New Stock Preview | The fifth largest market share, Zero Intelligence: High customer concentration, with cash on hand of less than 0.4 billion yuan.

In the triple resonance of AI technology, policy, and the market, the AI+ track has already become a future investment trend. By 2025, AI intelligent entities will sweep in, especially enterprise-level intelligent entities. The digitalization and intelligentization have created a strong demand for AI, and enterprise-level AI intelligent entity solutions with the ability to understand, reason, and execute have become a market favorite. As the fifth largest supplier of Chinese enterprise-level AI intelligent entity solutions, Zero Intelligence will go public in Hong Kong. Recently, Zero Intelligence submitted its listing application to the main board of the Hong Kong Stock Exchange, with CMBC CAPITAL as its exclusive sponsor. The company is a leading provider of enterprise AI intelligent entity solutions in China, delivering quantifiable business results through an AaaS model. According to Frost & Sullivan, based on revenue by 2024, the company ranks the fifth largest supplier of enterprise-level AI intelligent entity solutions in China with a market share of 3%. The company's AI intelligent entity solutions are powered by its proprietary AI platform, BlackZero. Using the BlackZero platform, AI intelligent entities act as decision-makers and collaborators in specific areas to deliver measurable business results. The company's performance has seen significant growth, with revenue increasing by 95.6% in 2024 and 54.8% in the first nine months of 2025. Net profit also increased by 48.6% and 63.1% in the respective periods, with net profit margins of 18.7% and 21.8%. With the rapid development of AI, especially the maturity of AI large model underlying technology, the era of intelligent entities has arrived. Zero Intelligence has seized the high-speed development demand for Chinese enterprise AI intelligent entities. By launching specific domain AI intelligent entity solutions on the BlackZero platform, the company aims to capture market share. However, the company's cash flow is not sufficient, with cash and equivalents amounting to 0.37 billion RMB as of September 2025. Industry's tenfold growth potential in the next five years The emergence of DeepSeek 2025 has driven the entry of AI large model technology into a competitive landscape. With the development and maturity of underlying technology, the improvement in large language models (LLMs) in semantic understanding, complex reasoning, and cross-domain generalization capabilities allow AI to understand business intent, break down complex tasks, and form executable solutions. This has led to a rapid growth in demand for enterprise digitalization and intelligentization, marking a turning point in the widespread application of AI intelligent entities. According to Frost & Sullivan, China's enterprise AI intelligent entity solutions started in 2024, with a market size of 5.6 billion RMB. It is estimated to reach 59.1 billion RMB by 2029, representing a tenfold growth in the next five years with a compound annual growth rate of 60.2%. While the industry is still in its early stages, it is supported by favorable policies. In recent years, the Chinese government has issued a series of favorable policies related to technology and applications of enterprise AI intelligent entity solutions. For instance, the "Opinions on Deepening the Implementation of Artificial Intelligence+" issued by the State Council in August 2025 aims to promote the widespread application of new-generation intelligent entities in software, information, finance, commerce, law, transportation, logistics, and trade. These policies have accelerated the development of the Chinese enterprise AI intelligent entity solution market and unleashed market demand. Currently, market concentration is not high, and all participants have the opportunity to share the market. According to revenue in 2024, the market share of the top five participants accounts for 44%, with the top three players having market shares close to each other at 13%, 11%, and 10% respectively. Zero Intelligence holds a market share of 3%, ranking fifth. It is worth noting that the industry has high entry barriers, requiring technical engineering capabilities, industry expertise, and customer resources. Early movers will gain a larger market share in this growing industry. Three projects driving growth and profitability Zero Intelligence was founded in August 2020 and started developing its intelligent platform and business systems in 2021. With the rise of AI in 2024, the company introduced its proprietary AI platform, BlackZero, which integrates open LLMs with its proprietary specific domain SLMs. Additionally, the company launched AI intelligent entity solutions, including Contract Assistant, Investment Assistant projects, and Brand Assistant projects on the BlackZero platform. From a revenue perspective, Contract Assistant is the core revenue source, contributing 89.4%, 72.8%, and 68.3% of business revenue from 2023 to the first 9 months of 2025. Although the revenue share is declining, the revenue continues to grow. The Investment Assistant business is the second largest, with a volume increase in 2024 and a revenue slowdown in 2025, contributing 17.8% in the first 9 months. However, the growth of Investment Assistant software license sales has increased revenue share from 4.4% to 11.2%. The Brand Assistant business generated revenue in 2025 but accounted for less than 3%. BlackZero is the foundation of the company's business, built on three core principles: simple user operations, continuous improvement, and ecosystem-driven intelligence. In this platform, AI intelligent entities serve as decision-makers and collaborators using large models for open reasoning and contextual interpretation, while using small models for highly specialized operations. AI intelligent entities combine these models for multistep planning, knowledge retrieval, and dynamic adaptation. Specifically, the Contract Assistant solution promotes comprehensive review, suggests dispute resolution options, streamlines the management of commercial contracts by digitizing and automating key stages of workflow. The company launched its first AI software in 2021 and developed AI intelligent entity solutions based on this foundation in 2024, continually optimizing Contract Assistant functionality. Additionally, Investment Assistant aims to make the investment process more intelligent, faster, and more efficient. It provides comprehensive investment analysis support and detailed risk assessment insights to help clients make investment decisions or hold investments as target assets by offering support before investing. Brand Assistant provides brand management support for marketing agencies, consumer brands, and other potential clients. The company's three solution offerings have seen a steady growth in customer numbers, with Contract Assistant and Investment Assistant serving 26 clients each and Brand Assistant serving 9 clients as of September 2025. It is worth noting that Zero Intelligence has a high concentration of customers. From 2023 to the first three quarters of 2025, the top five customers contributed 96.9%, 94.7%, and 85.8% of revenue, with the largest customer contributing 58.4%, 44%, and 34.7% respectively. To address the high customer concentration issue, the company strategically concentrates its resources on selected verticals with clear market demand and strong business potential in the early stages of enterprise adoption of AI intelligent entity solutions, accelerating the commercialization of core technology. However, the company continues to increase its R&D efforts to strengthen its competitiveness. Research and development expenditures are primarily used to enhance the BlackZero platform, reinforce core technology for AI intelligent entity solutions, and develop new AI intelligent entity solutions. In the first nine months of 2025, R&D expenses increased by 2.37 times, with a research and development expense ratio of 8.36%. As of September 2025, the company had 22 R&D and technical staff, accounting for 44% of total employees. It holds 21 registered copyrights, 6 trademarks, and 3 patents in China, and is applying for 8 trademarks and 3 patents. While maintaining growth, Zero Intelligence's profitability trend is on the rise. Gross profit margins were 39.0%, 35.4%, and 41.6% from 2023 to the first nine months of 2025, with a significant optimization in 2025 as the gross profit margin increased by 4.9 percentage points. Various expenses have shown a stable trend, with sales expense ratio optimizing by 0.7 percentage points to 3.23%, and management expense ratio remaining at 4.58%. Net profit margin follows the fluctuation in gross profit margin, with a net profit margin of 21.8% in the first nine months of 2025, up by 1.13 percentage points year-on-year. Moreover, the company's operating cash flow has significantly improved, with a net inflow of 0.23 billion RMB in the first nine months of 2025 compared to 0.02 billion RMB in the same period of 2024. The company had cash reserves of 0.37 billion RMB, with accounts receivable within 90 days totaling 0.80 billion RMB, amounting to a total of over 1.17 billion RMB. The company's interest-bearing debts were 0.42 billion RMB, with 0.22 billion RMB paid in the fourth quarter of 2025, indicating healthy cash flow. In conclusion, the maturity of AI large model technology and continuous policy support are driving the explosion of demand for digitalization and intelligentization upgrades. AI intelligent entity solutions are experiencing rapid growth, with a projected tenfold market size increase in the next five years. Zero Intelligence has developed the BlackZero platform and launched Contract Assistant, Investment Assistant projects, and Brand Assistant projects, driving performance growth. With a growing customer base in the early stages of the industry, improving profitability, and benefiting from industry dividends, the company is poised to achieve revenue and profit growth. However, the company also faces certain risks, such as slightly lower market share compared to the top three players, weaker competitiveness due to its smaller scale, and a slightly higher customer concentration. Nevertheless, the AI+ track remains a key investment theme for 2026, and the company is positioned in the early stages of industry development, offering high growth potential.