In a historic move signaling the rapid advancement of digital technology, Beijing Wuyi Shijie Digital Twin Technology Co., Ltd., commonly referred to as Wuyi Shijie, has submitted its prospectus for an Initial Public Offering (IPO) on the Hong Kong Stock ExchangeThe company aims to raise substantial capital for research and development initiatives, alongside enhancing its commercial capabilitiesThis announcement has been met with excitement and anticipation, primarily because Wuyi Shijie is on track to significantly democratize digital twin technology in various sectors, potentially earning the title of the “first stock in digital twins.”

As the fifth company in Hong Kong to submit an IPO application under Chapter 18C, a provision tailored for specialized technology firms, Wuyi Shijie's expected market valuation post-IPO hovers between HKD 4 billion to 15 billionThis positioning aligns well with recent trends in the market; companies like Jingtai Technology and Hezhima Intelligence have successfully made their mark on the Hong Kong stock scene, while Yujiang Technology and Xidi Zhijia are still navigating the complexities of a public offering.

This move is Wuyi Shijie's third foray into securing a public listing in just four years

Initially, in December 2020, the firm sought to list on the STAR Market but shifted gears to focus on the Beijing Stock Exchange following a year of regulatory navigationThe company’s aim to debut on the Hong Kong Stock Exchange marks a renewed ambition to solidify its presence in the digital twin ecosystem, a rapidly evolving domain within technology that is poised for exponential growth.

Should Wuyi Shijie complete the IPO, it will not only inherit the mantle of being the leader in digital twin technology but will also deliver significant returns to its investors, such as Guangsu Glory Science and Technology, Contemporary Real Estate, and SenseTime, alongside various venture firms like Star VC.

At the helm is the dynamic founder Li Yi, whose background with Contemporary Group serves as a foundational element in Wuyi Shijie’s trajectoryLi, who is 39 years old, holds a Bachelor’s degree in Engineering Cost from Chongqing University and earned an MBA from Tsinghua University in June 2023. His story with Contemporary Group began when he became an intern there in March 2008 and rapidly evolved into a managerial role in commercial real estate by the age of 24, demonstrating remarkable proficiency and leadership.

In the following years, as CEO of Contemporary Group's first asset management company, Li transformed it from a mere property management firm into a diverse conglomerate involving new technologies, operations, education, culture, sports, and finance

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This growth was sustained by a compounded annual growth rate exceeding 50%, showcasing Li’s capacity for strategic expansion and foresight in business developmentWith the entrepreneurial spirit fueled by China's VR boom, he launched Wuyi Shijie, which began its journey in blending VR, AI, and AR technologies across sectors like real estate, automotive, education, and entertainment.

For example, in the real estate sector, Wuyi Shijie has developed products that utilize VR technology to showcase real estate developmentsThis includes panoramic views of properties and details of surrounding environments, effectively enhancing the marketability of properties through immersive experiencesBy integrating advanced virtual reality capabilities into traditional real estate operations, the company has carved a unique niche, and its innovation has drawn significant attention and investment.

Under Li’s leadership, Wuyi Shijie attracted substantial capital, notably securing a $5 million Series A round in funding led by Sequoia Capital China, with participation from other notable investors, including Tujia.com and Contemporary Real Estate

This investment exemplifies Li’s ability to leverage his network and reputation to fuel the company’s growth.

In December 2019, Wuyi Shijie rebranded from 51VR to 51World, underscoring its commitment to a broader mission involving a comprehensive automatic platform for urban simulationsThe vision encapsulated with 51World involves reconstructing reality itself, including various elements such as vegetation, infrastructure, traffic, and even social scenarios, aimed at advancing the capabilities of digital experiences.

Particularly intriguing is the company’s overarching goal of 'cloning the Earth,' which it has ambitiously framed as a project split into five categories: buildings, roads, vegetation, water bodies, and terrains, integrating them into a highly detailed virtual model of the globeTheir structured approach involves distinct phases, with some progress in establishing real-time generation technology and applying it to entire cities for simulation and strategic planning purposes.

Wuyi Shijie’s primary revenue source has been its digital twin solutions, particularly through its flagship platform, 51Aes

Since its inception, the company has established a footprint cross several industries and collaborated with over 1,000 enterprise clients across 19 countries, epitomizing its significant scaling potentialIts offerings span a diverse range of sectors including urban planning, energy management, and transportation, showcasing its versatility and adaptability in a fast-evolving market backdrop.

Despite the achievements, Wuyi Shijie’s financial landscape reveals a contrasting pictureOver the reporting periods from 2021 to early 2024, the firm has incurred substantial net losses totaling approximately 488 million yuan, attributed to heavy expenditures in sales, administration, and development costsThe challenge for Li and his team remains in converting their innovative technologies into profitable ventures while sustaining their ambitious growth trajectory.

As of September 30, 2024, Wuyi Shijie reported liquidity assets of around 291 million yuan, yet this appears precarious when considering dependency on capital injections, particularly a recent 200 million yuan investment from Nanning Huanning Capital