The competition in artificial intelligence is expanding from text and image generation to the comprehension of the physical world. This trend is particularly evident in the home renovation industry. For instance, AI technology significantly empowers the spatial design software sector, driving innovation, efficiency, and optimization to unprecedented levels. Advances in GPU and AI rendering have streamlined rendering processes and enhanced user experience, ensuring smooth, high-performance graphics operations and thereby fostering industry innovation. As the industry enters a new phase of development, several large-scale platforms are emerging in the secondary market, with Kujiale being one of them. According to a disclosure by the Hong Kong Stock Exchange on February 24, Kujiale's parent company, Qunhe Technology, submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with J.P. Morgan and CCB International acting as joint sponsors. The company had previously submitted applications on February 14, 2025, and August 22, 2025. Notably, Qunhe Technology, alongside DeepSeek, BrainCo, Unitree Robotics, CloudMinds, and Game Science, is referred to as one of the "Hangzhou Six Dragons." A successful listing could position the company as the "first global stock in spatial intelligence."
The company primarily targets the spatial design software market. According to Frost & Sullivan data, based on 2024 revenue, Qunhe Technology is the largest provider in China with a 23.2% market share. Furthermore, the company has expanded into embodied AI training and e-commerce product display, enabling it to enter the broader general design and visualization software market, within which the Chinese spatial design software segment accounted for only 4.4% in 2024. The prospectus indicates that the proceeds from Qunhe Technology's IPO will be allocated towards international expansion, including overseas market development, deepening sales penetration, establishing strategic alliances, and global brand promotion; enhancing existing product features and launching new products/features covering real spaces and virtual scenarios; strengthening domestic sales and marketing to boost brand awareness; and technological infrastructure, specifically investing in core technologies and infrastructure.
Amidst these significant investments, can Qunhe Technology capitalize on industry trends to successfully narrate the story of the "first global spatial intelligence stock" in the secondary market?
Revenue Shows Steady Growth, but Profitability Remains the Crucial Challenge Qunhe Technology is a leading cloud-native spatial design software provider in China, with its products widely used in various business scenarios ranging from residential and office buildings to retail stores and commercial projects. The company's product portfolio centers around Kujiale. Kujiale is a cloud-native spatial design platform in China, offering rapid drag-and-drop 3D design, real-time generation of realistic renderings, an extensive model library, and BIM capabilities. For the international market, the company offers Coohom, a localized spatial design solution tailored for Asian and American markets with region-specific design interfaces and model libraries, supporting 18 languages. Beyond software products, Qunhe Technology also provides professional services through its next-generation spatial intelligence solution, SpatialVerse, which utilizes realistic and physically accurate synthetic 3D datasets to accelerate AI development while reducing real-world testing costs.
In terms of core competitiveness, technology and innovation remain integral to Qunhe Technology's software. The company's solutions are built on three core technological capabilities: a purpose-built GPU infrastructure, advanced AI applications, and synthetic virtual data generation. In recent years, alongside the continuous growth of the spatial design software market, Qunhe Technology has expanded its revenue scale, maintaining growth momentum driven by its leading position and technological advantages. According to the prospectus, the company's revenue increased by 13.8% from RMB 664 million in 2023 to RMB 755 million in 2024, and further increased by 8.6% to RMB 820 million in 2025. This growth was primarily attributed to increased subscription revenue contributions from major clients and an expanding customer base. Subscription revenue from major clients rose by 20.9% from RMB 257 million in 2023 to RMB 311 million in 2024, and further increased by 16.6% to RMB 363 million in 2025, driven by strong customer retention, high renewal rates, and the introduction of new features encouraging account upgrades, supported by enhanced sales and marketing efforts.
However, despite sustained revenue growth, Qunhe Technology's profitability situation is not optimistic. From 2023 to 2025, the company reported net losses of RMB 646 million, RMB 513 million, and RMB 428 million, respectively, accumulating a total loss of RMB 1.587 billion over three years. Regarding operational costs, the persistent losses are likely related to continuous high levels of investment, as the company has operated in a "burn cash for growth" mode since its inception. The prospectus explicitly states that losses are primarily due to substantial ongoing investments in product development, technical support, and product marketing. Cumulative R&D investment from 2023 to 2025 exceeded RMB 1 billion. Amidst years of losses, Qunhe Technology's cash flow has become increasingly tight, with significant debt repayment pressure. On one hand, net cash flow from operating activities remained negative, with a gap of RMB -19 million still present in 2025, indicating that its core business cannot yet reliably generate cash. On the other hand, liabilities are high; as of the end of 2025, total liabilities reached RMB 4.735 billion, while total assets were only RMB 551 million, primarily consisting of financial liabilities like redeemable preferred shares, which continue to put pressure on cash flow.
Based on the above fundamentals, although Qunhe Technology holds a leading position as a domestic spatial design software provider with impressive market share and revenue scale, its "profitability challenge" may adversely affect its investment appeal.
Positioning in the "Golden Track" of Spatial Intelligence Holds Promise Spatial design software refers to digital tools used for creating, editing, and analyzing spatial layouts, widely applied in architectural design, interior design, urban planning, and infrastructure construction. Currently, this sector is primarily driven by a "dual-engine" growth pattern, with the main增量 coming from AI-empowered cross-boundary scenarios. First, the traditional base exhibits steady growth. According to Frost & Sullivan data, the foundational Chinese spatial design software market is projected to reach RMB 6.6 billion by 2029, with a CAGR of 14.9%, characterized by cloudification and the proliferation of AI-assisted design features. Second, emerging blue-ocean markets show explosive growth potential. The broader spatial intelligence market is vast. With continuous AI advancements, the application prospects for spatial intelligence in architectural design are expected to broaden significantly. According to CCID Consulting estimates, China's spatial intelligence market size is projected to exceed RMB 300 billion by 2025, encompassing comprehensive applications in smart cities, transportation, agriculture, industry, and other fields. Consequently, this sector is regarded as the second growth curve for the AI industry following large language models.
Based on this trend, Qunhe Technology's strategic positioning has become clearer, explicitly upgrading from a "3D spatial software provider" to a "spatial intelligence service provider," aiming to be a provider of foundational technology in the AI era. The prospectus indicates that in 2025, Qunhe Technology launched related products to continuously widen its moat. For example, it introduced an AI intelligent design platform, released the advanced spatial language and generative models SpatialLM and SpatialGen, and introduced the cloud-native industrial AI twin platform SpatialTwin, the spatial intelligence open platform Aholo, and the 3D content creation tool LuxReal. Among these, the Aholo platform packages core capabilities as APIs and SDKs, empowering developers in fields like embodied intelligence, film and television, and e-commerce. However, it is important to note that these new business segments currently have a small scale. In 2025, the company's SpatialVerse solution had acquired 16 customers, generating revenue of RMB 5.2 million from them—a relatively small amount compared to the total annual revenue exceeding RMB 800 million.
In summary, Qunhe Technology's listing attempt in Hong Kong can be likened to a top student with substantial assets embarking on an AI examination. It possesses a profitable traditional business for support and a forward-looking narrative around spatial intelligence. However, it currently carries significant historical burdens, namely profitability challenges and high debt, urgently needing the IPO for capital infusion to冲刺 the next phase of competition.