Data from Qichacha reveals that Haimo Technologies has fully established an intelligent computing technology company in Hangzhou. Its business scope encompasses general application systems for artificial intelligence, sales of AI hardware, integration of AI industry application systems, and more.

It seems they are fully committed to the AI sector.

However, a glance at Haimo Technologies' (300084) financial records indicates that its mainstay business is the production of multiphase flow meters for oil wells. In 2024, the company reported revenues of 600 million yuan and a net loss of 228 million yuan. The following year, in 2025, revenues increased slightly to 637 million yuan, but the company still incurred a loss of 35.76 million yuan. With losses sustained for two consecutive years, the primary business appears to be on a decline.

Amidst the AI craze, Haimo Technologies is not alone in its transformation. In May of this year, Jiewatt, a manufacturer of power management chips, also established Jiewatt Intelligent Computing Technology in Hangzhou, with a registered capital of 26.8 million yuan. Its business scope closely mirrors that of Haimo's new venture, including basic software development for artificial intelligence, application software development, and integrated circuit design and manufacturing.

This is where things get particularly interesting. In Hangzhou, the barrier to entry for registering an 'intelligent computing technology company' seems to be remarkably low, possibly even lower than that for opening a milk tea shop.

According to incomplete public reports, nearly 30,000 companies related to artificial intelligence are expected to be established in Hangzhou in 2025, with over 1,600 chip companies setting up shop. The inclusion of 'AI application software development' in their business scopes has become a standard practice for business registration.

So, what's the rationale behind this? It's about shifting the valuation benchmark. The valuation assigned by A-shares to traditional oil service equipment is vastly different from that given to AI or intelligent computing concepts. A company selling flow meters may have a consistently low price-to-earnings (PE) ratio; however, once it aligns itself with intelligent computing technology, it can weave a narrative about a potential second growth curve.

Haimo's annual report from last year explicitly stated its intention to 'seek a second growth curve through external mergers and acquisitions' and had just completed a private placement of 434 million yuan to bolster its funds. At this juncture, having an additional AI-focused entity in Hangzhou provides both financial resources and a compelling story.

Of course, this practice is not exclusive to China; it's a global phenomenon. American companies are even more straightforward in their pursuit of AI by simply changing their names. In 2017, Long Island Iced Tea, a seller of iced tea, rebranded itself as Long Blockchain, causing its stock to surge over 200% in a single day. In recent years, adding 'AI' to a company's name has also proven to be a valuable strategy for boosting valuations. The tactic employed by companies in both the East and the West is to repackage old businesses with new concepts, prompting the market to reevaluate their worth.

In areas like Yuhang and Binjiang in Hangzhou, where computing power subsidies and tax rebates for investment attraction are offered, registering an intelligent computing technology company incurs no more than a few ten thousand yuan in registration fees. It's possible that the real AI development hasn't even begun, yet the company's valuation has already skyrocketed.