[New Stock IPO] One of Hangzhou's Six Little Dragons, Qunhe Technology, challenges the listing; founder previously worked at NVDA and AMZN

One of the “Six Little Dragons of Hangzhou,” Manycore Tech, a provider of cloud-native space design software, has passed the listing hearing at the Stock Exchange, which means it can initiate the IPO process in the short term. Last year, it was rumored to aim to raise up to $200 million (approximately HKD 1.56 billion). JPMorgan Chase and China International Capital Corporation are the joint sponsors.

The company obtained listing approval from the China Securities Regulatory Commission last month. According to documents, it can issue up to approximately 312 million shares.

Manycore Tech’s software is powered by artificial intelligence (AI) technology and dedicated graphics processing unit (GPU) clusters. Its products are widely used in business scenarios ranging from residential and office buildings to retail stores and commercial projects, with the generated designs convertible into production drawings, thus supporting automated production processes.

According to updated preliminary IPO documents citing industry reports, the company holds a market share of 23.2% based on projected 2024 revenue, making it the largest provider in China’s space design software market. The Chinese space design software industry is expected to grow from RMB 3.3 billion in 2024 to RMB 6.6 billion by 2029, with a compound annual growth rate of 14.9%.

Prior to the IPO, the company conducted 11 rounds of financing, with the last round completed in December 2021, attracting various venture capital funds:

• IDG Capital: 12.89%
• Hillhouse: 12.60%
• GGV Capital: 11.52%
• Shunwei Capital: 9.75%
• Hearst Ventures, the venture capital arm of American media giant Hearst Communications: 2.24%

Losses Narrowing Year by Year: Adjusted Net Profit of 57.12 Million Last Year

The company has seen its losses narrow year by year in recent years, with a loss of RMB 428 million in 2025, an improvement compared to a loss of RMB 513 million in 2024. Measured under non-International Financial Reporting Standards and excluding stock-based compensation expenses and changes in redeemable debt book value, it recorded an adjusted net profit of 57.127 million, whereas the adjusted net loss for 2024 was 70.049 million.

During the period, revenue was approximately RMB 829 million, an increase of 8.63% year-on-year. Of this, revenue from enterprise customer subscriptions was RMB 669 million, up 6.61% year-on-year; revenue from individual customer subscriptions was RMB 125 million, a year-on-year growth of 15.92%; and revenue from professional services was RMB 25.207 million, an increase of 34.04% year-on-year. The gross profit margin was 82.2%, an increase of 1.3 percentage points year-on-year.

The funds raised will be used for strategic expansion of global locations; enhancing the functionality of existing products; supporting domestic sales and marketing activities; investing in core technology and infrastructure; and for working capital and general corporate purposes.

Outstanding Executive Backgrounds

It is worth noting that the senior management of the company has impressive backgrounds! Co-founders Huang Xiaohuang and Chen Hang both graduated from Zhejiang University with degrees in computer science and later went to the United States to further their studies at the University of Illinois Urbana-Champaign (UIUC), which is renowned as a public Ivy, obtaining master’s degrees in computer science.

Huang later worked as a software engineer at chip giant NVIDIA (NASDAQ: NVDA), primarily responsible for the design and development of NVIDIA CUDA and other software. After just one year, he returned to China to establish the company with Chen Hang and Zhu Hao. Another co-founder, Zhu Hao, graduated from Tsinghua University in China with a degree in computer science and technology before pursuing a master’s degree in computer science at UIUC. After graduating in 2009, he worked as a software engineer at Microsoft Corp, primarily responsible for software program development. About a year and a half later, he moved to Amazon (NASDAQ: AMZN), where he worked as a software engineer, mainly responsible for cloud services development.

Huang Xiaohuang is currently the chairman of the company, Chen Hang is the CEO, and Zhu Hao is the CTO, each holding 15.46%, 11.04%, and 4.22% of the company’s shares before the IPO.

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