the first eight months of 2025 [1][7]. - Despite these figures, the company has accumulated losses exceeding 8.22 billion over three years, with net losses of 5.08 billion, 1.29 billion, 1.49 billion, and 0.36 billion for the years 2022, 2023, 2024, and the first eight months of 2025, respectively [7][8]. Revenue Structure - Soul's revenue is heavily reliant on emotional value services, which accounted for over 90% of total income from 2022 to 2025, while advertising and other business revenues contributed less than 10% [8][11]. - The company faces challenges due to its single revenue structure, which could be impacted by regulatory changes affecting live streaming and virtual consumption [8][10]. Market Position - Soul has seen a decline in user growth, with average monthly active users (MAU) dropping to 26.2 million in 2024, a decrease of 17.09% from its peak in 2021 [9]. - The competitive landscape is intensifying, with platforms like Douyin, Kuaishou, and Xiaohongshu encroaching on its user base, making it difficult for Soul to replicate the connection efficiency of WeChat or the content moat of Bilibili [9]. Debt Pressure - The company is under significant pressure from a convertible redeemable preferred stock liability of 12.4 billion, stemming from agreements made during previous funding rounds, which could trigger a liquidity crisis if the IPO fails [10][13]. - This debt pressure is a driving force behind Soul's repeated attempts to go public, as it seeks to maintain valuation and secure a listing window [10][12]. Strategic Shift - Soul has pivoted towards an AI+social strategy, introducing its self-developed model "Soul X" for user matching and content generation, although these AI functionalities have yet to generate independent revenue streams [10][11]. - The AI strategy is currently more focused on enhancing user experience rather than serving as a direct revenue generator, raising concerns about its effectiveness in improving user payment willingness or reducing customer acquisition costs [11][12]. IPO Journey - Soul's IPO journey has been fraught with challenges, having attempted to list in the U.S. in 2021 before shifting focus to Hong Kong, where it has faced multiple setbacks due to external market conditions and internal operational issues [12][13]. - The upcoming IPO attempt will be scrutinized closely by the Hong Kong Stock Exchange, particularly regarding how the company addresses previous concerns about its business model and debt obligations [13].

Core Insights - Soul, a platform aimed at creating a "soul social" space, is preparing for its fourth IPO attempt after achieving profitability for two consecutive years, with a focus on "emotional value services" as its main revenue source [2][3][5] Financial Performance - In 2022, Soul reported an adjusted net loss of 0.22 billion RMB, but turned profitable in 2023 with an adjusted net profit of 0.361 billion RMB, and is projected to earn 0.337 billion RMB in 2024 [6][7] - Revenue from 2022 to 2024 showed a compound annual growth rate of over 15%, with figures of 1.667 billion RMB, 1.846 billion RMB, and 2.211 billion RMB respectively [8] - For the first eight months of 2025, Soul achieved a revenue of 1.683 billion RMB, confirming its self-sustaining capability [7][8] Revenue Composition - Soul's primary revenue comes from "emotional value services," which account for over 90% of total income, while advertising services contribute around 10% [10] - The "emotional value services" include virtual goods and privileges, with users paying for virtual currency "Soul coins" to purchase items like customized avatars and virtual gifts [11][12] - Virtual gifts and tools generated approximately 60% of total revenue from 2022 to the first eight months of 2025, with significant contributions from recommendation privileges and AI-related income [15] User Engagement - As of August 2025, Soul had 3.9 million registered users, with daily active users reaching 11 million, predominantly from Generation Z, averaging over 50 minutes of usage per day [4][26] - The percentage of paying users increased from 5.7% in 2022 to 6.5% in the first eight months of 2025, with the average revenue per paying user (ARPPU) rising to 104.4 RMB, the highest in the industry [16] Challenges and Risks - Soul faces challenges related to user quality and safety, with reports of scams and inappropriate content linked to its anonymous platform [17][19] - The company has implemented measures to enhance content moderation and user safety, including the development of anti-fraud models [18][22] AI Integration - Soul is leveraging AI technology, particularly through its self-developed model "Soul X," to enhance user interaction and content creation [22][23] - The AI features aim to improve user engagement by facilitating conversations and matching users based on interests [25][26] - The market for AI and immersive emotional economy is projected to grow significantly, with an estimated size of 7.1 billion RMB in 2024, expected to reach 100 billion RMB by 2030 [25]

Core Viewpoint - Soul App, backed by Tencent, aims to leverage its AI first-mover advantage to achieve a valuation premium in its upcoming Hong Kong IPO [1][2] Group 1: AI and Business Model - Soulgate's core competitive edge lies in "emotional empowerment," which aligns with the brand's essence, "Soul" [2] - The self-developed large model, Soul X, utilizes vast user interaction data from public social scenarios to enhance user experience through real-time emotional understanding [4] - Soul has achieved profitability, a rarity among AI companies, indicating a sustainable business model despite the high costs associated with AI development [4] Group 2: User Engagement and Financial Performance - As of 2025, Soul's daily active users (DAU) are approximately 11 million, with over 90% of revenue generated from AI-driven emotional value services [9] - The platform's revenue for 2024 is projected to be RMB 22.11 billion, a 19.7% increase from RMB 18.46 billion in 2023, with adjusted profits of RMB 3.37 billion and RMB 2.86 billion for 2024 and the first eight months of 2025, respectively [5][6] - The user interaction drives AI model iteration, creating a "user – AI – platform" flywheel effect that enhances commercial opportunities [9] Group 3: Market Position and Future Outlook - Soul's IPO application coincides with a favorable market window, allowing the company to assert its early commitment to generative AI before the current industry trend [6] - The company is positioned to attract Gen Z users seeking emotional empowerment, potentially leading to a new valuation premium [10]

Core Viewpoint - Soulgate Inc., the parent company of the social platform Soul, has submitted an IPO application to the Hong Kong Stock Exchange, with Tencent as a strategic investor holding 49.9% of the shares. The company aims to overcome previous IPO failures and has demonstrated a turnaround in profitability [2][3]. Financial Performance - Soul's revenue for 2022, 2023, and 2024 is projected to be 1.667 billion, 1.846 billion, and 2.211 billion RMB, respectively, with a compound annual growth rate exceeding 15%. The adjusted net profit for the same years is expected to be -21.89 million, 361 million, and 337 million RMB, indicating a significant recovery [3][4]. - The total adjusted net profit for the first eight months of 2025 is projected to be 286 million RMB, with the total net profit for 2023-2025 expected to approach 1 billion RMB [3]. Revenue Breakdown - Soul's primary revenue sources are emotional value services (approximately 90% of total revenue) and advertising (around 10%). Emotional value services include user in-app purchases and subscription income, while advertising revenue has shown a growth rate of 64% from 140 million to 239 million RMB between 2022 and 2024 [4][5]. - Within emotional value services, virtual goods revenue significantly surpasses membership subscriptions, with the majority coming from user-to-user virtual gifts [6]. User Engagement Metrics - As of August 2025, Soul's monthly active users (MAU) are projected to be 28 million, with daily active users (DAU) reaching 11 million. The average revenue per paying user (ARPU) has increased from 75.3 RMB in 2022 to 104.4 RMB by August 2025, reflecting a 38.6% growth [8][9]. - The user engagement metrics indicate that while the number of paying users has remained relatively stable, the average income per paying user has risen, showcasing improved monetization strategies [9][10]. AI Integration - Soul has integrated AI into its platform, enhancing user interaction through features like AI virtual companions and recommendation systems. The AI Booster function has gained traction, with 4.6 million daily active users by August 2025, accounting for about 40% of total DAU [10][16]. - The AI capabilities are centered around a model called Soul X, which processes various data types and aims to enhance user emotional engagement and interaction efficiency [11][13]. Market Challenges - Despite the positive financial indicators, Soul faces challenges similar to those of Tinder, including stagnation in user growth and reliance on monetizing existing users rather than expanding the user base. The current paying rate stands at 6.5%, which is lower than Tinder's approximately 12% [19].

Core Viewpoint - Soulgate Inc., the parent company of the social platform Soul, has submitted an IPO application to the Hong Kong Stock Exchange, with Tencent as a strategic investor holding 49.9% of the shares. The company aims to leverage its AI capabilities to drive growth and profitability after previous unsuccessful IPO attempts [6][29]. Financial Performance - Soul's revenue is projected to grow from 16.67 billion RMB in 2022 to 22.11 billion RMB in 2024, representing a compound annual growth rate (CAGR) of over 15%. The adjusted net profit is expected to turn from a loss of 21.89 million RMB in 2022 to a profit of 33.7 million RMB in 2024 [6][7][11]. - The total adjusted net profit for 2023-2025 is estimated to approach 1 billion RMB, indicating a significant turnaround in financial performance [7]. Revenue Breakdown - The primary revenue sources for Soul are emotional value services, accounting for approximately 90% of total revenue, and advertising services, which contribute around 10%. Emotional value services revenue is expected to grow from 15.18 billion RMB in 2022 to 19.69 billion RMB in 2024, while advertising revenue is projected to increase from 1.48 billion RMB to 2.39 billion RMB, a growth of 64% [10][11][12]. User Engagement and Monetization - Soul's user engagement metrics show that while the monthly active users (MAU) have not exceeded the peak of 29.4 million in 2022, the daily active users (DAU) have increased significantly, leading to a rise in user stickiness from approximately 33% in 2022 to nearly 40% [15][26]. - The average revenue per paying user (ARPU) has increased from 75.3 RMB in 2022 to 104.4 RMB by August 2025, reflecting a 38.6% growth in less than three years [15][26]. AI Integration - The integration of AI into Soul's platform, particularly through the Soul X model, has transformed core functionalities such as recommendations and 1v1 chat, enhancing user experience and engagement [17][20]. - The AI Booster feature, which allows users to generate responses and content suggestions, has seen daily active users reach 4.6 million, accounting for about 40% of total DAU by August 2025 [24][25]. Market Position and Challenges - Despite the positive financial indicators and user engagement metrics, Soul faces challenges similar to those of Tinder, including stagnation in user base growth and a reliance on monetizing existing users. The current paying user penetration rate stands at 6.5%, which is lower than Tinder's approximately 12% [29].

Core Insights - Soulgate, the parent company of the social platform Soul App, has submitted an IPO application to the Hong Kong Stock Exchange, with Tencent as a strategic investor holding 49.9% [1] - Soul App is the first AI-driven immersive social network platform in China where all users interact under virtual identities, with over 78.7% of daily active users being Gen Z [1] - The company reported projected revenues of 1.667 billion RMB, 1.846 billion RMB, and 2.211 billion RMB for 2022, 2023, and 2024 respectively, with a compound annual growth rate exceeding 15% [1] Financial Performance - For the first eight months of 2025, Soulgate's revenue reached 1.683 billion RMB, indicating strong growth [1] - The company is expected to achieve stable profitability starting in 2023, with adjusted profits of 337 million RMB for 2024 and 286 million RMB for the first eight months of 2025, alongside gross margins of 83.7% and 81.5% respectively [1] - The net cash generated from operating activities is projected to be 421 million RMB in 2024 [1] Use of Proceeds - The funds raised from the IPO will be allocated towards AI capability development, global expansion, user base growth, content development, and general corporate purposes [1]

Core Viewpoint - Soul is set to internally test its self-developed end-to-end full-duplex voice call model, which will be applied in various interactive scenarios such as real-time communication with virtual humans and AI matching [1] Group 1: Development Timeline - In 2020, Soul initiated the research and development of AIGC (Artificial Intelligence Generated Content) technology [1] - In 2023, Soul launched its self-developed Soul X, followed by the rollout of various large model capabilities including voice generation, voice call, and music generation models [1] - By 2024, Soul's AI large model capabilities will be upgraded to a multi-modal end-to-end model, supporting text dialogue, voice calls, multi-language, multi-modal understanding, and realistic human-like interactions [1]

Core Insights - Soul App's technical paper has been accepted at CVPR 2025, marking a significant breakthrough in AI social networking [1][2] - The acceptance rate for CVPR 2025 was only 22.1%, highlighting the competitive nature of the conference and the recognition of Soul's technical capabilities [2] - Soul has a history of achievements in AI, including previous paper acceptances and competition wins, demonstrating its commitment to AI social applications [2] Group 1 - The accepted paper introduces a novel real-time audio-driven portrait animation framework that enhances video generation efficiency and naturalness [2] - This framework splits the talking head task into facial motion generation and efficient body movement generation modules, improving the overall user experience [2][3] - Soul's advancements in multimodal interaction are expected to lead to more immersive social experiences for users [3] Group 2 - Future applications of this technology include real-time video calls and emotionally engaging AI virtual companions, aiming to enhance human-computer interaction [3] - Soul's continuous innovation in AI social networking not only improves user experience but also sets a direction for industry development [3] - The company aims to leverage its deep technical expertise to create a warm and engaging social space, pushing AI social networking to new heights [3]