US Stock IPO Outlook | Financial Backtesting Business Steady Growth, GaoYing Technology Wins in the Quantitative Trading Market with SaaS Cloud Services?

Currently, the global geopolitical turmoil is intensifying, and the interest rate environment continues to be under pressure, posing unprecedented operational challenges for financial institutions. The new productivity revolution led by large models is sweeping through the global financial industry, reshaping the industry landscape and disrupting traditional models. PwC stated that in the next 5-10 years, financial technology will become the core driving force behind the development of the global digital industry. The accelerated iteration of AI and digital technologies is driving profound changes in global financial technology, altering the operational models of the financial industry.

GaoYing Technology is a vertical enterprise born from this industry revolution. Recently, the company updated its prospectus with the U.S. Securities and Exchange Commission (SEC), with the stock code GIT, intending to go public on NASDAQ in the United States. It submitted a confidential filing to the SEC on March 28, 2023, and subsequently publicly disclosed the prospectus on December 15, 2023.

Dual Growth in Revenue and Net Profit

The prospectus shows that GaoYing Technology, based in Shenzhen, Guangdong, primarily provides high-performance backtesting solutions for the financial sector (especially for those engaged in quantitative trading strategy development and related services). The company's backtesting services include cloud-based SaaS solutions and customized backtesting system development; the company also meets the needs of small and medium-sized enterprises by providing enterprise management SaaS solutions, covering basic business functions such as sales and marketing management, human resource management, administration and operations, and customer relationship management; the company also offers software system development services.

GaoYing Technology has deployed a hybrid cloud infrastructure, including proprietary private computing clusters and public cloud rented from third-party cloud providers. The company's systems are based on cloud-native technology, leveraging the technological advantages of cloud platforms for rapid deployment and elastic scalability. The company's proprietary hybrid cloud infrastructure enables it to optimize computing power and provide universally accessible and easily scalable products. The company's long-term commitment to cloud-based solutions allows its products to be highly adaptable to various customer usage scenarios.

The prospectus indicates that in the past fiscal years 2023 and 2024 (with the fiscal year ending on September 30 each year, hereinafter referred to as the reporting period), GaoYing Technology's revenue was $1.1587 million and $15.3973 million, respectively, representing a year-on-year growth of 38%; the corresponding net profits were $4.0799 million and $7.3312 million, representing a year-on-year growth of 79.7%.

The dual growth in revenue and net profit enhances the company's cash flow. During the reporting period, cash flows from operating activities were $5.5523 million and $6.8448 million; cash and cash equivalents at year-end were $7.8674 million and $14.7176 million, respectively.

Looking further into the details, in the fiscal year 2024, the revenue from backtesting solutions amounted to 11.8803 million yuan, accounting for as much as 77.2%. The revenue from enterprise management SaaS services was 2.1407 million yuan, accounting for approximately 13.9%, while the revenue from software system development services was 1.3763 million yuan, accounting for 8.9%. Compared to the same period last year, not only did the backtesting cloud solution business record growth within the year, but the newly expanded enterprise management SaaS service business also grew simultaneously, becoming the "second growth curve."

In fact, this is undoubtedly attributed to the increasing integration of mainstream technological trends such as algorithmic trading, big data analysis, machine learning, blockchain, and cloud computing into trading in recent years. In particular, hedge funds are applying this trend of technological advancement to actual financial trading situations, from trade automation to data analysis, including backtesting. Financial IT solution providers are able to keep up with the continuously advancing technology and combine financial IT solutions with technological advancements to meet the needs of financial institutions and leverage market growth opportunities.

The prospectus shows that GaoYing Technology's backtesting SaaS platform integrates data, strategies, and computing power resource distributed task scheduling, providing customers with high-performance backtesting tools and computing power services to test the effectiveness of investment strategies. GaoYing Technology's customer base primarily consists of investors, including quantitative trading strategy software system developers, individual investors, small and medium-sized enterprises, and financial institutions. For example, quantitative traders can quickly validate trading strategies using its platform, reducing risks and increasing returns; small and medium-sized enterprises utilize enterprise management SaaS solutions to achieve digital transformation and enhance management efficiency.

Fintech Rising to the Occasion: Business Expansion or Influenced by the Financial Market

With the stunning appearance of humanoid robots in flower jackets performing the Yangko dance at the 2025 CCTV Spring Festival Gala, the focus of attention on domestic and international technological innovation was quickly enveloped by a "mysterious Eastern power." Correspondingly, the concept of the "Six Little Dragons of Hangzhou" rapidly gained popularity internationally. This powerful name represents six companies founded in Hangzhou with strong technological innovation capabilities and influence: Deep Exploration, Yushu Technology, Game Science, Cloud Deep Technology, Qiangnao Technology, and Qunhe Technology. The strong rise of the "Six Little Dragons of Hangzhou" is not a result of "suddenly coming like a spring breeze overnight," but rather "the sharpness of the sword comes from being honed." The fresh water source of fintech has become the golden touch behind the rise of the "Six Little Dragons of Hangzhou."

At the same time, with the significant enhancement of computing power, the accumulation of vast amounts of available data, and the establishment of investment models, domestic quantitative funds have experienced rapid development, undoubtedly giving rise to a large number of companies serving the capital market and quantitative strategies.

The so-called backtesting solution is a subset of financial IT solutions, used by quantitative traders to test their trading strategies based on historical data to see how they performed in the past. This involves simulating the execution of strategies on historical data and evaluating their performance based on certain metrics. Backtesting is an important step in formulating trading strategies, as it allows traders to see whether their ideas are reasonable before risking any actual capital, identifying potential issues and analyzing profitability According to Frost & Sullivan data, the global revenue generated by backtesting solutions increased from USD 20.554 billion in 2017 to USD 30.763 billion in 2022, with a compound annual growth rate of 8.4% during this period. As technological advancements such as algorithmic trading, big data analytics, machine learning, blockchain, and cloud computing improve the demand for diversified algorithmic trading strategies, it is expected to drive market growth during the forecast period, with global revenue from backtesting solutions projected to grow at a compound annual growth rate of 9.4% from 2023 to 2027.

However, despite the strong performance of quantitative strategies in recent years, the risks associated with market volatility are still worth considering. GaoYing Technology also candidly acknowledged in its risk factors that a portion of the company's revenue comes from clients involved in investment management and the development of quantitative trading strategies, many of whom have profitability and management fees linked to the assets under management