“Hangzhou’s Six Little Dragons” Manycore Tech Lists on Hong Kong Main Board, Entering a Phase of Profitable Growth

As one of the “Hangzhou Six Little Dragons,” Manycore Tech is a leading provider of cloud-native spatial design software in China. Its core product, Kujiale, dominates the domestic market. The company has also launched the localized software Coohom for international markets and released the SpatialVerse platform in 2024 to position itself in the fields of embodied AI and e-commerce display. According to Frost & Sullivan, based on 2024 revenue, the company ranks first in China’s spatial design software industry with a market share of approximately 23.2%.

Incorporated in the Cayman Islands, Manycore Tech appointed J.P. Morgan and CCB International as joint sponsors. Prior to the listing, the company completed multiple rounds of financing, receiving long-term support from top-tier institutions such as IDG Capital, Hillhouse Capital, Shunwei Capital, GGV Capital, and Coatue.

Regarding cornerstone investors, the company introduced nine renowned institutional investors who collectively subscribed for approximately US$58 million (approx. HK$455 million). The lineup includes Taikang Life Insurance, Sunshine Life Insurance, GF Fund, Mirae Asset Securities, Redwood, Rime Capital, Hesai HK, Guohui (HK) Holdings, and CR Construction. Notably, some of these cornerstone investors are also existing shareholders, reflecting the institutions’ continued recognition of the company’s long-term value.

Manycore’s Pre-IPO Financial Performance and Profitability Turnaround

Over the three fiscal years preceding the listing, Manycore Tech demonstrated a positive trend of continuous revenue growth, significantly narrowed losses, and improved profitability. Total revenue increased from RMB 664 million in 2023 to RMB 820 million in 2025. The gross profit margin steadily climbed from 76.8% to 82.2%, primarily driven by cost optimization and improved delivery efficiency resulting from technological upgrades.

The annual loss narrowed from RMB 646 million to RMB 428 million. More critically, measured by Non-IFRS, the company achieved an adjusted net profit of RMB 57.1 million in 2025, crossing the break-even point for the first time. The proportion of R&D and selling expenses dropped from 58.9% and 53.7% to 35.5% and 33.4% respectively, reflecting the significant efficiency empowerment provided by AI technology.

Operating cash flow also turned positive in the second half of 2025. As of the end of 2025, cash and equivalents reached RMB 357 million. Coupled with an undrawn banking facility of RMB 1 billion, management confirmed that working capital is sufficient, marking the company’s transition from a strategic investment phase into a stage of high-quality, sustainable profitable growth.

Manycore’s Evolution of Equity Structure Pre- and Post-Listing

In terms of equity structure, the company had a significant scale of “redemption liabilities” prior to the listing—representing the book value of convertible redeemable preferred shares—which stood at approximately RMB 4.09 billion as of December 31, 2025. The company is jointly controlled by co-founders Huang Xiaohuang, Chen Hang, and Zhu Hao through a concerted action agreement.

Upon completion of the listing, with the issuance of global offering shares and the automatic conversion of all preferred shares into ordinary shares, the founding team’s shareholding percentage will be diluted to a certain extent but will retain a controlling stake. Meanwhile, the redemption liabilities will be reclassified as equity, significantly improving the net asset position.

Manycore’s Use of Proceeds and Strategic Allocation

Manycore Tech has raised net proceeds of approximately HK$1.092 billion from this listing, with a clear strategic roadmap aimed at consolidating its market position and expanding its global footprint.

Specifically, the company plans to allocate approximately 30% (around HK$307 million) towards executing its international expansion strategy, with a focus on deepening penetration in key markets such as Southeast Asia and the United States. 20% of the funds (approximately HK$205 million) will be dedicated to enhancing existing product capabilities and launching new offerings to meet the growing demands of virtual environments. An equal portion of 20% is earmarked for bolstering domestic sales and marketing initiatives to elevate brand awareness. Furthermore, 20% will be invested in core technology R&D and infrastructure development, specifically the upgrading of GPU clusters. The remaining 10% will be reserved for working capital and general corporate purposes.

Manycore’s Business Segments and Market Footprint

Manycore Tech’s business architecture adopts a three-layer technical stack: the infrastructure layer consists of specially built GPU infrastructure; the technology support layer comprises three engines—AI, rendering, and BIM; and the upper layer features software products and services covering various application scenarios.

The company’s main product matrix centers on Kujiale for the domestic market. As the company’s “cash cow,” Kujiale is widely used in design scenarios for residential, office, retail, and commercial projects. Secondly, for the international market, the company has launched the localized spatial design software Coohom, providing adapted services for Asian and US markets. Although overseas revenue currently accounts for a small proportion, it is growing rapidly. Thirdly, to expand professional services for enterprise clients, Manycore Tech launched the Manycore Spatial Intelligence Platform (SpatialVerse) in 2024. Combining AI visualization and 3D rendering technologies, it aims to provide intelligent spatial development solutions that align with current sci-tech developments.

In terms of market footprint, the company currently relies on mainland China as its core, contributing over 90% of revenue. However, under its globalization strategy, South Korea, Southeast Asia, the United States, and India have become key regions for overseas expansion. The company adopts a “freemium” model, boasting a massive base of individual users and converting them into paying enterprise clients through high conversion rates, forming a virtuous ecological cycle.

Manycore’s Core Strengths and Challenges

Manycore Tech’s core strengths lie in its deep technical moat and leading market position. The company has built proprietary GPU infrastructure and advanced AI application engines, making rendering speed and design efficiency far superior to traditional software. This brings huge benefits to customers on a technical level, creating and optimizing user production workflows. Furthermore, the company boasts an extremely high Net Revenue Retention (NRR) rate among large clients, proving their high dependence on its products.

However, Manycore Tech also faces non-negligible challenges. Firstly, the company accumulated significant losses prior to listing and has a situation of net current liabilities. Although the situation will improve after listing, cash flow management remains a short-term focus. From a macroeconomic risk perspective, the company’s business is highly correlated with the real estate market; fluctuations in the property market may directly affect downstream customer demand. Secondly, there is fierce market competition. With the proliferation of AIGC technology, tech giants and emerging startups are flocking to this track, reshaping the competitive landscape. Additionally, the company faces multiple uncertainties including data security, AI regulation, international expansion, and stock price volatility.

Manycore’s Short- and Long-term Strategic Planning Post-Listing

Looking ahead post-listing, Manycore Tech’s short-term strategy will focus on “stabilizing the stock price and ensuring delivery.” The company will use the raised funds to optimize its capital structure, reduce the debt-to-asset ratio, and ensure continuous R&D investment to maintain technological leadership. Simultaneously, the company is committed to improving operational efficiency to ensure it maintains an adjusted profitable state in 2026 and beyond.

In the long run, the company’s strategic focus is “Globalization” and “Intelligence.” On one hand, the company will accelerate its transformation from “China’s Kujiale” to “Global Coohom,” striving to capture a larger share of the global spatial design software market. On the other hand, it will deepen the application of AI technology across the entire spatial design chain, evolving from a mere design tool into a spatial intelligence platform. It aims to explore new growth points such as embodied AI and digital twins, striving to become a global leader in the field of spatial intelligence.

Potential Impact of Manycore Tech’s Development in Hong Kong

Manycore Tech’s successful listing will not only help enhance the overall attractiveness of the Hong Kong stock market’s technology sector but also likely drive capital attention to emerging tech tracks such as spatial intelligence, embodied AI, and digital twins, promoting the diversified development of the tech sector.

At the industrial level, Manycore Tech can promote the digital transformation of Hong Kong’s design and construction industries. If its spatial intelligence technology is successfully applied to fields like embodied AI, e-commerce, and film/TV, it will aid the development of smart cities, virtual production, and digital entertainment, attracting tech talent and R&D resources.

However, as there are already many design and BIM service providers locally, Manycore Tech also faces competition. While promoting industry upgrades, it must adapt to data security and AI regulations. Furthermore, as the company is highly correlated with the real estate market and is in the early stages of profitability, attention must be paid to the impact of economic fluctuations on its business and profitability.

Overall, Manycore Tech’s arrival in Hong Kong will bring new technological momentum and investment hotspots, helping Hong Kong accelerate its steady transformation towards intelligence and internationalization, enhancing its strategic position as a springboard for tech enterprises, and promoting steady industrial upgrading.