Zhongke Wenge to list on HKEX: raising HK$900 million amid continued losses and high executive compensation

Source | Beiduo Business & Beiduo Finance

On June 17, 2026, Beijing Zhongke Wenge Technology Co., Ltd. (hereinafter referred to as “Zhongke Wenge,” HK:01956 $WENGE AI (01956.HK)$ ) announced its offering circular, with the bookbuilding period running from June 17 to June 23, and its H-shares expected to debut on the Hong Kong Stock Exchange on June 26, 2026.

In this listing, Zhongke Wenge intends to globally offer 14.8346 million H-shares, with an additional 15% over-allotment option, at an issue price of HK$60.70 per share. If the over-allotment option is not exercised, Zhongke Wenge will raise approximately HK$900 million, with net proceeds of approximately HK$827 million.

According to Beduo Business & Beduo Finance, Zhongke Wenge has secured six cornerstone investors who have collectively subscribed for USD 31 million of the company's shares. These cornerstone investors include China Orient EIF, Harvest Global Investments, Qianhai International Fund, Guohui Hong Kong, Huatai Capital Investment, and Minyin International.

As stated in the prospectus, Zhongke Wenge was founded in 2017 by AI scientists from the Institute of Automation, Chinese Academy of Sciences, and has consistently focused on advancing enterprise data analytics and decision intelligence. On June 25, 2025, the company confidentially submitted its prospectus to the Hong Kong Stock Exchange.

Information from Tianyancha shows that Zhongke Wenge was established in March 2017 and is headquartered in Haidian District, Beijing. The company currently has a registered capital of approximately RMB 158 million, with Luo Yin as its legal representative. Its major shareholders include Wang Lei, Zeng Da Jun, Luo Yin, and Beijing Zhongke Tianhu Technology Center (Limited Partnership).

Prior to this listing, Wang Lei directly holds 1.78%, Luo Yin holds 4.64%, and Zeng Da Jun holds 2.42%. The three are parties to a concert party agreement, with Wang Lei’s opinion serving as the unified position. Additionally, they control 16.57%, 0.67%, 3.96%, and 0.62% of the company through Zhongke Sanshi, Hainan Xinyi, Wenge Zhicai, and Wenge Jiangcai, respectively, resulting in a combined stake of approximately 30.66%.

Currently, Wang Lei serves as Chairman and Executive Director of Zhongke Wenge; Luo Yin is Executive Director and Chief Executive Officer (CEO); Qu Baoyu is Executive Director and Vice President; Cao Jia is Executive Director and Chief Technology Officer as well as Head of the General AI Applications Division; Zhang Xi'na is Executive Director and Head of the Enterprise Business Unit; Ma Li is Company Secretary and Joint Company Secretary; and Zheng Chaomin is Chief Financial Officer.

Zhongke Wenge states in its prospectus that it is an enterprise-grade artificial intelligence technology and services provider specializing in complex data analytics and AI-assisted decision-making. The company’s capabilities currently span data governance, domain knowledge management, large language and multimodal model training, decision automation and evaluation, and low-code AI application development.

In 2023, 2024, and 2025, Zhongke Wendge's revenues were approximately RMB 250 million, RMB 318 million, and RMB 405 million respectively, gross profits were approximately RMB 109 million, RMB 160 million, and RMB 208 million respectively, and net losses were approximately RMB 260 million, RMB 157 million, and RMB 166 million respectively.

Notably, Zhongke Wenge has a high degree of customer concentration. In 2023, 2024, and 2025, revenue from its key customers accounted for 76.6%, 70.0%, and 67.8% of total revenue, respectively. The company notes in its prospectus that this highlights the strategic importance of these clients to its business growth.

On a non-IFRS basis, Zhongke Wenge reported adjusted net losses of approximately RMB 186 million, RMB 115 million, and RMB 101 million in 2023, 2024, and 2025, respectively. Notably, share-based compensation expenses amounted to approximately RMB 74.267 million, RMB 41.868 million, and RMB 44.513 million during the same periods.

It is evident that Zhongke Wenge’s share-based compensation primarily went to senior executives, particularly Qu Baoyu, Executive Director and Vice President. In 2023, 2024, and 2025, Qu Baoyu received total compensation of RMB 12.852 million, RMB 9.396 million, and RMB 5.612 million, respectively, of which share-based compensation accounted for RMB 11.997 million, RMB 8.198 million, and RMB 4.299 million.

Meanwhile, Cao Jia, Zhao Feifei, Zhang Xina, and others also received relatively high compensation. Specifically, Cao Jia’s total compensation for 2023, 2024, and 2025 was approximately RMB 51.59 million, RMB 43.50 million, and RMB 34.55 million, respectively, and he serves as Chief Technology Officer (CTO) of Zhongke Wenge.

In comparison, Wang Lei, Chairman of Zhongke Wenge, received total compensation from the company of approximately RMB 8.70 million, RMB 10.37 million, and RMB 18.35 million in 2023, 2024, and 2025, respectively, while CEO Luo Yin received total compensation of approximately RMB 9.04 million, RMB 13.40 million, and RMB 18.23 million over the same periods, with neither receiving any share-based compensation expenses.

According to the prospectus, during the historical reporting period, Zhongke Wenge reported net losses and operating losses, and such losses are expected to continue in the near term. This is primarily attributable to the company's sustained strategic investments in research and development, as well as expenditures incurred to rapidly expand its customer base and enhance market penetration.

Despite short-term losses, Zhongke Wenge stated in its prospectus that its leadership position in enterprise-grade large-model-driven decision intelligence services, its full-stack artificial intelligence solution portfolio, strong R&D capabilities, and solid customer base have laid a solid foundation for sustainable business growth and long-term commercial success.

In aggregate, Zhongke Wenge has incurred losses of RMB 583 million over the past three years—remaining cash-negative despite leading its segment. From this perspective, Zhongke Wenge’s IPO resembles more of a stress test on AI valuations. With HKD 800 million in proceeds secured, whether the market will see its path to profitability may soon become clear.

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