In a remarkable showcase of technological prowess, recent performances at the CCTV Spring Festival Gala introduced audiences to a vibrant dance known as the "Nian Ge," while simultaneously spotlighting emerging players in the tech arenaAmong these players, Yu Shu Technology and the rapidly rising global sensation DeepSeek have put Hangzhou on the map, marking their place in what is dubbed "The Six Small Dragons of Hangzhou." This term refers to a collective of six innovative tech firms headquartered in the bustling city of Hangzhou: DeepSeek, Yu Shu Technology, Qiang Nao Technology, Yun Shen Chu Technology, Game Science, and Qun He Technology.

The launchpad for this rising star, Qun He Technology, was set back in 2011. It has created quite a buzz by providing cutting-edge spatial design software, notably Coolhome, along with its international counterpart, Coohom, and an AI-driven platform designed for indoor environments called SpatialVerseThe company took a significant leap towards going public by filing for an IPO in Hong Kong on February 14, 2025, with financial heavyweights JP Morgan and Jianyin International at its side as joint sponsorsThis path to public trading comes after a previous attempt to launch in the U.S. stock market back in June 2021, which ultimately did not materialize.

Qun He Technology's determination to reach the public market again is fuelled by two major factors: its association with the nascent "Hangzhou Six Dragons" phenomenon and the ongoing widespread enthusiasm for generative AI technology—a sector that has captured the fascination of investors and tech enthusiasts alike in recent yearsThe buzz surrounding these tech innovators has opened new narratives and opportunities within the capital market, setting the stage for a promising future.

Diving deeper into the company’s financials, it's noteworthy that over 80% of Qun He Technology's revenue comes from its subscription model, predominantly through enterprise clients

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According to a recent report by Frost & Sullivan, the firm is recognized as the "largest spatial design platform globally," capturing a remarkable 22.2% share of the domestic marketProducts like Coolhome have found utilization across a spectrum of environments, from residential to commercial spaces, while Coohom’s expansion into international markets includes significant ventures into the United States, South Korea, Japan, and Southeast AsiaThis diversification strategy has seen overseas contributions to total revenue fluctuate across recent years, reflecting the ongoing growth and challenges within these markets.

As per the company's financial data disclosed in their prospectus, Qun He Technology reported revenues of 601 million CNY for 2022, which grew to 664 million CNY in 2023, and reached 553 million CNY in the first nine months of 2024. In the same breath, the company also faced net losses of 704 million CNY, 646 million CNY, and 422 million CNY for these periods, respectivelyHowever, the pace of loss has shown a marked improvement as evidenced by the adjusted net losses—3.38 million CNY and only 940 million CNY in 2024’s third quarter—indicating a commitment to improving profitability.

The financing aspect is equally intriguingSince its inception, Qun He Technology has successfully completed eight rounds of equity financing, partnering with esteemed institutions like IDG Capital, GGV Capital, and Linear CapitalTheir latest funding round before the IPO application in November 2021 secured an impressive two hundred million USD, showcasing the confidence investors have in the company's vision.

From a structural standpoint, almost all aspects of Qun He Technology's revenue strategy are centered around subscriptions, with enterprise clients accounting for over 80% of their incomeAs of late 2022, the company reported around 33,000 enterprise clients, which grew to over 46,000 by September 2024, illustrating both an increasing market penetration and a solidified client base.

As the landscape of spatial design continues to evolve, analysts segment this evolution into three distinct phases

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The first phase, tracing back to the 1960s and 70s, primarily involved CAD (Computer-Aided Design) tools focusing on basic 2D and rudimentary 3D modelingThe second phase emerged post-2000 with the advent of Building Information Modeling (BIM) technology, revolutionizing practices within the industryFinally, the 2010s have ushered in an exciting fusion of AI, virtual reality (VR), and augmented reality (AR), resulting in exponential growth within China's spatial design software market.

A veteran of the internet home decoration industry shared insights into the discrepancy in digitization within the home decor segmentIt is an industry that historically lagged in the digital transformation race, characterized by fragmented market playersAI technology's emergence has introduced a crucial feature—generative capabilitiesOnly a handful of leading firms have begun to integrate these technologies, streamlining processes and enhancing the automation and intelligence of their operationsThe use of AIGC (Artificial Intelligence Generated Content) across various scenarios, from home decor to real estate, signifies a transformative shift in operational efficiencies, meeting unique consumer demands while concurrently expanding commercial opportunities.

It is pivotal to highlight Qun He Technology's ambition as they pivot from their earlier identity as the "first 3D cloud design stock" during their previous IPO push to now vying for the title of "global leader in spatial intelligence." This rebranding reflects a natural response to the shifting tides of the industry, where advancements and technological iterations play a crucial role in shaping strategic direction.

In this current phase, Qun He Technology is evolving its business model from a Software as a Service (SaaS) framework toward a more innovative approach termed Agent as a ServiceThis new paradigm will allow for payment models based on computational powerThe company has effectively established three core technological capabilities, including a foundational GPT cluster infrastructure aimed at optimizing resource allocation for graphical rendering tasks.

The AI-driven assistant is being tailored to transform user-uploaded documents—such as CAD drawings and graphic designs—into realistic images and immersive 3D presentations, thereby enhancing the design experience

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