Beijing 51WORLD Digital Twin Technology Co., Ltd.

Date of Prospectus: December 18, 2025

Bold Leap into Hong Kong: Beijing 51WORLD Digital Twin Technology Co., Ltd. IPO Offers Investors a Gateway to China’s Cutting-Edge Tech Sector

Beijing 51WORLD Digital Twin Technology Co., Ltd. (“51WORLD”) is launching its highly anticipated initial public offering (IPO) on the Main Board of the Hong Kong Stock Exchange. Positioned as a specialist technology company under Chapter 18C of the Listing Rules, 51WORLD is set to redefine digital twin technology applications in China and beyond. This investor-grade analysis details the offering structure, financial health, growth strategy, risk factors, and sector outlook, empowering investors and analysts to make informed decisions.

IPO Snapshot: Key Terms and Structure

IPO Symbol: Not disclosed
Offer Price: HK\$30.50 per H Share
Total Offer Size: HK\$652.8 million (net proceeds)
Number of Shares Offered: 23,975,200 H Shares (5.9% of post-IPO share capital)
Post-IPO Outstanding Shares: 406,356,152 Shares

Expected Market Capitalization Post-IPO: HK\$12,393.9 million
Unaudited Pro Forma Adjusted Net Tangible Assets per Share: HK\$2.12 (RMB1.93)

Use of Proceeds: Aggressive R&D and Market Expansion

Growth-driven capital deployment is at the heart of 51WORLD’s IPO. Proceeds of HK\$652.8 million will be allocated as follows:

• Research & Development: HK\$522.2 million (80%)
• Marketing Activities (China & Overseas): HK\$65.3 million (10%)
• Working Capital & General Corporate Purposes: HK\$65.3 million (10%)

This allocation signals a strong commitment to innovation and global reach, rather than deleveraging or dividend payouts.

Dividend Policy

No dividends have been declared or paid during the Track Record Period. There is currently no formal dividend policy or payout ratio, and future dividends (if any) are subject to shareholder approval, Articles of Association, and PRC law. As of the latest practicable date, no dividend commitment is made.

Placement Breakdown: Institutional Focus and Public Float

International Placing: 95% of the offer (22,776,400 H Shares) targets professional, institutional, and corporate investors.
Hong Kong Public Offering: 5% (1,198,800 H Shares).
Employee Allocation: Pre-IPO Share Incentive Scheme and Share Option Scheme in place, covering up to 10% of shares.
Public Float Post-IPO: Approximately 60.4% of total issued shares. At least 50% of shares offered will be taken up by independent price setting investors in the International Placing.

Investor Participation & Book Quality

Pre-IPO Investors (Sophisticated Independent Investors): Eight rounds of Pre-IPO funding raised over RMB800 million, with major institutional investors including Lightspeed China Partners II, Tujia, Lan Heng Investment, Star VC, Grandwin Enterprises, First Internet Technology, SensePower Management, Triwin Holdings, Town West Investment, and Sky9 Capital MVP Fund.
Anchor Investors: LS 51World Holding Limited and Sky9 51World Limited are designated Pathfinder SIIs, holding over 3% each and collectively over 20% post-listing.
No pre-listing disposals/sales by early shareholders disclosed except statutory one-year lock-up for pre-IPO shares under PRC law.
Book Quality: The presence of prominent institutional investors, large allocations to independent price setting investors, and an oversubscription structure suggest robust demand and potential for strong first-day performance, inferred from prospectus facts.

Deal Parties & Structure

Joint Sponsors: China International Capital Corporation Hong Kong Securities Limited (CICC), Huatai Financial Holdings (Hong Kong) Limited.
Overall Coordinators/Bookrunners/Lead Managers: CICC, Huatai, and other named parties.
Underwriters: Hong Kong Underwriters and International Underwriters led by the above parties.
Stabilization/Over-Allotment: Over-allotment option (greenshoe) up to 15% of offered H Shares. CICC serves as Stabilizing Manager.
Listing-day support is robust, given the roles and reputations of the deal parties as disclosed.

Company Overview: Digital Twin Pioneer in China

Core Business: 51WORLD is a digital twin technology company specializing in 3D graphics, simulation, and AI.
Revenue Streams: Solutions for enterprises, consumers, developers, and eco-partners enabling the creation of digital twins and 3D virtual environments.
Key Products: 51AES (AI-powered application scenarios), 51GIM (geological intelligence monitoring), 51Sim (simulation technology for smart cities and venues).
Customer Segments: Enterprises in coal mining, smart venues, and other sectors, with significant projects signed and delivered.
Geographic Focus: China, with expansion plans for overseas markets.
Industry Definition: Specialist Technology Company under Chapter 18C; no concrete industry size figures provided.

Competitive Strengths:

• Proprietary technology in 3D graphics, simulation, and AI
• Strong institutional backing and research capabilities
• Ability to deliver significant operational efficiencies for clients (e.g., reducing project times from days to minutes)

Financial Health: Key Metrics and Ratios

Gross Profit (RMB millions): 2022: 110.4 | 2023: 139.0 | 2024: 146.9 | 1H 2025: 22.1
Net Profit: Company has incurred net losses since inception and may continue to do so in the foreseeable future.
Cash Flow: Negative net cash flow from operating activities during the Track Record Period.
Debt Levels: No material debt disclosed; working capital sufficiency confirmed for at least 12 months post-listing.
Capex: Not specifically detailed.
Distributable Reserves: None as of June 30, 2025.

Management Team

Key Individuals: Mr. Li (founder and major shareholder, holding 23.3% post-IPO), senior management eligible for Pre-IPO Share Option Scheme. Full team names and experience detailed in the Directors and Supervisors section of the prospectus.

Trends, Timing & Environment

Sector Trends: Digital twin technologies are rapidly gaining traction as enterprises seek advanced simulation, AI, and spatial intelligence solutions. Coal mining and smart venues are key verticals.
Recent Developments: Expansion into AI-integrated digital twins, significant coal mining projects, and rapid operational enhancements.
Offer Period: Opens 9:00 a.m., December 18, 2025; closes 12:00 noon, December 23, 2025.
Listing Date: 9:00 a.m., December 30, 2025.
Macro Environment: Hong Kong Stock Exchange is positioning itself as a hub for specialist technology listings under Chapter 18C, offering direct access to international capital and enhanced governance.
Market Conditions: Recent successful listings under Chapter 18C (June 2024) and favorable regulatory changes suggest a supportive environment for tech IPOs.

Risk Factors

Key Risks:

• **Inability to introduce new solutions/products in a timely manner may adversely impact business**
• **Addressable market size and demand may not grow as anticipated**
• **Seasonal fluctuations in business and results**
• **History of losses and uncertain path to profitability**
• **Recorded net operating cash outflows historically**
• **Dividend payments not assured due to operational needs and PRC regulations**
• **Reliance on subsidiaries for dividend payments, which may be restricted**
• **Information from official sources not independently verified**
• **Potential for market volatility due to specialist technology sector risks**

Material risks are detailed in the “Risk Factors” section, and investors are urged to review these in depth.

Growth Strategy

Expansion Plans:

• Significant investment in R&D to launch new products and solutions
• Enhancement of AI integration and spatial intelligence applications
• Geographic expansion, including marketing initiatives in China and overseas
• Recruitment and retention of key management and technical talent via share incentive schemes

Capex Pipeline: Not itemized but implied through R&D and technology investments. No mention of M&A or capacity additions in the prospectus.

Ownership & Lock-ups

Pre-IPO Shareholding: Mr. Li and Starcraft Technology directly/indirectly hold 23.3% post-IPO.
Pathfinder SIIs: Hold over 20% collectively post-IPO.
Lock-up Periods: All pre-IPO shares (including those held by existing shareholders and Pre-IPO Investors) are subject to a statutory one-year lock-up under PRC law.
Employee Stock Options: Pre-IPO Share Incentive Scheme and Option Scheme cover up to 10% of shares, valid for six years from grant.

Valuation and Peer Comparison

P/E, P/B, EV/EBITDA, Revenue Growth, Net Margin, ROE, ROA, Dividend Yield: Only issuer metrics disclosed in the prospectus. No peer company financials provided; thus, comparative table omitted.

Research & Opinions

Covering Institutions: Frost & Sullivan provided industry research; KPMG delivered accountant’s report and pro forma financials. No price targets or analyst opinions disclosed.

IPO Allotment Result

Results Announcement: Allocation results to be published at www.hkexnews.hk and https://51world.com.cn/ by 11:00 p.m. on December 29, 2025. Results page with “search by ID” function available from December 29, 2025 to January 4, 2026.

Listing Outlook

Based on strong institutional participation, robust deal party support, and a well-defined growth strategy, 51WORLD’s IPO appears attractive for investors seeking exposure to China’s specialist technology sector. The book-building process, emphasis on independent price setting investors, and favorable market conditions suggest a likely strong first-day trading performance. With a growth-driven story and aggressive R&D investment, the first-day trading range is likely to be above the offer price of HK\$30.5, barring unforeseen market disruptions.

Prospectus Access

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

How to Apply

Application Channels:

• Online via HK eIPO White Form at www.hkeipo.hk
• Through HKSCC EIPO channel (via brokers/custodians who are HKSCC Participants, using FINI system)

Application Window: Opens 9:00 a.m., December 18, 2025; closes 12:00 noon, December 23, 2025.
Steps: Apply electronically; no physical channels or printed prospectus provided.