Wenge Zhongke (Stock Code: 01956.HK) is set to make its official debut on the Main Board of the Hong Kong Stock Exchange on June 26, 2026. This move marks a significant milestone in the capitalization journey of domestic AI technology innovation firms within the Hong Kong stock market.

[HK Stock Value Line] The analysis of this IPO highlights the following key points:

① Niche leader with a limited overall market share. Wenge Zhongke commands a 10.2% market share (ranking first) in the enterprise-level large-model decision intelligence niche. However, it ranks only eighth in the broader market, holding a 2.2% share. The sector is projected to grow at a compound annual growth rate (CAGR) of 57.2%, with a current market size of just RMB 3.9 billion, indicating a relatively small market volume. ② Revenue growth without profitability, raising significant operational concerns. Over the past three years, Wenge Zhongke has achieved a CAGR of 27.4% in revenue, with its gross margin rising to 51.2%. Nevertheless, it has accumulated losses totaling RMB 583 million, with losses widening in 2025. Nearly half of its existing customers have been lost, accounts receivable turnover continues to decline, operating cash flow remains negative, and the proportion of outsourced technical service fees in R&D has surged from 5.8% to 26.1%, suggesting potential "dilution" of its technological capabilities.

③ The company's market capitalization of HK$10.5 billion appears overvalued, with an extremely limited free float. The issue price of HK$60.70 corresponds to a market capitalization of approximately HK$10.5 billion and a price-to-sales (PS) ratio of about 24x (based on 2025 revenue), indicating an inflated valuation. Only 14.83 million shares are being offered globally, with an initial public offering in Hong Kong comprising just 3,709 boards, increasing to a maximum of approximately 14,800 boards after the clawback mechanism is triggered. The limited share supply suggests scarce liquidity, light selling pressure post-listing, and a high potential for speculative trading.

④ The company's margin financing has surpassed 1,091 times, indicating an extremely low allotment rate. The cornerstone investors are six state-owned or leading asset management firms, which have locked in their shares for six months, with CICC serving as the sponsor. Wenge Zhongke, founded in 2017 by a core scientist team from the Institute of Automation, Chinese Academy of Sciences, is a leading domestic provider of enterprise-level decision intelligence services. The company positions itself as a provider of enterprise-level large-model-driven decision intelligence services.

According to an industry report by CIC Consulting, based on 2025 revenue, Wenge Zhongke holds a 10.2% market share in China's enterprise-level large-model-driven decision intelligence service sector, ranking first in the industry. It ranks eighth in the overall enterprise-level large-model market and has established a national-level AI technology innovation platform with independent and controllable underlying technologies. Wenge Zhongke's main businesses encompass general-purpose foundational large-model R&D, delivery of the enterprise-level decision intelligence operating system DIOS, multimodal complex data analysis, and integrated AI decision-making solutions for government and enterprises. It offers a comprehensive suite of services, including computational cluster deployment, industry-specific customization, and secure, controllable localization adaptation systems. Its core product, the Yayi Large Model, covers five major sectors: government governance, financial risk control, industrial manufacturing, energy security, and media intelligence.

Wenge Zhongke plans to offer 14.8346 million Hong Kong shares globally, with 90% allocated for international placement and 10% for public offering, along with a 15% over-allotment option. The successful listing has attracted six leading state-owned and cross-border asset management institutions as cornerstone investors: China Oriental International, Harvest Global Investments, Qianhai International Fund, Guohui (Hong Kong) Holdings, Huatai Capital, and CMB International Investment. These investors have collectively subscribed to 31 million shares, totaling approximately HK$284 million, accounting for 26.97% of the total global offering. All cornerstone shares are subject to a strict six-month lock-up period, during which they cannot be sold, transferred, or pledged. Wenge Zhongke's offering price is HK$60.70 per share, with a board lot of 200 shares and an entry fee of HK$12,140. Before the full exercise of the over-allotment option, the maximum funds raised are approximately HK$900 million. The net proceeds from the offering are approximately HK$827 million, of which about 60.0% will be used for the iteration of the Yayi foundational large model, upgrading the DIOS decision intelligence platform, building computational infrastructure, and R&D of core AI algorithms; about 20.0% will be used for product rollouts across multiple industries, market branding, and expansion of government and enterprise client channels; about 10.0% will be used for potential mergers and acquisitions (M&A) in the industrial chain, strategic investments in frontier AI enterprises, and overseas market business布局 (business layout); and the remaining about 10.0% will be used to supplement Wenge Zhongke's daily operating funds and other general corporate purposes.

As of the latest practicable date, the company's direct shareholders and their respective shareholdings are as follows: Wang Lei holds 1.78%, Luo Yin holds 4.64%, Zeng Dajun holds 2.42%, Zhongke Sanshi holds 16.57%, Hainan Xinyi holds 0.67%, Wenge Zhicai holds 3.96%, and Wenge Jiangcai holds 0.62%.

In June 2020, Wang Lei, Luo Yin, and Zeng Dajun signed a "Concert Party Agreement." Zhongke Sanshi, Hainan Xinyi, Wenge Zhicai, and Wenge Jiangcai are all under the actual control of Wang Lei. Combined with the concert party agreement, as of the latest practicable date, Wang Lei, Luo Yin, Zeng Dajun, and the aforementioned four holding platforms collectively control 30.66% of the company's voting rights. After the completion of the global public offering (assuming no exercise of pre-IPO options and over-allotment options), Wang Lei, Luo Yin, Zeng Dajun, and the four holding platforms will collectively control 28.03% of the voting rights of the company's total issued share capital through their equity stakes and concert party arrangements, making them the largest shareholder group after the listing.

Source/HK Stock Value Line

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