Haiqing Zhiyuan to List on HKEX: Revenue Surges Amid Profit Pressure and Deteriorating Operating Cash Flow

In mid-March this year, Shenzhen Haiqing Zhiyuan Technology Co., Ltd. (hereinafter referred to as 'Haiqing Zhiyuan') submitted its listing application to the Hong Kong Stock Exchange (HKEX), which has been accepted. Minsheng Capital and SPDB International are acting as joint sponsors.

It is understood that Haiqing Zhiyuan initially filed for an HKEX listing in August 2025, but the attempt lapsed due to outdated financial information. This current filing marks the company's second attempt. On February 14, 2026, the China Securities Regulatory Commission (CSRC) issued a filing acknowledgment for Haiqing Zhiyuan’s overseas listing, clearing a key prerequisite for advancing to the HKEX hearing stage.

As expected, the company successfully passed its listing hearing on June 9. It is reported that Haiqing Zhiyuan will conduct its initial public offering from June 11 to June 16, planning a global offering of 85.1625 million H-shares, with approximately 10% allocated to the Hong Kong public offering and approximately 90% to the international offering. The offer price is set at HK$7.20 per share, with listing on the Main Board of the Hong Kong Stock Exchange expected on June 22.

Revenue surged significantly, though profitability came under pressure.

According to Tianyancha, Haiqing Zhiyuan was established in 2013 and operates as a multispectral artificial intelligence technology company specializing in acquiring, processing, and analyzing optical data across multiple specific spectral bands to deliver imagery more detailed than that achievable with visible-light imaging.

Leveraging its proprietary technologies in multispectral sensing and AI algorithms, Haiqing Zhiyuan offers products and services capable of detecting both visible and invisible spectral information. These include multispectral AI modules—embedded hardware components that collect and process multispectral data (including visible light, infrared, and ultraviolet) via AI algorithms for integration into third-party devices; multispectral AI perception terminals—devices integrating multispectral sensors, enhanced multispectral AI algorithms, and standard hardware components designed to deliver real-time perceptual insights; and multispectral AI large-model services—a platform-based large-model solution powered by the company’s self-developed Zhiyuan Origin large model.

During the reporting period (2023–2025), revenue from multispectral AI modules amounted to RMB 99.121 million, RMB 299 million, and RMB 209 million, representing 84.6%, 57.3%, and 31.3% of total revenue in the respective periods. Unit sales were 160,800, 587,200, and 364,400 units, with average selling prices of RMB 616.4, RMB 509.6, and RMB 573.7 per unit, respectively.

In 2024, the average selling price of multispectral AI modules declined year-over-year, primarily due to the company’s strategic shift toward offering competitive pricing to attract new customers and enhance product competitiveness. Notably, a major new customer, referred to as Customer F, contributed substantial revenue during the year, resulting in a relatively lower average selling price in 2024.

During the period, revenue from multispectral AI perception terminals amounted to RMB 12.586 million, RMB 61.229 million, and RMB 92.638 million, accounting for 10.8%, 11.7%, and 13.9% of total revenue in the respective periods. Unit sales were 10,700, 63,000, and 53,000 units, with average selling prices of RMB 1,173.4, RMB 972.4, and RMB 1,746.4 per unit, respectively. The average selling price of multispectral AI perception terminals also declined in 2024.

Starting in 2024, Haiqing Zhiyuan began generating revenue from its multispectral AI large-model services. In 2024 and 2025, these services contributed revenue of RMB 114 million and RMB 3.55 billion, respectively, accounting for 21.8% and 53.1% of total revenue in each period.

Haiqing Zhiyuan also derives a small portion of its revenue from the sale of other AI vision modules. Revenue from this segment totaled RMB 5.2 million, RMB 47.1 million, and RMB 10.3 million during the reporting periods, representing 4.4%, 9.0%, and 1.5% of annual total revenue, respectively—a relatively minor contribution.

Impacted by changes in product mix and other factors, Haiqing Zhiyuan’s gross margin during the reporting period rose steadily from 12.2% in 2023 to 18.8% in 2024 and further to 22.3% in 2025.

However, the company still exhibits some weaknesses in overall profitability. Although revenue has grown steadily over the past three years, Haiqing Zhiyuan continues to face profit pressure. During the reporting periods, the company reported revenues of RMB 117 million, RMB 523 million, and RMB 669 million, respectively; net profits of -RMB 184.13 million, RMB 404.12 million, and RMB 293.54 million; adjusted net profits of -RMB 181.71 million, RMB 429.44 million, and RMB 552.45 million; and net profit margins of -15.7%, 7.7%, and 4.4%, respectively.

In 2023, the company recorded a net loss of approximately RMB 184.13 million, but returned to profitability in both 2024 and 2025. However, in 2025, the company’s net profit declined slightly year-over-year. These profit fluctuations have raised concerns among market participants about the stability of the company's overall profitability.

The company stated that the 2023 loss was primarily due to reduced demand for certain products and the prevailing weak macroeconomic environment. The return to profitability in 2024 was mainly attributable to a significant increase in gross profit, which rose from RMB 143 million in the prior year to RMB 982 million. The year-over-year decline in net profit in 2025 was primarily driven by substantial increases in general and administrative expenses as well as research and development expenses.

Looking directly at the data, during the reporting periods, Haiqing Zhiyuan’s general and administrative expenses were RMB 118.74 million, RMB 130.40 million, and RMB 468.02 million, accounting for 10.2%, 2.49%, and 7.0% of revenue for the respective periods; sales and marketing expenses were RMB 160.35 million, RMB 164.70 million, and RMB 177.00 million, representing 13.7%, 3.2%, and 2.7% of revenue; and research and development expenses were RMB 110.84 million, RMB 251.51 million, and RMB 507.93 million, or 9.5%, 4.8%, and 7.6% of total revenue for each period, respectively.

Haiqing Zhiyuan candidly acknowledged that, given its current phase of business expansion in a highly competitive market and its continued heavy investment in research and development, the company may incur net losses in the short term. It may not achieve profitability in the near future or sustain it thereafter. The company expects that as it continues to scale its business and operations and invests in R&D, its costs and expenses will increase in upcoming periods. If the company fails to generate sufficient revenue and effectively manage its expenses, it may continue to incur significant losses and may be unable to achieve or subsequently maintain profitability.

Additionally, the company exhibits notably high concentration in both its upstream and downstream relationships. During the historical reporting periods, Haiqing Zhiyuan’s customers included system integrators who incorporated the company’s products and services into their offerings for enterprise clients, as well as enterprise clients who used the company’s products and services directly.

During the reporting periods, revenue from the top five customers accounted for 38.3%, 59.0%, and 46.8% of the company’s total revenue; revenue from the largest single customer was approximately RMB 230 million, RMB 1.86 billion, and RMB 940 million, representing 19.6%, 35.5%, and 14.1% of total revenue for the respective years.

On the supply side, purchases from the top five suppliers accounted for 54.2%, 66.4%, and 62.2% of total procurement during the reporting periods; purchases from the largest single supplier were approximately RMB 188 million, RMB 1.52 billion, and RMB 1.01 billion, representing 18.6%, 39.9%, and 18.5% of total procurement, respectively.

Operating cash flow deteriorates sharply as accounts receivable surge

Beyond profit pressure, Haiqing Zhiyuan’s cash flow continued to deteriorate during the period.

Contrary to the trend in net profit, the company generated positive cash flow in 2023 but recorded negative cash flow for two consecutive years in 2024 and 2025. At the end of each reporting period, the net cash flow from operating activities amounted to RMB 69.571 million, -RMB 6.491 million, and -RMB 130 million, respectively, indicating a sharply widening cash shortfall.

Yuan Shuai, co-founder of Xin Zhi Pai’s New Quality Productivity Salon, believes that the divergence between Haiqing Zhiyuan’s accounting profits and its cash flow is emblematic of a company sacrificing asset quality for scale-driven growth during rapid expansion.From a financial perspective, this 'paper prosperity' primarily stems from the timing gap under accrual accounting between revenue recognition and actual cash collection. Although the company has experienced explosive revenue and net profit growth—even turning losses into profits—its operating cash flow is hemorrhaging significantly, often signaling excessively high accounts receivable and inventory levels. As a deep-tech firm specializing in multispectral AI, its clients are likely concentrated among large B2B or government-sector entities in areas like smart cities and industrial safety, which typically wield strong bargaining power and have long payment cycles.

If the company overly relaxes its credit policies to capture market share, the profits shown on its financial statements become nothing more than unrealized figures—insufficient to fund daily operations and further exacerbated by ongoing R&D investments and supply chain inventory buildup, resulting in substantial funding gaps.This 'inflated' earnings quality conceals significant bad debt risk. Should downstream collections fall short of expectations, the company could face a liquidity crisis—possessing profits on paper but lacking cash to pay salaries or suppliers—potentially triggering a sudden financial collapse. Thus, this persistent cash outflow poses a serious challenge to the viability of its business model, revealing that its products still lack strong pricing and monetization power within the market chain.

Specifically, at the end of each reporting period, trade receivables and notes receivable stood at RMB 19.817 million, RMB 146 million, and RMB 184 million; inventories were RMB 55.967 million, RMB 31.577 million, and RMB 80.194 million; trade payables and notes payable totaled RMB 45.060 million, RMB 79.557 million, and RMB 45.882 million; and contract liabilities amounted to RMB 21.280 million, RMB 20.280 million, and RMB 75.942 million.

In 2024 and 2025, Haiqing Zhiyuan incurred borrowings of RMB 28.584 million and RMB 152 million, respectively, reflecting a clear upward trend. As of the end of January 2026, the company’s total borrowings had risen to RMB 157 million.

As of the end of each reporting period, the company’s cash and cash equivalents stood at RMB 37.115 million, RMB 56.705 million, and RMB 66.556 million, respectively.

Regarding solvency, at the end of each reporting period, Haiqing Zhiyuan’s current ratios were 2.0, 1.9, and 1.9; quick ratios were 1.4, 1.7, and 1.6; and capital liability ratios were -0.14, 0.20, and 0.59, respectively.

Last-minute investment round sees valuation surge by 250%

In this IPO, Haiqing Zhiyuan plans to primarily use the proceeds to enhance its R&D capabilities and increase investment in product development; expand production capacity; pursue strategic investments and acquisitions; accelerate business expansion and global market penetration; and provide working capital for general corporate purposes.

In terms of capacity utilization, at the end of each reporting period, the company’s capacity utilization rates were 24%, 87%, and 49%, respectively, showing significant fluctuations. This raises uncertainty about whether future production capacity can be fully absorbed.

As of the date of the prospectus signing, Zhou Bo controls 48.87% of the voting rights at the company’s shareholders’ meeting, comprising: 5.96% held directly by him; 38.34% beneficially owned by Zhongcheng Tianying, of which he is the managing partner; 2.79% beneficially owned by Zhongzheng Tianying, also controlled by him as managing partner; and 1.79% beneficially owned by Zhongzhi Tianying, likewise under his control as managing partner.

According to the prospectus, since its inception, Haiqing Zhiyuan has completed a total of five financing rounds.

Specifically, in 2020, Haiqing Zhiyuan entered into a capital increase agreement with Series A investors led by Zheshang Venture Capital; in 2021, the company signed a capital increase agreement with Series B investors led by Shenzhen High-Tech Investment Group; in 2024, it executed separate capital increase agreements with Series C and Series C+ investors; and in 2025, it entered into a capital increase agreement with Series D investors.

Market observers have noted that on July 8, 2025, Haiqing Zhiyuan entered into a capital increase agreement with Series D investor Zhide Jiuhao, issuing 121,300 shares for a consideration of RMB 50 million, increasing the company’s registered capital from RMB 8.4918 million to RMB 8.6131 million. This last-minute investment triggered a sharp surge in Haiqing Zhiyuan’s valuation—from RMB 1.01 billion at the Series C+ round to RMB 3.55 billion, an increase of over 250%—raising questions about the rationale behind such a sudden injection of capital.

Yuan Shuai pointed out: 'The Series D investor was incorporated just two days before submitting the listing application and immediately made a last-minute investment—a move highly suggestive of “instant myth-making” in capital markets. This raises serious concerns about the fairness of the company’s valuation and potential hidden interest transfers. It is highly unusual for a private equity fund to complete multi-hundred-million-yuan due diligence, internal decision-making, and capital commitment within 48 hours of its establishment, followed immediately by the company rushing to file its listing application. Such an extremely compressed timeline blatantly contradicts the prudence typically expected of institutional investors. From both regulatory and market perspectives, this investor is very likely a purpose-built conduit created specifically for this IPO. Its primary objective appears not to be long-term value creation but rather to artificially inflate the company’s valuation through a high-priced final round, thereby securing a more favorable offering price on the Hong Kong exchange or propping up earlier investors who entered at significantly lower valuations. This abrupt, explosive valuation leap lacks sufficient performance-based justification and may understandably make secondary-market investors wary of being “harvested.”'

Yuan Shuai further noted that deeper concerns lie in whether this lightning-fast investment involves undisclosed nominee shareholding arrangements, profit-sharing schemes, or hidden valuation adjustment mechanisms (commonly known as 'wagering agreements')—issues that frequently draw intense scrutiny from regulators. If the key valuation benchmark for a multi-billion-dollar AI unicorn is set by a shell entity with no operational history and hastily assembled for this purpose, the credibility of the valuation and the transparency of corporate governance are severely undermined, casting a shadow of doubt over the company’s compliance integrity.

Regarding internal controls, Haiqing Zhiyuan has failed to fully contribute social insurance and housing provident fund payments for its employees. As of the end of each reporting period, the company’s unpaid social insurance contributions amounted to approximately RMB 3.5 million, RMB 2.7 million, and RMB 3.2 million, respectively, while unpaid housing provident fund contributions totaled approximately RMB 1.1 million, RMB 1.3 million, and RMB 1.8 million, respectively. (Produced by Harbor Financial)

Harbor Business Observer, reporter Zifu Shi

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