Three-Year Cumulative Loss Exceeds 1 Billion Yuan, SenseTime Technology Submits IPO Prospectus to HKEX, Racing to Become "First Industrial AI Agent Stock"

Questioning AI: How Do Losses During Rapid Growth Affect Listing Strategies?

(Image source: Visual China)

Blue Whale News, March 16 — On March 16, the Hong Kong Stock Exchange official website showed that SmartMore Inc. (hereinafter referred to as “Simo Technology”) has submitted its prospectus, planning to list on the Main Board of Hong Kong.

Led by Dr. Jia Jiaya, valuation at $1.23 billion

Simo Technology was founded in 2019 by Dr. Jia Jiaya, who has over 25 years of experience in academia and the tech industry. The company is a technology enterprise focused on the industrial AI agent field, primarily providing products and services related to industrial AI agents, including three core segments: robots, edge AI sensors, and intelligent system software.

Since its establishment, Simo Technology has received investments from well-known institutions such as IDG Capital, Yinshi Capital, Lenovo Venture Capital, Wentianxia Investment, Cornerstone Capital, JSC International Investment Fund, Zhenge Fund, Hexun Capital, Songhe Capital, Sequoia China, CCB International, Guolian Securities Fund, Bank of China Group, Xiongniu Capital, among others. In June 2024, Simo Technology also became the first company invested in after the establishment of Hong Kong Investment Management Company (HKIC).

After completing its final round of financing before the IPO, Simo Technology’s valuation reached $1.23 billion.

Data shows that the company is the largest industrial AI agent provider in China by revenue in 2025 and the first to achieve large-scale, cross-regional, multi-scenario deployment of industrial AI agents.

It is reported that the introduced robots have achieved full visual inspection of highly reflective and complex curved objects for the first time, completing 360-degree quality inspection and large-scale commercial deployment. At the same time, through edge AI sensors, the company has addressed key challenges in product recognition and traceability, including invisible QR code recognition on precision optical lenses.

As of December 31, 2025, the company had delivered approximately 140,000 advanced industrial AI agents, with robots completing over 17 billion product or component inspections. The company serves more than 730 global clients, including Tesla, Carl Zeiss, Luxshare Precision, Goertek, and other industry leaders.

Industrial AI agents contribute nearly 80% of revenue, with losses accumulating over 1 billion RMB over three years

According to the latest performance data disclosed in the prospectus, Simo Technology’s revenue showed steady growth during 2023-2025, reaching RMB 485 million, RMB 756 million, and RMB 1.086 billion respectively, with year-over-year growth of 55.9% in 2024 and 43.7% in 2025, indicating a strong growth trend. Gross profit margins also continued to rise, at 30.5%, 32.3%, and 37.3%, reflecting improvements in product competitiveness and profitability potential.

Looking at revenue structure, industrial AI agents are the core revenue source, accounting for 62.4%, 73.8%, and 78.5% of total revenue in 2023-2025, with a compound annual growth rate of 67.8%. In 2025, revenue contributions from robots were about RMB 436 million, intelligent system software about RMB 342 million, and edge AI sensors about RMB 75 million. Meanwhile, AI infrastructure contributed approximately RMB 219 million, maintaining about 20% of total revenue, forming a diversified, replicable product matrix.

However, the company is still operating at a loss. During the reporting period, net losses were RMB 546 million, RMB 735 million, and RMB 991 million, with adjusted net losses of RMB 394 million, RMB 379 million, and RMB 272 million. Although adjusted net losses are narrowing, ongoing losses remain a significant challenge for the company’s operational development.

The industrial AI agent industry faces increasing competition. As technology advances, more companies are entering the field, which may lead to market share erosion for the company. Additionally, competition for core technical talent will become an important challenge.

Regarding the use of funds raised from this IPO, Simo Technology explicitly states in the prospectus that the net proceeds will be mainly allocated to four areas, with adjustments based on business needs and market conditions: First, within the next five years, to accelerate R&D efforts, continuously iterate on multi-modal industrial large models and other core technologies, and enrich the product matrix; Second, to drive commercialization expansion; Third, for strategic partnerships and investments to integrate industry resources and strengthen core competitiveness; Fourth, for operational capital and general corporate purposes over the next three years to ensure smooth daily operations and support long-term strategic development.