Hard core technical barriers+multiple growth engines, can Xunze Technology (03317) become the “Chinese version of Palantir”?

“We only solve problems that cannot be abandoned” — the growth legend of Palantir, which created a 5-year market capitalization of over 400 billion US dollars in the US stock market, may now be expected to be shown in the Hong Kong stock market.

Xunce Technology (03317), which launched a stock offering on December 18 and listed on the main board of the Hong Kong Stock Exchange on December 30, is getting closer to officially entering the secondary market. The company's high-growth data analysis circuit is regarded as the “Chinese version of Palantir” due to its strong technical barriers, leading market position, and forward-looking strategic layout, and has been highly anticipated by the market since the form was submitted.

According to Zhitong Finance, Xunze Technology plans to issue 22,500,000 H shares in this IPO. Among them, the Hong Kong public sale of 2,250,000 H shares and the international sale of 20,250,000 H shares. Based on an issue price of up to HK$55 per share, Xunce Technology's current IPO raised approximately HK$1,237.5 billion, with a market value of approximately HK$17.7 billion.

Behind this, in addition to famous shareholders such as Tencent, KKR, Ali, and Goldman Sachs, Xunce Technology has also introduced a lineup of 9 “luxury” cornerstones, including Yunfeng Fund, Fortune Holdings, China Television Jinqiao, Alphahill Fund, Infini Infini, Rose Hong Kong, Cithara Fund, Factory Master Fund, and Joy Mobile.

Surrounded by so much “smart capital,” the investment value of Xunce Technology is clearly worth the market's expectations.

However, this is just the beginning. For example, according to Palantir's growth story, from the market capitalization of 19.9 billion US dollars on the first day of listing to the myth of 460.9 billion US dollars on December 19, from long-term losses to the first quarterly profit at the end of 2022 to complete its proper name in the capital market... Xunce Technology, which has the same market attack line and similar product core as Palantir, will undoubtedly also have sufficient possibilities to sprint towards the “100 billion market capitalization” target.

So how can Xunze Technology replicate this imaginative “Chinese version of Palantir” value leap forward?

Start from difficult core scenarios and build the hardest “technical barriers”

From defense intelligence to enterprise operations, to becoming a “mission command system” for countries and large enterprises, the success of Palantir, a global pioneer in big data analysis, essentially resonates perfectly with forward-looking strategic strength and the depth of hard core technology.

It chose the most difficult path with the highest barriers: using a unified data intelligence operating system to cut through from the most core customers and scenarios to become the decision-making brain in key industries. Then, by completing a thrilling leap from customized projects to general platforms, it opened up the growth ceiling, realized high profits, and finally established itself as a benchmark for core assets in the AI and data era.

It is no coincidence that Xunze Technology, a leader in the domestic data analysis segment, can be regarded as the “Chinese version of Palantir.”

First, the same market attack path: “starting from a difficult core scenario” and becoming a leading enterprise in the industry segment.

Specifically, Palantir uses US intelligence agencies (such as the CIA) and the Department of Defense (such as the Army) as starting points to solve the most complex and sensitive data issues such as anti-terrorism and intelligence-related issues. After success, it expanded into the fields of finance (such as Morgan Stanley), energy, healthcare, etc. Meanwhile, Xunce Technology uses China's top private equity funds, public funds, and regulators as a starting point to solve the most core and complex data silos and real-time analysis problems in the financial industry, such as investment decisions, risk management, and compliance reporting. After gaining a foothold, it expanded into various fields such as telecommunications and urban management.

The common logic is to conquer the most demanding “lighthouse customers” with the most complex needs, thereby proving the reliability of their technology in extreme scenarios, forming a top-down demonstration effect and extremely high trust endorsement.

Second, a similar product core: “Build a unified data intelligence operating system.”

According to reports, both Palantir and Xunze Technology are not satisfied with providing a single point tool, but rather aim to become an enterprise-level “central nervous system.” Among them, the core of Xunce Technology is to build a unified real-time data calculation platform to open up system data such as investment research, trading, risk control, valuation, and compliance within asset management institutions in real time to form a “single data fact” for the entire business chain to provide real-time and consistent insight into investment decisions. This is similar to Palantir. Palantir creates a platform that can connect all isolated data sources, uniformly model and correlate data through ontology to form a “single source of truth”, and build analytical applications based on this.

The common logic is — opposing fragmented tools, advocating the restructuring of an enterprise's data infrastructure and workflow through a unified platform, and the deep integration of data and business logic.

Based on this strategic blueprint, in addition to overcoming core problems in the financial vertical field, Xunce Technology has also found and overcome China's next “unrelinquishable problems” (such as energy security and smart city governance), thus establishing strong technical barriers.

Zhitong Finance observed that the core moat of Xunce Technology is the company's real-time data infrastructure, a cloud-native unified real-time data platform developed independently. The platform can collect, clean, manage, analyze, and govern heterogeneous data from multiple sources within milliseconds to seconds. This also enables the solutions provided by the company to quickly summarize, process and analyze data at a frequency of milliseconds to seconds (the industry average speed is seconds), and provide automatic data output with 100% data consistency and traceability to optimize the efficiency and flexibility of the entire operation, representing the highest industry standards.

Currently, the company has disassembled the core real-time data processing capability into more than 300 standardized functional modules, like “LEGO bricks” that can be flexibly combined, which can not only meet the second-level valuation needs of financial institutions, but also adapt to various scenarios such as network monitoring by telecom operators, and ultimately form seven major solutions covering the entire data life cycle.

Under such technical barriers, Xunce Technology also followed Palantir's similar growth logic to complete the transformation from a “leader in the field of segmentation” to an “expert in replicating technology across industries.”

According to Frost & Sullivan's data, in terms of 2024 revenue, Xunce Technology ranked first in the real-time data infrastructure and analysis market in the Chinese asset management industry, with a market share of 11.6%. As the company replicates modular solutions horizontally into fields such as telecommunications and urban management, the company's revenue share from diversified industries such as telecommunications, urban management, and production management also surpassed the asset management business it started for the first time in the first half of 2025, reaching 52.7%, achieving perfect cross-industry transformation.

The two major growth engines resonate and grasp the “compound interest” principle

In fact, in addition to tough technical barriers, the strong growth power of Xunce Technology from two major growth engines is also the key to replicating Palantir's growth path.

Engine 1: The value of a single customer continues to increase, and profitability and certainty are significantly enhanced.

With the continuous optimization of the company's customer structure, under a diversified strategic layout, the ARPU (average customer revenue) of Xunce Technology's asset management and non-asset management industry customers both increased significantly during the reporting period. Among them, the asset management ARPU jumped from 1,582 million yuan in 2022 to 2,724 million yuan in 2024, and the ARPU (average customer revenue) of non-asset management industry customers increased from 1,846 million yuan in 2022 to 7.046 million yuan in 2024, an increase of nearly three times over four years.

The significant increase in the value of Xunce Technology's single customer is due to the “depth” and “breadth” of the company's customer structure layout. In terms of “depth”, as the company has formed a strong brand effect in the asset management industry and contributed many lighthouse cases and product modules, the company has established an unparalleled level of trust in the core customer base; in terms of “breadth,” as Xunce Technology successfully expanded from the field of asset management to various fields such as financial services, telecommunications, and urban management, the company's customer base has further expanded.

The growth significance brought about by this customer structure is also clearly directly reflected in the company's core financial data — as the company has more lighthouse cases and lower marginal customer acquisition costs, and the company's profitability has remained high for a long time. From 2022 to 2024, the company's overall gross margin remained stable between 76% and 79%, and the scale effect gradually became apparent.

Engine 2: Expanding across industries, further opening up the growth ceiling.

According to prospectus data, the market size of the asset management segmentation circuit started by Xunce Technology will increase from 75.2 billion yuan in 2024 to 183.9 billion yuan in 2029, with a compound growth rate of 19.6%. With a market size of 100 billion plus a compound growth rate of nearly 20%, the development prospects of the asset management segmentation circuit are clearly not small. And the leap from the 100-billion-level fintech market to the trillion-level digital industrial market is completely connected to the “sea of stars.”

According to the prospectus, the overall potential size of China's real-time data infrastructure and analysis market is expected to grow from 525.2 billion yuan in 2024 to 1152.9 billion yuan in 2029, with a five-year compound growth rate of 17.0%; at the same time, the market penetration rate of this industry is still very low, with a penetration rate of only 3.6% in 2024. This also means that the industry is on the eve of explosive growth. Xunce Technology, which has successfully achieved a cross-industry layout, may be expected to reap “beta dividends” of market expansion and “α benefits” of increased share, and the growth momentum is very impressive.

Numbers are also the best litmus test. With the help of these multiple growth engines, from 2022 to 2024, Xunce Technology's total revenue increased rapidly by more than two times, to 288 million yuan, 530 million yuan, and 632 million yuan respectively.

Based on the above, under the high gross margin level combined with the growth potential of multiple industries, Xunce Technology has undoubtedly also found its own “wet snow” and “long slope,” and has accurately grasped the two core elements of compound interest growth. As its growing flywheel accelerated, the company's subsequent performance was like a “snowball” and ushered in explosive growth.

epilogue

At the end of 2022, Palantir announced its first quarterly profit. Since then, GAAP profits have been achieved for several consecutive quarters, and high growth has been maintained. In the end, using “profit” as the trumpet, it completed its battle for a market value of 100 billion US dollars.

In comparison, Xunce Technology, which is currently still in a state of loss, is also in urgent need of a “battle for the right name,” but this is not too far away. The reason why the company is currently losing money is because it invests most of its revenue in technology and market expansion. This is a typical strategy for exchanging future space during a period of rapid growth. Furthermore, the company is currently in a 100 billion blue ocean on the eve of the explosion, and Xunce has already taken the best position. Once the company's growth momentum is released at an accelerated pace, it is also expected that it will soon move towards a profitable channel.

Today, Palantir has surpassed 460 billion US dollars, and it has been less than 3 years since its profit. In this short time, the company's market capitalization has completed the transition from 10 billion to 100 billion dollars in market capitalization. However, with Xunze Technology, which is regarded as the “Chinese version of Palantir,” there is no doubt that there is plenty of room for imagination on the rise in market capitalization as it officially enters the Hong Kong stock market.