Hangzhou-based AI Startup Manycore Technology Files for Hong Kong IPO

On the evening of February 14, Manycore Technology officially submitted its listing application to the Hong Kong Stock Exchange, with J.P. Morgan and CCB International acting as joint sponsors.

According to the prospectus, Manycore Technology has maintained steady revenue growth in recent years. In 2022, the company reported revenue of RMB 601 million, which increased by 10.5% to RMB 664 million in 2023. For the first nine months of 2024, revenue reached RMB 553 million, a 13.8% increase compared to RMB 486 million during the same period in 2023. The company’s gross profit margins for 2022, 2023, and the first nine months of 2024 were 72.7%, 76.8%, and 80.4%, respectively.

Manycore’s core business focuses on spatial design and visualization. Data from Frost & Sullivan shows that in 2024, the company averaged 86.3 million monthly active visitors. At the product level, Manycore offers Kujiale, a spatial design software; Coohom, its overseas version; and SpatialVerse, a next-generation spatial intelligence platform for AI-driven indoor environment development.

Founded in 2011, Manycore Technology was not widely known to the public before the concept of “Hangzhou Six Dragons” gained popularity. However, its spatial design software, Kujiale, has become a staple among home interior designers.

The prospectus reveals that Kujiale, Manycore’s flagship product, is used for designing residential spaces, office buildings, retail chains, and commercial projects, and has expanded into emerging applications such as e-commerce product displays. As of December 31, 2024, Kujiale boasts over 362 million 3D models and spatial design elements. Beyond its rendering engine that streamlines the design process, Kujiale can automatically convert detailed design data into production-ready instructions, which are then directly sent to manufacturers for production.

According to Frost & Sullivan, Koolab Technology is the world’s largest spatial design platform by average monthly active users (MAU) in 2023. By revenue in the same year, it is also China’s largest spatial design software provider, holding approximately 22.2% of the market share.

Simultaneously, ManycoreTechnology is accelerating its global expansion. The prospectus indicates that in 2022, 2023, and the first nine months of 2024, revenue from Coohom in markets outside China accounted for 11.3%, 6.0%, and 7.4% of total revenue, respectively. Frost & Sullivan data also highlights that in 2024, the company reduced the average processing time for a typical 2K image from 53 seconds in 2022 to just 1.2 seconds, significantly below the industry average. By December 2024, approximately 29.6% of monthly active users utilized AI features in their subscribed product versions.

Notably, Manycore had previously filed for an IPO with the U.S. SEC in 2021 but was unable to proceed due to the fallout from Didi’s listing controversy. At that time, the prospectus showed revenues of RMB 280 million, RMB 350 million, and RMB 101 million for 2019, 2020, and the first three months of 2021, respectively. Compared to the latest prospectus filed in Hong Kong, Koolab’s revenue has roughly doubled.

In its prospectus, Manycore stated that the net proceeds from the global offering will be used to implement international expansion strategies, enhance products and extend their applications to new verticals and business scenarios, expand the sales team and boost brand awareness, and invest in core technologies and infrastructure, among other purposes.

According to co-founder Huang Xiaohuang, while e-commerce platforms have matured in 2D creative capabilities, they lag far behind Manycore in 3D capabilities. “Manycore’s vision is that in the future, wherever users need to use a camera, they can replace it with our engine to render and generate content.”

From the perspective of Manycore’s business expansion direction, the company is not creating new products solely in response to emerging market demands. Instead, it is leveraging its underlying technological capabilities to gradually develop solutions that align with new needs. As embodied intelligence and AIGC (AI-generated content) become increasingly integrated into real-world production and daily life, Manycore may also rely on its accumulated technical expertise to spawn additional new business ventures.

It is foreseeable that post-listing, Manycore Technology will experience growth in both the global spatial design market and the spatial intelligence training sector.

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