Frost & Sullivan
Hangzhou Qunhe Information Technology Co., Ltd. (Stock Code: 0068.HK) successfully listed on the main board of the Hong Kong capital market on April 17, 2026. The company is a leading provider of cloud-native spatial design software in China, relying on AI technology and self-developed GPU clusters to create one-stop spatial design solutions covering multiple scenarios. Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') provides exclusive industry advisory services for Hangzhou Qunhe Information Technology Co., Ltd.'s listing, and hereby warmly congratulates them on their successful listing.
Hangzhou Qunhe Information Technology Co., Ltd. (hereinafter referred to as 'Qunhe Technology') successfully listed on April 17, 2026. The company plans to issue 1.6 billion H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum offering price per share is HK$7.62, raising a net amount of approximately HK$1.024 billion.
During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.
Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of March 31, 2026), from January to March 2026, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 30 (market share 77%), 101 (market share 73%), and 195 (market share 71%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.
PART/1
Investment Highlights
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Based on 2024 revenue, the company has become the largest provider of spatial design software in China with a market share of 23.2%;
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The Chinese space design software market is expected to grow at a compound annual rate of 14.9% from 2024 to 2029, presenting broad market prospects;
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The company is a leading enterprise in cloud-native space design software, possessing three core technologies: self-developed GPU infrastructure, AI applications, and virtual data generation.
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The company adopts a subscription-based business model and is expected to achieve profitability in 2025 after adjustments, with gross profit margin increasing to 82.2%;
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The company has a complete product matrix, includingKuoka LeCoohom helps lead globalization layout;
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The company has a mature customer acquisition and expansion strategy driven by products, with outstanding customer retention and renewal performance.
PART/2
Global Overview of General Design and Visualization Software Market
General-purpose design and visualization software refers to software that uses a variety of tools and techniques to transform abstract concepts into visual representations (such as sketches, 3D models, or interactive environments). It is widely used in fields such as architecture, manufacturing, media entertainment, and product design to improve design efficiency and user experience. In terms of market size, the global general-purpose design and visualization software market is expected to grow from 420 billion yuan in 2024 to 901.4 billion yuan in 2029, with a compound annual growth rate of about 16.5%. Among them, the market size in China is expected to grow from 75 billion yuan in 2024 to 172.9 billion yuan in 2029, with a compound annual growth rate of about 18.2%, a growth rate higher than the global level. Structurally, sub-sectors such as spatial design, CAE/CAM/CAA, game design, and advertising design together constitute the market. Among them, software for spatial design and engineering accounts for a relatively large proportion, and the overall market shows a development pattern with a high concentration in spatial design and relative dispersion in other sub-sectors.
PART/3
Overview of China's Space Design Software Market
Spatial design software is a digital tool used for creating, editing, and analyzing spatial layouts, widely applied in fields such as architectural design, interior design, and urban planning. By application scenario, the Chinese spatial design software market is mainly divided into residential space design and commercial, industrial, and other space design categories. From 2020 to 2024, the overall market size increased from 1.9 billion yuan to 3.3 billion yuan, with a compound annual growth rate of 14.1%, and it is expected to further grow to 6.6 billion yuan by 2029. The commercial, industrial, and other space design sectors occupy a higher market share and have a faster growth rate, with a compound annual growth rate of 18.1% from 2024 to 2029, which is higher than the residential sector's 13.6%, continuously driving industry growth.
In terms of deployment mode, the Chinese space design software industry can be divided into traditional local deployment software and cloud-based software. In 2020, the overall market size was 1.9 billion yuan, of which local deployment software accounted for 1.1 billion yuan and cloud-based software accounted for 0.8 billion yuan. By 2024, the market size will grow to 3.3 billion yuan, with cloud-based software increasing to 1.5 billion yuan, approaching the 1.8 billion yuan of local deployment and showing a higher growth rate. From 2020 to 2024, the compound annual growth rate of cloud-based software is 16.2%, higher than the 12.5% of local deployment software. It is expected that by 2029, the market size of cloud-based software will reach 3.5 billion yuan, exceeding the 3.1 billion yuan of local deployment, with a compound annual growth rate of 18.9%, significantly higher than the 12.3% of local deployment software, indicating that the industry is accelerating its transformation towards cloudification and SaaS models.
In terms of overall growth potential, the Chinese space design software industry has maintained rapid growth driven by demand upgrading and digital transformation. The market size is expected to expand from 3.3 billion yuan in 2024 to 6.6 billion yuan in 2029. At the same time, the global space design software market is also in a stage of rapid development, with a market size of 19 billion yuan in 2024 and is expected to grow to 336 billion yuan by 2029. With enterprises' increasing demands for design efficiency, visualization capabilities, and collaboration, coupled with the continuous advancement of digital transformation worldwide, the space design software industry has strong long-term growth potential both in China and globally.
PART/4
Competitive landscape of China's space design software industry
According to a Frost & Sullivan report, the competitive landscape of China's spatial design software industry exhibits a relatively concentrated structure. Despite there being over 50 active participants in the market, a few leading companies dominate, resulting in a high industry concentration. In 2024, the company ranked first by revenue, holding a market share of 23.2%. Looking at development trends, driven by the acceleration of digital transformation in China, policy support for SaaS applications, and increased demand for collaborative and real-time design tools, cloud-based spatial design software occupies a dominant position in the Chinese market; at the same time, the industry as a whole shows a trend towards tilting towards local manufacturers. In contrast, overseas markets still mainly rely on locally deployed software, especially more so in mature markets such as North America and Europe, reflecting differences in technical paths across regions.
PART/5
Driving Forces of China's Space Design Software Industry
●Continuous growth in multi-scenario needs
The growth of China's spatial design software industry is mainly driven by the increasing demand for diverse downstream application scenarios, including construction, urban planning, e-commerce, and real estate. With the continuous development of related industries, the demand for high-precision modeling, visualization, and spatial optimization tools continues to rise, driving the penetration rate of spatial design software in fields such as real estate and construction to continue to increase. At the same time, the demands for digital transformation, design efficiency improvement, and green building development, coupled with technological advancements such as AI and VR, make design tools more intelligent and efficient, further expanding their applications in scenarios such as residential design, commercial collaborative design, and e-commerce display.
● The trend of industry globalization is accelerating
With the expansion of cross-border business operations by enterprises, there is an increasing demand for design tools that can adapt to different regional standards. Spatial design software has gradually acquired capabilities such as multi-language support, compatibility with international design codes, and local building standards to meet the usage needs of different markets. At the same time, the trends towards global collaboration and remote work have strengthened, promoting the popularization of cloud software applications. This enables design teams from different regions to achieve real-time collaboration and communication, thereby facilitating the global promotion and application of spatial design software.
● >Product customization and enhanced flexibility
Customization and flexibility have become important drivers for spatial design software. Due to significant differences in industry and project requirements, software with customizable templates, parameter adjustments, and flexible workflows is more favored by users. Such tools can help designers quickly adjust and expand design schemes according to specific needs, improving work efficiency and enhancing user experience. At the same time, a high degree of flexibility also helps enterprises meet diverse customer needs, thereby enhancing market competitiveness.
● Virtual space application scenarios continue to expand.
With the deepening advancement of digital transformation, virtual spaces are increasingly being used in business and entertainment fields, driving continuous growth in demand for spatial design software. In scenarios such as gaming, virtual reality, and live streaming, enterprises' reliance on immersive content to enhance user experience is constantly increasing, along with their demand for high-quality visual design tools. This trend has created new growth opportunities for the industry and further strengthened the important role of spatial design software in digital content production and interactive experiences.
PART/6
Development Trend of China's Space Design Software Industry
● >Cloud solution penetration rate increases
The cloudification trend is reshaping the spatial design software industry. Compared to traditional locally deployed software, cloud-based software reduces dependence on local hardware configurations and is no longer limited to fixed workstations, significantly improving design efficiency and flexibility. At the same time, cloud platforms offer higher accessibility, enabling teams to collaborate in real-time from different locations. In addition, cloud solutions provide elastic resource support, helping enterprises manage complex projects more efficiently, reduce upfront infrastructure investment, and accelerate the industry's transformation towards cloud-based and SaaS models.
● Continued enhancement of interoperability requirements
As design projects become increasingly complex and the demand for cross-professional collaboration grows, spatial design software is placing increasing demands on interoperability. The industry is gradually moving towards software that can seamlessly integrate with various tools such as CAD, achieving data sharing and collaborative work between different systems. By supporting multiple file formats, open interfaces, and a plugin ecosystem, designers can efficiently switch between multiple platforms, ensuring data integrity while improving overall work efficiency and driving the industry towards a more open and collaborative direction.
● >Continuous progress in high-quality 3D rendering technology
Benefiting from the improvement in computing power and advancements in graphics technology, spatial design software is continuously upgrading in 3D rendering. The application of advanced technologies such as physical rendering and ray tracing makes design results more realistic and detailed, significantly enhancing visual expressiveness. At the same time, the enhancement of real-time rendering capabilities has greatly shortened rendering times, improved design efficiency, enabled designers to iterate on solutions more quickly, and met the market's demand for high-quality design outputs.
● The application of VR/AR technology is accelerating its popularization
The rapid development of virtual reality (VR) and augmented reality (AR) technologies has brought new application scenarios to spatial design software. Through VR/AR technology, users can immerse themselves in designing schemes, intuitively perceive spatial layouts and design effects in virtual environments, and enhance the interactivity and intuitiveness of presentations. This method not only enhances customer engagement but also helps reduce design modification and decision-making costs, further improving design communication efficiency.
● Technological progress drives industry upgrading
Overall, technological progress is becoming the core driving force for the development of spatial design software industries. With the continuous application of cutting-edge technologies such as AI, the design process is evolving towards greater intelligence and automation. At the same time, new generations of users have put forward higher requirements for design efficiency, visualization effects, and collaboration capabilities, driving continuous iteration and upgrading of software products. Against the backdrop of digital transformation, spatial design software is accelerating its development towards high efficiency, intelligence, and user-friendliness.
PART/7
Barriers to entry into the Chinese space design software industry
● Technical Barriers
The space design software industry has high technical barriers, mainly due to the complexity and professionalism of related technologies. High-quality 3D rendering relies on complex parallel computing architectures and requires the full utilization of GPU performance to improve image quality and processing efficiency. At the same time, the integration of AI technology, such as automated design systems and environmental understanding engines, further raises the technical threshold, making it difficult for newcomers to achieve equivalent technical capabilities in the short term.
● barrriers to capital investment
The space design software industry has high capital investment requirements, constituting a significant entry barrier. Enterprises need to continuously invest in hardware infrastructure, software development, and research and development activities, such as building GPU resources to support high-performance computing and developing cloud-native graphics technology and AI-driven applications. In addition, the continuous optimization and iteration of related technologies also depend on long-term R&D investment, giving the industry a strong capital-intensive nature.
● Talent barriers
The industry has a high dependence on professional talents, forming an obvious talent barrier. The development of spatial design software requires talents with comprehensive capabilities in multiple fields such as software engineering, artificial intelligence, and computer graphics. However, the supply of such talents in the market is limited and competition is fierce. Enterprises need to continuously attract and retain high-end technical talents to support technological innovation and product upgrading, thereby maintaining competitive advantages.
● Brand barriers
Brand building also constitutes an important entry barrier. Mature enterprises typically have established a strong brand recognition and customer base, and protect their core technologies and products through intellectual property such as patents, trademarks, and copyrights. New entrants not only need to achieve breakthroughs in technology and products but also need to build credibility and customer trust in the market. The brand influence and user stickiness of existing manufacturers further increase the difficulty of entry.
