While shares of established tech giants like Tencent, Xiaomi, Meituan, and Li Auto have hit yearly lows, the stock price of the large language model company KNOWLEDGE ATLAS (Stock Code: 02513.HK) has surged dramatically.

As of the previous close, its share price stood at HK$2,094, a significant jump of 26% from the prior trading day. At this closing price, the company's market capitalization reached a staggering HK$933.6 billion.

KNOWLEDGE ATLAS's market value now surpasses that of numerous veteran technology firms such as NetEase, JD.com, Xiaomi, Meituan, and Baidu. Its valuation is triple that of Baidu and double that of Meituan.

During the same period, the share price of competitor MINIMAX was HK$497.6, giving it a market cap of HK$156.1 billion. This comparison highlights the extreme nature of KNOWLEDGE ATLAS's rally, prompting some online commentators to remark on the apparent disconnect.

Financial Performance Contrasts with Valuation

Founded in 2019 as a spin-off from Tsinghua University, KNOWLEDGE ATLAS is dedicated to the research and development of Artificial General Intelligence (AGI). Its primary business model is Model-as-a-Service (MaaS), similar to the monetization approach of OpenAI and Anthropic, focusing on API calls for its large models.

However, its commercial progress lags behind these global peers. The annual report shows that for the 2025 fiscal year, KNOWLEDGE ATLAS generated revenue of RMB 724 million, a 131.9% increase from RMB 312 million the previous year. Its gross profit was RMB 297 million, up from RMB 176 million.

Cloud deployment revenue saw substantial growth of 292.6% to RMB 190 million, attributed to improved model performance driving increased usage. Revenue from on-premise deployments grew 102.3% to RMB 534 million.

Despite the revenue growth, the company reported a net loss of RMB 4.718 billion for 2025, widening from a loss of RMB 2.958 billion the prior year. On an adjusted basis, the net loss was RMB 3.182 billion, compared to RMB 2.466 billion a year earlier.

Lockup Expiry Presents a Key Test

KNOWLEDGE ATLAS boasts a prestigious list of backers including industrial capital from Meituan, Ant Group, Alibaba, Tencent, Xiaomi, Kingsoft, Boss Zhipin, and TAL Education, alongside top-tier venture capital firms and local government investment arms.

The company went public on the Hong Kong Stock Exchange on January 8, 2026, issuing 37.4195 million shares at an offer price of HK$116.2, raising a total of HK$4.3 billion. It attracted a strong lineup of cornerstone investors.

A critical factor is the small public float. The total issued shares represent only 5.76% of the total share capital. After accounting for cornerstone holdings, the actual freely tradable shares constitute a mere 1.81% of the capital. This limited supply means relatively small amounts of capital can significantly influence the stock price.

For instance, on June 18, 2026, the stock's turnover value reached HK$9.3 billion, but the volume was only 4.9169 million shares, far less than the trading volume of giants like Tencent or Xiaomi.

A major support for the high stock price is that the company has not yet entered its post-IPO lockup expiry period. Once this period ends in July 2026, a substantial number of additional shares will become eligible for trading, which is expected to introduce significant volatility and pressure on the share price.

Future Plans and Market Context

KNOWLEDGE ATLAS has completed IPO guidance for a listing on Shanghai's STAR Market. If successful, it would become the first major pure-play large model stock on the A-share market, creating a dual-listed "A+H" structure. A key question is how it will be priced on the STAR Market given its already lofty Hong Kong valuation.

In the broader market, another AI firm, Moonshot AI (Kimi), has been actively raising capital amid the soaring valuations of its peers. It has reportedly raised over $3.9 billion in the past six months, with a pre-money valuation reaching $30 billion. While this valuation trails that of KNOWLEDGE ATLAS, it exceeds that of MINIMAX. Observers note potential risks for later-stage investors, especially if the company pursues a Hong Kong listing, given the high valuations and competitive landscape.