On November 29, Beijing-based 51World submitted its application to list on the Main Board of the Hong Kong Stock Exchange (HKEX) under Chapter 18C. This provision caters specifically to specialist technology companies, making 51World the fifth firm to seek this route. The joint sponsors, China International Capital Corporation (CICC) and Huatai Securities, are backing the move.

Founded in 2015, 51World has carved a niche in 3D graphics, simulation, and artificial intelligence. The company is best known for its ambitious “Earth cloning project,” unveiled in 2017, which aims to create a virtual replica of the planet for simulation purposes. Its product suite is anchored by three platforms: 51Aes (digital twins), 51Sim (synthetic data and simulations), and 51Earth (digital Earth).

In China’s digital twin market, providers fall into two categories: all-in-one solution developers and single-solution specialists. 51World stands out as the country’s sole comprehensive provider, offering tools ranging from model asset development to cross-industry applications. A report from Frost & Sullivan positions it as the top digital twin solutions provider in China by revenue for 2023.

The company’s dominance is underpinned by an extensive funding history. To date, it has completed eight funding rounds, raising the highest cumulative amount in its sector. With a valuation of RMB 4.4 billion (USD 616 million), its investors include Nanning Renewal Capital, Lightspeed China Partners, Sky9 Capital, Star VC, and Cherami Investment Group, as well as industry players such as SenseTime and Moore Threads, and individual backers like Ge Weidong and Liang Botao.

51World’s financials underscore both growth and investment intensity. Its revenue grew from RMB 126 million (USD 17.6 million) in 2021 to RMB 256 million (USD 35.8 million) in 2023, reflecting a compound annual growth rate (CAGR) of 42.56%. For the first half of 2024, revenue rose 12% year-on-year.

Despite consistent gross profit margins—65.2% in 2021, 65% in 2022, and 54.2% in 2023—the company posted adjusted net losses due to significant R&D spending. From 2021 to 2023, R&D expenses accounted for 85.2%, 79%, and 40.2% of annual revenue, respectively. In the first half of 2024, this trend continued with an allocation of RMB 60 million (USD 8.4 million). Nonetheless, narrowing losses suggest improving operational efficiency.

As of June 30, 51World held RMB 270 million (USD 37.8 million) in cash and cash equivalents, alongside RMB 78 million (USD 10.9 million) in other financial assets, for a total of RMB 350 million (USD 49 million).

51World’s digital twin products have reportedly been adopted by over a thousand enterprises globally, serving industries from urban planning and water resources to automotive and entertainment. Its reach spans 19 countries and regions.

The company’s next steps include deepening investments in digital infrastructure, AI-driven synthetic data capabilities, and its digital Earth initiatives. These projects aim to unlock commercialization opportunities while solidifying its market leadership.

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Huang Nan for 36Kr.