Two days up 470%, AI magic tool sparks a frenzy in Hong Kong stocks, Hillhouse and Junlian are making a killing

Haitzi Technology listed on the Hong Kong Stock Exchange in 2026, leveraging its proprietary “Image-Model Fusion” technology to effectively reduce AI hallucinations, igniting the market. The stock price surged nearly 470% over a few days, setting an oversubscription record, with venture capital backers reaping huge returns.

In the Lunar Year of the Horse, the Hong Kong stock market is ablaze with AI enthusiasm.

On February 13, 2026, Haitzi Technology Group (02706.HK), dubbed the “First Stock to Eliminate Hallucinations in Large Models,” officially listed on the HKEX. The opening price soared over 204% above the issue price of HKD 27.06, with intraday gains exceeding 260%. The closing price that day increased over 242%.

Subsequently, on February 20, Haitzi Technology continued its rapid rise, with intraday gains reaching over 4.7 times the IPO price. It closed at HKD 154.1, with a market capitalization surpassing HKD 35 billion.

Founded by Baidu veteran Ren Xuyang, the company’s core technology, “Image-Model Fusion” (Atlas Intelligent Agent + Knowledge Graph), reduced hallucination rates of large models by 80%, with an oversubscription of 5065 times.

This capital feast not only doubled the founder Ren Xuyang’s wealth but also allowed early backers like Hillhouse Capital, Legend Capital, and IDG Capital, who had been lurking for years, to earn substantial profits.

Based on the latest market cap, Legend Capital’s holdings are worth over HKD 4.7 billion, IDG Capital’s holdings exceed HKD 1.7 billion, and Hillhouse’s holdings are valued at nearly HKD 1.3 billion.

Additionally, cornerstone investor Zhipu’s “Industry Linkage” investment, with an initial investment of USD 4 million, has appreciated to nearly HKD 180 million within a week, yielding over 470% returns.

This article will analyze the wealth data behind this IPO frenzy, assess Haitzi Technology’s fundamentals, and focus on the top winner in the large model track—Legend Capital.

Early shareholders’ unrealized gains reach tens of billions,

Zhipu’s cornerstone investment gains over 470% in one week

Haitzi Technology’s IPO is a collective harvest of venture capital. The issue price was set at HKD 27.06, and on the first trading day, the stock soared close to HKD 100. By February 20, it closed at HKD 154.1, a cumulative increase of 469.5% from the issue price.

According to the prospectus, as of the last practical date, the institutional shareholders’ holdings are as follows: Legend Capital via entities like Legend Capital Partners, LC ELITE, Suzhou Junjun De, and Legend Yi He held a total of 13.62%, making it the largest institutional shareholder; IDG Capital’s SkyFine held 4.86%; Hillhouse Capital through Hillhouse and Zhuhai Cheheng held 3.71%. Additionally, BetaAsia Investment Fund held 6.5%, and China Internet Investment Fund held 3.94%.

Based on Haitzi Technology’s HKD 35 billion market cap on February 20, the market value of these institutional holdings is as follows:

These investments were made at much lower costs than the IPO price.

According to DoNews, Haitzi Technology has undergone over ten funding rounds in its 13-year history. Even at the last round in June 2025, with a post-investment valuation of RMB 3.3 billion (about HKD 3.55 billion), it was roughly one-tenth of the current market value.

This means that even investors in the final round saw their paper gains of about 10 times.

For early investors like Hillhouse and Legend Capital, who entered as early as Series B in 2014, their returns could be dozens of times or higher.

Hillhouse’s strategic positioning is particularly noteworthy. According to Lieyunwang, Hillhouse recognized Haitzi Technology’s technological potential as early as 2014 and began investing, participating in Series B, C, and E rounds. Haitzi’s IPO marks Hillhouse’s sixth IPO in 2026, following companies like Bairen, MiniMax, Zhipu, Suzhou Rebo, and North Chip.

Beyond early VC euphoria, cornerstone investors in this IPO also reaped immediate benefits. Haitzi’s IPO attracted four cornerstone investors, subscribing a total of USD 15 million (about HKD 117 million).

Most notably, Zhipu, through its subsidiary Jingsheng Hengxing, invested USD 4 million.

As the “First Stock in Large Models,” Haitzi’s market cap once exceeded HKD 300 billion after its January 8, 2026 listing. Its investment in Haitzi is seen as part of its industry layout extending into downstream applications.

At Haitzi’s February 20 closing price of HKD 154.1, the holdings of cornerstone investors have multiplied in value within a week.

Zhipu’s USD 4 million (roughly HKD 31.2 million at the exchange rate then) investment is now worth over HKD 178 million, with a profit of over HKD 147 million in just a few days, yielding over 470% returns.

This “Large Model + Application” mutual shareholding and capital linkage are becoming a new paradigm in the AI track.

Haitzi’s total fundraising amount in this IPO was HKD 759 million, with net proceeds of HKD 655 million. The public offering was oversubscribed by over 5065 times, setting a new record for Hong Kong IPO subscriptions in 2026 and earning the title of “AI Subscription King” of the year.

Although the fundraising scale is smaller than Zhipu’s, its post-listing market value performance is more explosive due to its “AI application” scarcity.

Founded by Baidu veterans, focusing on “Hallucination Removal” AI applications, an industry unicorn

Haitzi Technology was born from the entrepreneurial efforts of a Baidu veteran.

Founded in 2013 by Ren Xuyang, who worked at Baidu for ten years and served as Vice President of Marketing and Business Development, along with Shi Youcai and Hu Song.

Ren Xuyang was known for headhunting at Baidu, leading the founding of iQIYI in 2009, and selecting former Sohu COO Gong Yu as CEO of iQIYI; he also recruited Baidu’s former Senior Vice President and Du Xiaoman CEO Zhu Guang, former Baidu Investment Vice President and current Xianghe Capital founder Tang Hesong, among others.

After leaving Baidu, he studied at Stanford and founded Yidian Zixun, News Break, Haitzi Technology, and Tianshan Capital, which focuses on Series A investments, making him a serial entrepreneur and investment hunter in China’s internet industry.

Haitzi Technology’s positioning is not just a general large model but focuses on “developing industry-grade intelligent agents and providing industry-level AI solutions through image-model fusion technology,” which is why it is called the “First Stock to Eliminate Hallucinations in Large Models”—emphasizing the application of large models in industry, removing hallucinations, and solving real-world problems. The company has been deeply engaged in industrial AI for 13 years, meaning it was quietly working in the B2B field before ChatGPT’s explosion.

Its core technical approach is “Image-Model Fusion”—combining the precise reasoning ability of knowledge graphs with the natural interaction capability of large models.

In March 2021, Haitzi Technology partnered with Tsinghua University to develop China’s first high-performance distributed graph database, AtlasGraph. Compared to traditional relational databases, graph databases excel at complex relationship computations.

In 2023, AtlasGraph set a world record in the Linked Data Benchmark Council (LDBC) test, with throughput per second 45% higher than previous records.

With the advent of AI large models, in September 2023, Haitzi launched the “Haitzi Atlas LLM Graph-Model Joint Reasoning Platform,” which deeply integrates knowledge graphs and large models to improve decision-making efficiency, prediction accuracy, and reduce hallucinations.

Financially, Haitzi is in a stage of revenue growth and narrowing losses.

The prospectus shows that in 2022, 2023, and 2024, revenues were RMB 313 million, RMB 376 million, and RMB 503 million, respectively, with a CAGR of 26.8%.

Gross profit was RMB 96.86 million, RMB 132 million, and RMB 182 million, with gross margins increasing from 30.9% in 2022 to 36.3% in 2024.

Although net losses were RMB 176 million and RMB 266 million in 2022 and 2023, respectively, the net loss narrowed to RMB 93.73 million in 2024. However, due to ongoing R&D and market expansion, the loss in the first nine months of 2025 increased again to RMB 210 million.

The company’s business structure is also evolving. The Atlas graph solution still contributes most of the revenue, with 2022, 2023, 2024, and the first three quarters of 2025 revenues of RMB 313 million, RMB 367 million, RMB 417 million, and RMB 188 million, respectively, accounting for 100%, 97.6%, 82.8%, and 75.3% of total revenue.

Since the launch of the Atlas Intelligent Agent in September 2023, revenue has rapidly increased, reaching RMB 86.6 million in 2024, a year-on-year growth of 872.2%, accounting for 17.2% of total revenue, up from 2.4% in 2023, and further rising to 24.7% in the first three quarters of 2025.

In terms of market position, Haitzi Technology holds a leading position in multiple niche fields.

According to Frost & Sullivan, based on 2024 revenue, Haitzi ranks fifth among China’s industrial AI intelligent agent providers, with a market share of 2.8%. In the more specific “Graph-Centric AI Intelligent Agent” segment, Haitzi holds about 50% market share, ranking first.

This niche market was only RMB 200 million in 2024 but is expected to grow to RMB 13.2 billion by 2029, with a CAGR of 140%.

By going public now, Haitzi has hit the timing of the Hong Kong stock market’s “AI application” concept explosion.

Unlike pure model sales, Haitzi’s focus is on industry intelligent agents combining knowledge graphs and large models. Its clients are mainly large institutions in finance, energy, and government sectors, which gives it a valuation premium different from foundational model companies like Zhipu and Minimax, with higher application landing premiums.

Legend Capital’s “Heavy Investment” Philosophy:

From Zhipu to Haitzi,

Dual-Player in Models and Applications

Behind Haitzi’s long list of investments are VC institutions that have been integral to China’s AI development. In the wave of large models, Legend Capital’s aggressive positioning has yielded substantial gains, making it one of the top players in the field.

On January 8, 2026, Legend Capital experienced a “double celebration”—investments in Zhipu and Jingfeng Medical both listed on HKEX on the same day. Now, with Haitzi’s breakout, Legend’s AI application layer has another key piece on the board.

In terms of shareholding, Legend Capital owns 13.62% of Haitzi, making it the largest institutional shareholder. Based on the latest market cap, this stake is worth over HKD 4.7 billion.

Focusing solely on Legend’s approach in the large model track, its core philosophy can be summarized as “Long-termism” and “Full Industry Chain Coverage.”

Legend Capital President Li Jiaqing stated that Legend had proactively invested in Zhipu before the large model boom in 2022. Unlike most financial investors, Legend used its comprehensive growth funds and Zhongguancun Social Security Fund to make nine additional investments in Zhipu, ultimately becoming its largest institutional investor.

This “early, heavy, continuous” investment strategy paid off after Zhipu’s IPO—its market value once exceeded HKD 300 billion on the first day.

Just a month after Zhipu’s IPO, Haitzi Technology, a “partner” of Zhipu, also took center stage. As an early investor, Legend’s long-term involvement with Haitzi once again proved its industry insight. Notably, Zhipu appeared among Haitzi’s cornerstone investors, which is no coincidence.

As a foundational large model vendor, Zhipu and Haitzi, as an industry-level AI application vendor, form a “model layer + application layer” dual layout in Legend’s AI ecosystem.

Legend believes that the investment logic for large models is evolving. Li Jiaqing pointed out that as AGI accelerates, the core of investment is shifting from mere capital supply to “feasibility.”

Currently, Legend has invested in dozens of companies across the AI industry ecosystem, including foundational, model, and application layers. This extensive layout allows Legend to “grab both ends”—having made early bets on both models and applications—while others are still debating which to prioritize.

In terms of returns, Legend’s investment in Haitzi has been highly profitable.

Based on Haitzi’s RMB 3.3 billion valuation in the last round of funding in June 2025, and its current HKD 35 billion market cap, a rough estimate suggests that if Legend’s average cost in early rounds was significantly lower than the final valuation, its overall return multiple could exceed 20 times. This implies that Legend’s paper profit from Haitzi alone could surpass HKD 4.5 billion.

Unlike Hillhouse’s full-spectrum coverage or Yuan Source Capital’s early capture, Legend Capital leverages patient capital from social security funds and other long-term funds, pursuing deep empowerment and heavy involvement.

From Zhipu’s nine additional investments to Haitzi’s long-term support, Legend Capital is building a “builder” rather than a “gambler,” reaping the richest rewards in this wave of AI asset securitization.

After Haitzi’s listing, Legend Capital holds stakes in both China’s “Number One Large Model” and “Number One Hallucination-Free Large Model,” with its deep and profitable AI layout leading the industry.