New Stock Preview | Sprinting to Hong Kong Stock 18C, how will Singyes Environment Technology complete the key transition from technological leadership to commercial closure?

Recently, as one of the providers of AI infrastructure software, after listing on the Sci-Tech Innovation Board, Xinghuan Technology is once again seeking to list on the Hong Kong Stock Exchange through the 18C pathway, aiming for a dual "A+H" listing. With deep technological accumulation, a complete product matrix, and high-quality customer resources, Xinghuan Technology holds a leading position in the domestic AI infrastructure software field. However, at the same time, it also exhibits the characteristics of a typical technology-driven enterprise: high R&D investment, high customer stickiness, and ongoing pressure from losses. In the new era driven by large models and data elements, can this domestic big data software "leader" make a crucial leap from "technological leadership" to "commercial closed-loop" with the help of the capital market? Distributed foundation builds a domestic substitute "deep-water area" moat It is understood that Xinghuan Technology defines itself in its prospectus as a leading AI infrastructure software provider in China, helping companies efficiently build the cornerstone of digital transformation by deeply integrating artificial intelligence, big data, and cloud technologies. The company's business is mainly divided into three major segments: AI and big data infrastructure software, solutions, and other businesses, with AI and big data infrastructure software being absolutely core. By 2025, this segment is expected to contribute 81.0% of revenue, making it the main source of the company's revenue and profit. According to Frost and Sullivan data, based on 2024 revenue, Xinghuan Technology is the fifth largest AI infrastructure software supplier in China and tops the "pure service supplier" market. Its core competitiveness lies in its deep control of underlying technologies such as large-scale parallel processing, distributed databases, and AI model operations (LLMOps). The prospectus shows that the company's independently developed distributed big data platform TDH is the world's first data product to pass the TPC-DS test and official audit, breaking the long-term monopoly of overseas vendors in this field. Against the backdrop of strategic priorities for ensuring national data security and promoting technological independence and controllability, Xinghuan Technology's products have achieved domestic substitution in key industries such as finance, government, and energy, replacing relational databases and analysis tools of foreign giants such as Oracle and IBM in multiple core systems. At the product level, Xinghuan Technology has built a complete closed loop including big data and cloud foundation platforms (TDH and TDC), distributed databases (ArgoDB and KunDB), data development and governance tools (TDS), and AI operations platforms for large models (Sophon). This full-lifecycle coverage enables the company to provide end-to-end solutions for data integration, storage, governance, modeling, analysis, mining, and circulation. Compared to single-link suppliers, the company has stronger ecological control. As of the end of 2025, the company has served over 1,800 customers, including approximately 110 Fortune China 500 companies. Of particular note is the fact that recurring revenue from existing customers accounts for over 70% on average, demonstrating not only the technological barriers of the products but also providing a solid foundation for future commercial scaling. In addition, Xinghuan Technology emphasized in the prospectus its future strategy of "AIData", aiming to seize the "last mile" opportunity of commercialization of large models by supporting a multimodal platform that integrates 11 mainstream data models to transform unstructured data into high-quality corpora for large model training. Commercial pains and profit game under high R&D investment Despite its outstanding technical strength, Xinghuan Technology still exhibits typical "specialist technology" characteristics in its financial performance as it is still in the early growth stage. During the performance period, the company's revenue showed some volatility: from 2023 to 2025, the company achieved revenues of 491 million yuan, 371 million yuan, and 447 million yuan respectively. The revenue decline in 2024 was mainly due to temporary factors such as tightening budgets of government and some large institutions, prolonged bidding and acceptance procedures under the macroeconomic environment, while revenue in 2025 increased by 20.6% year-on-year. This volatility reflects the significant impact of macroeconomic fluctuations, customer procurement cycles, and the acceptance pace of large projects on basic software business. In terms of profits, the company had annual losses of 289 million yuan, 344 million yuan, and 245 million yuan from 2023 to 2025 respectively. Extremely high R&D investment was the main reason for these losses. According to the prospectus, Xinghuan Technology's R&D expenditure as a proportion of revenue in the past three years reached as high as 45.5%, 61.3%, and 45.6% respectively. For a specialist technology company in a period of rapid technological change, this "concentrated" R&D investment is a necessary cost to maintain its leading position in domestic substitution and follow the trends of multimodal and generative AI. However, positive signals have also emerged: the company's operational cash consumption has narrowed, with monthly cash consumption decreasing significantly from 43.5 million yuan in 2023 to 14.2 million yuan in 2025, indicating that the company is transitioning from simple scale expansion to improving operational efficiency. However, according to the prospectus, the company is expected to continue to generate net losses in 2026, mainly because R&D, sales, and market expansion will require continued investment, operational leverage has not been fully utilized, and the path to short-term sustainable profitability is uncertain. The fundraising direction of Xinghuan Technology's Hong Kong IPO clearly outlines its blueprint for transitioning from being "China's leading" to having a "global perspective." The company plans to focus on upgrading the "AIData" architecture, enhancing global commercial capabilities, and conducting strategic investments with synergistic effects. With the initial layout in overseas markets such as Singapore, Hong Kong, and the Middle East, the company is trying to achieve low-margin cost scale expansion using its standardized software products to gradually dilute the high R&D expenses. However, the evolution of artificial intelligence technology is highly uncertain, and the company faces fierce competition from public cloud giants and traditional software suppliers. Additionally, long sales cycles, continuous rise in labor costs, and the complex and ever-changing international trade compliance environment could pose challenges to the company's future profitability path. Overall, Xinghuan Technology is a company with a deep technological background and broad space for domestic substitution, but it still needs time to prove its resilience in commercial profitability. If this Hong Kong IPO is successfully completed, it will effectively supplement the company's operating funds, support R&D investment and market expansion, and accelerate the arrival of the profitability turning point. For investors, the investment value of Xinghuan Technology lies in the game between technological leadership and commercial capabilities. Whether it can transform its deep technological advantages into stable revenue, profit, and cash flow, achieve sustainable operations, will be the core criterion to verify its long-term value, and will directly determine the ultimate effectiveness of the company's "A+H" dual capital platform layout.