Qunhe Technology (群核科技) turns to Hong Kong listing as cash lifeline — can spatial AI ambitions survive the squeeze?

A make-or-break IPO

Qunhe Technology (群核科技), the company behind home-design software Kujiale (酷家乐), has pitched its Hong Kong IPO as a last-ditch remedy for mounting liquidity pressure even as it rebrands toward “space intelligence.” The move is a stark reminder: high gross margins and an AI-sounding narrative do not erase a decade of cash burn and heavy debt. Can a Hong Kong listing buy the company the runway it needs?

From Kujiale to SpatialLM — product pivot, but limited revenue proof

Founded in 2011 by three UIUC-trained founders, Qunhe made its name with cloud 3D home-design tools that captured the upswing in China’s property market. In 2025 the firm rolled out SpatialLM, SpatialGen and the Aholo platform and repositioned itself as a “space intelligence” provider to court XR and embodied-AI narratives. It has been reported that the company is often mentioned among the so-called “Hangzhou Six Little Dragons” (杭州六小龙). But the numbers tell a different story: roughly 97% of 2025 revenue — RMB 829 million — still came from subscription fees tied to the home‑furnishing and renovation ecosystem, while spatial-intelligence professional services accounted for only about RMB 25.2 million (≈3%).

Strong margins, persistent losses and a liquidity cliff

Qunhe’s gross margin climbed from 76.8% (2023) to 82.2% (2025). Yet profitability remained elusive on the bottom line: net losses were RMB 646m, RMB 513m and RMB 428m in 2023–25 respectively. Operating cash flow was negative across three consecutive years and cash reserves fell from RMB 577m at end‑2023 to RMB 357m by end‑2025. The balance sheet is the real concern: total liabilities stood at RMB 4.735 billion versus RMB 551 million in assets at end‑2025, and redeemable preferred stock created a RMB 4.091 billion redemption liability. Even stripping out that accounting item, the company’s asset‑to‑liability profile is precarious and its current liabilities (RMB 4.672 billion) far outstrip current assets (RMB 420 million). In short: high margins, yes — self-sustaining free cash flow, no.

What's next — IPO as lifeline, not a solution

Qunhe’s path to listing has been rocky: it filed with the U.S. SEC in 2021 then withdrew amid shifting external conditions, and only after multiple Hong Kong filings did it pass the March 29 hearing. The IPO is explicitly pitched to shore up liquidity and satisfy early investors whose redemption rights now loom large. But the company has already cut costs sharply to report an adjusted profit in 2025 — trimming sales and R&D spend and shrinking headcount — which bought the accounting signal needed for an IPO cadence. Will that buy enough time for spatial AI investments to scale beyond a niche professional‑services line? Investors and customers will be watching closely.