Analysis of Hong Kong IPO Pricing Valuation and Commercialization Capability of Zhipu Huazhang

Zhipu Huazhang, a well-known domestic AI large model company, has obtained overseas listing filing and plans to issue no more than 43.0324 million overseas listed ordinary shares on the Hong Kong Stock Exchange [1]. The market has high attention on its valuation level and commercialization progress. According to external reports, the company’s valuation is about $4 billion [2], which is leading among domestic AI large model companies but lower than U.S. peers like OpenAI and Anthropic. From the financial data, the company’s 2024 revenue was 312.4 million yuan, H1 2025 revenue was 191 million yuan, but the loss in the same period reached 2.36 billion yuan [1], indicating that the company is still in the investment phase and has not yet achieved profitability.

1. Industry Position and Competitive Landscape
   : Zhipu Huazhang is one of the domestic “AI Six Tigers”, with its core team composed of top AI scientists from Tsinghua University, having certain technical advantages in AI model R&D. Its IPO will become an important symbol of China’s AI industry entering the capital verification stage [3].
2. Commercialization Path
   : The company mainly creates customized AI solutions for government-related clients [2], but currently has a small revenue scale and a high loss rate (the loss in H1 2025 is more than 12 times the revenue), indicating that the commercialization process is still in the early stage.
3. R&D Investment and Long-term Potential
   : The company plans to use about 70% of the raised funds to enhance the R&D capability of general AI large models [1], showing attention to technological iteration, but the effectiveness of R&D investment and future revenue growth still have uncertainties.

• Risks
  : There is a contrast between the company’s current high loss rate, small revenue scale and $4 billion valuation; the market has concerns about its profitability and valuation rationality; the IPO pricing range has not been clarified yet, waiting for official disclosure; future revenue growth forecasts are missing, and the commercialization prospects have uncertainties [1][2].
• Opportunities
  : As one of the first domestic generative AI companies to be listed, it is expected to accelerate technological R&D and commercial expansion with the help of capital; backed by well-known shareholders such as Alibaba and Tencent, it has strong resource support [1][2].

Zhipu Huazhang’s Hong Kong IPO is an important event in the domestic AI large model field. Its valuation is about $4 billion, and it is still in a loss state financially, with commercialization mainly based on customized solutions for government clients. The company plans to use most of the raised funds for R&D; its technical advantages and shareholder background provide support for its long-term development, but the short-term profit prospects and valuation rationality still need market verification.