Valuation Logic and Investment Value Assessment of AI Visual Algorithm Companies Listing in Hong Kong — A Case Study of Shandong Extreme Vision Technology Co., Ltd.

I have now collected sufficient information, let me conduct a systematic and comprehensive analysis for you.

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Shandong Extreme Vision Technology Co., Ltd. (Extreme Vision) is a professional Chinese provider of artificial intelligence computer vision algorithms, founded in 2015 with its headquarters in Qingdao. The company’s management team comes from top enterprises and laboratories such as Tencent, Microsoft, Peking University, Duke University, The Chinese University of Hong Kong, and Zhejiang University[1]. To date, the company has received a series of strategic round financings from well-known industrial investors including Shandong Land-Sea Linkage, Qingdao Haichuang Zhilian, Economic Control Financial Investment, Orchid Asia, Qingdao Guoxin, Qualcomm Ventures, North Peak Capital, Tianqi Venture Capital, and China Resources Innovation Fund[1].

Extreme Vision has pioneered a unique

model, which is its core competitive advantage differentiating it from other AI companies:

Business Dimension	Details
Number of Algorithms	The marketplace has listed over 1200 algorithms, covering application scenarios in more than 100 industries[1]
Developer Ecosystem	Gathers more than 300,000 domestic and overseas visual algorithm developers[1]
Customer Scale	Successfully served over 3000 government, enterprise, and scientific research institutions[1]
Covered Scenarios	Covers multiple fields such as urban management, industrial manufacturing, financial risk control, and medical diagnosis[1]
R&D Centers	Has established R&D centers and subsidiaries in Qingdao, Shenzhen, Shanghai, Chengdu, Anhui, Zhuhai, Hong Kong, Macao, and other regions[1]

This “Algorithm Marketplace + Developer Ecosystem” model has the following advantages:

• Light Asset Operation
  : Reduces marginal costs through a platform-based approach
• Scale Effect
  : Continuous expansion of the developer ecosystem enriches the algorithm library
• Rapid Response
  : Capable of providing customized solutions for different industry scenarios
• Technology Reusability
  : Standardized algorithms can be sold multiple times, improving gross profit margin

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According to the latest industry research report, the global visual artificial intelligence market is showing rapid growth:

Time Node	Market Size	Remarks
Global 2024	US$13.11 billion	Global visual AI market size[2]
Global 2031 (Optimistic Scenario)	US$26.14 billion	10.5% CAGR[2]
China 2024	RMB 26.19 billion	11% YoY growth[2]
China 2031	Expected to exceed RMB 1 trillion	Driven by policy dividends[2]

As the world’s largest AI application market, China’s market size grew 11% year-over-year in 2024, with the urban management sector accounting for 34%, becoming the core scenario driving industry growth[2].

• Chips (GPU/FPGA): Dominated by NVIDIA, Intel, Huawei Ascend, etc.
• High-quality annotated datasets have become key resources for algorithm training

• Algorithm Development: General visual algorithm R&D is led by enterprises such as SenseTime, Megvii, and Extreme Vision
• Solution Integration: Hikvision and Dahua Technology provide integrated “hardware + algorithm + cloud platform” services
• Vertical SaaS: YITU Technology (healthcare) and CloudWalk Technology (urban governance) focus on scenario-based applications[2]

• Urban Management: Accounts for 34% of application share
• Industrial Manufacturing: Demand for quality inspection automation and robot navigation is growing; the industrial vision market size increased 13.7% year-over-year in 2024
• Fintech: Penetration rate of face recognition payment and anti-fraud systems exceeds 60%
• Healthcare: AI-assisted diagnosis and surgical navigation technologies have obtained FDA certification, accelerating commercialization[2]

The global visual AI market shows a trend of concentration among leading players, with the top three manufacturers (Keyence, Cognex, SenseTime) accounting for 25% of the market share[2]. However, small and medium-sized enterprises are rapidly emerging in vertical fields (such as agricultural vision, retail analysis) and achieving differentiated competition through “industry large models + customized services”[2].

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From late 2025 to early 2026, Chinese AI companies set off a wave of listings in Hong Kong:

Company Name	Listing Date	Business Type	Fundraising Scale
Zhipu Huazhang	January 8, 2026	General Large Model	HK$57.9 billion market capitalization[3]
Biren Technology	January 2, 2026	Domestic GPU	HK$4.55 billion raised[3]
Iluvatar CoreX	January 8, 2026	AI Chip	-
Moore Threads	2025	Domestic GPU	Listed on STAR Market
Muxi Semiconductor	2025	Domestic GPU	Listed on STAR Market

Zhipu Huazhang, as the “world’s first large model stock”, landed on the Hong Kong stock market, closing up 13.17% after the opening, with a market capitalization of HK$57.9 billion[3]. This marks that the capital market has already completed the acceptance of AI “foundation” (computing infrastructure) in advance, and is now testing whether large models meet the conditions for understanding and acceptance by the public market[3].

Based on the performance of listed AI companies, the Hong Kong stock market has formed the following valuation logic:

Company	Price-to-Sales Ratio (2024)	Price-to-Sales Ratio (2025 Forecast)
Zhipu Huazhang	147x	38.4x[3]
Moore Threads	122.6x	-
4Paradigm	3.2-5x	3.2x[4]
SenseTime	-	High (unprofitable)

As the first enterprise-level AI company in Hong Kong with revenue exceeding RMB 5 billion, 4Paradigm’s P/S ratio has dropped from an average of 3.7x since listing to the current 3.2x, which is lower than the historical average[4]. BOCOM International maintains a target price of HK$64 based on a 2025 P/S ratio of 4.5x, representing a 35% upside from the current price[4].

Dimension	Hong Kong AI Companies	US-listed Benchmark Companies	Valuation Gap
Enterprise AI	4Paradigm (P/S: 3-5x)	Palantir (P/S: 70x)[4]	14-23x
Large Models	Zhipu Huazhang (P/S: 147x)	OpenAI/Anthropic (private market valuation of hundreds of billions)[3]	Order of magnitude gap
Overall AI	Hong Kong AI Stocks	US-listed AI Stocks	Significant discount

• Revenue Growth
  : 4Paradigm’s 2024 revenue was RMB 5.261 billion, up 25.1% year-over-year, with a 5-year CAGR of 1043%[4]
• Gross Profit Margin
  : AI companies generally have high gross profit margins (40%-60%)
• Market Position
  : Ranked first in China’s computer vision market share for eight consecutive years (SenseTime)[5]
• Technological Barriers
  : High R&D investment, core R&D team has published 500 top-tier papers (Zhipu)[6]

• Profit Pressure
  : Most AI companies are still in a loss-making state
• Business Model Validation
  : Highly customized project models limit scale expansion
• Customer Concentration
  : Dependence on government clients (ToG) and a small number of major clients affects growth stability
• Hong Kong Market Liquidity
  : The Hong Kong stock market has relatively weaker liquidity compared to the US stock market

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Extreme Vision’s “Algorithm Marketplace + Developer Ecosystem” model can be valued from the following dimensions:

Valuation Dimension	Assessment Key Points	Valuation Weight
Quantity and Quality of Algorithms	Over 1200 algorithms covering 100+ industries	25%
Scale of Developer Ecosystem	Over 300,000 developers	20%
Quantity and Quality of Customers	Over 3000 government and enterprise clients	20%
Technological Barriers	Unique business model	15%
Revenue Scale and Growth Rate	To be disclosed (subject to prospectus)	20%

Peer Company	Business Similarity	P/S Reference
SenseTime	Computer Vision	High (unprofitable)
4Paradigm	Enterprise AI	3-5x
ArcSoft	Visual Algorithms	Relatively reasonable

Based on business model differences, Extreme Vision may receive a higher valuation premium than traditional AI companies because:

• Platform-based model has stronger scale effects
• Developer ecosystem brings network effects
• Light asset operation reduces marginal costs

Taking into account:

• Zhipu Huazhang’s IPO valuation corresponds to a 2024 P/S ratio of approximately 147x[3]
• 4Paradigm’s current P/S ratio is approximately 3.2x[4]
• The overall valuation center of the AI industry has shifted downward

The reasonable valuation range for Extreme Vision may be:

Scenario	P/S Assumption	Valuation Logic
Optimistic Scenario	8-12x	Premium for platform-based model, strong growth
Neutral Scenario	5-8x	Industry average valuation level
Conservative Scenario	3-5x	Refer to 4Paradigm, liquidity discount

Highlight	Analysis
Vast Track	China’s AI market size will reach RMB 993 billion in 2030, with a 35.5% CAGR[3]
Model Innovation	The algorithm marketplace model is scarce in China
Ecosystem Advantage	Over 300,000 developers form a competitive barrier
Policy Support	The “14th Five-Year Plan” clearly identifies AI as a strategic emerging industry[2]

Risk Type	Details	Impact Level
Profit Risk	AI companies generally face loss pressure due to high R&D investment	High
Competition Risk	Competitive pressure from leading enterprises (SenseTime, Megvii)	Medium-High
Technology Iteration Risk	Rapid evolution of large model technologies may change the industry structure	Medium
Market Sentiment Risk	Valuation sentiment fluctuations of AI companies in the Hong Kong market	Medium
Business Model Validation	Large-scale profitability of the algorithm marketplace model has not been fully verified	Medium

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The valuation logic of AI visual algorithm companies listing in Hong Kong can be summarized into the following framework:

Valuation = Revenue × (1 + Growth Factor) × Model Premium / Risk Adjustment Factor

Where:
- Revenue: Company's revenue scale and growth rate
- Growth Factor: Industry growth rate × Company's market share improvement potential
- Model Premium: Platform-based > Project-based, General-purpose > Vertical
- Risk Adjustment Factor: Profit certainty × Liquidity discount

Assessment Dimension	Rating	Explanation
Industry Prospect	★★★★☆	The AI visual track is vast, with strong policy support
Business Model	★★★★☆	The algorithm marketplace model is innovative and scarce
Competitive Position	★★★☆☆	Has advantages in niche fields, but faces competition from leading enterprises
Valuation Rationality	★★★☆☆	To be determined after specific financial data is disclosed in the prospectus
Liquidity	★★★☆☆	Overall liquidity of the Hong Kong stock market is relatively weaker than that of the US stock market

The listing of AI visual algorithm companies in Hong Kong represents an important process in the capitalization of China’s AI industry. Judging from the listing performance of companies such as Zhipu Huazhang and 4Paradigm, the valuation logic of the Hong Kong stock market for AI companies is undergoing a paradigm shift from “technology premium” to “value release”[4].

For Extreme Vision, its unique “AI Visual Algorithm Marketplace” model has high scarcity in the Hong Kong stock market and is expected to receive a certain valuation premium. However, investors need to pay attention to:

1. Revenue Scale and Growth Rate
   : Determines the lower limit of valuation
2. Profitability Improvement Path
   : Determines the upper limit of valuation
3. Health of Developer Ecosystem
   : Determines long-term competitiveness
4. Direction of Industry Technology Evolution
   : Determines the sustainability of the business model

Overall, against the backdrop of the accelerated development of the AI industry and continuous release of policy dividends, Extreme Vision, as a representative enterprise in the AI visual algorithm niche, has certain investment value. However, investors should make prudent investment decisions based on the specific financial data disclosed in the prospectus and combined with industry valuation levels.

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[1] Introduction and Business Model of Shandong Extreme Vision Technology Co., Ltd. (https://ajmanchamber.ae/media/archives/en/1/4/Invitation_to_the_6th_Qingdao_Multinationals_Summit.pdf)

[2] Visual Artificial Intelligence Industry: The Top Three Manufacturers Account for 25% of the Global Market Share (https://caifuhao.eastmoney.com/news/20251017165335601890110)

[3] HK$57.9 Billion Market Capitalization! Zhipu, the “World’s First Large Model Stock”, Lists (https://finance.sina.com.cn/stock/relnews/hk/2026-01-08/doc-inhfqyhr1268449.shtml)

[4] Research Report on 4Paradigm (6682 HK) (https://tdt.bocomgroup.com/BOCOM_TD_TRACK/external/download)

[5] SenseTime Releases 2024 Financial Report (https://www.sensetime.com/cn/news-detail/51169432)

[6] Image of “Alibaba Kills Doubao” Goes Viral, Qianwen: Why Siblings Fight Each Other (https://news.qq.com/rain/a/20251221A049T200)