On March 12, Shenzhen Xunce Technology Co., Ltd. (hereinafter referred to as “Xunze Technology”) submitted a prospectus on the Hong Kong Stock Exchange, with CICC as its sole sponsor. Currently, its official website shows “Under Maintenance” and cannot be opened for the time being.

According to the prospectus, from 2021 to 2023, Xunce Technology achieved revenue of 120 million yuan, 288 million yuan, and 530 million yuan respectively; losses during the year were 119 million yuan, 96.512 million yuan, and 63.391 million yuan respectively. As can be seen, it has lost a total of 280 million yuan in the past three years.

In response, Xunze Technology explained that the net loss during the track record period was mainly due to large R&D expenses and administrative expenses due to the rapid expansion of the business. In 2021, 2022 and 2023, R&D expenses accounted for 127.0%, 89.9%, and 71.5% of total revenue, respectively, while administrative expenses accounted for 42.0%, 23.6% and 15.5% of total revenue, respectively.

During the track record period, the company recorded total R&D expenditure of $790 million, including $152 million, $259 million and $379 million in 2021, 2022 and 2023.

It is worth mentioning that during the reporting period, the gross margins of Xunce Technology were 75.2%, 78%, and 79%, respectively, and continued to rise.

Xunce Technology is a real-time data infrastructure and analysis provider. The core of its product portfolio is data infrastructure, a cloud-native unified data platform that can collect, clean, manage, analyze, and govern heterogeneous data from multiple sources and deployed in the customer's self-managed cloud or local systems.