Recently, Yisou Technology Holdings Co., Ltd. (referred to as: Yisou Technology) submitted a prospectus to the Hong Kong Stock Exchange for landing on the Hong Kong main board, with Bank of China International as its exclusive sponsor.

The company made a sprint for the A-share company in September 2019, and proposed to raise 638 million yuan. In May 2020, the company's IPO application review status was changed to be terminated.

Yisou Technology, founded in 2005, is mainly engaged in its own intelligent recommendation engine-Yisou artificial intelligence recommendation engine, and strives to apply it to a wide range of "data-to-human connection" application scenarios.

At present, the company has successfully applied Yisou artificial intelligence recommendation engine to four application scenarios, including digital reading recommendation service, digital marketing service, online game distribution service and other digital content services. The company plans to use AIGC (artificial Intelligence to generate content) to generate digital content at the basic data layer.

(it is appropriate to search the overall structure of artificial intelligence recommendation engine, prospectus)

According to the prospectus, as of September 30, 2022, the cumulative number of registered users of the Yisou series reading App was 44.0 million, with an average monthly active number of 25.5 million, and the average monthly income per paying household was 56.9 yuan.

According to Analysys, in terms of revenue and average monthly active users, the company's Yisou novel App is the largest independent third-party digital reading platform in China in 2021. In China's digital reading market, in terms of average monthly active users, Yisou novel App ranks fifth in 2021. Among the top 10 applications in China's digital reading market in 2021 (in terms of the average number of monthly active users), Yisou novel App ranks fourth in terms of per capita daily use.

In terms of operating results, for the nine months ended September 30, 2020, 2021 and 2022, the company's income was 410 million yuan, 433 million yuan and 333 million yuan respectively, and the corresponding profit for the year / period was 31.305 million yuan, 50.011 million yuan and 30 million yuan respectively.

(summary of consolidated income statement, prospectus)

Among them, during the reporting period, the proportion of revenue from digital reading recommendation services increased from 45.2% to 53.2%, while that from digital marketing services accounted for about 40%, while that from online game distribution services decreased from 11.8% to 1.1%.

Nine months ended on September 30, 2020, 2021 and 2022The company's gross profit margin was 52.2%, 48.2% and 51.9% respectively, showing a trend of falling first and then rising.. In June 2020, the company suspended the online game distribution service, resulting in a significant reduction in revenue generated by this business line and a decline in the company's overall gross profit margin; in the nine months ended September 30, 2022, the gross profit margin of the company's digital reading recommendation service increased, driving up the overall gross margin level.

(gross profit and gross profit margin by line of business, prospectus)

For recent developments, Yisou Technology said that the company officially launched its first overseas online game, Civilization, in the United States, Germany and Italy in October 2022, and has begun to make money from the game.

At the end of 2022, ChatGPT was successfully unveiled as a branch of AIGC. Related to the company's artificial intelligence network ecosystem, AIGC can bring about fundamental changes in content creation. In the future, the company will use experience to use artificial intelligence technology to create literary works.

In addition, on February 17, 2023, with the approval of the State Council, the China Securities Regulatory Commission issued new regulations on the administration of overseas securities issuance and listing of domestic enterprises (the "new filing provisions"). The new filing rules, which will take effect on March 31, 2023, are regulatory authorities allowing Chinese companies to continue to list and raise funds overseas.The company must go through the filing formalities with the China Securities Regulatory Commission and obtain approval.