Haitek Technology, dubbed the ‘first AI illusion-dispelling stock’, launches Hong Kong IPO: Can it shoulder HK$2 billion in redeemable liabilities?

ZC Asia has learnt that on 5 February 2026, Haitek Technology (02706.HK) formally commenced its global offering on the Hong Kong Stock Exchange, with listing expected on 13 February. According to the company announcement, the global offering comprises 28.0302 million H-shares, including 2.8032 million shares for the Hong Kong public offering and 25.227 million shares for the international placement. The offer price range is set at HK$25.60 to HK$28.00 per share, with a lot size of 200 shares. CMB International, BOC International and Shenwan Hongyuan Securities (Hong Kong) are acting as joint sponsors for this IPO.

Under the cornerstone investment agreement, institutions including JSC International Investment Fund SPC, entities under Zhipu Huazhang, Infini and Mega Prime have agreed to subscribe for shares totalling approximately US$15 million at the offer price. Assuming the mid-point offer price of HK$26.80, cornerstone investors will subscribe for approximately 4.3492 million shares.

The IPO is projected to raise net proceeds of approximately HK$648.4 million. The company has clearly outlined the use of funds: approximately 45% will be allocated to core R&D for graph-model fusion technology; 20% for optimising the Atlas intelligent agent; 15% for market expansion; 10% for strategic investments and mergers and acquisitions; with the remaining 10% allocated as working capital.

HaiZhi Technology's core technology is termed ‘graph-model fusion’. Simply put, it combines structured, relation-defined knowledge graphs with large language models that excel at reasoning but may produce ‘nonsensical output’.

This technology aims to establish barriers across three dimensions: enhancing factual accuracy in output content, reducing hallucination rates (i.e., the proportion of erroneous content), and strengthening logical reasoning capabilities in complex scenarios.

The company's products are organised into two major systems: firstly, the traditional core Atlas graph solutions, comprising the DMC Data Intelligence Platform, Atlas Knowledge Graph Platform, and graph database.

Secondly, the rapidly growing Atlas Agent, an AI agent solution based on graph-model fusion technology, which serves as the key vehicle for its ‘delusion-free’ narrative.

According to Frost & Sullivan's report, based on 2024 revenue, Haizhi Technology ranks first in China's ‘graph-centric AI agent’ segment, commanding approximately 50% market share.

Within the broader ‘China Industrial-Grade AI Agent Providers’ overall ranking, the company ranks fifth with a 2.8% market share.

The report projects China's industrial-grade AI solutions market size will surge from approximately RMB 65.4 billion in 2025 to around RMB 286.1 billion by 2029, representing a compound annual growth rate (CAGR) of 44.6%.

The market for AI agents integrating knowledge graphs is projected to grow even more remarkably, expanding from RMB 200 million in 2024 to RMB 13.2 billion by 2029, reflecting a staggering CAGR of 140.0%. This underscores the market's strong demand for technologies capable of addressing the hallucination issues inherent in large language models.

Financial data indicates that Haizhi Technology's revenue grew from RMB 313 million in 2022 to RMB 503 million in 2024, representing a CAGR of 26.8%. The Atlas intelligent agent business, pivotal to the company's future, demonstrated explosive growth, with revenue surging from RMB 8.9 million in 2023 to RMB 86.6 million in 2024 – an increase of 872.2%.

The company's gross profit margin has steadily improved, rising from 30.9% in 2022 to 36.3% in 2024, and reaching 39.7% in the first nine months of 2025.

However, the path to profitability remains challenging. Although the company achieved an operating profit of RMB 3.3 million in 2024 under accounting standards, it recorded operating losses of RMB 179 million and RMB 202 million in 2022 and 2023 respectively. For the first nine months of 2025, the operating loss stood at RMB 107 million.

A noteworthy trend is the gradual reduction in R&D expenditure from RMB 86.9 million in 2022 to RMB 60.7 million in 2024, with the R&D expense ratio falling from 27.8% to 12.1%.

The most immediate pressure facing Haizhi Technology stems from its capital structure. As disclosed in the prospectus, the company carries approximately RMB 2 billion in redeemable liabilities on its books. A successful listing and capital raising represent a crucial step towards alleviating this financial pressure.

Despite the remarkable growth rate of its Atlas intelligent agent business, this segment contributed only 17.2% (approximately RMB 86.6 million) to total revenue in 2024. The company's primary income stream remains reliant on traditional graph solution projects.

This implies that while its ‘AI-powered illusion-dispelling’ technology narrative is compelling, the company's core business model in the near term remains that of a project-based solutions provider. The scalability of its new ventures remains to be demonstrated.

Furthermore, within the rapidly evolving AI sector, fluctuations in absolute R&D expenditure could undermine the company's long-term technological competitiveness.

Whether Haizhi Technology can leverage its ‘graph-model fusion’ technology to genuinely penetrate the blue ocean market of industrial-grade AI, while simultaneously bridging the gap between technological ambition and the practical realities of profitability and financial stability, will be a core question requiring ongoing answers post-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.