This article is compiled from public information for informational purposes only and does not constitute investment advice.

Produced by | Company Research Lab IPO Team

Recently, Unisound AI, a prominent "AI unicorn," has once again updated its prospectus for listing on the Hong Kong Stock Exchange. The company is being jointly sponsored by CICC and Haitong International.

Unisound, a voice AI firm, primarily caters to clients in the residential, shopping mall, and healthcare sectors. In 2024, the company generated revenues of RMB 940 million but incurred a net loss of RMB 450 million. Prior to its IPO, Unisound was valued at approximately RMB 9 billion.

A Language AI Company Valued at RMB 9 Billion

Established in 2012, Unisound offers intelligent speech technology and comprehensive solutions, with a focus on residential (including residences, shopping malls, hotels, etc.) and healthcare applications.

In November 2020, Unisound submitted its prospectus to the Shanghai Stock Exchange, aiming to become the "first AI voice stock" on the STAR Market. However, less than six months later, in February 2021, the company withdrew its listing application, abandoning its IPO plans on the STAR Market.

In July 2023, Unisound relaunched its IPO efforts in Hong Kong, marking the third time it has submitted a listing application to the Hong Kong Stock Exchange.

Since its inception in 2012, Unisound has completed a total of 10 funding rounds, involving over 30 institutions. The valuation of the D3 funding round in May 2023 stood at approximately RMB 9 billion.

Prior to the IPO, CEO Huang Wei held 24.08% of the equity through Cloud Wisdom and an additional 3.8032% through Cloud Creation Interaction. CTO Liang Jiaen owned 3.78% of the equity, while COO Dr. Kang Heng held 2.27%. Together, the three co-founders control a total of 33.93% of Unisound's equity.

Among external institutions, QM Healthcare Fund held 9.41%, TBP HK held 8.94%, Heyiguyu held 8.60%, CIC held 6.37%, JD Shangke held 3.27%, CEC Healthcare held 2.31%, and 360's Qi Rui Tian Cheng held 1.96%.

Medical Business Customer Retention Rates Decline Yearly

Unisound's revenues primarily stem from two segments: Smart Living and Smart Healthcare.

From 2022 to 2024, Unisound's revenues were RMB 600 million, RMB 730 million, and RMB 940 million, respectively. Specifically, revenues from the Smart Living business amounted to RMB 490 million, RMB 580 million, and RMB 740 million, accounting for 81.0%, 79.6%, and 78.8% of total revenues, respectively. Meanwhile, revenues from the medical business were RMB 110 million, RMB 150 million, and RMB 200 million, representing 18.9%, 20.4%, and 21.2% of total revenues, respectively.

From 2020 to 2024, revenues from Unisound's top five customers accounted for 30.8%, 27.4%, and 26.7% of total revenues, respectively, including Shimao Group Holdings Limited and Shenzhen Nengzhi Industrial Information Technology Co., Ltd.

According to the prospectus, from 2022 to 2024, Unisound had 373, 389, and 411 customers in its living business, with the number of major customers being 63, 78, and 71, respectively (a decrease of 7 in 2024). Customer retention rates for this segment were 65.2%, 68.4%, and 68.6%, respectively.

In the medical business, Unisound provides AI medical solutions such as voice input for medical records, medical record quality control, single-disease quality control, and medical insurance payment management.

From 2022 to 2024, the number of medical customers remained relatively stable at 165, 167, and 166, respectively. However, customer retention rates during this period declined yearly, reaching 70.4%, 64.8%, and 53.3%, respectively.

From 2022 to 2024, Unisound's gross profit margins were 39.9%, 40.5%, and 38.8%, respectively, while its net losses amounted to RMB 375 million, RMB 376 million, and RMB 454 million, respectively.

As of December 31, 2024, Unisound held cash and cash equivalents of RMB 156 million.

Competition with iFLYTEK Healthcare

In terms of market share, based on 2024 revenues, Unisound is the third-largest service provider in the domestic living AI solutions market with a share of 5.8% and the fourth-largest in the domestic medical service and treatment AI market with a share of 2.3%, according to the prospectus.

In its 2020 prospectus submitted to the Shanghai Stock Exchange, Unisound cited data from CIC claiming that through partnerships with white goods giants like Gree, its market share reached 70%. In the smart healthcare field, its voice medical record entry system held a significant dominant position with a market share of up to 70%, while its medical record quality control system was gaining momentum, holding a market share of about 30%.

In December 2020, an investor inquired about this on an interactive platform, to which iFLYTEK responded that Unisound's claim of a 70% market share in voice home appliances was seriously inaccurate.

Moreover, in the medical business competition, iFLYTEK provided detailed data comparisons in terms of the number of hospitals covered, revenues, and public/private clouds, proving that it significantly surpasses Unisound in depth, breadth, and revenue scale.

iFLYTEK stated that in terms of hospitals covered, Unisound had 10, 36, 91, and 112 hospitals in the four reporting periods from 2017 to the first half of 2020, while iFLYTEK had 11, 77, 264, and 489 hospitals during the same period. On the revenue side, Unisound's intelligent speech medical record revenues during the aforementioned periods were RMB 1.7096 million, RMB 9.2639 million, RMB 16.2891 million, and RMB 8.9548 million, respectively, whereas iFLYTEK's revenues were RMB 6.6428 million, RMB 29.3727 million, RMB 35.5448 million, and RMB 35.7111 million, respectively.

Currently, iFLYTEK's subsidiary, iFLYTEK Healthcare Technology, is listed on the Hong Kong Stock Exchange. According to iFLYTEK Healthcare Technology's 2024 annual report, its annual revenue was RMB 734 million, marking a year-on-year increase of 32.0%; its gross profit margin was 55.1%; and its net loss was RMB 133 million, narrowing by 8.45% year-on-year.

In recent years, with the proliferation and application of large models, various industries have embraced artificial intelligence to enhance efficiency, leading to intensifying market competition.

Moving forward, Unisound's ability to further increase its market share, develop more customers, and achieve profitability amidst the AI wave will be a key area of focus.