Company Name: Beijing 51WORLD Digital Twin Technology Co., Ltd.

Date of Prospectus: December 18, 2025

Beijing 51WORLD Digital Twin Technology Co., Ltd. – Inside China’s Pioneering Digital Twin IPO on the HKEX

Beijing 51WORLD Digital Twin Technology Co., Ltd. is making waves with its highly anticipated IPO on the Main Board of the Hong Kong Stock Exchange, offering investors access to China’s specialist technology sector. This in-depth analysis covers every critical aspect of the offering, from deal structure and financials to growth plans and the sector outlook, strictly based on the disclosed prospectus.

IPO Snapshot

Symbol: Not disclosed

Offer Price: HK\$30.5 per H Share

Total Offer Size: HK\$652.8 million (estimated net proceeds after commissions and expenses)

Shares Offered: 23,975,200 H Shares (5.9% of post-IPO share capital)

Post-IPO Outstanding Shares: 406,356,152 Shares

Market Capitalization (Post-IPO): HK\$12,393.9 million

Offer Period: December 18, 2025 – December 23, 2025

Listing Date: December 30, 2025

Use of Proceeds: Growth-Driven Technology Investment

Beijing 51WORLD plans to allocate its IPO proceeds to fuel aggressive growth and R&D, signaling a strong commitment to product innovation and market expansion:

• 80% (HK\$522.2 million): Research & Development initiatives
• 10% (HK\$65.3 million): Marketing activities in China and overseas
• 10% (HK\$65.3 million): Working capital and general corporate purposes

This allocation underscores a growth-driven story with significant focus on technology leadership, rather than deleveraging or dividend payouts [[18]].

Placement and Issuance Breakdown

Global Offering Structure:

• Hong Kong Public Offering: 1,198,800 H Shares (initially)
• International Placing: 22,776,400 H Shares (initially); 95% of the offering
• Employee Allocation: Pre-IPO Share Incentive and Option Schemes in place, with up to 10% of shares reserved for options

Cornerstone/Anchor Investors: Not explicitly named for the IPO tranche, but significant pre-IPO institutional participation is disclosed (see below).

Investor Participation & Book Quality

Pre-IPO Investors: The company completed eight rounds of Pre-IPO investments, raising over RMB800 million. Key institutional investors include:

• Lightspeed China Partners II, L.P.
• Star VC Investment Co., Limited
• Sky9 Capital MVP Fund
• China Merchants Securities Investment Co., Ltd.
• SBI (exact subsidiary not specified)

Sophisticated Independent Investors (SIIs): SIIs, including LS 51World Holding Limited and Sky9 51World Limited, will hold at least 20% of the total issued share capital post-IPO, with their investments locked up per listing rules [[161]].

Book Quality: Pre-IPO rounds suggest strong institutional endorsement, with no pre-listing disposals. No oversubscription metrics for the retail/institutional tranches are disclosed.

Implication: The presence of high-quality SIIs and institutional capital implies strong initial trading support and confidence in the listing [[161]].

Deal Parties & Structure

• Joint Sponsors / Overall Coordinators: China International Capital Corporation Hong Kong Securities Limited, Huatai Financial Holdings (Hong Kong) Limited
• Joint Global Coordinators, Bookrunners, Lead Managers: China International Capital Corporation Hong Kong Securities Limited, Huatai Financial Holdings (Hong Kong) Limited (others not named in summary)
• Underwriters: Hong Kong and International Underwriters, including the above sponsors and coordinators [[25]]
• Legal Advisors: Hogan Lovells, Zhong Lun Law Firm
• Reporting Accountants: KPMG Hong Kong
• Stabilization/Over-allotment Option: Up to 15% of shares; Stabilizing Manager is China International Capital Corporation Hong Kong Securities Limited [[28], [403]]

Listing-Day Performance Support: The participation of highly reputable sponsors and a defined stabilization mechanism suggest robust support for first-day trading [[85], [400]].

Company Overview

Business Model: Beijing 51WORLD is a specialist technology company focused on digital twin platforms, providing core solutions in 3D graphics, simulation, and AI for enterprises, consumers, and developers. Its vision is to create a “Digital Twin Earth” by enabling smart cities, coal mining, smart venues, and other spatially intelligent applications [[10], [19]].

Key Products/Services:

• 51AES: Large language model and spatial intelligence integration, rapid venue design
• 51GIM: Dynamic monitoring of underground geological changes
• 51Sim: Smart venue simulation and design

Revenue Streams: Sales of digital twin solutions and platforms, enterprise projects, and licensing

Customer Segments: Enterprises (mining, urban planning), government, developers, and venue managers

Geographies: China-centric, expanding overseas per marketing allocation [[19]]

Industry Definition and Size

Sector: Specialist Technology / Digital Twin Technology

The prospectus defines the company as a “Specialist Technology Company” under Chapter 18C, operating in one of the highest-growth segments of the Chinese technology market. Precise market size figures are not disclosed.

Financial Health: Multi-Period Performance

Beijing 51WORLD has invested heavily in technology, resulting in strong gross profit margins but ongoing net losses and negative operating cash flow during the track record period. The company is in a ramp-up phase, aiming for profitability in the medium term [[10], [13], [17]].

Gross Profit (RMB mn): 2022: 110.4, 2023: 139.0, 2024: 146.9, 2025 (H1): 22.1

Net Cash Flow from Operating Activities: Negative during track record period

Distributable Reserves: None as of June 30, 2025 [[345]].

Debt Levels: No material indebtedness or acquisition activity prior to IPO. Financial viability estimated at 40–98 months post-IPO, depending on cash burn [[345]].

Market Position and Competitive Advantages

Beijing 51WORLD is positioned as a leader in China’s digital twin sector, with advanced competencies in simulation, 3D graphics, and AI integration. The company’s brand is associated with large-scale smart city and mining projects.

Market Share/Ranking: Not quantified in the prospectus.

Management Team

Single Largest Shareholder: Mr. Li (direct and indirect holding of 23.3% post-IPO)
Key Executive: Mr. Li (significant shareholding via Starcraft Technology), CEO options totaling 9.4% of share capital outstanding post-IPO have been granted under the Pre-IPO Share Option Scheme [[572]].
Management Experience: Not detailed beyond shareholdings and incentive schemes.

Trends, Timing & Environment

Sector Trends: High-growth, technology-driven demand for digital twin solutions; regulatory and policy support for specialist technology companies as per Chapter 18C of HKEX Listing Rules [[168]].

Seasonality: Business and results subject to seasonal fluctuations; not quantified.

Recent Developments: Introduction of 51AES with AI integration, expansion of coal mining and smart venue projects, technological advances in spatial intelligence [[19]].

IPO Timing: Prospectus dated December 18, 2025; application window December 18–23, 2025; listing expected December 30, 2025.

Macro Environment: Favorable regulatory climate following the launch of Chapter 18C and successful listing of peer specialist technology companies in June 2024; company expects access to international capital markets to enhance fundraising and governance [[168]].

Conclusion: Market conditions for specialist technology IPOs appear favorable as per company analysis and HKEX regulatory initiatives.

Prospectus Deep Dive: Key Risk Factors

Major Risks:

• Product Development: Delays or inability to introduce competitive solutions may adversely affect business [[13]].
• Market Size/Demand: Slower-than-expected growth in addressable markets could materially impact results.
• Seasonality: Results subject to fluctuations.
• Profitability Path: History of losses, ramp-up stage, future profitability uncertain.
• Cash Flow: Historical net operating cash outflows; future positive cash flow not assured.
• Legal/Regulatory: Subject to PRC Company Law and HKEX Listing Rules; potential impact from regulatory changes.
• Supplier/Customer Concentration, FX, Commodity, and Related-Party Risks: Not quantified, but material related-party transactions disclosed in appendices.

Growth Strategy

Expansion Plans:

• Major allocation of IPO proceeds to R&D for product innovation and sector leadership
• Marketing expansion in China and internationally
• Continued development of large-scale smart city, mining, and venue solutions
• Potential capacity additions and new market entries as part of medium-term strategy

Capex Pipeline: Not specifically quantified, but 80% of net proceeds dedicated to R&D signals aggressive technology investment [[18]].

Ownership & Lock-ups

• Pre-IPO Shareholding: Largest group (Mr. Li and Starcraft Technology) with 23.3% post-IPO; SIIs with 20%+ of issued capital [[18]].
• Lock-in Periods: All shares issued prior to IPO subject to 12-month lock-up per PRC Company Law; SIIs subject to disposal restrictions [[176], [353]].
• ESOPs: Pre-IPO Share Incentive and Option Schemes; up to 10% of shares reserved for options, six-year vesting with performance targets [[570]].

Valuation and Peer Comparison

P/E, P/B, EV/EBITDA, Dividend Yield, ROE, ROA: Only net tangible asset per share is disclosed (HK\$2.12 as of June 30, 2025). No direct peer data or sector multiples are provided in the prospectus. The company’s post-IPO market capitalization is HK\$12.4 billion, with substantial investment in technology but no near-term profitability or dividend.

Research & Opinions

Covering Institutions: Frost & Sullivan (industry report commissioned), KPMG (accountants’ report), Hogan Lovells (legal opinions). No explicit analyst price targets or opinions on the IPO are included.

IPO Allotment Result

Allocation Results: Announcement of allocations expected by December 29, 2025 via www.hkexnews.hk and https://51world.com.cn/. No subscription rates or oversubscription multiples provided.

Listing Outlook

Based strictly on disclosed book quality, institutional participation, deal structure, and use of proceeds, this IPO appears to offer a compelling, growth-driven investment case for specialist technology exposure in China.

First-Day Trading Estimate: High-quality SIIs, strong sponsor support, and a stabilization mechanism indicate likely robust first-day performance within or above the offer price of HK\$30.5. Absence of retail oversubscription data precludes more granular prediction, but the institutional book is strong.

Prospectus Access

Prospectus and related documents are available at: www.hkexnews.hk and https://51world.com.cn/

How to Apply

Application Channels:

• Online via HK eIPO White Form service at www.hkeipo.hk
• Through HKSCC EIPO channel via brokers or custodians (FINI system)

Application Window: December 18, 2025 (9:00 a.m.) to December 23, 2025 (11:30 a.m.)

Eligibility: Investors must apply electronically; no physical channels provided. Applications must be submitted via approved brokers/custodians or the eIPO platform.