On June 17, Wenge AI officially opened subscriptions for its IPO, with an offer price of HKD 60.7 (USD 7.7) per share, a board lot of 200 shares, and a market capitalization of HKD 10.5 billion (USD 1.3 billion). The IPO involves a global offering of about 14.8 million shares and gross proceeds of about HKD 900 million (USD 114.8 million). The company is expected to list on the main board of the Hong Kong Stock Exchange on June 26.

In China’s enterprise large model market, Wenge AI ranks eighth, with a 2.2% share. The company was founded by scientists from the Institute of Automation at the Chinese Academy of Sciences (CAS). Over the past three years, it has accumulated net losses of about RMB 583 million (USD 85.9 million).

Wenge AI’s revenue in 2023, 2024, and 2025 was RMB 250 million (USD 36.8 million), RMB 318 million (USD 46.9 million), and RMB 405 million (USD 59.7 million), respectively, representing a three-year compound annual growth rate of about 27.4%. Its gross margin rose from 44% to 50.4%, then to 51.2%. Net loss narrowed from RMB 260 million (USD 38.3 million) in 2023 to RMB 167 million (USD 24.6 million) in 2025.

The trend is clear: Wenge AI’s revenue is rising, its gross margin is above 50%, and its losses are narrowing. But even after adding back share-based payments of RMB 44.5 million (USD 6.6 million) and listing-related expenses of RMB 21.2 million (USD 3.1 million) in 2025, its adjusted net losses were still RMB 186 million (USD 27.4 million), RMB 115 million (USD 16.9 million), and RMB 100 million (USD 14.7 million) in 2023, 2024, and 2025, respectively. Its corresponding adjusted net loss margins were 74.3%, 36.3%, and 24.8%.

In other words, even on an adjusted basis, Wenge AI still lost about one-quarter of its revenue in 2025.

Cash flow remains another pressure point. Wenge AI recorded large net outflows from operating activities for three straight years: RMB 183 million (USD 27 million) in 2023, RMB 135 million (USD 19.9 million) in 2024, and RMB 188 million (USD 27.7 million) in 2025. The outflow was largest in 2025. During the same period, its cash and cash equivalents fell from RMB 524 million (USD 77.2 million) to RMB 325 million (USD 47.9 million). Even as a company positioned around general decision-making foundation models, its ability to generate cash internally remains unstable.

Wenge AI’s core product is its self-developed decision intelligence operating system, DIOS. It has three underlying layers: the X-Data data foundation, the Yayi large model, and the DI-Brain agent development platform. In revenue terms, the business is divided into three major scenarios: public services, media and communications, and commercial enterprises.

Public services, including government governance, public opinion monitoring, and industrial chain monitoring, generated RMB 127 million (USD 18.7 million) in revenue in 2023, accounting for 50.7% of the total. In 2024, the segment generated RMB 150 million (USD 22.1 million), or 47.2%. In 2025, it generated RMB 148 million (USD 21.8 million), or 36.5%. Over the past three years, its share has fallen from about half to roughly one-third.

Media and communications, including media convergence and multimodal video generation, generated RMB 76 million (USD 11.2 million) in 2023, RMB 85 million (USD 12.5 million) in 2024, and RMB 122 million (USD 18 million) in 2025.

Commercial enterprises, including financial investment research, bank compliance, and brand public opinion monitoring, generated RMB 36 million (USD 5.3 million) in 2023, accounting for 14.5% of revenue. In 2024, the segment generated RMB 75 million (USD 11.1 million). In 2025, it generated RMB 129 million (USD 19 million), accounting for 31.9%. Over three years, the segment grew 3.5 times, making it the company’s main growth engine.

By delivery method, on-premises deployment has consistently accounted for more than 70% of revenue, reaching 72.7% in 2025. This means the company’s revenue still depends heavily on project-based delivery rather than replicable standardized subscriptions. Subscription services accounted for only 14.2%, still a small share.

This also explains why a gross margin above 50% has not been enough to support profitability. On-premises deployment remains labor-intensive, project-based work.

Customer retention, measured by customer count, fell from 66.5% in 2024 to 55.4% in 2025. But net revenue retention, measured by value, surged from 89.8% to 139.5%. In other words, major customers remain sticky, and customer value is increasing. The risk is that the overall customer base may be becoming less stable.

Wenge AI’s largest single customer contributed 24.3%, 19.9%, and 19.1% of revenue in 2023, 2024, and 2025, respectively. Its top five customers together contributed 48%, 32.5%, and 37.6%. Concentration has declined, but it remains relatively high.

From its Series A round in 2018 to its Series F+ round in 2025, Wenge AI completed ten funding rounds in one stretch. It raised more than RMB 1.22 billion (USD 179.8 million) in total and attracted over 40 investment institutions.

One point deserves attention: the per-share costs in the Series B and Series F rounds were partly diluted by two capitalizations of capital reserve into registered capital in 2019 and 2022. The prospectus notes this, so those figures should not be read directly as a simple measure of valuation.

Notably, after ten rounds of dilution, chairman Wang Lei held only 1.78% of the company directly before the IPO. His direct stake will fall to about 1.63% after the IPO. But through a concert party agreement and a series of shareholding platforms, including Zhongke Sanshi, Hainan Xinyi, Wenge Zhicai, and Wenge Jiangcai, he controls 30.66% of the voting rights.

The shareholder register shows a clear cluster of state-backed investors. They include a fund run by China Development Bank, the China Internet Investment Fund, which will hold 3.35% after the IPO, a CCTV-managed media investment fund, Zhongguancun Science City, Beijing AI Industry Investment Fund, Shenzhen Capital Group-affiliated investors including Shenzhen Capital Group and Hongtu Technology, which will hold about 4.1% after the IPO, IPV Capital, and CAS Star.

Among the management team, CEO Luo Yin also comes from the Institute of Automation at CAS. Luo will directly hold 4.24% after the IPO, making him the founder with the largest direct shareholding. CTO Cao Jia also comes from the Institute of Automation. Wang, Luo, and co-founder Zeng Dajun, deputy director of the State Key Laboratory of Multimodal Artificial Intelligence Systems, will become the largest shareholder after the IPO through Zhongke Sanshi, which will hold 15.15%. The three hold about 75.87%, 13.43%, and 10.7% of Zhongke Sanshi, respectively.

CFO Zheng Chaomin only took office in May last year. He was previously a director at RSM, where he spent more than a decade in auditing. Board secretary Ma Li also took office only in June last year. He was previously a vice president in CICC’s investment banking department, coming from the same firm as one of the IPO sponsors.

The IPO attracted six cornerstone investors, which together subscribed for USD 31 million, accounting for about 27% of the fundraising amount. They are China Orient Enhanced Income Fund, affiliated with China Orient Asset Management, Harvest Global Investments, Qianhai International, Guohui Holdings, Huatai Capital, and CMBC International.

In its prospectus, Wenge AI said its competitors include major artificial intelligence service providers, software companies, and system integrators, and that these rivals have advantages in branding, operating history, customer base, and resources. The decision intelligence market was only about RMB 3.9 billion (USD 574.6 million) in 2025.

KrASIA features translated and adapted content that was originally published by 36Kr. This article was written by Peng Xiaoqiu for 36Kr.

Note: HKD, RMB figures are converted to USD at rates of HKD 7.84 = USD 1 and RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.