Text: Finet Society

Hangzhou is a city of innovation and vitality that nurtures cutting-edge technology enterprises, and in the "Hangzhou Six Little Dragons", Deepseek and Unitree Technology amaze the world in their respective fields.

Hangzhou Qunhe Information Technology Co., Ltd. (hereinafter referred to as "Qunhe Technology") is also a member of the "Hangzhou Six Little Tigers", and its mystery has also been unveiled to the capital market as it sprints into the Hong Kong capital market.

On February 14, Qunhe Technology submitted a prospectus to the Hong Kong Stock Exchange for the first time, intending to be listed on the main board of the Hong Kong Stock Exchange. If the listing is successful, Qunhe Technology will become the first IPO company in the "Hangzhou Six Little Dragons" and the "first stock of global spatial intelligence".

It is worth mentioning that Qunhe Technology once sprinted to the U.S. stock market in June 2021, but later automatically terminated the U.S. stock listing process.

The founders are from Nvidia and Microsoft, and have received a total of 11 rounds of financing

Regarding the positioning of Qunhe Technology, it can be simply described as a "spatial design software provider".

The difference from many software companies is that Qunhe Technology is at the forefront of science and technology in the space design industry: it is a spatial intelligence enterprise based on AI and CPU clusters, which has built a set of world simulators and applied them to real-time rendering, industrial manufacturing, and virtual physical world training in indoor space scenes.

There are three main types of software under Qunhe Technology:

1. Kujiale. The company's flagship product is the spatial design software for the Chinese market, which is used to design residential, office, retail chain stores and commercial projects and other uses.

　　2、Coohom。 Spatial design software developed for international users and customers, serving users and customers in more than 200 countries and regions around the world.

3. Group core space intelligence platform. It is a next-generation spatial intelligence solution developed for indoor environment AI, which can train AIGC models in a virtual environment and enhance the cognitive abilities of intelligent robots and others.

In 2024, the average number of monthly active visitors will be 86.3 million, and the average number of monthly active users will be 2.7 million. The company is the world's largest spatial design platform in terms of the average number of monthly active users in 2023.

In China, Qunhe Technology is the largest spatial design software provider in terms of 2023 revenue, accounting for about 22.2% of the market share.

The founding team of Qunhe Technology has a strong background, and the company has become the "darling" of capital since its establishment.

The company was co-founded by Huang Xiaohuang, Chen Hang and Zhu Hao in 2011, and the three of them are college classmates, with an average age of only 39 years old, and they have rich work experience. Among them, Huang Xiaohuang, the company's co-founder and chairman, is a national-level overseas high-level talent, who has worked in Nvidia (NVDA. US) as a software engineer; The company's co-founder and CTO, Hao Zhu, was a former member of Microsoft's (MSFT. US) headquarters, Amazon (AMZN. US) Headquarters Software Engineer.

Since its establishment, Qunhe Technology has frequently received capital support, and has received a total of 11 rounds of financing, with investors including IDG Capital, GGV Capital, Shunwei Capital, Matrix Partners, Hillhouse Ventures, Cougue and many other well-known institutions.

It is reported that Qunhe Technology was valued at US$2 billion, equivalent to about 14.5 billion yuan, when it sprinted to the U.S. stock market.

The card space is an intelligent tuyere, and it is in a loss predicament

The further integration of artificial intelligence and big data technology, as well as the continuous evolution of visualization technology, will revolutionize the spatial design software industry towards higher intelligence and productivity.

For users in residential, commercial and industrial spaces, with the help of technologies such as AI and big data, designers and architects can bring higher quality solutions to the industry, so the space design software industry has huge room for growth.

According to the data, the scale of China's spatial design software industry has increased from 1.6 billion yuan in 2019 to 3 billion yuan in 2023, with a compound annual growth rate of 16.6%. It is expected to further increase to $6.8 billion by 2028, growing at a CAGR of 17.7% from 2023 to 2028.

It is not difficult to see that China's space design software industry is "small but beautiful", and the growth prospects are broad for the industry's leading enterprises. According to the prospectus, Qunhe Technology enjoys the dividends of the market, and the number of its customers continues to grow, and the customer stickiness is high.

From the end of 2022 to the end of September 2024, the number of corporate customers increased from 33,058 to 45,548, and the number of individual customers increased from 311,107 to 413,872. In addition, the net revenue retention rate of corporate customers was excellent, reaching 104.2% at the end of September 2024, while the net revenue retention rate of individual customers was 96.0%.

In terms of financial performance, Qunhe Technology's revenue is in line with the growth trend of customer scale. In the first three quarters of 2022, 2023, 2023 and the first three quarters of 2024, the company's revenue will be 600 million yuan, 664 million yuan, 486 million yuan and 553 million yuan respectively.

In addition, the gross profit margin of Qunhe Technology is comparable to that of the liquor industry, reaching 80.4% in the first three quarters of 2024, and the gross profit margin of its competitor ZWSOFT (688083.SH) in the same period is as high as 97.4%.

However, as the company is still in the early stage of development, the company has fallen into a loss quagmire due to high expenditure in R&D and marketing, with losses of 704 million yuan, 646 million yuan, 489 million yuan and 422 million yuan in the first three quarters of 2022, 2023, the first three quarters of 2023 and the first three quarters of 2024, respectively.

Looking ahead, the company plans to achieve long-term profitability mainly by further expanding the company's customer base, increasing customer lifetime value and managing costs, and improving operational efficiency, Qunhe Technology said.

What to watch for in the future: AIGC, robotics and other fields

In recent years, Qunhe Technology has introduced generative AI technology into its products. As of December 2024, about 29.6% of monthly active users use AI features in the product version they subscribe.

In the prospectus, Qunhe Technology repeatedly mentioned that it will strengthen the company's synthetic virtual data engine, and use the company's spatial scene dataset to support the creation of AIGC, the training of embodied artificial intelligence, and the development of AR/VR and robots.

The company's Cluster Core Spatial Intelligence Platform enables developers to train AI-generated content (AIGC) models in a virtual environment and enhance the cognitive capabilities of intelligent robots, AR/VR systems, and embodied AI. In terms of training intelligent robots, the company has cooperated with a number of enterprises, including Zhiyuan Robotics in the field of robot training data solutions.

Huang Xiaohuang once said that whether it is spatial intelligence or embodied intelligence, there are four most critical problems that need to be solved: algorithms, computing power, data, and robot hardware. How to provide interactive data for training robots has become a world-class problem. Huang Xiaohuang revealed that in this regard, the company has the advantages of massive data accumulation and large model training, high-performance computing infrastructure, and physically correct data synthesis.

He believes that the robot industry oriented to the physical world is subject to the slow training speed and high cost of the physical world, so the basic industry consensus is that most of the training is in the digital world, and only after training can it be in the physical world.

He said that in the future, our life scenes will be full of spatial intelligence and embodied intelligence robots. Of course, all use cases require rich physically correct 3D data to train them, and it is hoped that the swarm core technology can become one of the important thrusts in the middle.