New Stock News | Haier's subsidiary Kao Si submitted an application to the Hong Kong Stock Exchange and ranked first in China's platform-based industrial data intelligent solution market.

According to the disclosure by the Hong Kong Stock Exchange on January 30, CaoSi IoT Technology Co., Ltd. (referred to as CaoSi) has submitted its application for listing on the main board of the Hong Kong Stock Exchange, with CICC and HSBC acting as its joint sponsors. Based on data from Frost & Sullivan, as of 2024, CaoSi ranks first in the Chinese platform-based industrial data intelligence solutions market. Company Overview According to the prospectus, CaoSi is a leading provider of industrial digital products and solution services in China, dedicated to promoting the high-quality development of manufacturing industry through the integration of advanced technologies such as artificial intelligence, IoT, and big data. CaoSi's history dates back to April 2017 when it was established in China under the name of Haier Industrial Holdings Co., Ltd. as a limited liability company and a member company of Haier Group. After years of development, the company has become a leading provider of industrial digital products and solutions in China. In December 2022, the company was restructured into a joint-stock limited company and renamed CaoSi IoT Technology Co., Ltd. The company has independently developed the COSMOPlat industrial Internet platform, which integrates a technological architecture that combines industrial intelligence software and intelligent application technologies, industrial operating systems, industrial brains, and edge computing. The platform provides end-to-end data intelligence and IoT products and solutions to enterprises to help them achieve digital transformation. The company's products and solutions have been widely used in vertical industries such as home appliances, machinery and equipment, electronics, automotive, and energy and chemical sectors, with over 9,500 paying customers. The COSMOPlat industrial Internet platform, driven by industrial large-scale models, is rooted in CaoSi's extensive experience in large-scale customization and Haier Group's 40 years of experience in intelligent manufacturing. It is one of the first "cross-industry cross-domain industrial Internet platforms" certified by the Ministry of Industry and Information Technology, ranking first for seven consecutive years. Focusing on the high-value transformation of industrial data, the COSMOPlat industrial Internet platform integrates technologies such as IoT, big data, and artificial intelligence to deconstruct the entire manufacturing process into seven modules: demand interaction, R&D, marketing, procurement, production, logistics, and service. It encapsulates complex industrial processes into replicable and scalable industrial intelligent software products and end-to-end solutions, supporting cross-industry and cross-domain applications and serving as a catalyst for many enterprises to achieve intelligent manufacturing and large-scale customization transformation. After years of development, the company has achieved significant milestones in several business areas: Based on the COSMOPlat industrial Internet platform, CaoSi is committed to developing and providing "platform + software + hardware" industrial intelligent products and solutions, including (i) data intelligence solutions core to the digital intelligence and green transformation of customer business processes, and (ii) IoT solutions core to providing embedded software to enhance customer product intelligence and full lifecycle management capabilities. On the supply side, the company relies on structured procurement and partner management processes to ensure compliance with platform standards, quality control, and delivery schedules. On the demand side, the company focuses on establishing direct and long-term customer relationships and combining its capabilities with diverse operational contexts and evolving user requirements. The company offers customized solutions and standardized products, enabling scalable deployment options and supporting customer adoption processes. Financial Information Revenue In the fiscal years 2023, 2024, the nine-month period ended September 30, 2024, and the nine-month period ended September 30, 2025, the company generated revenues of approximately RMB 4.994 billion, RMB 5.069 billion, RMB 3.635 billion, and RMB 4.421 billion, respectively. Gross Profit and Gross Margin In the fiscal years 2023, 2024, the nine-month period ended September 30, 2024, and the nine-month period ended September 30, 2025, the company recorded gross profits of approximately RMB 890 million, RMB 919 million, RMB 669 million, and RMB 795 million, with corresponding gross margins of 17.8%, 18.1%, 18.4%, and 18.0%, respectively. Net Profit for the Year/Period In the fiscal years 2023, 2024, the nine-month period ended September 30, 2024, and the nine-month period ended September 30, 2025, the company recorded net profits for the year/period of approximately -RMB 82.721 million, RMB 65.136 million, RMB 35.715 million, and RMB 176 million, respectively. Industry Overview Industrial intelligent solutions are aimed at the transformation and upgrading of industrial intelligence, providing end-to-end comprehensive solutions for intelligent transformation of the entire chain, scene, and life cycle in the industry. Its core is driven by data to help industries achieve intelligent perception, data analysis, autonomous decision-making, and precision execution in the production process, thereby helping industries improve operational efficiency, optimize resource allocation, and reduce production costs. In 2024, the market size of China's industrial intelligent solutions reached RMB 2.0 trillion, with a compound annual growth rate of 12.2% from 2020 to 2024. Against the backdrop of continuous promotion of the national policy on the implementation of "AI + industrial Internet" programs, a new generation of information technologies represented by AI, 5G, and IoT are accelerating their deep integration with industrial scenarios, driving the continuous evolution of industrial intelligent solutions from basic connections to intelligent applications. It is estimated that by 2029, the market size of China's industrial intelligent solutions will reach RMB 3.4 trillion, with a compound annual growth rate of 11.1% from 2025 to 2029. As the pace of traditional industrial intelligent transformation accelerates, and the maturity and implementation of industrial big data analysis technologies, as well as the continuous increase in the demand for data value exploration in industrial scenarios, the market for platform-based industrial data intelligence solutions in China is showing a high-speed expansion trend. The market size has grown from RMB 42.4 billion in 2020 to RMB 91.2 billion in 2024, with a compound annual growth rate of 21.1% from 2020 to 2024; it is expected to grow from RMB 105.5 billion in 2025 to RMB 244.6 billion in 2029, with a compound annual growth rate of 23.4% from 2025 to 2029. Industrial digital solutions and IoT solutions have a two-way empowerment relationship, where IoT solutions first achieve data collection and perception in industrial field operations, and the data collected is further explored and developed for value through the industrial Internet platform, empowering IoT solutions with intelligent upgrades and scenario implementation in return. As the acceleration of smart transformation of legacy devices in the home appliance sector, the continuous increase in demand for precise operational control and remote status interaction in terminal devices has driven steady growth in the market for smart controllers at the edge of the Chinese home appliance sector. The market size has grown from RMB 28.5 billion in 2020 to RMB 60.5 billion in 2024, with a compound annual growth rate of 20.7% from 2020 to 2024; it is expected to grow from RMB 67.1 billion in 2025 to RMB 102.4 billion in 2029, with a compound annual growth rate of 11.2% from 2025 to 2029. Board of Directors Information The board of directors consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors. The board of directors is responsible for and has overall authority over the management and operation of the company. The board's powers include convening shareholder meetings and reporting on the board's work at the company's shareholder meetings, determining group business and investment plans, proposing profit distribution suggestions, and exercising other powers, functions, and duties provided by the Articles of Association. Equity Structure As of the last practical date, (i) Hefei Washing Machine Wisdom Household Appliances (HAIER SMARTHOME's wholly-owned subsidiary company) owns approximately 79.42%, and Qingdao Haier Washing Machine Co., Ltd. owns 19.90%, while Qingdao Haier Washing Machine Co., Ltd. is held approximately 99.76% by Smart Household Appliances and 0.24% by Haier Group Corporation; and (ii) Haichuang Zhilian is a limited partnership with Qingdao Haichuang as its general partner. Qingdao Haichuang is owned by Qingdao Haier Venture Capital Co., Ltd. and Qingdao Hairong Hui Holding Co., Ltd. with 51% and 49% ownership, respectively, while Qingdao Haier Venture Capital Co., Ltd. is fully owned by Haier Group (Qingdao) Jingying Holdings Co., Ltd., which is fully owned by Qingdao Hairong Hui Holding Ltd., a non-wholly owned subsidiary of Haier Group Corporation. As of the last practicable date, pursuant to Part XV of the Securities and Futures Ordinance, Haier Group Corporation collectively holds equity in 1,191,407,461 shares of the company through (i) direct ownership of 165,408,050 shares; (ii) indirect ownership through its wholly-owned subsidiary CaoSi Digital Technology (held through CaoSi Holdings) of 749,733,359 shares; (iii) ownership of 147,720,641 shares by Haier Group Corporation's subsidiary HAIER SMARTHOME; (iv) ownership of 82,651,636 shares by Haier SMARTHOME's indirect non-wholly owned subsidiary Hefei Washing Machine (through Smart Household Appliances); (v) ownership of 27,550,545 shares by Haier SMARTHOME's wholly-owned subsidiary Haier Electric Group; and (vi) ownership of 18,343,230 shares by Haichuang Zhilian (a non-wholly owned subsidiary of Haier Group Corporation). Intermediary Team Joint Sponsors: China International Capital Corporation Hong Kong Securities Limited, HSBC Corporate Finance (Hong Kong) Limited Company Legal Advisors: For Hong Kong and U.S. legal matters: Gallant Y.T. Ho & Co.; for Chinese legal matters: King & Wood Mallesons; for international sanctions law: DLA Piper Singapore Pte. Ltd. Joint Sponsors' Legal Advisors: For Hong Kong and U.S. legal matters: Simpson Thacher & Bartlett; for Chinese legal matters: Zhong Lun Law Firm Auditors and Reporting Accountants: Ernst & Young Certified Public Accountants Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Advisors: Mais Capital Limited