The home improvement and interior design sector is undergoing a seismic shift, marked by the entrance of Manycore Tech Inc. to the public marketOften referred to as one of the "Hangzhou Six Little Dragons," along with tech startups like DeepSeek and Yushu Technology, Manycore is taking significant steps by submitting its Initial Public Offering (IPO) application to the Hong Kong Stock ExchangeThis strategic move could potentially position Manycore as the first publicly traded company in the realm of spatial intelligence on a global scale, highlighting its forward-thinking approach in a rapidly evolving industry.

At the heart of Manycore’s operations lies its flagship product, Cool Jiale, a Software as a Service (SaaS) tool designed to simplify computer-aided design (CAD) processesWith over 32,000 brands currently partnering with the platform, it has quickly become the go-to resource for businesses within the home furnishing industryManycore’s influence is palpable throughout the sector, as it is recognized as the largest and most successful third-party entity in this spaceIndustry insiders attest that nearly every firm, no matter how niche, has either utilized or at least heard of Cool Jiale, with many establishing long-standing financial commitments to it.

The impressive utilization of Cool Jiale can be attributed to its user-friendly interface which dramatically reduces the complexity associated with design tasksThe platform empowers retailers to attract customers and close deals effectively, acting as an invaluable asset in an industry that requires speed and efficiencyHowever, despite its vast user base and high-margin products, Manycore has yet to turn its financial fortunes around, facing ongoing losses.

One of the critical issues facing Manycore is its expenditure on research and development, which constitutes over 60% of its operational costsFounded in 2011 by a trio of University of Illinois Urbana-Champaign alumni—Huang Xiaohuang, Chen Hang, and Zhu Hao—all of whom boast impressive backgrounds at global tech giants such as Nvidia, Microsoft, and Amazon, Manycore’s initial vision centered on leveraging GPU technology for rapid cloud-based graphic rendering, providing a clear path into the renovation sector.

In 2013, the launch of Cool Jiale solidified Manycore's place in the market, earning rapid recognition and establishing it as a leader in spatial design software

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However, the company's attempt to list on an American stock exchange in 2021 ended in disappointment, and it subsequently faced challenges as the real estate market experienced a downturn, plunging the broader home furnishing market into stagnationWhile many companies struggled, Manycore managed to thrive as a third-party provider, reporting revenue growth during this tumultuous period.

From 2022 to the third quarter of 2024, Manycore's earnings reached 601 million, 664 million, and 553 million yuan respectively, boasting impressive gross margins of 72.7%, 76.8%, and an exceptional 80.4%. Unfortunately, this growth has not translated into profitabilityOver the same period, the company incurred losses of 704 million, 646 million, and 422 million yuan, leading to a staggering total of 1.772 billion yuan.

Manycore attributes its continued financial losses primarily to its steep investment in research and developmentDuring the reporting period, the company’s cumulative R&D costs amounted to approximately 1.1 billion yuan, representing 60.51% of its revenueIn contrast to its peers within the "Hangzhou Six Little Dragons,” Manycore is now focusing on fortifying its financial standing through IPO proceeds rather than capital reserves.

The outlook for Manycore’s business remains promising, with significant potential for growth within the global spatial design and visualization software industry projected to reach 819.5 billion yuan by 2028. Advances in artificial intelligence, augmented and virtual reality, and robotics present opportunities for Manycore's SpatialVerse platform, facilitating its entry into additional commercial applications.

As of 2023, according to Frost & Sullivan's data, Manycore holds roughly 22.2% of the Chinese market share for spatial design software, leading the fieldIts compelling market performance has captured the attention of various investors, with the company securing eight rounds of financing from notable firms including Shunwei Capital, Hillhouse Capital, IDG, and Matrix Partners between its inception in 2013 and the end of 2021. Notably, Shunwei Capital is affiliated with Xiaomi, further enhancing Manycore's reputation.

With a stable share of the domestic market firmly established, Manycore is now setting its sights on international expansion

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