Preview of new stocks in the US stock market | Steady revenue growth, can Zero Degree Digital achieve technological breakthrough through IPO?

In the first half of 2025, while the Hong Kong stock IPO market was active, Chinese companies listed in the US showed a strong trend. According to statistics, a total of 45 Chinese companies successfully listed in the United States, accounting for 22% of the US IPO market, far exceeding the 30 companies in the same period last year. Of these, 40 were listed through IPO, 4 were De-SPAC, and 1 was listed through OTC transfer. Excluding the 4 De-SPAC and 1 OTC transfer, Chinese companies listed in the US raised approximately $870 million in funds in the first half of 2025, with the total fundraising amount increasing against the trend. It can be seen that the US stock market still has interest and investment in Chinese companies. Recently, another Chinese company submitted a prospectus, preparing to list on the US stock market. Chinese cloud networking software company Zerolimit Technology Holding has submitted an initial public offering (IPO) application with the US Securities and Exchange Commission (SEC) under the stock code "ZDAN". The company plans to issue 2 million shares of stock at a price of $4 per share, raising $8 million. At the proposed price, Zerolimit Technology's market value will reach $208 million. Robust performance According to the prospectus, Zerolimit Technology was founded in Shenzhen in 2017 and is a provider of digital economy distributed application services. The company is committed to providing comprehensive solutions for global users in the process of transitioning to the new generation of the internet, offering digital solutions to government agencies, enterprises, and various industries and fields. Its distributed network infrastructure software products enable users to efficiently build distributed networks or migrate existing centralized applications to distributed networks. Application areas include digital governance, distributed online education, distributed search engines, distributed e-commerce, digital asset platforms, food traceability, Internet of Things, and smart manufacturing. The company mainly derives revenue from the sale of software products through distributors and related contract after-sales services. As of the 2024 and 2023 fiscal years, the company had 35 and 28 distributors in China, respectively. Currently, sales have expanded to 9 provinces and 11 cities in China. In terms of revenue performance, the company has seen steady growth in the past two years. As of the 2023 and 2024 fiscal year, the company achieved revenues of $4.187 million and $4.381 million, respectively, representing a 5% year-on-year growth. Net profits were $2.523 million and $2.711 million, respectively, representing a 7% year-on-year growth for the two core financial indicators, demonstrating stable growth. In terms of products, cloud data station node software is the company's main source of revenue. It is a foundational tool for building distributed networks and can transform devices into network nodes. As a core module, it can run specific tasks independently and integrate with other software. Each node acts as a miniature server providing storage and computing capabilities to support user participation in the development of distributed networks. Revenue from this business has continued to grow during the reporting period, achieving revenues of $4.903 million and $5.312 million and revenue proportions of 86.3% and 89.9%, respectively. Meanwhile, the business of enterprise database station node software and hardware boards has brought in revenue of $123,000 for the company in the 2025 fiscal year thanks to the launch of new products during the period. However, sales of smart metaverse boxes and decentralized application software saw declines during the reporting period. The revenue from the smart metaverse box business decreased from $143,000 in the 2024 fiscal year to $37,000 in the 2024 fiscal year, with the revenue proportion dropping from 2.52% to just 0.6%. Revenue from the decentralized application software business decreased from $635,000 in the 2024 fiscal year to $434,000 in the 2024 fiscal year, with the revenue proportion decreasing from 11.18% to 7.4%. Policy drive, industry development The robust performance is also supported by the positive prospects of the industry. As a key force leading the implementation of the national innovation strategy, the digital economy has received significant attention in recent years. Data as a production factor can stimulate and promote the development of new industries, new formats, and new models in the digital economy, serving as an important lever to promote high-quality development of the digital economy. Digital transformation has also become a necessity for the high-quality development of cities. The concept of "smart cities" was proposed in 2008 as a new model and concept for the operation and governance of modern cities. Pilot projects for smart cities began in 2012. In February 2023, the country put forward the top-level plan for building a digital China and promoting intelligent development, clarifying that building a digital China is an important engine for promoting Chinese-style modernization in the digital era and is a strong support for building new national competitive advantages. With the widespread application of new generation information technologies such as big data, artificial intelligence, the Internet of Things, and cloud computing, the pace of smart city construction in China has been accelerating. According to a report from the China Industrial Research Institute, the market size of smart cities in China will increase from 15 trillion yuan in 2020 to 36.8 trillion yuan in 2024, with a compound annual growth rate of 25.2%. Analysts from the China Industrial Research Institute predict that by 2025, the market size of China's smart cities will reach 45.3 trillion yuan. In this context, there is a huge market space for ZeroLimit Technology. While Huawei is accelerating its layout in the central cloud market, ZeroLimit Technology, as a distributed cloud enterprise, is also actively deploying. From a global perspective, the market size of decentralized distributed technology is expected to continue to grow rapidly. According to data and forecasts released by the International Data Corporation, the global market size of decentralized distributed technology reached $14 billion in 2020. It is projected that by 2024, the global market for decentralized distributed technology will reach $189.5 billion, achieving a compound annual growth rate of approximately 48% during the forecast period and maintaining rapid growth. Due to the increasing demand for decentralized and secure data storage, computing, and communication solutions, the market for decentralized distributed technology in China is still in its early stages but is also expected to grow rapidly. According to data and forecasts released by the International Data Corporation, the market size of decentralized distributed technology in China reached $600 million in 2021. It is expected that the market for distributed technology in China will grow in the coming years, with a focus on areas such as intellectual property rights, healthcare, e-commerce, education, and financial services, which require secure and decentralized systems to handle sensitive data, transactions, and supply chain logistics. It is projected that by 2026, the market size of decentralized distributed technology in China will reach $42.8 billion, achieving a compound annual growth rate of approximately 32% during the forecast period, demonstrating rapid growth. However, it should be noted that there is currently no widely recognized leading developer or company in the Chinese market for decentralized distributed technology, and as an early participant in the industry, ZeroLimit Technology may have a first-mover advantage. In conclusion, ZeroLimit Technology, as an early participant in the field of distributed technology, has shown some market potential against the backdrop of rapid industry growth. Its core product, cloud data station node software, has shown stable revenue performance, and the company's layout in smart cities and digital transformation provides a foundation for its future development. However, the market for distributed technology is still in its early stages, the competitive landscape has not yet been established, and whether ZeroLimit Technology can continue to seize opportunities and address challenges remains to be further observed.