Can the Combination of 'AI + Emotional Economy' Propel Soul to a Successful IPO This Time?

On November 27th, the social platform Soul submitted an application to list on the main board of the Hong Kong Stock Exchange, marking a hiatus of two and a half years. This represents its fourth attempt to enter the capital market in less than five years.

As one of the few independent platforms in the realm of stranger social networking, Soul has garnered popularity among numerous young users through its unique approach of 'soul matching' and virtual identity, rather than relying on real faces.

Official data indicates that as of August 31, 2025, the platform boasted 11 million daily active users, with 78.7% belonging to Generation Z. This demographic has become Soul's core competitive edge and the bedrock upon which it aims to make an impact in the capital market.

However, each time Soul submits an IPO application, it presents a new business narrative: from the initial concept of 'soul socializing' to the 'social metaverse' around 2022, and now, amidst the AI wave, it is fully betting on the 'AI + Emotional Economy'.

The latest prospectus reveals that Soul has been rebranded as an 'AI + Immersive Social Platform,' with plans to utilize the funds raised from this Hong Kong IPO for AI capability R&D, global expansion, user base growth, and content development. A rough estimate shows that the keywords 'AI' and 'emotional' each appear over 200 times.

This frequent shift in storytelling underscores a deeper issue: Soul has yet to identify a clear, sustainable, and capital market-recognized business model.

Fortunately, regardless of the narrative, Soul's core social attribute remains intact. This objectively anchors Soul's commercial value at its origin: pricing 'emotions' and marketing them to young people.

It's noteworthy that behind Soul's commercial value lies the support of the 'emotional economy' trend. According to the '2025-2029 China Emotional Economy Consumption Trend Insight Report,' the Chinese emotional economy market reached RMB 2,307.767 billion in 2024 and is projected to surpass RMB 4.5 trillion by 2029.

Today, Soul has transformed young people's 'emotional value' into a business worth nearly RMB 2 billion. The prospectus mentions that Soul's revenue streams include emotional value services, advertising, and other sources.

Among these, AI-driven emotional value services (including virtual goods and membership privileges) constitute the primary revenue source. In the first eight months of 2025, this segment accounted for over 90% of total revenue.

In terms of data, from 2022 to 2024, Soul's revenue surged from RMB 1.667 billion to RMB 2.211 billion; emotional value service revenue also climbed from RMB 1.518 billion in 2022 to RMB 1.969 billion in 2024. The average monthly revenue per paying user reached RMB 104.4.

Soul stated in its prospectus that AI plays a pivotal role in these services. For instance, its self-developed primary emotional value model, Soul X, offers users deep immersive interactions and emotional experiences. Additionally, the fusion of interest graphs and AI algorithms enhances matching efficiency among users.

Zhang Lu, CEO and Founder of Soul, once remarked that from AI-recommended relationships to AI-assisted conversations, lowering expression barriers, and enhancing interaction experiences, Soul aspires to become an AI Native social network that integrates AIGC throughout the entire social chain.

Besides business support, Soul's most easily perceivable AI products also encompass 'virtual companions,' as well as technical tools like AI filters and AI music composition. With the infusion of AI capabilities, its monetization efficiency has further improved.

Unlike previous attempts, this might be Soul's closest brush with a successful IPO yet.

In May 2021, Soul set its sights on Nasdaq and submitted an IPO application to the U.S. Securities and Exchange Commission (SEC). Based on the offering price, Soul was valued at nearly $2 billion. Just a month later, on the eve of the scheduled listing date, Soul officially announced the suspension of its U.S. IPO.

Following the U.S. IPO debacle, Soul swiftly pivoted its focus to Hong Kong. In June 2022, Soul submitted its first Hong Kong prospectus but faced application expiration six months later. In March 2023, Soul made a second attempt, only to witness the application expire once again.

After learning from the previous three attempts, on one hand, Soul has become more restrained in 'spending for growth,' resulting in financial growth and profitability. This demonstrates that the emotional companionship services enabled by its AI technology have achieved economies of scale.

From 2022 to 2024, it achieved a compound annual growth rate of over 15%. Since 2023, it has recorded profits, with adjusted (non-IFRS measurement) profits of RMB 361 million in 2023. The adjusted profits for the full year of 2024 and the first eight months of 2025 were RMB 337 million and RMB 286 million, respectively, with gross margins of 83.7% and 81.5%.

On the other hand, amidst stricter regulation of virtual socializing, Soul proactively disclosed detailed governance plans in its prospectus to address ethical risks such as algorithmic bias and data security. This proactive display of ethical construction reflects its meticulous preparation for this IPO.

More critically, Soul has accumulated over RMB 12.4 billion in redemption liabilities due to its three failed IPO attempts. Given industry norms, redemption clauses are likely tied to the condition of 'successful listing.' If the bet fails (e.g., failure to list on schedule), it may need to repay a substantial sum at once, directly leading to a cash flow crisis or even bankruptcy.

For Soul, a successful IPO would signify that its narrative of 'commercializing the emotional economy' is viable and that Generation Z's willingness to pay for emotional resonance can sustain a business case. However, it must address emotional fraud issues such as soft pornography, borderline content, and 'pig-butchering scams' with greater determination in AI content ecosystem governance and even value trade-offs.

For instance, numerous media reports have highlighted controversies surrounding Soul's AI virtual companion feature launched last year. Many users questioned its 'real human involvement' and inducement to spend. Some users claimed to be certain of real human customer service involvement in conversations with AI companions, while others stated outright that they were asked for photos by AI companions and invited by Soul's 'Yu Ni' to meet at Hangzhou East Railway Station.

Soul must recognize that regardless of the business narrative it weaves, whether dressed in metaverse or AI attire, a successful IPO is merely one leap. What platform users ultimately seek is the experience of 'being understood.'

Especially for its nearly 80% young core users, who are the closest 'AI natives' to the large model era, they are willing to pay but can also inflict fatal damage on the platform.