Another AI player enters the Hong Kong stock market: how promising is Jisijiao’s algorithm marketplace?

ZC Asia has learnt that today (20 March), AI computer vision solutions provider Jisight (06636.HK) officially launched its Hong Kong IPO, planning to issue 12.48 million H-shares at a fixed price of HK$40 per share, with an entry fee of HK$2,020.16 per lot of 50 shares. If all goes according to plan, the company is set to list on the Main Board of the Hong Kong Stock Exchange on 30 March.

Two cornerstone investors have been brought on board for this IPO: Zhengjin (Hong Kong) International Limited (hereinafter “Zhengjin International”) and George Kent International Pte. Ltd. (hereinafter “GKI”), who have collectively subscribed for shares equivalent to HK$47.2 million, representing 9.45% of the total global offering.

Founded in 2015 and headquartered in Qingdao, Shandong, Jisijiao’s core business comprises two major segments: AI computer vision solutions and large-scale model solutions.

The company’s core asset is its AI computer vision algorithm marketplace. As of 30 September 2025, the marketplace featured 1,517 algorithms, of which 148 were developed in-house and 1,369 were co-developed with third-party developers. This marketplace is underpinned by a four-tier technical infrastructure: the in-house Interstellar Vision-Language Large Model; the algorithm development platform ‘Jishi’; the delivery platforms ‘Jizhan’ and ‘Jixing’; and the ‘Jizhi’ agent development platform, newly launched in 2025.

As of the end of September 2025, Jisijiao had served over 3,000 clients, delivered more than 6,000 projects, and achieved a product repurchase rate exceeding 80%. Based on 2024 revenue, the company ranked eighth in China’s emerging enterprise-grade computer vision solutions market, with a market share of 1.6%.

As of the end of September 2025, Jisijiao had served over 3,000 clients, delivered more than 6,000 projects, and achieved a product repurchase rate exceeding 80%. Based on 2024 revenue, the company ranked eighth in China’s emerging enterprise-grade computer vision solutions market, with a market share of 1.6%.

Judging by its revenue trajectory, Jisijiao is currently in a phase of rapid growth. Revenue stood at RMB 102 million in 2022, increased to RMB 128 million in 2023, and surged further to RMB 257 million in 2024. Revenue for the first three quarters of 2025 stood at 136 million yuan, representing a year-on-year increase of 71.7%. Gross profit margins were equally impressive, recovering from 25.9% in 2023 to 40.2% in 2024, and climbing further to 44.9% in the first three quarters of 2025.

However, fluctuations in net profit have created a ‘scissors gap’ with revenue growth. In 2022 and 2023, the company recorded net losses of 60.722 million yuan and 56.246 million yuan respectively; in 2024, it briefly returned to profit, posting a net profit of 8.708 million yuan; however, it returned to a loss in the first three quarters of 2025, with a net loss of 36.296 million yuan.

Even more concerning than the volatility in net profit is the persistent net outflow of operating cash flow. From 2022 to the first three quarters of 2025, the company’s cumulative cash outflow from operating activities amounted to 191 million yuan. During the same period, trade receivables surged from 42.015 million yuan at the end of 2022 to 181 million yuan by the end of the third quarter of 2025, whilst days sales outstanding (DSO) extended significantly from 99 days to 379 days, indicating that the sales collection cycle has exceeded one year.

As of the end of September 2025, the company’s cash and cash equivalents stood at just 19.684 million yuan, a decrease of nearly 11.5 million yuan compared to the end of 2024.

Key Points:

Since its establishment, Jisijiao has completed 11 rounds of financing, raising a total of over 380 million yuan. The most recent Series D round was completed in November 2024, with a post-investment valuation of approximately 2.31 billion yuan. However, compared to the valuation of 2.3 billion yuan following the C3 round in October 2022, the valuation in the D round has risen by a mere 0.43% over a period of two years, suggesting that the actual valuation may have declined.

Regulatory uncertainties also warrant attention. In January 2026, the International Department of the China Securities Regulatory Commission (CSRC) requested supplementary materials from Jisijiao, highlighting three key concerns: Shareholder Qingdao Tianlu exited at a 43.72% discount to the Series D valuation yet still applied to participate in the ‘full circulation’ of H-shares; shares held by shareholder Qingdao Jiezheng were previously frozen, and its controlling shareholder has entered bankruptcy reorganisation proceedings; the company previously underwent STAR Market guidance with the Qingdao Securities Regulatory Bureau but made no mention of its A-share plans after shifting its focus to the Hong Kong stock market.

As an AI enterprise that touts itself as ‘technology-driven’, Jisijiao’s R&D expenditure structure has undergone significant changes. Personnel costs for R&D fell from 26 million yuan in 2022 to 19 million yuan in 2024, with their share of total R&D expenditure dropping from 73.7% to 42.9%. Meanwhile, technical service fees—which include outsourced R&D—soared from 6 million yuan in 2022 to 23 million yuan in 2024, accounting for 72.9% of the total in the first three quarters of 2025. The sharp rise in the proportion of outsourced R&D has raised market doubts regarding the company’s in-house R&D capabilities.

Jisijiao’s revenue sources have also exhibited significant volatility. The proportion of revenue from the East China region plummeted from 65% in 2023 to 32.1% in the first three quarters of 2025, whilst the South China region’s share surged from 18.6% to 56.0% over the same period. This volatility suggests the company may be over-reliant on individual large-scale projects in specific regions, rather than having established a stable nationwide sales network.

The AI computer vision solutions market in which Jisijiao operates is highly competitive. Based on 2024 revenue, the market leader held a 12.1% market share, whilst Jisijiao accounted for only 1.6%. In the large-scale model business, the company has not pursued the independent training of general-purpose large models, but instead adopts approaches such as RAG and multi-agent systems to provide customised solutions; it has yet to establish an industry-level ‘moat’.

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.