New Stock Outlook | Cutting Costs, Pressuring Costs, Losing Customers Three Major Cracks Behind the Silicon-Based Intelligent Light Ring

As the industry leader occupying 32.2% of the Chinese DIGIHUMAN intelligent body market, Silicon-based Intelligence once again submitted its listing application to the Hong Kong Stock Exchange on May 21, with CMB International and DBS Group as joint sponsors. The prospectus shows that the company, with a full-stack layout in the fields of intelligent voice, DIGIHUMAN video, and live broadcasting, aims to rank first in revenue in China and second globally by 2024. However, under the halo of being "the first stock of DIGIHUMAN", its commercial fundamentals present a sharp contrast: despite steadily increasing revenue to 789 million yuan in 2025, the company has been deeply mired in losses for three consecutive years, with a gross profit margin slipping from 45.8% to 34.5%. In the reality game of the billion-dollar AI race dividend and continuous "burning money" expansion, whether Silicon-based Intelligence's IPO this time can deliver a satisfactory performance in the capital market has become a focus of market attention. Weak profit quality hidden behind income growth Trapped in the dilemma of "false growth" The prospectus shows that since its establishment in 2017, Silicon-based Intelligence has continuously innovated its business model, achieving comprehensive coverage from basic general silicon-based labor to advanced high-value silicon-based labor. In August 2025, the company entered the field of silicon-based fully automatic content production, marking the company's silicon-based labor solution's upgrade from AICopilot to Autopilot, and completing the transformation from AI tool services to outcome-oriented solutions. The company provides one-stop silicon-based labor solutions for customers in various industries, including silicon-based intelligent voice, silicon-based DIGIHUMAN video, silicon-based DIGIHUMAN live broadcasting, silicon-based DIGIHUMAN intelligent interaction, and silicon-based fully automatic content production. The company strengthens its brand influence through operating its own intellectual property rights, further developing the commercial value of silicon-based labor solutions. As of the last feasible date, the company has successfully created a series of IPs including Silicon-based Dasima, Technology Dasima, Dasima Technology Chat, Dasima Technology Talk, and Dasima Technology Say, with a cumulative total of over 11 million fans on the internet. From a financial performance perspective, Silicon-based Intelligence's operating conditions show a distinct feature of income growth and deteriorating profit quality coexisting. Despite a revenue scale increasing from 531 million yuan to 789 million yuan, with a compound annual growth rate of over 22% over three years, this growth has not translated into sustainable profit-making capability. Firstly, the "gold content" of the income growth is severely insufficient. Despite a year-on-year increase in revenue of over 23% in 2024, the gross profit decreased from 243 million yuan to 225 million yuan, and the gross profit margin plummeted from 45.8% to 34.3%. This abnormal phenomenon directly points to the uncontrolled sales costs the sales cost growth in 2024 was as high as 49.6%, far exceeding the growth rate of revenue. Even though the gross profit margin slightly rebounded to 34.5% in 2025, it was still far below the level in 2023, indicating that the company either had a weak bargaining power in the supply chain or was forced to accept lower unit profits in order to boost revenue. Secondly, asset quality and credit risks are acceleratingly exposed. The impairment losses on trade and other receivables, as well as contract assets, surged from 11.75 million yuan in 2023 to 27.59 million yuan in 2025, accounting for a proportion of income from 2.2% to 3.5%. In the context of slowing revenue growth, the speed of the increase in impairment losses significantly outpaces revenue growth, which typically indicates two types of problems: either the payment ability or willingness of customers is declining, forcing the company to relax credit policies to maintain revenue; or the company's weak receivables management capabilities, with a large amount of income staying on the books and not effectively converting into cash. Considering that the operating loss in 2025, although narrower than in 2024, was still 26.46 million yuan, and this was achieved on the basis of significantly reducing sales expenses for two consecutive years and a sharp decline in financial income, the pressure on actual business cash flow may be far greater than what is shown in the profit and loss statement. It is believed that Silicon-based Intelligence is currently stuck in a typical "false growth" trap. The revenue curve is rising, but the gross profit margin is declining; the space for reducing costs is exhausted, and asset quality risks are emerging; after special accounting items are eliminated, the real bottom line of the loss has been exposed. More worryingly, the continuous expansion of receivable impairment suggests that the payment ecosystem of downstream customers may be deteriorating, which is particularly dangerous against the backdrop of macroeconomic pressures.