More than 1 billion Hong Kong dollars excess allocation, XTALPI-P(02228) long-term investment value once again validated by the market.

XTALPI-P (02228) is a global leader in the "AI for Science" ("AI4S") industry and the first specialized technology company listed under the Hong Kong Stock Exchange's Chapter 18C rules. Since its listing on June 13th of this year, XTALPI-P has received widespread attention from the industry and the market, with investor interest reflected in the recent fundraising information of Crystal Tai Holdings. The fundraising received a positive response from the market, highlighting long-term value On January 19th, Crystal Tai Technology announced that on January 18th of this year, the company sold a total of 264 million shares at a subscription price of HK$4.28 per share (a discount of approximately 4.93% to the average closing price of HK$4.502 for the five trading days immediately preceding the last trading day). After the fundraising, the company is expected to raise approximately HK$1.13 billion. Crystal Tai Holdings' fundraising this time received a positive response from investors in the issuing market, achieving oversubscription. It is understood that the initial planned issuance amount was ultimately raised to approximately 150 million US dollars from 100 million US dollars (with some investors reporting only receiving 1/10 of the planned subscription amount). It is reported that this fundraising has gained unanimous favor from strategic investors and international long-term funds, with over 80% being long-term investors, including industry players, sovereign wealth funds, and well-known investors and family offices in Hong Kong and Taiwan. Since being included in the Hong Kong Stock Connect on September 10th, 2024, the proportion of Crystal Tai Holdings' shares held by Hong Kong Stock Connect investors has reached approximately 15%, with a net purchase amount of over 2.5 billion yuan. The successful completion of this international placement further proves that the company, in addition to funds from the south, has also gained full recognition from the international market. Statistical data shows that there were a total of 466 investment events in the domestic AI industry in 2024, a decrease of 27% compared to the previous year. Against this backdrop, the oversubscription of this fundraising reflects the continued confidence of domestic and foreign investors in Crystal Tai Holdings and highlights the company's high long-term investment value as the first listed company under Hong Kong Stock Exchange's Chapter 18C and visionary move. The AI for Science race is booming According to research firm IDC, the market size of generative artificial intelligence worldwide is expected to reach nearly 150 billion US dollars by 2027, with a compound annual growth rate of 85.7%. In this AI revolution, AI for Science is undoubtedly one of the most promising fields. Over the past five years, as model accuracy and generalization have gradually improved, AI for Science companies in different technological paths and application scenes have emerged continuously on a global scale, with the fastest and most abundant developments seen in biomedicine, materials chemistry, and other fields. In 2024, there were significant achievements in AI for Science: two Nobel Prizes once again focused on the pioneering combination of artificial intelligence and science. In China, the 2024 Government Work Report mentioned the "AI+" initiative for the first time. "AI+" becoming an action indicates that China is strengthening top-level design and accelerating the formation of a new productivity driven by artificial intelligence. In terms of investment projects, several global companies reached significant milestones, such as Alphabet's subsidiary Isomorphic Labs, Terray Therapeutics in the field of AI drug development, Genesis Therapeutics, Lambic Therapeutics, and Recursion, as well as Evolutionary Scale, a company focused on AI protein structure prediction, all announced fundraising last year. NVIDIA also announced collaborations with Illumina, Mayo Clinic, IQVIA, and other companies in advancing AI in the healthcare domain. Meanwhile, in the fields of chemistry and materials science, startup companies like Radical AI, Deep Principle, CuspAI, and Entalpic successfully completed fundraising. On January 16, 2025, the Chief Research and Development Manager of Microsoft Research Institute for AI for Science, Xie Tian, and colleagues showcased a diffusion-based AI generative model called MatterGen in a nature paper, demonstrating its ability to generate stable and diverse inorganic materials. Microsoft CEO Satya Nadella also introduced this achievement during X, the company's presentation event. It is worth noting that on December 18th of last year, Crystal Tai announced a collaboration with Microsoft to explore innovative applications of artificial intelligence (AI), large models, Siasun Robot & Automation Lab, and other cutting-edge technologies in the fields of biomedicine and materials science. Coinciding with this, also from an MIT background, speculation about collaboration between the two companies has captured the market's imagination. Therefore, investors are eagerly awaiting Crystal Tai's continued breakthroughs in the AI4S field. Adequately equipped for continued growth It is clear that the global development of the AI for Science industry has reached a critical juncture. In this high-return and high-reinvestment sector, fundraising is vital for companies to maintain and expand their leading edge. For Crystal Tai Holdings, the completion of this round of fundraising will allow the company to continue to maintain its competitive advantage worldwide, demonstrating Hong Kong's crucial advantage as a hub for global capital markets. According to public information, as of June 30, 2024, the company had a total of 3.38 billion RMB in cash and cash equivalents, fixed deposits, restricted cash, and financial assets. After this placement, disregarding the company's expenses in the second half of 2024, the company's cash reserves will increase to nearly 4.5 billion RMB. Crystal Tai currently maintains a leading fundraising record in the AI for Science field since its inception, garnering continuous support from many long-term investors, with a total cumulative fundraising amount exceeding $1 billion. Tencent, GoogleSilver Lake, Orbimed, Sequoia Capital, Chinese Biopharmaceuticals, Wuyuan Capital, China Life Insurance, Ping An Insurance, China International Capital Corporation, CITIC and other domestic and foreign star investors are all betting on JingTai in both primary and secondary markets. This not only shows that leading technology investors have full consensus on AI and Siasun Robot&Automation technology as the underlying technology for the development of new drugs, new energy, and new materials, but also indicates that the value of top targets in the industry has been fully recognized by investors.Adequate capital reserves have always been a strong guarantee for the company to maintain its leading position in this field. In the era of rapid global development of artificial intelligence and cash being king, Crystal Tai Holdings has clearly stored enough ammunition for the continued growth of its market competitiveness.