Introduction Shandong Extreme Vision Technology Co., Ltd. (Stock Code: 06636) is undertaking a Global Offering of 12.48 million H Shares at an Offer Price of HK$40.00 per share, comprising a Hong Kong Public Offering (624,000 H Shares) and an International Offering (11,856,000 H Shares), both subject to reallocation. The total estimated net proceeds are approximately HK$434.40 million. Trading of the H Shares on the Main Board of the Hong Kong Stock Exchange is expected to commence upon fulfillment of standard listing conditions. Following the IPO, the Single Largest Group of Shareholders is expected to hold around 26.54% of the total issued share capital, compared to 29.85% before the offering. Key uncertainties noted by the Company include fast-evolving AI technology, data protection requirements, regulatory changes, and competitive pressures in the enterprise computer vision market.
Company Overview The Company specializes in enterprise computer vision and AI solutions. It provides software-based and hardware-integrated products for diverse applications, such as image recognition, object analysis, and industry-specific AI deployments. The business model centers on developing and commercializing AI-driven platforms, offering customers ongoing product updates, technical services, and advanced analytics capabilities.
Industry Overview China’s enterprise computer vision market has been expanding rapidly, supported by broader AI adoption, government initiatives, and declining costs of computing power. The Company operates in a fragmented environment where the top 10 market participants collectively capture a modest share of total revenue. In parallel, the rise of large model AI solutions opens additional opportunities across finance, healthcare, manufacturing, and other verticals. Industry competition is influenced by R&D intensity, technical innovation, and adherence to evolving regulations.
Financial Overview For the year ended December 31, 2025, the Company recorded revenue of RMB292.08 million, up from RMB257.30 million in 2024. Gross profit rose to RMB121.12 million, reflecting a gross profit margin of 41.5% (compared to 40.2% in 2024). The year 2025 reported a net loss of RMB45.78 million, in contrast to a net profit of RMB8.71 million in 2024. The Company attributes the change primarily to increased research and development and administrative expenses. Trade receivables grew along with revenue, while inventory levels declined as product delivery cycles were optimized.
Cornerstone Investors Zhengin International and GKI have agreed to invest a total of HK$47.20 million for an aggregate of 1,180,000 H Shares, representing approximately 9.46% of the Offer Shares and about 1.05% of the total issued share capital immediately after listing. Zhengin International subscribes for 1,130,000 H Shares (HK$45.20 million), and GKI subscribes for 50,000 H Shares (HK$2.00 million). Each Cornerstone Investor is subject to a lock-up period through December 31, 2026, limiting share disposals during that time.
Use of Proceeds Based on the final Offer Price of HK$40.00 per share, the Company expects net proceeds of around HK$434.40 million. The primary allocations include: • Ongoing research and development for large model and AI infrastructure, bolstering product innovation and technical capability. • Enhancements to the Company’s AI-PaaS platform, including recruitment of specialized talent and acquisition of critical resources. • Expansion of commercialization efforts, such as sales network development, marketing activities, and overseas market exploration. • Allocation for working capital and other general corporate purposes to facilitate day-to-day operations and maintain financial flexibility.
The Company intends to invest in this manner from 2026 to 2029 to strengthen its position in the enterprise AI market, retaining any unused funds in short-term interest-bearing accounts until deployment.