Less than eight months after its market debut, DeepExi Tech (1384.HK), an AI data intelligence company once hailed as the "king of oversubscription" in Hong Kong, has initiated a lightning placement. This move has sparked widespread market debate over its operational strategy and genuine funding needs, coming before the company has fully utilized the capital raised from its initial public offering.

The company announced on May 28, 2026, the successful completion and settlement of a placement under a general mandate. Approximately 7.94 million new H shares were placed at HK$50.58 per share, raising gross proceeds of roughly HK$4.02 billion. The net proceeds amounted to about HK$3.95 billion. This marks the company's first lightning placement since its listing in October 2025.

Majority of IPO Funds Remain Idle as New Placement Launches

The context of this fresh capital raise has cast significant doubt on the company's actual use of funds. According to disclosures, as of April 30, 2026, a substantial portion—approximately RMB 442 million, or 73.7%—of the net proceeds from the October 2025 global offering, which totaled around RMB 600 million (about HK$657 million), remained unused. Specifically, the utilization rates for funds earmarked for core business development, such as "enhancing R&D capabilities" and "expanding the sales network and customer base in China," were only 23.5% and 25.8%, respectively.

Against this backdrop, the company has sought nearly HK$4 billion more from the market, citing reasons of "overseas market expansion and localization capability building." While the company emphasized in its announcement that the new funds are not intended to replace the IPO proceeds but to "supplement and expedite" overseas business, the sequence of having a large sum of previously raised capital sitting idle and then launching a new fundraising round the following month inevitably raises investor concerns about the firm's capital planning and strategic execution pace.

From a pricing perspective, the placement price of HK$50.58 represents a discount of approximately 19.8% compared to the closing price of HK$63.05 on the last trading day before the May 21 announcement. This discount level is not insignificant for recent Hong Kong secondary offerings, indicating the company's urgency to secure funds came at a notable cost.

Persistent Losses Underpin High-Growth AI Narrative

The fundamental reason behind DeepExi Tech's need for continuous fundraising lies in its lack of self-sustaining profitability. Despite rapid revenue growth fueled by the "AI data intelligence" concept, the company has consistently reported losses. In 2025, revenue reached RMB 415 million, a year-on-year increase of 70.8%, showcasing impressive growth. However, the net loss attributable to owners was RMB 935 million. Although this narrowed from the RMB 1.255 billion loss in 2024, the absolute loss figure remains high. The company's net loss margin was 225%. The adjusted net loss, excluding non-recurring items, was RMB 199 million, reflecting that while core operations reduced losses, profitability remains elusive. The company's gross margin for the period was 55.1%, a reasonable figure, but high sales, administrative expenses, and R&D costs of RMB 108 million severely compressed profit margins, making it difficult to improve the overall loss situation.

Such阶段性 losses are not uncommon in the broader AI sector, but for investors, they represent significant risk exposure and imply a potentially long wait for profitability to materialize.

Stock Price Volatility: Surge on Index Inclusion Hopes and Plunge on Placement News

DeepExi Tech listed on the main board of the Hong Kong Stock Exchange on October 28, 2025, at HK$26.66 per share. Its stock price trajectory has been heavily influenced by speculative trading and expectations of inclusion in the Stock Connect program. On its debut, buoyed by the hot theme and massive oversubscription, the share price surged over 150% from the offer price, pushing its market capitalization above the threshold for Stock Connect eligibility and setting the stage for potential future inclusion.

After the initial spike, the stock price gradually retreated due to a lack of fundamental support, with speculative泡沫持续出清. By the Stock Connect review cutoff date of December 31, 2025, the share price had nearly halved from post-listing highs, yet its market cap and liquidity still met the inclusion criteria. This fostered strong market expectations for inclusion, becoming a catalyst for renewed capital interest.

In early 2026, driven by rising inclusion expectations and southbound fund inflows, the stock price climbed steadily. On March 6, two major positive catalysts—a positive profit alert and formal inclusion in the Stock Connect—materialized, pushing the share price to an intraday high of HK$120, a gain of over 350% from the IPO price. Following this realization of利好, profit-taking ensued, and the stock entered a clear downtrend.

On May 21, the company officially announced the placement, causing the share price to plummet 17.05% that day. The following day saw a rebound of 9.66%, resulting in highly volatile trading over the two-day period. As the placement shares were settled, market enthusiasm cooled, and the speculative fervor previously driven by the Stock Connect narrative rapidly subsided.

Conclusion: A Mid-Course Test for the AI Story

In less than 230 days since listing, DeepExi Tech has experienced a cycle from IPO frenzy and speculative price surges to fundraising-driven value reassessment. The decision to conduct a secondary offering within seven months of its IPO, while a significant portion of the initial proceeds remains unused, has brought its cash flow and profitability under intense market scrutiny. This serves as a典型缩影 of the capital market journey for new-economy AI firms.

For investors, the core dilemma may be this: Under the competitive rule of "burning cash for scale" in the AI industry, as the红利 of Stock Connect inclusion and the allure of the AI concept fade, and frequent fundraising begins to dilute equity, when will this former "king of oversubscription" transition from storytelling to genuine value creation? The answer remains elusive.