New stock news | Cool Star Microelectronics submits application to Hong Kong Stock Exchange focusing on the research and development of AI SoC products and solutions

According to the disclosure of the Hong Kong Stock Exchange on January 28, Hefei CoolComm Electronics Co., Ltd. (referred to as "CoolComm Electronics") submitted its listing application to the main board of the Hong Kong Stock Exchange, with Huatai International as its exclusive sponsor. Company Profile The prospectus shows that CoolComm Electronics is a leading Chinese visual processing AI SoC supplier with integrated solution capabilities. The company operates without a wafer factory and focuses on the research, design, and sales of AI SoC products and solutions. The company provides integrated solutions based on visual processing AI SoC and wireless video transmission SoC, with a product portfolio that integrates chip design, software toolkits, scene optimization algorithms, and engineering support services to assist customers in shortening development cycles and accelerating product launches in the rapidly evolving AI application environment. Through bridging the gap between the long chip iteration cycle and rapid evolution of software and AI applications, CoolComm Electronics' full-stack solution enables customers to utilize the company's core technology IP and integrate new application demands more efficiently. With a market-driven approach, the company provides visual processing solutions tailored to the needs of customers in the drone, intelligent IoT, and smart wearable sectors, empowering customers. To support these applications, the company has established a complete technical framework around intelligent perception, computation, and transmission. Leveraging these core capabilities, the company offers SoCs and solutions that integrate in-house ISP, NPU, and wireless transmission technologies, supported by strong hardware and software co-design capabilities and end-to-end IC design expertise. In the field of drones, CoolComm Electronics entered the drone industry as early as 2012 and has been deeply involved in this field for more than a decade, establishing a solid market position and domain expertise. The company's core products include high-performance visual processing AI SoCs with integrated visible light and thermal imaging capabilities, as well as advanced wireless video transmission SoCs. The company's comprehensive product portfolio provides integrated solutions for intelligent flight, long-distance video transmission, and edge computing, covering consumer and industrial-grade low-altitude economic demands. In the field of intelligent IoT, with CoolComm Electronics' low-power, high-efficiency AI SoC for artificial intelligence computing and industry-leading wireless video transmission SoC with long communication distances and low latency, the company has established a strong position in the intelligent IoT market. The company's business layout covers robotic sweepers, robotic lawn mowers, smart doorbells, wireless IP cameras, and access control systems. In addition, the company is strategically expanding into emerging consumer areas such as thumb cameras and handheld gimbal cameras. In the field of smart wearables, CoolComm Electronics is one of the first companies to develop high-performance, low-power, and small-sized visual AI SoCs specially designed for AR/AI glasses. The company is strategically expanding its product layout to extend solutions to smart watches and smart headphones, further diversifying its coverage in the smart wearable market. In terms of technical services, in addition to providing visual processing AI SoC products and solutions to strategic customers, CoolComm Electronics also offers in-house algorithm design and technical services to assist customers in product development, including production line configuration and maintenance plan formulation. The company will also selectively open up in-house IP and software licensing as well as product design services to strategic customers to promote deep collaboration and system-level integration. Financial Information Revenue For the nine months ended September 30, 2023, 2024, and 2025, the company's revenue was approximately RMB 105 million, RMB 449 million, and RMB 341 million respectively. Gross Profit For the nine months ended September 30, 2023, 2024, and 2025, the company achieved gross profits of RMB 11.718 million, RMB 144 million, and RMB 151 million respectively. Gross Margin For the nine months ended September 30, 2023, 2024, and 2025, the company's gross margins were 11.2%, 32.2%, and 44.3% respectively. Industry Overview Global and Chinese Market Size of Visual Processing AI SoC Products and Solutions The market size of visual processing AI SoC products and solutions has experienced significant growth in both China and globally, driven by the widespread adoption of high-performance visual computing in diverse application scenarios. In the Chinese market, the market size of visual processing AI SoC products and solutions grew from RMB 8.3 billion in 2020 to RMB 34.3 billion in 2024, with a compound annual growth rate of 42.4%. This growth is mainly attributed to the accelerated adoption of downstream applications such as drones, smart wearables, security analysis, intelligent IoT terminals, and new energy vehicles. With the continuous expansion of application scenarios and the enhancement of industry supply capabilities, it is expected that the Chinese market will reach RMB 99.3 billion by 2029, with a projected compound annual growth rate of 24.7% from 2025 to 2029. In the global market, the market size of visual processing AI SoC products and solutions increased from RMB 14.6 billion in 2020 to RMB 55.9 billion in 2024, with a compound annual growth rate of 39.8%, and is expected to further expand to RMB 148.3 billion by 2029, with an estimated compound annual growth rate of 22.8% during the forecast period. This growth is due to the continued deepening of the utilization of visual processing AI SoC products and solutions in a wide range of terminal applications. Global and Chinese Drone Shipment Volumes The drone market has experienced rapid growth in the early stages of development and is currently transitioning to a more mature stage. In China, driven by the continuous expansion of application scenarios, drone shipments increased from 1.7 million units in 2020 to 3.1 million units in 2024. It is expected that by 2029, with the support of demand growth in industrial, consumer electronics, and emerging low-altitude economic applications, shipments will further increase to 6.5 million units. On a global scale, drone shipments increased from 6.1 million units in 2020 to 10.8 million units in 2024, and are expected to reach 20.3 million units by 2029. As market penetration rates continue to rise and drone applications become more widespread and deepened, overall demand continues to grow, driven by factors such as diversification of applications, replacement demand, and performance upgrades. Global and Chinese Market Size of Drone Visual Processing AI SoC Products and Solutions In recent years, the market for drone visual processing AI SoC products and solutions has shown rapid growth in both China and globally. As the main manufacturing base for drones, the market size in China increased from RMB 1.4 billion in 2020 to RMB 3.5 billion in 2024, with a compound annual growth rate of 26.0%, mainly due to the widespread application of drones in aerial photography, industrial inspection, agriculture, security, and mapping fields; it is projected that by 2029, the market size in China will further increase to RMB 8.7 billion, with a compound annual growth rate of 21.2%. On a global scale, the market size increased from RMB 2.2 billion in 2020 to RMB 5.1 billion in 2024, and is expected to continue growing to RMB 12.3 billion by 2029, with a compound annual growth rate of 18.8% from 2025 to 2029. This growth is mainly driven by the increasing number of terminal connections and the trend of executing visual AI algorithms at the edge; as more scenarios demand real-time video analysis, intelligent IoT terminals are increasingly using integrated solutions that combine camera modules with visual processing AI SoCs, accelerating market penetration and demand release. Global and Chinese Smart IoT Market Size Since 2020, the global and Chinese smart IoT market has been steadily expanding. The market size in China increased from RMB 54.1 billion in 2020 to RMB 141.6 billion in 2024, with a compound annual growth rate of 27.2%, and is expected to further increase to RMB 254 billion by 2029, with a projected compound annual growth rate of 14.5% from 2025 to 2029. During the same period, the global market size increased from RMB 240.4 billion in 2020 to RMB 561.7 billion in 2024, with a compound annual growth rate of 23.6%, and is expected to reach RMB 882.1 billion by 2029, with a projected compound annual growth rate of 11.6% from 2025 to 2029. The continued implementation of smart home, smart security, industrial Internet, and environmental monitoring applications has driven market growth, as smart IoT terminals are gradually penetrating homes, public spaces, and production environments, becoming a key terminal layer supporting the digital economy. Global and Chinese Smart IoT Visual Processing AI SoC Products and Solutions Market Size The market for smart IoT visual processing AI SoC products and solutions is entering a phase of accelerated growth globally and in China. In China, the market size increased from RMB 2.7 billion in 2020 to RMB 15.9 billion in 2024, with a compound annual growth rate of 55.3%, and is expected to reach RMB 40.1 billion in 2029, with a compound annual growth rate of 21.5% from 2025 to 2029. At the same time, the global market size increased from RMB 5.5 billion in 2020 to RMB 26.4 billion in 2024, with a compound annual growth rate of 48.4%, and is expected to expand to RMB 57.3 billion by 2029, with a compound annual growth rate of 18.8% from 2025 to 2029. Growth is primarily driven by the continued increase in the number of terminal connections and the trend of visual AI algorithms executing at the edge; as more scenarios demand real-time video analysis, intelligent IoT terminals are increasingly adopting integrated solutions that combine camera modules with visual processing AI SoCs, accelerating market penetration and demand release. Board of Directors Information The board of directors consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors. The board is responsible and has general powers to manage and operate the company's business. Ownership Structure As of January 21, 2026, under the Joint Action Agreement, Mr. Yao, Dr. Shen, Mr. Zhong, Shanghai Lingmou, Shanghai Huimou, and Shanghai Jixuan collectively hold voting rights attached to 10,144,419 shares of the company's stock, representing approximately 32.84% of the total issued share capital, with: (a) Mr. Yao holding 2,130,882 shares, representing approximately 6.90% of the company's voting rights; (b) Dr. Shen holding 2,356,287 shares, representing approximately 7.63% of the company's voting rights; (c) Mr. Zhong holding 1,955,154 shares, representing approximately 6.33% of the company's voting rights; (d) Shanghai Lingmou holding 1,437,066 shares, representing approximately 4.65% of the company's voting rights; (e) Shanghai Huimou holding 1,365,030 shares, representing approximately 4.42% of the company's voting rights; and (f) Shanghai Jixuan holding 900,000 shares, representing approximately 2.91% of the company's voting rights. Advisory Team Exclusive Sponsor: Huatai Financial Holdings (Hong Kong) Limited Legal Counsel: Jia Yuan Law Firm for Hong Kong and U.S. law; Jingtian & Gongcheng Law Firm for Chinese law; Beijing Tongshang Law Firm for U.S. foreign investment regulations, U.S. export controls, and international sanctions matters Legal Counsel for Exclusive Sponsor: King & Wood Mallesons for Hong Kong law; King & Wood Mallesons for Chinese law Reporting Accountant: KPMG Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd., Shanghai Branch Compliance Consultant: Hob Capital Limited