AI's first hallucination-free stock, Haizhi Technology, listed on the Hong Kong Stock Exchange, skyrocketed 260% at opening

On February 13th, Haizhi Technology, dubbed the “First Stock in AI Hallucination Elimination,” officially listed on the Hong Kong Stock Exchange. On its first day of trading, it experienced a strong surge, opening up over 260%, setting a new record for the largest first-day opening gain among Hong Kong IPOs this year.

As of the time of writing, the stock’s gain has retreated to 218.74%, trading at HKD 86.25 per share, with a total market capitalization of HKD 34.54 billion.

According to the company’s IPO issuance plan, a total of 28.0302 million H-shares are being offered globally, including 2.8032 million shares (10%) through Hong Kong public offering and 25.227 million shares (90%) through international placement. The issue price is set at HKD 27.06 per share, resulting in an estimated fundraising of approximately HKD 760 million.

For this IPO, the company introduced four cornerstone investors, with a total commitment of about USD 15 million (approximately HKD 117 million). The cornerstone investors are Beijing Financial Holdings Group’s JSC International, Jingsheng Hengxing under Zhipu, Infini Global Master Fund (Wuji Capital), and Mega Prime under the Greater Bay Area Joint Home Fund.

Public information shows that Haizhi Technology was founded in 2013, focusing on enterprise digital transformation across multiple sectors. Its core positioning is to develop industrial-grade intelligent agents and provide AI solutions through graph-model fusion technology. Its main business centers on the development and promotion of Atlas graph solutions and industrial-grade intelligent agents.

According to data from Frost & Sullivan, based on 2024 revenue, Haizhi Technology ranks fifth among Chinese industrial AI intelligent agent providers and first among graph-centric AI intelligent agent providers, with a market share of approximately 50%.

Haizhi Technology’s core competitive advantage lies in its “AI Hallucination Elimination” technology. This technology addresses the problem of AI hallucinations—where large AI models generate outputs that seem reasonable and coherent but are actually incorrect, fabricated, or inconsistent with facts. In simple terms, it aims to prevent AI from “talking nonsense with a straight face.”

In terms of performance, like many emerging tech companies, despite continuous revenue growth, the company has not yet turned a profit due to high initial R&D investments. Financial reports show that from 2022 to 2024, operating revenues were RMB 313 million, RMB 376 million, and RMB 503 million, respectively, with a compound annual growth rate of 26.8%. During the same period, net losses were RMB 17.8 million, RMB 26.6 million, and RMB 93.73 million, totaling approximately RMB 537 million in losses over three years.

However, the company is gradually reducing its R&D expenses. Data indicates that in 2022, R&D costs were RMB 86.94 million, accounting for 27.8% of total revenue; in 2023, R&D expenses slightly decreased to RMB 72.70 million, representing 19.4% of total revenue; and in 2024, R&D costs further declined to RMB 60.68 million, making up 12.1% of total revenue.