Haizhi Technology Group (02706.HK) commenced its H-share global offering on February 5, 2026, with an offer price range of HK$25.60 to HK$28.00 per share. Each trading lot consists of 200 shares, with an entry cost of approximately HK$5,656.48. The company is scheduled to be listed on the Main Board of the HKEX on February 13, 2026. As a leading Chinese provider of graph-model fusion technology and industrial-grade AI agent solutions, it ranks first in China’s graph-centric AI agent market. Nevertheless, being a technology company in a phase of heavy investment, it has recorded continuous net losses, a high level of net liabilities, and faces risks of intense industry competition and high customer concentration. Its path to listing thus shines with technological prowess while burdened with notable financial and operational challenges.

Core Highlights: A Leader in a Niche Tech Track with a“Graph-Model Fusion”Moat

Prominent position in a niche market: According to a Frost & Sullivan report, Haizhi Technology ranked fifth among China’s industrial-grade AI agent providers by revenue in 2024; in the graph-centric AI agent market in China, the company ranked first with a market share of approximately 50%. The company claims to be the first in China to effectively mitigate large language model (LLM) hallucinations through knowledge graphs, building a technological moat across three dimensions: factual accuracy, hallucination rate, and complex logical reasoning.

Dual-core driven by“Graph + Agent”: The company offers two core solutions: 1) Atlas Graph Solution, which includes a Data Intelligence Platform, a Knowledge Graph Platform, and its proprietary AtlasGraph graph database—recognized by a world record broken in 2023; 2) Atlas Agent, developed based on its graph-model fusion technology, designed to inject precise, interpretable industry knowledge into large language models. In 2024, revenue from its agent business surged by 872.2% year-on-year, emerging as a new growth engine.

Focus on high-value industry clients: The company’s products have been applied in over 100 scenarios, such as anti-fraud, intelligent marketing, and data governance, across sectors including finance, telecommunications, energy, and public services. As of September 30, 2025, the company has collaborated with more than 360 clients, covering key industries such as finance, telecommunications, energy, and public services.

Financial Performance: Strong Revenue Growth but Mired in Losses and Negative Net Assets

Haizhi Technology’s financials exhibit the classic traits of a technology-driven startup: high revenue growth, yet sustained losses due to hefty R&D and marketing expenses, and high liabilities resulting from the accounting treatment of redeemable preference shares.

Strong revenue growth: The company’s revenue grew from RMB 313 million in 2022 to RMB 503 million in 2024, representing a compound annual growth rate (CAGR) of 26.8%. Revenue for the first nine months of 2025 reached RMB 249 million. Growth was primarily driven by the continued ramp-up of its Atlas Graph Solution and the explosive growth of its AI agent business.

Improved gross margin but deepening losses: Benefiting from an increasing revenue contribution from the high-margin AI agent business and technological optimization, the company’s gross margin improved from 30.9% in 2022 to 39.7% in the first nine months of 2025. Despite this, the company remains deeply in the red: net losses were RMB 176 million, RMB 266 million, and RMB 94 million in 2022, 2023, and 2024, respectively; the net loss widened to RMB 211 million in the first nine months of 2025. On a non-IFRS basis, the company achieved an adjusted net profit of RMB 17 million in 2024 but returned to an adjusted net loss of RMB 46 million in the first nine months of 2025.

High net liabilities and negative operating cash flow: As of September 30, 2025, the company recorded net liabilities of RMB 1.476 billion and a net current liability position of RMB 1.513 billion, primarily due to the classification of a large amount of redeemable preference shares as financial liabilities under accounting standards. The company expects these liabilities to be converted into equity upon listing, thereby improving its capital structure. Meanwhile, the company’s operating cash flow has remained in continuous net outflow, with a cumulative outflow of approximately RMB 593 million from 2022 to the first nine months of 2025.

IPO Details: Fundraising to Focus on R&D and Commercialization

Based on the mid-point of the offer price range (HK$26.80 per share), the global offering is expected to yield net proceeds of approximately HK$648 million.

The offering has attracted four cornerstone investors, including JINGSHENG HENGXING (affiliated with AI listed company Zhipu Huazhang), and renowned investment institutions Infini and Mega Prime. In total, they have subscribed for US$15 million worth of shares, accounting for approximately 15.52% of the shares offered globally.

Fundraising to be highly focused on technological R&D and commercialization: Approximately 45% of the net proceeds will be allocated to enhancing R&D in graph-model fusion technology; about 20% to optimizing the Atlas Agent product; around 15% to deepening customer cooperation and expanding overseas markets; roughly 10% to potential strategic investments; and the remaining 10% as general working capital.

Risk Focus: Sustained Losses, Customer Concentration, and Industry Competition

Persistent losses and fragile profitability: The company has not yet established a stable profit model. It incurred cumulative net losses of over RMB 530 million from 2022 to 2024, with the loss further widening to RMB 211 million in the first nine months of 2025. Although it briefly achieved non-IFRS micro-profitability in 2024, it quickly returned to losses in 2025, indicating an extremely fragile profit base. More critically, as of September 30, 2025, the company had a book net liability position of RMB 1.476 billion, mainly due to RMB 2.48 billion of redeemable preference shares classified as financial liabilities. While the conversion of these liabilities into equity upon listing is expected to“repair”the balance sheet accounting-wise, this is merely an accounting treatment and does not alter the fundamental reality that the company’s business has a severe lack of organic cash flow generation. The company has acknowledged that it will continue to invest heavily in R&D, with the profit inflection point still distant. If its capital-burning model fails to translate into commensurate revenue scale and market position, it could fall into a vicious cycle.

High customer concentration and deteriorating working capital management: The company’s business relies on a small number of key customers. In the first nine months of 2025, the top five customers contributed 32.1% of total revenue, with the largest customer accounting for 7.5%. The loss of any major customer or a reduction in their budgets would directly impact revenue. At the same time, the company’s working capital management has shown a deteriorating trend: trade receivable turnover days surged from 126 days in 2024 to 260 days in the first nine months of 2025, indicating a significant lengthening of the cash collection cycle. This not only ties up substantial working capital but also significantly increases the risk of bad debts. During the reporting period, the company has recorded considerable impairment losses on financial assets accordingly. The rapid growth in trade receivables is not matched by the revenue growth rate, which may suggest that the company has made significant concessions on payment terms to secure orders, or that customer quality and payment capabilities are declining.

Intense technological competition and uncertainty in commercialization: The industrial-grade AI solution track where the company operates is characterized by extremely rapid technological iteration. Competitors include both traditional software giants and emerging AI startups. Although its core“graph-model fusion”technical approach is distinctive, it is not the only solution and will continue to face competition from the evolving capabilities of large models and other technical routes. The company’s solutions are highly customized, and its project-based delivery model makes rapid large-scale replication difficult. Despite covering over 100 scenarios, the key to the viability of its business model lies in whether it can develop replicable, standardized products in several key industries, achieve continuous gross margin improvement, and reduce delivery costs. If technological leadership cannot be efficiently converted into market monopoly power and pricing power, the high R&D investment will be difficult to recoup.

Long-term concerns regarding geopolitics and supply chains: The company has been identified as a“Foreign Person of Concern”under the U.S. Outbound Investment Rule. While this does not directly prohibit investment, it adds potential compliance complexity and costs for attracting U.S. dollar capital or engaging in in-depth technological cooperation with U.S. entities in the future. In addition, the effectiveness of the company’s solutions is highly dependent on the quality and compliance of its customers’own data. Poor data governance by customers or issues related to cross-border data compliance will directly impact project outcomes and the company’s reputation. These data and compliance risks will be further amplified in international business expansion.

Conclusion: An Investment Bet on Technological Belief

Haizhi Technology’s IPO presents the profile of an AI unicorn that has established unique advantages in a niche technology track but has not yet crossed the profitability threshold. Its technological leadership in graph computing and graph-model fusion, clear commercial scenarios, and the explosive growth of its AI agent business form the core narrative that attracts investors, and it has received endorsement from industrial capital.

However, investing in Haizhi Technology means accepting its development stage of“trading massive R&D investment for technological barriers and future market share”. Sustained losses, tight cash flow, high customer concentration, and fierce industry competition are all unavoidable practical challenges. Following its listing, the key to verifying its value will be whether the company can efficiently convert the raised funds into technological advantages and market share, and ultimately achieve sustainable profitability.