The practice of drafting IPO prospectuses in Hong Kong has come under scrutiny, with criticism directed at several companies for what is perceived as misleading or exaggerated content.
Condiment Manufacturer
A compound condiment company, which filed for a Hong Kong listing in June, has been noted for its promotional language. The first three pages of its prospectus summary were filled with slogans such as "Where there are people, there is Chinese flavor" and "Exquisite cooking is half art, half science." It was not until the fourth page that the document clarified its products are custom-made compound condiments for hot pot and non-hot pot applications.
Vending Machine Operator
An unmanned vending machine company, which markets its products as such on its official website, described itself in its prospectus as an "AI-driven retail enterprise." The core of its so-called AI-driven operations, however, appears to rely on automated systems for site management, product assortment, pricing, inventory replenishment, and logistics decisions.
Security and Intercom Device Maker
A company producing access control machines and smart intercom devices frequently mentioned "AI-driven" in its prospectus, yet its final products remain traditional hardware devices in the relevant categories.
Healthcare Software Firm
A medical services software company positioned itself as a "well-known provider of AI-enabled full-course disease management," primarily using AI for medication reminders and symptom assessment. However, its core revenue continues to come from offline medical institution partnerships, health product sales, and insurance brokerage services.
Hot Pot Restaurant Chain
A hot pot company, in a 2025 prospectus, claimed to be the "largest brand in China's quality hot pot market in 2024, with a market share of approximately 3.1%." It achieved this ranking by defining "quality hot pot" with a threshold of a per-customer spend exceeding 120 yuan (the company's 2024 average was about 142 yuan), thereby excluding the actual industry leader whose per-customer spend is around 100 yuan. That leading company reported 2024 revenue of 42.7 billion yuan, compared to this company's approximately 2.3 billion yuan—a gap of over 18 times. In its latest prospectus from June 2026, the company added a disclosure stating its true ranking was "second in China's hot pot market in 2025."
AI Computing Power Provider
An AI computing power provider has been noted for presenting itself as an "independent third party" by excluding major tech firms from its competitive set. It described itself as "China's largest independent AI computing power cluster provider" and "China's first independent AI computing power cluster provider to complete benchmark projects of different scales." Nonetheless, its actual technical capabilities are considered to lag significantly behind those of major internet companies.
AI Sector Company
A company in the AI sector, which filed its prospectus in late 2025, focuses on AI digital employee solutions and enterprise-grade agent solutions. It categorizes its business revenue into project-based sales, subscription-based sales, and operation and maintenance services. However, the prospectus does not clearly explain the specific revenue models and recognition rules for these categories.
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