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DeepSeek and Yushu Robot came out of nowhere, making the Hangzhou Six Little Dragons, each with their own unique skills, instantly come out of the loop. As AI stars are highly sought after in global capital markets, when these tech newcomers will go public has become investors’ biggest expectation.
Perhaps it won’t be too long, because the emerging technology companies’ desire for capital is just as urgent.
Recently, Qunar Technology has taken the lead in submitting its listing application, officially impacting the Hong Kong stock market. Under the aura of support, is still in the early stages of development of Hangzhou six small dragons, is slowly pulling open the prelude to listing.
After the opening of the curtain, the real point of interest may be whether the A-share market, which has repeatedly missed out on high-quality technology companies, will be able to attract the emerging stars of the times this time.
01 Near and far
01
seek the farther the closer
Compared with Yushu Technology, which is exploding this year, and Game Science, which launched the phenomenal online game Black Myth Goku last year, Qunan Technology, which is the earliest established among the six dragons in Hangzhou, doesn’t have a high sense of presence.
As China’s largest spatial design software provider, Qunusoft’s main business is to use GPUs to do fast rendering of cloud graphics images, and its customers mainly focus on spatial design needs of home and commercial chains and other industries.
Outside of the main business, the real value and imagination of Qunar Technology is actually the Qunar Spatial Intelligence Platform, SpatialVerse. a next-generation spatial intelligence solution developed for AI in indoor environments, which, through the huge and physically correct spatial datasets constructed over many years, can provide highly simulated virtual training environments for end-side AI, such as robotics.
In other words, the extremely scarce spatial data advantage is the moat and core competitiveness of Qunar Core in the AI era.
Although it is the invisible champion of the niche track and has great potential for development, like many science-based companies in the market development period, Qunar Technology has not been profitable for many years.
In order to solve the financial pressure, the group nuclear technology since its inception in 2011 has completed 11 rounds of financing, investors including IDG Gao Tiling Xiaomi’s Shunwei capital and other well-known institutions, suction nearly 300 million U.S. dollars, ceded about 50 percent of the equity In 2021, the company has also been to 3D cloud design the first stock of the concept of the Nasdaq application for listing, and ultimately, because of the time of China’s shares encountered in the U.S. review of the company’s own initiative to terminate.
Qun nuclear technology bypassed the U.S. and Hong Kong stocks, in fact, is not a problem of profitability, because the A-share science and innovation board and the Growth Enterprise Market, has long been for unprofitable enterprises to provide a diversified listing standards.
For example, the listing rules for unprofitable enterprises on the Techchina board are The estimated market capitalization is not less than RMB 1.5 billion, the operating income of the most recent year is not less than RMB 200 million, and the ratio of the cumulative research and development investment of the most recent three years to the cumulative operating income of the most recent three years is not less than 15 .
In terms of valuation and operation, Qunar Technology fully meets the conditions for listing on the STEM board.
As early as in 2021 when it was listed in the U.S., the valuation of Qunar Science and Technology had already exceeded $2 billion In the first three quarters of 2022, 2023 and 2024, Qunar Science and Technology’s revenue was RMB 601 million, RMB 664 million and RMB 553 million respectively, and R&D expenditures were RMB 438 million, RMB 391 million and RMB 263 million respectively, with ratios of RMB 73, 58, 89 and 47,56 respectively, and the two important operating indicators, namely, the ratio of revenue to R&D expenditures, also far exceeded that of Kechuan Board. The two important operating indicators, revenue and R&D expenditure ratio, are also far more than the requirements for unprofitable companies on the Science and Technology Board (STB).
Compared with A-share, Hong Kong and U.S. stock listing process is faster and the market environment is more internationalized, which may be the main reason for Qunar to seek farther away from home.
02 Lessons from History
02
The lessons of history
Over the past 20 years, most of the best companies representing the direction of China’s emerging industries have been listed in the U.S. and Hong Kong.
In 2004, Tencent, which was still in the early stages of development, went public on the Hong Kong stock market, raising only RMB 1.9 billion, but ceding more than 20% of its equity, with a market capitalization of less than HK$10 billion In 2014, Alibaba, which was still in the early stages of development, landed on the U.S. stock market and raised US$21.8 billion, becoming the largest IPO in the history of the U.S. stock market at that time.
In addition to the two banners of Ali and Tencent, Baidu, NetEase, Xiaomi, Jingdong and other Internet giants, Azure, Xiaopeng, Ideal and other electric car leaders, have also chosen to list in the U.S. and Hong Kong stocks, from the Chinese mainland’s Chinese stocks, has become a bright landscape in the Hong Kong and U.S. stock markets.
Since the listing of Hong Kong and U.S. stocks, Tencent has risen by a maximum of about 1,000 times, Ali has risen by a maximum of more than four times, and NetEase, Xiaomi and other giant companies have also become super bull stocks, which have brought investors lucrative gains and attracted a large amount of mainland capital to flock to the Hong Kong and U.S. stock markets through various channels.
Unlike Qunar Technology, the departure of Ali Tencent and many other technology giants back then was mainly due to historical circumstances. For a long time in the past, loss-making enterprises could not be listed on the A-share market, and issues such as the place of incorporation, shareholding structure, and different rights for the same shares also became obstacles for the giants to go public at an early stage.
The value to a country’s capital market of good companies that are in line with the trends of the times is beyond doubt. The reason why U.S. stocks have been able to thrive is that they have attracted the best local and global companies, and the emergence of super giants such as Apple, Microsoft, and Nvidia has led to a long bull market for U.S. stocks and laid the foundation for the U.S. to become the king of global innovation.
The constant exodus of tech giants has had a profound impact on China’s capital markets.
On the one hand, the fruits of China’s scientific and technological development and economic transformation over the past 20 years have not been fully reflected in A-shares.
At present, the A-share market value of the top listed companies, mainly banks, insurance, electric power, coal, communications carriers and other central enterprises relying on the policy advantage of profit-making giant, the market value of more than one trillion companies, only Ningde Times and BYD to call the real innovative technology companies.
On the other hand, A-share investors have not enjoyed the growth dividends of the giants, and A-shares can only hover at a low level for a long time.
In retrospect, if these outstanding technology companies in the early stages of the smooth landing of A shares, A shares of the major indices of the point, perhaps also has continued to hit record highs.
03 Today is not the same as in the past
03
This is not what it used to be.
In the years since the giants left, the A-share environment has changed dramatically. From the full opening up of the market to foreign investment to the overhaul of listing rules to attract quality companies, the regulator’s ability to change with the times is evident to all.
Between 2014 and 2016, the Shanghai-Shenzhen-Hong Kong Stock Connect was established, and channels for foreign investment in A-shares have gradually opened up, and A-shares have become increasingly internationalized.
As of the end of 2024, the value of foreign positions in A-shares had exceeded 2.2 trillion, accounting for nearly 3% of the total market value of A-shares, and it has become the second largest institutional investor after the public sector.
Cambrian and Baizi Shenzhou, which have exploded in popularity in the last two years, are examples of companies that have benefited from changes in listing policies and successfully landed on the A-share market.
As potential technology companies in the chip and innovative drug fields, both companies have been in the red since their inception, but the IPO process has been subjected to the policy all the way to the streetlight. From the submission of the listing application to the KIC successfully passed the meeting, Cambrian even spent only 68 days, before that, the A-share IPO queuing for review time, often more than 1 year or more.
Although Cambrian and Baiji Shenzhou did not get out of the loss quagmire, but it does not affect the two companies’ share price hit a record high, the market value of both exceeded the 300 billion mark. For high-quality technology companies with great prospects, A-share investors, who already have an international outlook and a long-term perspective, seem to have enough confidence and courage to give super-high valuations.
Cambrian monthly chart
Source Flush
2024 Since the change in the SEC, policy support for VC-based tech companies has become more pronounced.
In 2024, the decision makers successively issued a number of policy measures to promote the high-quality development of venture capital, namely, Article 17 of the Venture Capital, and the CSRC’s eight measures on deepening the reform of the Science and Technology Innovation Board (STIB) to serve the development of scientific and technological innovation and the development of new quality productive forces, namely, Article 8 of the STIB, etc., and other important policy documents, emphasizing that the financial sector should help scientific and technological innovation, and that it should be invested in the early stage and the long term, and once again explicitly support the issuance of high-quality unprofitable scientific and technological enterprises. The company also explicitly supports the issuance and listing of high-quality unprofitable technology-based enterprises.
Against the background of the continuous emergence of high-quality technology companies in the AI era, the A-share market, which has long been different from that of the past, will surely have a great opportunity to become the preferred place for the IPO of the Hangzhou Six Little Dragons and even more and more super unicorns in the future.
THE END Dear readers, thank you for subscribing to Huashang Towers Strategy, in order to facilitate your timely receipt of our latest push, please starred Huashang Towers Strategy public number, thank you for your support, and look forward to accompanying you for a long time. China Business Towers Strategy Editor-in-chief Bi Yajun Editor-in-chief Zhou Yi Editor-in-chief Song Xiaoyu This article only represents the author’s personal views, some images from the network of graphic bugs creative Oriental IC, failed to verify the copyright belongs to the non-commercial use, such as infringement, please contact the author of the public number of Huashang Towers Strategy, welcome to pay attention to the contribution of the article Business cooperation and advice Please contact 010 65580525 zy hsmrt com Director Zhou This article is a signed account of Netease News, Netease No. Special Growth Plan, and original content of Huashang Taoist.
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Dear readers, thank you for subscribing to Huashang Taoist, in order to facilitate your timely receipt of our latest push, please star the public number of Huashang Taoist, thank you for your support, and look forward to accompanying you for a long time.
China Business Towers Strategy Editor-in-chief Bi Yajun Editor-in-chief Zhou Yi Editor-in-chief Song Xiaoyu This article only represents the author’s personal views, some images from the network of graphic bugs creative Oriental IC, failed to verify the copyright belongs to the non-commercial use, such as infringement, please contact the author of the public number of Huashang Towers Strategy, welcome to pay attention to the contribution of the article Business cooperation and advice Please contact 010 65580525 zy hsmrt com Director Zhou This article is a signed account of Netease News, Netease No. Special Growth Plan, and original content of Huashang Taoist.
Editor-in-chief Bi Yajun Editor-in-chief Zhou Yi Editor-in-chief Song Xiaoyu This article only represents the author’s personal views, some images from the network of graphic bugs creative Oriental IC, failed to verify the copyright attribution, not for commercial purposes, if there is any infringement, the author please contact us.
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