On June 18, 2026, DataStory Artificial Intelligence Technology Co., Ltd. (hereinafter referred to as "DataStory") formally submitted its IPO application to the Main Board of the Hong Kong Stock Exchange, marking its initial foray into the capital market.

DataStory positions itself as an indigenous AI enterprise, crafting AI products and solutions tailored for business growth, leveraging its proprietary enterprise-level large models. According to CIC Consulting, DataStory secured the third spot in China's enterprise-level large model market for business growth in terms of revenue in 2025.

DataStory's operations span various sectors, encompassing lifestyle and fashion, durable consumer goods, internet, automotive, among others. By the end of March 2026, DataStory had catered to over 65 Fortune Global 500 companies and 135 leading global consumer goods firms, underscoring its strong foothold among elite clients.

In terms of financial performance, DataStory witnessed a surge in revenue from 2023 to 2025, reaching RMB 235 million, RMB 283 million, and RMB 503 million, respectively. Concurrently, losses contracted steadily, with net losses amounting to RMB 115 million, RMB 86.911 million, and RMB 51.728 million, respectively. However, losses rebounded to RMB 144 million in the first quarter of 2026.

DataStory's business composition exhibits notable differentiation. Enterprise growth AI solutions emerged as the core growth engine, with revenue soaring from RMB 118 million to RMB 390 million over three years, doubling in 2025 and elevating its revenue share from 50.10% to 77.50%.

Revenue from enterprise growth AI application products experienced sluggish growth, inching up from RMB 88.19 million to RMB 106 million over three years, with its revenue share dwindling from 37.60% to 21.10%.

Other business segments remained marginal and continued to contract, generating a mere RMB 7.024 million in revenue in 2025, accounting for 1.40% of total revenue.

Profitability waned progressively. Although DataStory's total gross profit rose annually from RMB 134 million in 2023 to RMB 212 million in 2025, its overall gross margin dipped from 57.20% to 42.10%.

The gross profit of enterprise growth AI solutions, the primary revenue contributor, expanded substantially from RMB 41.582 million to RMB 117 million, yet its gross margin declined annually from 35.30% to 30.10% over three years.

Enterprise growth AI application products represented DataStory's high-margin segment, with gross profit growing steadily from RMB 79.273 million to RMB 93.978 million over three years and a gross margin consistently exceeding 88%, peaking at 91.20% in 2024, serving as the linchpin for overall profits.

Profitability in other business segments contracted sharply, with gross profit plummeting from RMB 13.4 million and a gross margin of 46.40% in 2023 to a mere RMB 501,000 and a gross margin of 7.10% in 2025, contributing negligibly to DataStory's overall profitability.

On the supply chain front, DataStory's reliance on upstream suppliers diminished annually. From 2023 to 2025 and the first quarter of 2026, procurement from the top five suppliers accounted for 46.60%, 41.30%, 36.80%, and 33.70% of total procurement, respectively, with concentration risk steadily declining.

In terms of equity structure, Xu Yabo serves as the de facto controller of DataStory. Through direct shareholdings and multiple affiliated holding platforms such as Shushuo Bang and Hengqin Shuying, he commands a total of 91.5574 million shares in DataStory, representing 34.27% of the voting rights, making him the largest single shareholder group.

Post-IPO, barring the actual controller's group, no other single shareholder will command more than 15% of the voting rights, indicating a highly concentrated control structure at DataStory.

Regarding capital operations, DataStory has secured multiple rounds of equity financing since 2017, with funds consistently bolstering R&D and business expansion.

In May 2017, it raised RMB 12.01 million in a Pre-A round, followed by RMB 8.6 million in an A round in August 2017. In June 2018, it secured RMB 27 million in a B round, and RMB 50 million in a B+ round in April 2020.

In 2021, it completed three rounds of C-series financing, with C-1, C-2, and C-3 rounds raising RMB 50 million, RMB 50 million, and RMB 30 million, respectively, followed by a C+ round raising RMB 127 million in September 2021. In January 2022, it raised RMB 92.6458 million in a C++ round. Notably, investors in this round included Lei Jun's Xiaomi Group and Shunwei Capital.

Prior to submitting its prospectus, DataStory secured RMB 78.8603 million in a Pre-IPO strategic financing round in May 2026, with a post-money valuation of RMB 5 billion.

Despite impressive revenue growth, DataStory grapples with multiple core operational risks, with persistent losses and liquidity pressure being the primary concerns.

During the reporting period, DataStory has consistently been in a state of net liabilities and positive net current liabilities, with net liabilities reaching RMB 681 million and net current liabilities reaching RMB 702 million as of the end of March 2026.

These liabilities primarily stem from investor redemption liabilities, which amounted to RMB 753 million, RMB 803 million, RMB 853 million, and RMB 866 million from the end of 2023 to the end of March 2026, respectively.

Meanwhile, DataStory's operating cash flow has consistently been in the red, with net operating cash flows of RMB 28.8 million, RMB 41.2 million, RMB 72.8 million, and RMB 44.3 million from 2023 to 2025 and the first quarter of 2026, respectively.

Coupled with hefty R&D costs in the AI sector and new compliance costs for listing, DataStory is unlikely to achieve stable profitability in the near term if revenue growth cannot offset various expenses.

Subsequent financing is also hampered by macroeconomic conditions and industry sentiment, introducing uncertainty into DataStory's funding landscape.

The second risk pertains to customer concentration and credit risks associated with accounts receivable. From 2023 to 2025, revenue from the top five customers accounted for 25.00% to 27.80% of total revenue, with the largest single customer contributing up to 12% in a single year.

Should top customers curtail orders or sever cooperation, DataStory would struggle to secure equivalent replacement customers in the short term.

Accounts receivable have surged annually, with trade receivables and bills reaching RMB 68.4 million, RMB 123 million, RMB 205 million, and RMB 194 million at the end of 2023, 2024, 2025, and March 2026, respectively.

Receivable turnover days lengthened from 107 days in 2023 to 225 days in the first quarter of 2026. Delayed payments or defaults by customers will directly escalate working capital occupancy and further deteriorate cash flow levels.

Overall, DataStory has achieved rapid revenue expansion by capitalizing on the enterprise-level large model sector, with top-tier customer resources and customized solutions underpinning its growth.

However, persistent losses, declining gross margins, prolonged receivable collection cycles, and high debt levels represent significant operational vulnerabilities.

Whether DataStory can attain profitability and enhance cash flow through scaled operations remains a focal point of its HKEX listing.

Source / HK Stock Value Line

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