New stock news | Tech company Delong Technology submits application to Hong Kong Stock Exchange as a developer of software solutions for AIoT production optimization.

According to the disclosure by the Hong Kong Stock Exchange on November 14th, Beijing Defeng Technology Co., Ltd. (referred to as Defeng Technology) has submitted its application to the Hong Kong Stock Exchange main board, with SUNNY FORTUNE as its exclusive sponsor. The prospectus shows that Defeng Technology is an AI-enabled developer of industrial Internet of Things (AIoT) production optimization software solutions, focusing on helping China's energy, manufacturing, and hybrid industries achieve energy efficiency, excellent operations, safety production, and sustainable development. The company provides comprehensive and integrated customized AIoT production optimization software solutions and service packages tailored to address specific customer needs and challenges. During the reporting period, the company has completed over 600 projects, mainly serving Chinese state-owned enterprises, with customers including over 200 companies, some of which are leading enterprises in the electricity and utilities, oil and gas, and tobacco industries, such as the top players in China's power grid, three major oil giants, and the tobacco monopoly enterprise. According to Frost & Sullivan's report, based on revenue for the fiscal year 2024, the company is the fifth largest independent professional AIoT service provider in China, with a market share of approximately 1.8%. Based on revenue for the fiscal year 2024, the company is also the third largest independent professional AIoT service provider in China's energy industry, with a market share of approximately 9.9%. The company has set up an integrated Delt@AIoT platform to enable rapid development and large-scale deployment of AIoT applications. The Delt@AIoT platform includes a comprehensive set of proprietary software, systems, and solutions, embedded with relevant interconnected devices. The company's application suite includes a wide and continuously expanding range of cross-industry and industry-specific AIoT applications, focusing on three main professional areas: Energy management: The company's Delt@EM system integrates sensors, smart meters, and control devices installed at decentralized locations to monitor and analyze real-time energy consumption, reducing costs and achieving sustainability. The Delt@EM system is typically used for energy data monitoring and reporting, energy efficiency analysis, and energy data analysis and operational optimization. Health, safety, environment, and quality (HSEQ): The company's Delt@HSEQ system utilizes sensors, interconnected devices, and analysis technology for real-time monitoring and hazard detection in industrial settings. The system aims to identify hazards to help prevent accidents and ensure regulatory compliance. Key applications include safety awareness and training, risk management and classification, early warning, and rapid emergency communication. Smart manufacturing: The company's Delt@MOM system aims to optimize production from planning and quality control to execution and supply chain management. The system links various processes and information flows, enabling customers to streamline processes, optimize workflows, and provide real-time insights into operations. This ultimately improves efficiency, reduces costs, and enhances overall performance. Key applications include quality control, e-commerce management, and intelligent retail management. Financial data Revenue: For the fiscal years 2022, 2023, 2024, and the first six months of 2025, Defeng Technology's revenue was approximately RMB 313 million, RMB 442 million, RMB 525 million, and RMB 159 million respectively. Profit: For the fiscal years 2022, 2023, 2024, and the first six months of 2025, Defeng Technology's profit was -RMB 165 million, -RMB 297 million, -RMB 228 million, and -RMB 39.928 million respectively. Gross margin: For the fiscal years 2022, 2023, 2024, and the first six months of 2025, Defeng Technology's gross margin was 22%, 23.8%, 24.9%, and 26% respectively. Industry overview As the global manufacturing center, China's future industrial development direction is digitalization and intelligence. The industrial Internet of Things, as its core application area, is accelerating this transformation. As global manufacturing shifts towards efficient, precise, and flexible production models, digitalization and intelligence capabilities have become the core drivers of industrial competitiveness. The Chinese IIoT market has rapidly expanded in recent years, with its market size increasing from approximately RMB 900 billion in 2020 to around RMB 1.4 trillion in 2024, and is expected to reach approximately RMB 2 trillion by 2029. As industrial enterprises accelerate their digitalization and intelligence transformation, IIoT solutions have become key tools for enhancing productivity and cost optimization, widely applied in manufacturing, energy, transportation, and other fields. At the same time, the penetration rate of AI in the IIoT field has significantly increased, from around 6.1% in 2020 to approximately 7.8% in 2024, expected to reach about 11.0% by 2029. AI applications have expanded from advanced analytics, predictive maintenance to quality control and automated decision-making, achieving a higher level of intelligent production. The deep integration of AI enhances the functionality and value of IIoT solutions, driving innovation and efficiency, enabling enterprises to adapt more flexibly to changing market demands and operational environments. The AIoT industry integrates artificial intelligence deeply into the industrial Internet of Things system to achieve digitalization, intelligence, and automation in the production process. Through machine learning, deep learning, and data analysis, AIoT enables real-time collection, analysis, and prediction of industrial data, optimizing workflows, improving equipment efficiency and product quality, ultimately achieving predictive maintenance. The Chinese AIoT market has grown rapidly in recent years, expanding from approximately RMB 54.1 billion in 2020 to around RMB 111.9 billion in 2024, expected to reach about RMB 220.9 billion by 2029. This growth is driven by policy support, the increasing demand for digital transformation in manufacturing, and the widespread application of 5G and AI technologies. AIoT, through enhanced equipment connectivity, optimized production processes, and improved resource utilization, has become the core driving force for efficiency improvement and innovation across industries, demonstrating significant market potential and long-term development prospects. Applications of the AIoT market It is expected that AIoT solutions in China will be widely used in key sectors such as energy, petrochemicals, automotive, engineering machinery, mining, tobacco, mold manufacturing, and equipment manufacturing. Core applications include Health, Safety, Environment, and Quality (HSEQ) solutions, energy management, and smart manufacturing, achieving end-to-end digitalization and intelligence upgrades, enhancing productivity and resource efficiency, reducing operating costs, and strengthening safety and sustainability. The growth of the Chinese AIoT market is driven by multiple structural and favorable factors, including enterprise digital transformation, policy support, and the increasing maturity of 5G, AI, and cloud technologies. The market size in the HSEQ sector has grown from approximately RMB 500 million in 2020 to about RMB 3.1 billion in 2024, expected to reach around RMB 8.6 billion by 2029. The market size in the energy management sector has grown from approximately RMB 6.3 billion in 2020 to RMB 14.5 billion in 2024, expected to climb to around RMB 32.7 billion by 2029. The market size in the smart manufacturing sector has grown from around RMB 38.3 billion in 2020 to about RMB 73.9 billion in 2024, expected to reach about RMB 146.0 billion by 2029. With industrial operators increasingly focusing on safety, energy efficiency, and intelligent manufacturing, these sub-markets are expected to continue to expand rapidly. Board information The board of directors will consist of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors. The board is responsible and has general powers to manage and operate the company. Directors serve a term of three years. Ownership structure As of the last practicable date, Mr. Wang is considered as having an interest in all the shares held by Dongcheng and Jinlongjie, as a general partner. Mao Chengyu, Shanghai Yunpan, Jiaxing Yunqi, Jiaxing Yunxia, and Suzhou Yunyue are considered as having an interest in all the shares held by Yunzhou Venture Capital. Yuncheng Investment holds 723,333 shares (approximately 1.5% of the issued shares) managed and controlled by its general partner, Shanghai Yunpan. Xiong Hao, Beijing Innovation Workshop, and Innovation Workshop Guangzhou are considered as having an interest in all the shares held by Innovation Workshop. China Merchants Group, Shenzhen China Investment Holdings, Shenzhen China Investment Management, China Merchants Venture Capital, and Shenzhen China Control are considered as having an interest in all the shares held by China Merchants Innovation. China Merchants Group, Shenzhen China Investment Holdings, Shenzhen China Investment Management, and China Merchants Venture Capital are considered as having an interest in all the shares held by Qingkong China Merchants. Intermediary team Exclusive sponsor: Sunjoy Capital Limited Legal advisors: 1. Regarding Hong Kong laws: Woo Kwan, Lee & Lo; 2. Regarding Chinese laws: Grandall Law Firm Legal advisors to the exclusive sponsor: 1. Regarding Hong Kong laws: N/A; 2. Regarding Chinese laws: TransAsia Lawyers Auditors and reporting accountants: BDO Limited Industry consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd., Shanghai Branch.