Soulgate Inc., the company behind the popular social application Soul App, is embarking on a new chapter by filing for an Initial Public Offering (IPO) in Hong Kong. This strategic move aims to capitalize on the company's pioneering integration of artificial intelligence into its platform, alongside a proven track record of profitability. The offering is expected to draw investor interest, particularly given the app's focus on fostering meaningful emotional connections among its user base, primarily Generation Z.
The core of Soul App's appeal lies in its innovative use of AI. Unlike many conventional social media platforms, Soul App emphasizes identity-free interactions, where users connect through avatars based on shared interests rather than real-world identities. This unique approach is powered by Soul X, the company's proprietary emotional intelligence large model, which was launched in December 2023. Soul X is continuously refined by a vast amount of user data collected from the platform's dynamic public spaces, such as the Soul Square, ensuring its ability to perceive emotions and facilitate empathetic companionship.
Soul App's business model has successfully translated its technological advancements into financial success. The platform primarily generates revenue through the sale of emotional value goods and services, including virtual items and membership privileges, all facilitated by its in-app currency, Soul Coins. This monetization strategy has enabled Soul App to achieve profitability, a significant accomplishment in the AI sector, which often faces substantial development and maintenance costs. The company reported adjusted profits of 337.3 million yuan ($47.7 million) in 2024 and 286.4 million yuan in the first eight months of 2025, demonstrating healthy gross margins of over 80%.
The company's journey to this Hong Kong IPO has seen previous attempts to list in the U.S. in 2021 and an earlier Hong Kong application in 2022, both of which were withdrawn or expired. However, the current resubmission comes at a time when the Hong Kong IPO market is experiencing renewed vigor, with a strong emphasis on AI-driven companies. Soul App stands out in this competitive landscape due to its genuine and early adoption of generative AI, predating the recent surge in AI popularity ignited by technologies like ChatGPT.
Soul App's AI-powered recommendation algorithm, developed since 2017, precisely understands users' cognitive and behavioral patterns to facilitate connections between like-minded individuals. Since 2020, the company has systematically explored the deep integration of AI and social scenarios, leading to the creation of Soul X. This model uses multi-modal perception to grasp user preferences, recommending friends and communities, including content feeds, interest groups, and audio chat rooms. Features like "Chat Spark" and "AI Inspiration" further enhance user engagement by suggesting conversation starters and refining posts, thereby strengthening social connectivity and fostering communities focused on emotional consumption. With approximately 11 million daily active users in the first eight months of 2025, and over 90% of its revenue derived from AI-powered emotional value services, Soul App's strong user engagement not only drives continuous improvements in its AI models but also opens up new commercialization avenues, creating a self-sustaining cycle of user-AI-platform growth.
Ultimately, Soul App's robust AI foundation and demonstrated profitability are expected to secure a premium valuation in its upcoming Hong Kong IPO. Its specialized AI models are well-positioned to attract a growing demographic of Gen Z users who are increasingly seeking authentic emotional connections and immersive digital experiences in their online interactions.