Qunhe Technology Passes Listing Hearing: How Does the First Listing Among the ‘Hangzhou Six Dragons’ Stack Up?

ZC Asia has learnt that on 30 March 2026, Qunhe Technology—one of the ‘Hangzhou Six Dragons’—formally passed the Hong Kong Stock Exchange’s listing hearing and updated its post-hearing prospectus. This marks a significant milestone for the technology company, whose core technology is the spatial intelligence platform ‘Kujiale’, and positions it to become the ‘world’s first listed company in spatial intelligence’.

Among the much-watched group of tech firms known as the “Hangzhou Six Dragons”, Qunhe Technology has been the first to successfully navigate the entire journey from technological R&D to scalable profitability, becoming the first of the Six Dragons to reach the IPO milestone. The IPO is being led by J.P. Morgan and CCB International as joint sponsors, with the proceeds primarily earmarked for international market expansion, product feature upgrades, investment in core technologies, and marketing initiatives.

Financial data indicates that Qunhe Technology reached a critical performance inflection point in 2025. The figures show that the company achieved annual revenue of 820 million yuan, maintaining steady growth compared to 664 million yuan in 2023. Even more notably, under non-IFRS accounting standards, the company recorded an adjusted net profit of 57.1 million yuan, successfully turning a loss into a profit. Concurrently, the company’s gross margin rose further to 82.2%, demonstrating that the economies of scale and technological barriers inherent in its SaaS (Software as a Service) model are translating into tangible profits.

The narrative behind Qunhe Technology’s IPO is no longer confined to its widely recognised ‘Kujiale’ interior design software. The prospectus and publicly available information indicate that the company is building a complete flywheel encompassing ‘spatial editing tools – spatial data – spatial large models’.

The launch of its spatial language model, SpatialLM, and the associated strategic initiatives, reveal the company’s greater ambition: to become the ‘spatial infrastructure’ of the embodied intelligence era. Currently, Qunhe Technology has established strategic partnerships with leading industry players such as Zhiyuan Robotics, Galaxy General, PICO and Hesai Technology. This implies that the company’s future valuation will depend not only on subscription renewal rates among designer users, but also on its ability to secure a foothold in cutting-edge fields such as robot training, autonomous driving simulation and XR (extended reality) spatial computing.

The explicit mention of “international expansion” and “investment in core technologies” in the IPO fundraising plan serves as a strategic footnote to its transformation from a leading domestic SaaS provider into a global spatial intelligence platform.

Risk Analysis

Although the profitability inflection point and forward-looking strategic positioning are encouraging, investors must nevertheless carefully assess the potential risks facing Qunhe Technology in the current highly volatile market environment. In terms of client structure, the company’s core client base consists largely of small and medium-sized enterprises (SMEs) and designers. Against a backdrop of macroeconomic uncertainty, design software—being a “cost item”—is highly susceptible to becoming the primary target for cost-cutting by small and micro-enterprises. Should there be a significant loss of low-average-revenue-per-user (ARPU) clients in the future, even if the company maintains revenue through price increases or by developing large corporate clients, it will be a major test as to whether its high sales expense ratio can continue to support a gross margin of 82.2%. At the same time, the company is heavily reliant on certain major clients. Should key clients develop in-house alternatives or withdraw their business, this would also deal a blow to short-term revenue.

In terms of its AI business, Qunhe Technology views AI as a new engine for growth, which presents both an advantage and a challenge. The current high growth rate of 123% for AI tools such as ‘Kujiale E-commerce Studio Photography’ is fundamentally built upon the current AI technology boom. As Adobe, Canva and even major domestic internet giants ramp up their investments in AIGC (generative AI) applications across e-commerce and design sectors, competition in this arena is rapidly intensifying. Should Qunhe Technology fail to maintain an absolute lead in the speed of AI feature iterations and user experience, its current rapid growth may prove unsustainable, and the company could even find itself mired in a price war.

A deeper concern lies in the commercialisation prospects of its cutting-edge businesses. Although collaborations with companies such as Zhiyuan Robotics and Hesai Technology hold significant potential, the prospectus reveals that the vast majority of the company’s revenue currently stems from subscription services for “Kujiale” and “Coohom”. Cutting-edge businesses such as spatial language models and embodied intelligence training data services remain in the investment and ecosystem-building phases. For Qunhe Technology, which is about to go public, will the capital markets place greater emphasis on short-term, certain financial returns, or on the long-term, unknown vastness of the cosmos? How to balance the steady growth of core businesses with the strategic losses of cutting-edge ventures will become a major test that the management must face after the listing.

Furthermore, as the first of the “Hangzhou Six Dragons” to go public, Qunhe Technology has enjoyed a “scarcity” premium. However, as more “Six Little Dragons” companies (such as Yushu Technology and Qiangnao Technology) subsequently enter the capital markets, investors’ choices will become more diverse. At that point, the market will reassess Qunhe Technology: should it be valued as a SaaS software company, or benchmarked against embodied intelligence infrastructure? This ambiguity regarding valuation benchmarks may exacerbate share price volatility following the listing.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.