New stock news | Techfirm DeFeng filed for a second time with the Hong Kong Stock Exchange as the fifth largest independent professional AIoT service provider in China.

According to the disclosure by The Stock Exchange of Hong Kong on January 20th, Beijing De Feng Xin Zheng Cheng Technology Co., Ltd. (referred to as De Feng Technology) has submitted its listing application to the Main Board of The Stock Exchange of Hong Kong, with RiJin Capital as its exclusive sponsor. This is the company's second submission to The Stock Exchange of Hong Kong. According to a Frost & Sullivan report, based on the revenue for the fiscal year 2024, De Feng Technology is the fifth largest independent professional AIoT service provider in China, with a market share of approximately 1.8%. Based on the revenue for the fiscal year 2024, the company is also the third largest independent professional AIoT service provider in the Chinese energy industry, with a market share of around 9.9%. Company Overview The prospectus shows that De Feng Technology is a mature AI-empowered industrial Internet of Things (AIoT) production optimization software solution technology developer, focusing on assisting China's energy, manufacturing, and mixed industries to achieve energy efficiency improvement, 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. By using AI, the Internet of Things, and other advanced technologies to process production workshop data collected from sensors and devices, the company's end-to-end solution provides real-time insights, helping customers make informed data-driven decisions on industrial processes and infrastructure to enhance operational efficiency, quality, and agility. During the reporting period, De Feng Technology has completed over 500 projects, mainly serving Chinese state-owned enterprises, with approximately 150 customers, including leading enterprises in the electricity and utilities, oil and gas, and tobacco industries, such as China's dual electricity grid, three major oil giants, and the tobacco monopoly enterprise. De Feng Technology has established an integrated Delt@AIoT platform that empowers rapid development and large-scale deployment of AIoT applications. The company's Delt@AIoT platform includes a comprehensive set of proprietary software, systems, and solutions embedded with relevant connectivity devices. Based on the company's Delt@AIoT platform, as of the latest practicable date, the company has developed over 300 software applications deployable across various industries and use cases. The company's application suite includes a range of extensive and continuously expanding turnkey cross-industry and industry-specific AIoT applications to address various critical use cases. The company's application suite focuses on the following three major professional fields: Energy Management: The company's Delt@EM system integrates sensors, smart meters, and control devices installed in dispersed 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, connectivity devices, and analytical technologies for real-time monitoring and hazard detection in industrial settings. The system aims to identify hazards to help prevent accidents and ensure regulatory compliance. Its main uses include safety awareness and training, risk management and classification, early warning, and rapid emergency communications. Smart Manufacturing: The company's Delt@MOM system is designed to optimize production from planning and quality control to execution and supply chain management. These systems link various processes and information flows, enabling customers to streamline processes, optimize workflows, and gain real-time insights into operations. This ultimately improves efficiency, reduces costs, and enhances overall performance. Its main applications include quality control, e-commerce management, and intelligent retail management. Financial Data Revenue In the fiscal years 2023, 2024, the first nine months of 2024, and the first nine months of 2025, the company achieved revenues of approximately RMB 442 million, RMB 525 million, RMB 216 million, and RMB 275 million, respectively. Gross profit and gross profit margin In the fiscal years 2023, 2024, the first nine months of 2024, and the first nine months of 2025, the company recorded gross profits of approximately RMB 105 million, RMB 131 million, RMB 52.217 million, and RMB 69.786 million, with corresponding gross margins of 23.8%, 24.9%, 24.2%, and 25.3%, respectively. Operating profit In the fiscal years 2023, 2024, the first nine months of 2024, and the first nine months of 2025, the company recorded operating profits of -RMB 8.156 million, RMB 10.639 million, -RMB 35.121 million, and -RMB 30.465 million, respectively. Industry Overview The architecture of the industrial Internet of Things (IIoT) consists of the device layer, IaaS, PaaS, SaaS, and the application layer, forming a multi-layered, tightly integrated ecosystem. The device layer collects and processes real-time data through smart devices and edge devices. The IaaS layer provides basic computing and networking resources; the PaaS layer supports the development and data processing of industrial applications; and the SaaS layer offers flexible cloud-based industrial solutions. The collaborative operation between layers achieves comprehensive digitalization and intelligent transformation of industrial production, while security measures help ensure system stability and data security, laying a solid foundation for the digital transformation and intelligent manufacturing of enterprises. The expansion of the Chinese IIoT market has seen its market size grow from approximately RMB 0.9 trillion in 2020 to approximately RMB 1.4 trillion in 2024 and is expected to reach around RMB 2.0 trillion by 2029. As industrial enterprises accelerate their digitalization and intelligent transformation, IIoT solutions are increasingly applied in manufacturing, energy, transportation, and other fields to enhance production efficiency and optimize costs. Policy support and the increasing maturity of foundational technologies such as 5G and cloud computing are expected to lay the groundwork for sustainable growth. The penetration rate of AI in the IIoT field has increased from approximately 6.1% in 2020 to around 7.8% in 2024 and is expected to reach about 11.0% by 2029. AI applications continue to expand from advanced analytics and predictive maintenance to quality control and automated decision-making, supporting higher levels of intelligent production. The deep integration of AI enhances the functionality and value of IIoT solutions, driving innovation and efficiency improvements, enabling enterprises to adapt more flexibly to changing market demands and operational environments. The AIoT industry integrates artificial intelligence into the industrial Internet of Things system to support the digitization, intelligence, and automation of production processes. With machine learning, deep learning, and data analytics, AIoT enables real-time data collection, analysis, and prediction of industrial data to optimize workflows, enhance equipment efficiency and product quality, and support predictive maintenance. AI can boost productivity, reduce manual intervention, shorten downtime through predictive maintenance, and lower operational costs. AI-driven quality control helps ensure consistent product quality and meet higher standards; at the same time, it provides decision support for management to respond more agilely to market changes. Through deep data integration, AI-based industrial Internet solutions assist enterprises in reducing costs while enhancing competitiveness, accelerating their digitalization and intelligent transformation. The Chinese AIoT market has seen rapid growth in recent years, expanding from approximately RMB 54.1 billion in 2020 to about RMB 111.9 billion in 2024 and is expected to reach approximately RMB 220.9 billion by 2029. This growth is mainly driven by policy support, the increasing demand from the manufacturing industry for digital transformation, and the wider application of 5G and AI technologies. AIoT, through enhanced device connectivity, streamlined production processes, and improved resource utilization, has become a driving force for efficiency and innovation across industries, demonstrating significant market potential and long-term development prospects. In the HSEQ field, the market size has grown from approximately RMB 500 million in 2020 to about RMB 3.1 billion in 2024 and is projected to reach around RMB 8.6 billion by 2029. The market size for energy management has increased from about RMB 6.3 billion in 2020 to RMB 14.5 billion in 2024 and is expected to reach approximately RMB 32.7 billion by 2029. The market size for smart manufacturing has grown from approximately RMB 38.3 billion in 2020 to about RMB 73.9 billion in 2024 and is projected to reach around RMB 146 billion by 2029. As industrial operators increasingly prioritize safety, energy efficiency, and smart manufacturing, these segmented markets are expected to continue expanding. Given the high level of digitalization in the energy industry and widespread sensor deployments, AIoT applications in this field have made significant progress. The market size of AIoT solutions in the energy industry has increased from approximately RMB 1.8 billion in 2020 to around RMB 3.7 billion in 2024, with a compound annual growth rate of 19.7%; it is expected to reach about RMB 7.7 billion by 2029, corresponding to a compound annual growth rate of 15.7% from 2024 to 2029. The decline in the compound annual growth rate reflects the higher base after 2024, the transition from pilot programs to scale deployment, longer procurement and validation cycles, and the normalization of pricing for edge hardware and connectivity. It also indicates a shift in product portfolios toward software and services, with growth depending on existing bases rather than new greenfield projects. Board of Directors 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 for managing and operating the company in general. Directors serve a term of three years and may be re-elected upon the expiration of their term. Ownership Structure Mr. Wang Qingjie holds a 27.7% stake, Dong Growth holds an 11.1% stake, Jin Longjie holds a 5.6% stake, and the controlling shareholders collectively control 44.4% of the equity; Yunzhou Venture Capital holds a 12.7% stake, Yuncheng Investment holds a 1.5% stake, and Shanghai Yunpan collectively holds a 14.2% stake; Innovation Works Venture Capital holds an 8.6% stake; China Merchants Innovation holds a 5.9% stake, Qingkong-Zhaoshang holds a 1.5% stake, and China Merchants Innovation Capital collectively holds a 7.4% stake; SAIC Jinshi holds a 3.4% stake; and other pre-IPO investors including CICC, Shenzhen Innovation Investment, and China Industrial Investment collectively hold a 22.3% stake. Intermediary Team Exclusive sponsor: RiJin Capital Limited Company Legal Advisors: Hong Kong law: Woo Kwan Lee & Lo; Chinese law: Zhong Lun Law Firm Exclusive Sponsor Legal Advisors: Hong Kong law: Zhao Buyu Ma Guoqiang Law Firm; Chinese law: Tianyuan Law Firm Auditors and Reporting Accountants: PricewaterhouseCoopers Limited Independent Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch