A third IPO filing attempt is uncommon in Hong Kong's stock market, yet Xunce Technology represents such a case.

On September 22, 2025, Xunce Technology, which holds the title of "No. 1 market share in domestic asset management industry's real-time data infrastructure" and is backed by prestigious shareholders including Tencent, Goldman Sachs, and YunFeng Fund, submitted its prospectus to the Hong Kong Stock Exchange for the third time. This follows two previous failed attempts in March 2024 and September 2024.

Despite its impressive industry position and star-studded investor backing, Xunce Technology remains trapped in profitability challenges. In the first half of 2025, the company experienced declining revenue and widening losses, with core performance indicators deteriorating: paying customers dropped from 169 in the same period last year to 121, a 28% decline.

This isn't a short-term fluctuation. Since completing its latest funding round in November 2023, Xunce Technology has shown signs of growth pressure in several performance metrics, with slowing revenue growth, increasing losses, and declining market share in 2024.

Notably, Xunce Technology's valuation has surged dramatically: from 2.518 billion yuan in June 2021 to 6.22 billion yuan in November 2023.

Now, as the 6.22 billion yuan valuation faces persistently pressured operating data, the third IPO filing has transcended a simple listing pursuit to become a crucial "valuation defense battle."

**Hidden Concerns Behind the Halo: From "Revenue Growth Without Profit" to "Revenue Decline and Expanding Losses"**

Founded in 2016, Xunce Technology focuses on real-time data infrastructure and analytical solutions, primarily serving asset managers including insurance companies, mutual funds, banking asset management departments, securities firms, corporate treasury, family offices, and high-net-worth individuals.

According to Frost & Sullivan data, Xunce Technology ranks first in China's asset management industry real-time data infrastructure and analytics market with an 11.6% market share.

However, behind the "industry leader" halo lies a persistent loss predicament.

According to the latest prospectus, from 2022 to 2024, Xunce Technology's revenue was 288 million yuan, 530 million yuan, and 632 million yuan respectively, showing growth. During the same period, the company's losses were 96.512 million yuan, 63.391 million yuan, and 97.845 million yuan respectively.

Entering 2025, Xunce Technology shifted from 2024's "revenue growth without profit" to facing dual pressures of "declining revenue and expanding losses": first-half revenue of 198 million yuan declined from 283 million yuan in the same period last year, while losses of 108 million yuan expanded from 97.759 million yuan in the same period last year, making profitability prospects increasingly uncertain.

Regarding persistent losses, Xunce Technology primarily attributes them to substantial R&D expenses and administrative costs. R&D expenses represent the largest portion, totaling 259 million yuan, 379 million yuan, and 450 million yuan from 2022 to 2024, accounting for approximately 90%, 72%, and 71% of revenue respectively.

Clearly, Xunce Technology's sustained high-intensity investment hasn't yielded a profitability inflection point, instead recently exhibiting a pattern of "higher investment, greater losses."

Xunce Technology previously stated that in the early stages of business development, the company's focus isn't just immediate profitability, but expanding revenue to gain market share and attract quality customers.

However, in the first half of 2025, Xunce Technology faced customer retention challenges, with paying customers declining from 169 in the same period of 2024 to 121, a 28% drop. Meanwhile, the net revenue retention rate, which reflects customer stickiness, plummeted from 81% to 36%.

According to the prospectus, all of Xunce Technology's customers are paying customers. From 2022 to 2024 and the first half of 2025, the company's returning customers numbered 105, 115, 113, and 94 respectively. The decline in returning customers also contributed to the lower net revenue retention rate.

Xunce Technology attributes the declining net revenue retention rate primarily to a significant drop in the asset management industry's net revenue retention rate. Notably, Xunce Technology is attempting to reduce dependence on the asset management industry through business diversification.

The prospectus clearly shows that in 2024, Xunce Technology's customers encompassed diversified industries beyond asset management, mainly including financial services (excluding asset management), urban management, production management, and telecommunications, covering China's three major state-owned telecommunications operators.

In the first half of 2025, Xunce Technology's diversified industry revenue proportion rose to 52.7%, exceeding the asset management industry's 47.3% revenue share. However, based on expanding losses in the first half, Xunce Technology's diversified market expansion hasn't yet formed stable profit growth points.

Now, at this critical juncture of the third IPO filing, with declining paying customers and expanding losses, Xunce Technology's profitability prospects remain subject to market validation.

**"Valuation Defense" Battle After Seven Funding Rounds: Can 6.2 Billion Valuation Hold Under Pressured Operating Data?**

Under persistent losses, Xunce Technology's operations rely on external financing "blood transfusions." After completing its latest funding round in November 2023, the company's post-money valuation was set at 6.22 billion yuan. With current multiple operating data points under pressure, can it still support this valuation?

Reviewing its financing history, since 2017, Xunce Technology has completed seven funding rounds with participation from multiple star institutions.

For example, in the 2017 Series A round, YunFeng Fund and Innovation Works participated, with YunFeng Fund co-founded by Alibaba founder Jack Ma and Focus Media founder Yu Feng. In the 2019 Series A+ round, Goldman Sachs invested. In the 2020 Series B round, Tencent also joined Xunce Technology's shareholder lineup.

Intensive capital backing directly propelled Xunce Technology's valuation surge, with post-money valuation rising from 226 million yuan in 2017 to 6.22 billion yuan in November 2023, a 27-fold increase.

2021 became a crucial turning point for Xunce Technology's valuation leap: following the Series C+ round that year, the company's valuation reached 2.518 billion yuan, directly breaking through to 4.798 billion yuan in the Series D round the following year, then rising to 6.22 billion yuan in a crossover round one year later, with cumulative growth of 147% over two periods.

Notably, as valuations soared, multiple shareholders chose to cash out early. For instance, in May 2021, Zhuhai Chenghao, Zhongshan Torch, and Beijing Innovation Works transferred partial stakes. In the November 2023 latest funding round, Beijing Innovation Works and others transferred shares.

The "early exit" by institutional shareholders forms a subtle contrast with the company's "IPO sprint," reflecting institutional disagreements about Xunce Technology's long-term value.

After the latest funding round, Xunce Technology quickly submitted its first prospectus in March 2024, and this is now its third attempt at Hong Kong listing.

Reviewing operating performance since the latest financing, some of Xunce Technology's operating data showed pressure. Looking back at 2024, Xunce Technology's revenue of 632 million yuan represented approximately 19% year-over-year growth, slower than 2023's 84% growth rate; simultaneously, the company's losses reached 97.845 million yuan, expanding approximately 54% compared to 2023's 63.391 million yuan.

More notably, in 2024, Xunce Technology's market share declined, with its share in China's asset management industry real-time data infrastructure and analytics market falling from 13.5% in 2023 to 11.6%.

Entering the first half of 2025, multiple Xunce Technology indicators faced pressure, with revenue declining approximately 30% year-over-year and losses expanding approximately 10.47% year-over-year.

Currently, nearly two years have passed since the last funding round, creating a contrast between the 6.22 billion yuan valuation and pressured operating data. Can Xunce Technology's valuation remain stable? Can the company complete its listing? If the company continues unable to achieve listing, will early-stage star shareholders intervene again? Many questions remain.

For Xunce Technology, the third listing application submission isn't just a simple "IPO sprint battle," but a crucial "valuation defense battle." The core of this defense is proving to the Hong Kong Stock Exchange and potential investors that its valuation performance has solid foundations matching current operating conditions and future growth potential.