New Stock Preview | Teslink: China's Public Domain AIoT "Unicorn", Swimming in the Blue Ocean of Industry Intelligence

With the integration of AI and the Internet of Things, known as AIoT, the interaction between the physical world and the digital domain is being promoted, making industrial intelligenceization possible. According to a report from Insights Consulting, driven by strategic layout of digital infrastructure and large-scale investments, China has become one of the fastest-growing countries in the global AIoT industry. The revenue of China's public domain AIoT industry is expected to grow from 408 billion yuan in 2023 to 744 billion yuan in 2028, with a compound annual growth rate of 12.8%, far exceeding the global market growth rate. In this context, AIoT enterprise Teslink officially submitted its application for listing on the main board of the Hong Kong Stock Exchange on September 26, with the potential to become the first AIoT stock in China in the near future. As a pioneer and leader in China's public domain AIoT industry, Teslink is expected to reshape the future industry and sustainable urban development with the power of the capital market for Chinese AI technology. Ten years of hard work, creating a unicorn in the public domain AIoT industry Teslink was established in 2015 and has been focusing on the integration innovation of AI and IoT technologies since its inception, committed to reshaping the future industry and sustainable urban development with AI technology. As one of the top five platform enterprises in the Chinese AIoT field driven by OS, Teslink's business focuses on four main directions: AI industrial intelligence, AI city intelligence, AI smart living, and AI smart energy. With AIoT technology and integrated delivery capability of hardware and software full stack products, Teslink has achieved the commercial landing of AI applications on a large scale, with newly signed contracts increasing year by year. In 2021, 2022, 2023, and the six months ended June 30, 2024, the number of new signed customers was 161, 175, 193, and 89 respectively. With the continuous growth of the customer base, Teslink's business scale is rapidly expanding. In 2023, Teslink achieved revenue of 1.006 billion yuan, with a year-on-year growth rate as high as 36.3%; among which, the revenues of AI industrial intelligence, AI city intelligence, and AI smart energy increased by 32%, 47%, and 151.3% respectively. In terms of business structure, in 2023, around 62% of Teslink's revenue came from AI industrial intelligence business, an increase of approximately 11 percentage points from 2021, and AI city intelligence accounted for 22.3% of the company's revenue. Teslink's full-stack public domain AIoT products have gained high market recognition in China and globally. As of June 30, 2024, Teslink's products have been deployed by over 800 customers from more than 150 cities worldwide, with businesses in China, the United Arab Emirates, Singapore, and Australia markets; as of the same date, Teslink's in-hand order amount was approximately 2 billion yuan, expected to become the earliest profitable AI company. With the rapid expansion of its business scale and the steady improvement of its internationalization level, Teslink's main internal factor lies in its research and development team composed of world-class engineers and scientists, including three IEEE Fellows, all of whom have been listed in the top 2% of global top scientists lists released by Stanford University for their lifetime and annual scientific influence. In addition, as of June 30, 2024, Teslink's research and development personnel accounted for 52.2% of the total number of employees. With the support of a top research and development team, Teslink's technology has rapidly iterated over the past decade. From the AIoT 1.0 stage of device-as-a-service, to the AIoT 2.0 stage of solution-as-a-service, and then to the AIoT 3.0 stage of city-as-a-service, and now the AIoT 4.0 stage of large model empowerment for industrial intelligence, Teslink's development path reflects its deep accumulation and continuous innovation in the field of AIoT, and has built a solid moat. Based on the origin of AIoT technology, Teslink independently developed the AIoT operating system TacOS, and built a full-stack AIoT technology product system. Around TacOS, Teslink provides full-stack AIoT products (including software, hardware, and services) to enterprises, public domain managers, and other public domain participants. According to Insights Consulting report, TacOS launched by Teslink is one of the earliest public domain AIoT operating systems in Asia to support full-scene applications in public domain spaces. It is reported that TacOS can effectively address the core pain points of the AIoT industry, solve the problems of large-scale IoT device connection, cross-scene control and scheduling, unified development of multiple applications, and provide a solid platform for the implementation and operation of Teslink's intelligent scenes in public domains, as well as an extended application platform for other intelligent areas. It is noteworthy that Teslink is continuously promoting the construction of AIoT industry standards. As of June 30, 2024, the company has assisted in the formulation of 1 international and 34 domestic authoritative industry standards. Favored by star capital, valuation soaring As a unicorn in the public domain AIoT industry, Teslink has broad development prospects, and has received favor from many star capitals. It is understood that since its establishment in 2015, Teslink has completed 9 rounds of financing, with a total financing scale exceeding 5 billion yuan. On April 9, 2024, Teslink announced the completion of a 2 billion yuan Series D financing delivery, also the largest annual Series D financing in China at the time. The multiple rounds of financing before the listing of Teslink attracted investments from foreign funds, industrial funds, well-known platforms, and institutions at home and abroad. These include: foreign funds such as AL Capital, IDG Capital, industrial funds of the CITIC system, SenseTime Technology, JD.com, Iflytek Co., Ltd., YM Equity Investment Fund, Gemdale Corporation, domestic and foreign renowned platforms and institutions such as Everbright, Futon Capital, Sany Heavy Industry, Nanchang government platform company, Xuzhou Industrial Fund, North Sci-Tech Development Group. After receiving investments from various star capital, Teslink's valuation has continued to rise. In August this year, as one of the pre-IPO round investors of Teslink, MICROWARE, a Hong Kong-listed company, announced a strategic cooperation framework agreement with Teslink, investing 50 million yuan in Teslink, accounting for 0.24% of the total share, based on which, the valuation of Teslink was estimated to increase.TusiUnion is valued at approximately 21 billion yuan.According to data from Wind, in the first half of 2024, the total fundraising amount of 29 main board IPO companies in the Hong Kong stock market was HK$11.02 billion, a decrease of approximately 38.1% compared to HK$17.8 billion last year. Among them, the largest IPO in terms of fundraising scale was CHABAIDAO, raising a total of HK$2.586 billion. Therefore, TESLINK, which planned to raise more than HK$5.6 billion, can be said to be a bright spot in the Hong Kong IPO market this year. It should be noted that the valuation increase of TESLINK is not solely driven by capital. The company plans to use the funds raised from the listing to strengthen its core business capabilities, thereby driving long-term sustainable growth in performance and providing effective support for its valuation. The prospectus shows that TESLINK plans to use the funds raised from the listing to enhance its R&D capabilities, especially investing in the research and development of TacOS, Green Intelligent Computing, and large-scale models in the field; it will also be used for commercialization and market expansion, including developing new scenario applications and improving commercialization capabilities, expanding the domestic sales team and increasing market penetration, expanding overseas layout, and strengthening the ecosystem; meanwhile, it will be used to seek strategic investment and acquisition opportunities to advance the company's AIoT plan in the field of digital intelligence, and enhance overall competitiveness; other uses include operating funds and general corporate purposes. In view of this, with its technological innovation in the AIoT field, market recognition, strong capital support, and proactive international expansion strategy, TESLINK has become a pioneer and leader in the Chinese domain of the AIoT industry. It can be expected that after listing, TESLINK will further consolidate its market-leading position in the vast AIoT track with the help of the power and advantages of the capital market, firmly grasp new market opportunities, contribute a "Chinese solution" to the global digital intelligence industry, and create lucrative investment returns for investors.