Recently, metauniverse has become the hottest spot in the current market. Under such a background, almost no company, from technology companies to sports consumer goods brands, is willing to miss the outlet of metauniverse. However, in this outlet, one company wants to use metauniverse to become the first AI share in Hong Kong stock market. This is Shangtang technology, one of the four famous AI dragons, In the face of Shangtang technology through the meta universe, what should we think? How will Shangtang technology go in Hong Kong stocks?
1、 Shangtang technology through the HKEx hearing?
According to Shenzhen news network, recently, Shangtang technology, an artificial intelligence software company, has passed the listing hearing of the Hong Kong Stock Exchange and updated the data set after the hearing, with,, and HSBC as the co sponsors.
According to the prospectus, as of June 30, 2021, Shangtang’s various cash and deposit reserves exceeded 19 billion yuan, with a cumulative revenue of 9.98 billion yuan in the first half of 2018-2021.
Among them, the revenue of Shangtang technology in the first half of 2021 was RMB 1.652 billion, compared with RMB 861 million in the same period last year, with a year-on-year increase of 91.87%. The loss in the first half of the year was 3.713 billion yuan, the loss in the same period last year was 5.333 billion yuan, the adjusted net loss under non IFRS was 726 million yuan, and the loss in the same period last year was 1.100 billion yuan, a year-on-year decrease. According to Sullivan’s industry report, based on the income level in 2020, Shangtang has become the largest AI software company in Asia.
According to the prospectus, Shangtang’s business covers smart business, smart city, smart life and smart car, and supports AI model production and software development in various fields through unified AI infrastructure. The prospectus disclosed that in 2018, 2019, 2020 and the first half of 2021, the gross profit margin of Shangtang technology was 56.5%, 56.8%, 70.6% and 73.0% respectively.
Founded in 2014, Shangtang technology is an artificial intelligence (AI) software company. Shangtang technology, together with three AI start-ups in the visual field of Kuangshi technology, Yuncong technology and Yitu technology, is known as the “Ai four dragons”. This is also the origin of the concept of “Ai four dragons”.
The difference is that after several years of development, from the technical concept to the landing of products and services, the “Ai four dragons” have their own positioning and development direction. Big brother Shangtang technology adheres to the service route of AI platform, expands the field of AI Internet of things by Kuangshi technology, scales up the field of AI medical devices according to technology, and Yuncong technology focuses on man-machine cooperative operating system.
However, in the prospectus of Shangtang technology, there is a concept that has aroused widespread concern in the market. In the hearing materials, Shangtang technology mentioned “metauniverse” 47 times, five times more than the 42 times of submitting application materials for the first time. It can be seen that Shangtang technology attaches importance to the “meta universe”. In addition, in the hearing materials, Shangtang technology also claimed to be “the largest meta universe enabling platform in Asia”.
In the prospectus, Shangtang technology said that “our sensemars has become one of the largest meta universe enabling platforms in Asia and the first artificial intelligence company to help mobile applications achieve interactive augmented reality and mixed reality effects.”
2、 How will Shangtang technology go in Hong Kong stocks?
Faced with the hearing of Shangtang technology through the Hong Kong Stock Exchange and the large-scale use of metauniverse, many people are asking what Shangtang technology wants to do? How will Shangtang technology go in Hong Kong stocks? In fact, as early as September, we discussed the development of Shangtang technology in the article “Shangtang technology has rushed to the market, and the four AI dragons have embarked on the market. What should we see in the future?” in which we studied the listing of Shangtang technology. However, at that time, Shangtang technology did not take advantage of the meta universe. We might as well further study this time, Where is Shangtang technology going in Hong Kong stocks?
First of all, Shangtang technology, as the first of the four little dragons, has a certain leapfrog service capability. According to the report of Frost & Sullivan, a third-party consulting firm, Shangtang technology is the largest artificial intelligence software supplier in Asia in terms of revenue in 2020, and has become the largest computer vision software supplier in China with 11% market share. As of June 30, 2021, the total number of customers of Shangtang software platform has exceeded 2400, covering 250 Fortune 500 enterprises and listed companies. As we said earlier, among the four little dragons of AI, Shangtang technology still adheres to its own AI platform service line. In the field of AI platform service, Shangtang technology has had good market development and at least a certain customer base, which helps Shangtang technology have a certain degree of leapfrog service ability, This should belong to the basic market that Shangtang technology can be listed in Hong Kong stocks at present.
Secondly, the meta universe through Shangtang technology does have its excellence. When the meta universe was popularized, we have repeatedly said that at present, there are more or less problems for most companies to develop the meta universe. At present, the technical reserves of major companies are not enough to support a perfect meta universe system, and the conceptual characteristics of the meta universe far exceed the general actual landing characteristics, However, after carefully studying the prospectus of Shangtang technology, we found that Shangtang technology is indeed one of the fastest companies in the meta universe market in the current AI industry. We found in the prospectus of Shangtang technology that Shangtang technology is a meta universe scene constructed by using the sensemars platform, and constructs its own meta universe system through three core elements: sensemars reconstruction, sensemars avatar and sensemars agent. Among them, Sensemars reconstruction can build a projection of our current real universe in the meta universe through 3D modeling, so as to build the scene of the meta universe. Sensemars avatar further helps users build their own meta universe avatar, so that users can enter the meta universe in person, Sensemars agent generates software agents that allow users to interact directly with people in the meta universe. It can be said that the emergence of these three core elements has gradually turned the construction of the meta universe from an illusory concept into a possible thing. Shangtang technology has the backing of the meta universe with its own meta universe enabling platform, Shangtang technology is also one of the few companies in Chinese science and technology enterprises that can come up with real and feasible solutions.
Third, the long-term risks of Shangtang technology also exist. With the help of platform-based service capability, Shangtang technology has built its own business fundamentals. With the help of sensemars platform, Shangtang technology has taken its own step in the field of meta universe. These achievements are enough to make Shangtang technology move towards the capital market. However, although it is easy to get on the road, how to go is not so easy, the risks of Shangtang technology also exist:
First, the loss problem can never be eradicated. The net losses of Shangtang technology in 2018, 2019, 2020 and the first half of 2021 were RMB 3.433 billion, RMB 4.968 billion, RMB 12.158 billion and RMB 3.713 billion respectively. It can be said that the losses of Shangtang technology have become a normal, although we have always said that the short-term losses of technology companies are not a problem, But how much endurance such a large-scale loss capital market has is really unknown.
Second, although the concept of meta universe is good, it can’t make money in a short time. We can see that in the system of Shangtang technology, metauniverse can only be said to be a bright point, but it is not the main business of Shangtang technology, but it is the most bright growth point. The metauniverse of Shangtang technology has only taken the first step, and it is difficult to measure the distance from making money, The other businesses, whether smart business or smart city, are far from making real money, which may be the biggest problem of Shangtang technology.
Third, the increasingly fierce market competition will intensify at any time. For Shangtang technology, although Shangtang technology occupies the first place among the four AI dragons, don’t forget that there are more than four AI dragons. Major companies in the market are gearing up, including many giants. Once all these giants end in person, the competition in the whole market will undoubtedly be more intense.
Therefore, it is not easy for Shangtang technology to embark on the Hong Kong stock market, but it may be more difficult to do well, which requires Shangtang technology to do its own business.