Hello! I'm your financial analyst friend. Today, we're going to talk about DeepSeek, a company that has a lot of mystery around it in the AI community and is highly anticipated by many people.
Recently, there's been a lot of buzz in the industry about the upcoming appointment of DeepSeek's CFO (Chief Financial Officer), which is likely to be Yan Wentao, a post-90s partner from Hillhouse Capital. This is not just a personnel change; it's more of a signal that DeepSeek is transitioning from a “geek-idealistic” startup to a company that operates with capital efficiently, and the countdown to its IPO (Initial Public Offering) might have already begun.
Let me break down the news in simple terms for you, focusing on five key aspects:
1. Why does the appointment of a CFO cause such a stir in the venture capital community?
You might think that hiring a financial director is no big deal, but for a company of DeepSeek's size, the CFO's role is crucial.
Firstly, DeepSeek doesn't lack money; what it lacks is a manager who knows how to manage it effectively. The news mentions that DeepSeek just completed its first round of financing, raising about 50 billion yuan, with founder Liang Wenfeng contributing 20 billion yuan personally. Now, with the second round of financing nearing completion and the company's valuation at 500 billion yuan, the CFO is no longer just a bookkeeper but a master of capital operations. They are responsible for deciding how to spend this money, reporting to investors, and preparing for the IPO.
Secondly, this position is so desirable that even top investors are competing for it. Several leading VC firms sent their young partners to interview for the role. In the venture capital world, there's a phenomenon where outstanding investors are often poached by the companies they invest in to become executives. Becoming the CFO of a unicorn company valued at 500 billion yuan with an upcoming IPO offers significant achievements, equity benefits, and professional prestige.
Finally, the choice of Yan Wentao, a graduate from Fudan University, represents a return to professionalism. Yan has worked at Tencent Investment and H Capital before joining Hillhouse. Hillhouse is known as the “young CFO training ground” in the industry, having produced notable CFOs like Xue Zizhao from MiniMax and Zhang Yuan from Mx Ice City. DeepSeek's selection of him indicates that the company is placing emphasis on standardized financial management and capital operations, a necessary step as it transitions from a startup to a listed company.
2. Liang Wenfeng’s “idealism” vs. “realistic calculations”: The dual nature of a mysterious company
DeepSeek has always had an otherworldly vibe. Three years ago, when Fantawang Quantitative announced its entry into the large-scale AI model field, its slogan was “embrace ambition with疯狂 and sincerity.” This idealism attracted many young people and built a great reputation for the company in the tech community.
However, ideals are one thing, but business is another:
- Efficiency behind the mystery: Although DeepSeek remains mysterious, even the identity of its CFO is not publicly known, this reflects Liang Wenfeng’s management style of focusing on capability over formality. A mentor told him during his internship, “Look for businesses with high gross margins,” a principle he has followed for years.
- Data speaks for itself: The news provides some key figures: DeepSeek’s revenue in the first seven months of this year was about 475 million yuan, which may not seem much, but it’s nearly ten times the company’s revenue for the entire year of 2025! Even more impressive is that its API business has a gross margin of 82.9%. This means DeepSeek sells technical services at high profits, proving Liang Wenfeng’s strategy of focusing on high-profit businesses.
- Losses are decreasing: Although the company is still in the red (715 million yuan in the first seven months), the rate of loss has slowed compared to the 935 million yuan for the entire year of 2025. This indicates that the company’s profitability is improving, and it’s no longer solely relying on financing.
Liang Wenfeng’s idealism hasn’t made him ignore reality; instead, it has guided him to choose a high-profit business model, laying a solid financial foundation for the IPO.
3. Where is the money going? “Spending money” is for buying a ticket to the future
Many might be surprised to see that DeepSeek spent 11 billion yuan on AI infrastructure in the first seven months (compared to just 1.2 billion yuan for the entire year of 2025). But consider the industry context:
- AI is a capital-intensive industry: The most expensive part of developing large-scale AI models is computing power, which requires expensive AI chip servers. The more data you process and the longer you train models, the more servers you need.
- A competitive race: Companies like Zhipu and MiniMax are investing heavily in computing power. DeepSeek’s investment is not wasteful but necessary to maintain its technological lead.
- This investment is strategic: These servers are long-term assets that will generate value, such as more advanced models and more API calls. For a company preparing for an IPO, having a strong computing infrastructure is like having a future “money-making machine.”
4. The IPO countdown: The door to the STAR Market is open
There’s a clear signal in the news that DeepSeek’s IPO preparations have begun, with the goal of listing on the STAR Market:
- Policy support: On June 17th, the Shanghai Stock Exchange announced support for high-quality AI companies that haven’t yet reached a certain revenue level to list on the STAR Market. This opens up a faster path for companies like DeepSeek.
- Competitors are also moving forward: Companies like Zhipu and MiniMax are pushing for IPOs on the STAR Market. If DeepSeek doesn’t go public, it could fall behind its competitors in the capital market.
- Valuation comparison: Among China’s unlisted large-scale AI companies, DeepSeek (valued at 500 billion yuan) and Yang Zhilin’s Moon’s Dark Side Kimi (valued at 5 billion US dollars, or about 350 billion yuan) are among the top two. DeepSeek’s valuation is higher, and it has the financial support of Fantawang Quantitative.
- Why the STAR Market?: The STAR Market is more accommodating to hard-tech and AI companies and offers good liquidity. If DeepSeek goes public, its market value could exceed one trillion yuan, making it a new giant in China’s AI industry.
5. The ultimate showdown: Two young people from Guangdong
Finally, let’s look at the bigger picture. The news mentions a compelling comparison between Liang Wenfeng and Yang Zhilin, two young entrepreneurs from Guangdong:
- Geographical and cultural background: Both are from Guangdong, a region known for its pragmatic and entrepreneurial spirit.
- Business approaches: Liang Wenfeng’s background in quantitative finance emphasizes efficiency and cost control, while Yang Zhilin’s focus is on technological breakthroughs.
- Industry competition: The battle for large-scale AI models has been intense for two to three years, and now only a few companies remain. DeepSeek’s success could mark a milestone for China’s AI industry, indicating that China has a company capable of competing with global giants.
In summary, DeepSeek’s search for a CFO is not just a personnel move but a final push before the IPO. Liang Wenfeng has proven the business’s viability with high-profit models and its technological ambition with significant investments in computing power. Now, it needs a CFO who understands capital and market rules to help take this idealistic company to the stage of the capital market.
For the general public, this means that AI is no longer an abstract concept but a real industry that could significantly impact our lives through stock markets. DeepSeek could become one of the brightest stars in this field.