Yuntian Lifei Plans Hong Kong IPO, Company Responds

On the evening of July 30, Yuntian Lifei announced that it had submitted an application to the Hong Kong Stock Exchange (HKEX) on the same day for the issuance of H-shares and listing on the main board of HKEX. The application materials for the IPO were also published on the HKEX website that day.

On August 1, a representative from Yuntian Lifei’s securities department responded to a China Securities Journal reporter, stating that the company’s decision to list in Hong Kong was primarily driven by internationalization considerations, aiming to establish a dual financing platform both domestically and overseas, taking into account the company’s strategic development and funding needs.

The prospectus shows that Yuntian Lifei has long focused on the R&D, design, and commercialization of artificial intelligence (AI) inference chips. In 2022, 2023, 2024, and Q1 2025, the company’s revenues were RMB 546 million, RMB 506 million, RMB 917 million, and RMB 264 million, respectively.

Regarding the use of IPO proceeds, Yuntian Lifei mentioned that the funds will mainly be allocated to: R&D of AI inference chips and related products and technologies; seeking strategic investments and acquisition opportunities; strengthening sales and marketing capabilities to enhance brand image; and working capital and other general corporate purposes.

From 2022 to Q1 2025, revenue from the company’s top five customers accounted for 49%, 47.5%, 57.3%, and 84.2% of total revenue in the respective periods, while revenue from the largest customer accounted for 28.9%, 17.4%, 20.5%, and 47% of total revenue.

Yuntian Lifei’s suppliers mainly include technology service providers such as server hosting, cloud computing, and software services, as well as marketing service providers.

From 2022 to Q1 2025, procurement from the top five suppliers accounted for 30.2%, 34.3%, 31.4%, and 41.2% of total procurement, respectively.

Yuntian Lifei highlighted risks, stating that the industry in which it operates is rapidly evolving. If the company fails to keep up with technological innovation or continuously improve its products and services to meet customer demands and technological advancements, its business could suffer significant adverse effects. The company has made substantial investments in R&D, which may negatively impact short-term profitability and may not achieve the expected results. Additionally, the commercialization of AI inference chip-related products and services may not meet expectations, potentially leading to unfavorable market development and affecting business operations.