New stock news | Hua Yuan Computing submits listing application to Hong Kong Stock Exchange, becoming China's fourth largest provider of cognitive intelligence algorithm services for enterprises.

According to the disclosure of the Hong Kong Stock Exchange on June 14th, Hua Yuan Computing Technology (Shanghai) Co., Ltd. (referred to as Hua Yuan Computing) submitted its application to the main board of the Hong Kong Stock Exchange, with China Galaxy International and CCB International as its joint sponsors. According to Frost & Sullivan data, the market for Chinese enterprise cognitive intelligent algorithm was RMB 9.3 billion in 2021, increasing to RMB 27.4 billion in 2025, and is projected to reach RMB 142.2 billion by 2030, with a compound annual growth rate of 39.0% from 2025 to 2030. Based on the 2025 revenue, Hua Yuan Computing is the fourth largest provider of enterprise cognitive intelligent algorithm services in China. Company Overview According to the prospectus, Hua Yuan Computing develops and sells cognitive intelligent products to help enterprises operate and optimize their production and business operations. The company's products mainly include: (i) cognitive intelligent algorithm platform, providing core infrastructure and capabilities for the development, deployment, and operation of cognitive intelligent applications; (ii) industrial-grade intelligent agents for industrial production scenarios; and (iii) operational decision intelligent agents for enterprise operations. The company's products are mainly delivered through software or integrated hardware and software solutions, which can be deployed on-site and integrated into the customer's existing systems and workflows. By integrating data and domain knowledge, the company's products perform reasoning, decision-making, and continuous optimization in complex real-world environments, combining enterprise data, expert knowledge, and business processes into intelligent workflows to operate more efficiently, allocate resources more effectively, and make wiser decisions. The company's products are widely deployed in various industries, including industrial manufacturing, cultural tourism, IT services, scientific research, and public services. Since its establishment in 2002, Hua Yuan Computing has always adhered to the dual drive of fundamental algorithmic technological innovation and vertical scenario industry innovation. The value of cognitive intelligence, characterized by logical causal reasoning and reliable decision-making, is becoming increasingly prominent. Based on deep insights into the evolution of artificial intelligence trends, the company proactively laid out research and development applications in cognitive intelligence and reasoning decision-making since 2017, becoming one of the first enterprises in China to engage in research and industrial practice in this field. Hua Yuan Computing's cognitive intelligence capabilities are based on three core technologies: an algorithmic framework based on non-linear expectations that can achieve small sample learning from a small number of labeled samples while maintaining strong performance in complex, dynamic data conditions; a fusion reasoning paradigm based on knowledge ontology that combines domain knowledge with data-driven modeling, anchoring output results to validated knowledge to enhance explainability and reduce errors; and a neural-symbolic cognitive planning and decision-making system that combines neural generation, symbolic validation, and reinforcement learning in a closed loop process to decompose complex tasks and enhance decision reliability in high-risk scenarios. These technologies are delivered through the company's three product categories. The company's cognitive intelligence algorithm platform (the foundational layer of the company's architecture) integrates computing resources, data, and algorithm models into a unified environment for developing, training, deploying, and managing intelligent applications, including a standardized library with over 200,000 operators and models. Based on this platform, the company's industrial-grade intelligent agents embed specific industry knowledge to support process control, quality prediction, monitoring, and production optimization in complex manufacturing environments such as steel and metallurgy, non-ferrous metals, and fine chemicals; while the company's operational decision intelligent agents integrate enterprise data, business rules, and workflow to support knowledge management, data analysis, task execution, and decision-making across functions such as research and development, production, sales and marketing, financial management, and risk control. Financial Data Revenue In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 65.57 million, RMB 135 million, and RMB 474 million, respectively. Gross Profit and Gross Margin In the fiscal years 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 22.13 million, RMB 43.27 million, and RMB 175 million, with corresponding gross margins of 33.9%, 32.1%, and 37.0%, respectively. Annual Loss and Total Comprehensive Loss In the fiscal years 2023, 2024, and 2025, the company recorded annual losses and total comprehensive losses of approximately RMB 124 million, RMB 156 million, and RMB 52.758 million, respectively. Industry Overview The value chain of the Chinese enterprise cognitive intelligent algorithm market is mainly composed of upstream IT infrastructure providers, which provide the underlying hardware, computing resources, and data needed for the development and training of cognitive intelligent algorithms. The midstream sector mainly includes cognitive intelligent algorithm service providers, who offer cognitive intelligent-related technologies and solutions to customers through algorithm frameworks, model capabilities, and development platforms. The downstream business covers a wide range of application scenarios such as industrial manufacturing, cultural tourism, where enterprises and institutions use cognitive intelligent technology to optimize production and operations, upgrade business processes, and enhance intelligent decision-making capabilities. The market size of the Chinese enterprise cognitive intelligent algorithm market increased from RMB 9.3 billion in 2021 to RMB 27.4 billion in 2025, with a compound annual growth rate of 31.0%. Driven by factors such as the transformation of organizations from digitalization to intelligence, the evolution of artificial intelligence technology from perceptual intelligence to cognitive intelligence, the commercialization and accelerated application of cognitive intelligent technology, and the introduction of supportive government policies, the market size of the Chinese enterprise cognitive intelligent algorithm market is expected to further increase to RMB 142.2 billion by 2030, with a compound annual growth rate of 39.0% from 2025 to 2030. Participants in the Chinese enterprise cognitive intelligent algorithm market include independent providers and non-independent providers. Independent service providers are companies whose core business is the research and commercialization of cognitive intelligent algorithms. Through long-term investments in algorithm development, industry knowledge accumulation, and scenario deployment, they have accumulated expertise in cognitive intelligent technology. Due to their relatively neutral market position, independent providers can typically support a wide range of cloud infrastructures, enabling them to provide flexible and customized solutions tailored to the specific needs of different clients. Non-independent providers typically focus on a broader range of technical products (such as computing infrastructure solutions), and deliver their enterprise cognitive intelligent algorithm products along with their wider solution products. Board Information The board of directors currently consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors. The board serves a term of three years, and can be re-elected and re-appointed after their term, with the responsibility of managing and overseeing the company's business and possessing general powers to do so. Equity Structure Dr. Xuan Xiaohua, an executive director and chairman of the board, holds 35.58% of the shares, Shanghai Yingcheng holds 0.85% of the shares, Dr. Xuan and Shanghai Yingcheng together will form a group of controlling shareholders; Shanghai Huiwei holds 16.09% of the shares, Ms. Xu Difeng, an executive director and CEO, holds 4.04% of the shares, Redwood Aggregator holds 11.08% of the shares, Shanghai Wumu holds 5.83% of the shares, and other pre-IPO investors collectively hold 26.54% of the shares. As of the last practicable date, Dr. Xuan is a general partner of Shanghai Yingcheng. Therefore, under the Securities and Futures Ordinance, Dr. Xuan is deemed to have an interest in the shares held by Shanghai Yingcheng. In order to recognize the contributions of employees and incentivize them to further drive the company's development, Shanghai Huiwei was established as the employee incentive platform for the company in China. All partnership interests of Shanghai Huiwei are granted and held by employees or former employees of the group. As of the last practicable date, all awards under the employee incentive platform have been granted and vested, and therefore, the grantors directly hold partnership interests in the company's employee stock ownership platform. Intermediary Team Joint sponsors, sponsors and lead coordinators, overall coordinators: China Galaxy International Securities (Hong Kong) Co., Ltd., CCB International Finance Limited Company legal counsel: Hong Kong and US law: Davis Polk & Wardwell; Chinese law: Beijing Tongshang Law Firm Joint sponsor legal counsel: Hong Kong law: Jun Tian Gong Cheng Law Firm Limited Liability Partnership; Chinese law: Jun Tian Gong Cheng Law Firm Reporting accountants and auditors: Ernst & Young LLP Industry Consultant: Frost & Sullivan Consulting Co., Ltd. Shanghai Branch