Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,437.0 million, representing a 7.7% increase compared to RMB 1,334.0 million in 2023[11] - Gross profit for the same period was RMB 283.8 million, a slight increase of 1.3% from RMB 280.2 million in 2023[11] - The company reported a loss before tax of RMB 459.3 million, which is a 41.7% increase from a loss of RMB 324.1 million in 2023[11] - The adjusted net loss for the year was RMB 127.0 million, compared to a loss of RMB 115.6 million in 2023, reflecting a 9.9% increase in losses[11] - Total comprehensive loss for the year was RMB 471.7 million in 2024, compared to RMB 373.1 million in 2023, with differences primarily due to foreign exchange differences[68] - The fair value loss of convertible redeemable preferred shares increased by 88.1% from RMB 156.1 million in 2023 to RMB 293.6 million in 2024, primarily due to the revaluation of the company's equity value following the IPO on October 16, 2024[62] - The company recorded a net loss of RMB 459.4 million in 2024, up from RMB 324.1 million in 2023, mainly due to the fair value changes of convertible redeemable preferred shares[65] Assets and Liabilities - Non-current assets decreased to RMB 203,633 thousand from RMB 237,806 thousand in 2023, indicating a decline of approximately 14.3%[14] - Current assets increased significantly to RMB 998,667 thousand from RMB 621,974 thousand in 2023, marking a growth of about 60.5%[14] - Cash and cash equivalents, restricted cash, and time deposits totaled RMB 519.5 million as of December 31, 2024[69] - Net cash used in operating activities was RMB 118.1 million in 2024, compared to RMB 3.8 million in 2023[70] - Net cash generated from investing activities was RMB 42.0 million in 2024, compared to a net cash used of RMB 14.9 million in 2023[75] - Net cash generated from financing activities was RMB 356.4 million in 2024, reflecting proceeds from the IPO[76] Research and Development - The company aims to strengthen its research and development efforts in artificial intelligence and machine learning by recruiting industry-leading experts[16] - The company has increased its R&D investment in AI and computing power to solidify its leading position in the field, launching a series of AI-related services including AI large language model inference services[21] - R&D expenses increased by 23.1% from RMB 128.0 million in 2023 to RMB 157.6 million in 2024, driven by investments in APaaS and AI-related projects[60] - The company is focusing on enhancing its R&D capabilities and improving its technological infrastructure, allocating 12.0% of the net proceeds (approximately HKD 44.4 million) for this purpose by December 31, 2028[142] Market Expansion and Strategy - The company has established new international nodes in Thailand, Japan, and Brazil in 2024, expanding its global service reach[16] - The company is actively expanding its international market presence, particularly in Southeast Asia and the Middle East, to tap into significant market potential[25] - The company aims to enhance its products and services to meet global customer needs while actively expanding into international markets[27] - The company plans to expand its customer base and optimize cost structures while accelerating overseas business development in 2025[49] Product Development and Innovation - The company plans to launch more innovative products based on the latest AI research in 2025, aimed at addressing current challenges in audio and video processing[23] - The company launched a new international website to optimize user experience and cater to specific regional demands[16] - The company launched a newly designed international website to enhance the user experience, featuring deep optimizations in interface design and functionality, with added support for multiple languages including Japanese and Korean[19] - New product development includes the launch of a cloud storage solution, expected to contribute an additional $20 million in revenue by the end of the fiscal year[103] Customer Base and Revenue Sources - As of December 31, 2024, the company has accumulated 82,597 MPaaS customers and 2,901 APaaS customers, indicating a diverse customer base across various verticals[41] - MPaaS paid customer count decreased from 92,480 in 2023 to 82,597 in 2024, while APaaS paid customer count increased from 2,597 to 2,901[46] - Average contribution per MPaaS paid customer rose from RMB 10,500 in 2023 to RMB 12,585 in 2024, and for APaaS, it increased from RMB 108,300 to RMB 122,010[46] - APaaS revenue grew by 25.8% from RMB 281.4 million in 2023 to RMB 353.9 million in 2024, largely due to enhanced functionalities and scenario-based solutions[54] Operational Efficiency and Cost Management - The company is optimizing its cost structure and enhancing operational efficiency through a comprehensive cost audit, while exploring new revenue sources through partnerships and customized services[25] - The management team has emphasized a focus on operational efficiency, aiming to reduce costs by 8% over the next fiscal year[107] - Sales costs rose by 9.4% from RMB 1,053.7 million in 2023 to RMB 1,153.2 million in 2024, consistent with revenue growth[57] Corporate Governance and Compliance - The company has not faced any penalties or legal actions during the reporting period, ensuring compliance with applicable laws and regulations[131] - The company emphasizes internal controls to prevent bribery and corruption, with regular audits and monitoring procedures in place[96] - The board of directors has approved a new strategic plan that includes diversifying product offerings and enhancing customer engagement strategies[109] Shareholder Information and Stock Options - The total number of shares issued by the company is 1,996,644,474 shares[173] - Major shareholders include Dream Galaxy with 329,861,880 shares (16.52%) and Taobao China with 324,912,456 shares (16.27%)[171] - The total number of unexercised options granted under the pre-IPO share plan is 14,654,577, which represents approximately 0.73% of the company's issued share capital if fully exercised[190] - The company has adopted a post-IPO share option plan approved by shareholders on September 25, 2024[194] Future Outlook - The company has set a future outlook with a revenue guidance of $200 million for the next quarter, indicating a projected growth of 33%[102] - The company aims to expand its business and enhance market penetration of existing products while developing new products to drive growth[138] - The company plans to allocate 38.0% of the net proceeds (approximately HKD 140.5 million) to penetrate and solidify its APaaS business by December 31, 2028[142]

Core Viewpoint - The rise of online education, live streaming, short videos, and e-commerce has catalyzed the growth of the audio and video cloud service market, while the maturity of AI technology is driving the development of intelligent computing services, creating new business models and injecting vitality into the market [1] Group 1: Company Overview - Qiniu Smart, established in 2011, has evolved into a leading one-stop intelligent audio and video service provider in China [2] - The company primarily offers two product lines: MPaaS (Media Platform as a Service) and APaaS (Application Platform as a Service) [3] Group 2: Product and Service Lines - MPaaS includes a range of audio and video solutions covering storage, content distribution, live interaction, and data analysis [3] - APaaS provides low-code, scenario-based audio and video solutions, allowing enterprises to quickly deploy customized applications without starting from scratch [3][5] Group 3: Revenue Growth and Financial Performance - Revenue from APaaS has seen rapid growth since its launch in 2021, with figures of 24.9 million RMB in 2021, 194 million RMB in 2022, 281 million RMB in 2023, and 83.2 million RMB in Q1 2024, representing a revenue share increase from 1.7% to 24.3% over the same period [6][7] - The company's gross margin has improved, with rates of 19.8% in 2021, 19.9% in 2022, 21.0% in 2023, and 20.6% in Q1 2024, driven by the higher margin APaaS business [7][8] Group 4: AI Services Expansion - In February, Qiniu Smart launched the DeepSeek series, marking its entry into AI computing and AI Agent services [9] - The company offers solutions for AI inference, domestic GPU cloud servers, and AIGC content security, catering to sensitive industries like finance and healthcare [9][10] Group 5: International Expansion - Qiniu Smart is actively expanding its overseas business, targeting Southeast Asia and North America, with subsidiaries in Hong Kong and Singapore [12] - The company plans to allocate approximately 20% of its IPO proceeds to overseas business development over the next 3-5 years [13]

Financial Performance - The company's revenue increased from RMB 1,334.0 million for the year ended December 31, 2023, to RMB 1,437.0 million for the year ended December 31, 2024, representing an increase of approximately 7.7%[3] - The net loss for the year ended December 31, 2024, was RMB 459.4 million, compared to a net loss of RMB 324.1 million for the year ended December 31, 2023, indicating a loss increase of approximately 41.8%[3] - Adjusted net loss (non-IFRS) for the year ended December 31, 2024, was RMB 127.0 million, compared to RMB 115.6 million for the year ended December 31, 2023, reflecting an increase of approximately 9.8%[3] - The company reported a total comprehensive loss of RMB 471.7 million for the year ended December 31, 2024, compared to RMB 373.1 million for the year ended December 31, 2023, an increase of approximately 26.4%[6] - The annual loss increased by 41.7% from RMB 324.1 million in 2023 to RMB 459.4 million in 2024, primarily due to changes in the fair value of convertible redeemable preferred shares[80] Revenue Breakdown - The company's revenue from customer contracts for 2024 is RMB 1,437,009,000, an increase of 7.7% from RMB 1,333,991,000 in 2023[30] - The revenue breakdown shows that MPaaS generated RMB 1,039,261,000 in 2024, up from RMB 974,507,000 in 2023, reflecting a growth of 6.6%[30] - APaaS revenue increased significantly to RMB 353,950,000 in 2024 from RMB 281,359,000 in 2023, marking a growth of 25.7%[30] - The revenue recognized over time for services transferred to customers during a specific period is RMB 1,235,242,000 in 2024, compared to RMB 1,090,230,000 in 2023, indicating a growth of 13.3%[30] - The total revenue from other cloud services decreased to RMB 40,168,000 in 2024 from RMB 73,427,000 in 2023, a decline of 45.0%[30] Expenses and Costs - Research and development expenses rose to RMB 157.6 million for the year ended December 31, 2024, compared to RMB 128.0 million for the year ended December 31, 2023, marking an increase of approximately 23.1%[5] - Cost of sales increased by 9.4% from RMB 1,053.7 million in 2023 to RMB 1,153.2 million in 2024, consistent with revenue growth[87] - Gross profit for the year ended December 31, 2024, was RMB 283.8 million, slightly up from RMB 280.2 million for the year ended December 31, 2023, showing a marginal increase of about 1.0%[5] - Gross profit for 2024 was RMB 283.83 million, with a gross margin of 19.8%, down from 21.0% in 2023, attributed to rising network and bandwidth costs[88] - Total employee benefit expenses for 2024 were RMB 125,163,000, an increase from RMB 116,012,000 in 2023, indicating rising labor costs[40] Assets and Liabilities - The total current assets increased from RMB 621.9 million as of December 31, 2023, to RMB 998.7 million as of December 31, 2024, representing an increase of approximately 60.5%[8] - The company's total liabilities decreased from RMB 3,872.3 million as of December 31, 2023, to RMB 752.2 million as of December 31, 2024, indicating a significant reduction of approximately 80.6%[8] - Trade receivables rose to RMB 480,111,000 in 2024 from RMB 305,719,000 in 2023, indicating a 57% increase in receivables[56] - The total impairment loss for trade receivables increased to RMB 49,156,000 in 2024 from RMB 24,063,000 in 2023, reflecting a significant rise in credit risk[59] - Trade payables increased to RMB 311,322,000 in 2024 from RMB 230,956,000 in 2023, representing a 35% increase in liabilities[60] Shareholder Information - The basic and diluted loss per share for the year ended December 31, 2024, was RMB 0.60, compared to RMB 0.74 for the year ended December 31, 2023, reflecting an improvement of approximately 18.9%[5] - Basic loss per share improved to RMB (0.60) in 2024 from RMB (0.74) in 2023, showing a reduction in loss per share despite the overall increase in net loss[53] - The weighted average number of ordinary shares issued increased to 762,471,784 in 2024 from 437,914,260 in 2023, reflecting a substantial dilution effect[53] Strategic Initiatives - The company continues to focus on enhancing its cloud services and expanding its market presence through innovative solutions and strategic partnerships[65] - The company expects to accelerate overseas business expansion and embrace new growth points in 2025[78] - The company aims to optimize cost structure and enhance operational efficiency as part of its 2025 strategy[78] - The integration of AI and AIGC technologies into video APaaS products is expected to drive innovation and content generation capabilities[68] Use of Proceeds - The net proceeds from the global offering amount to approximately HKD 369.7 million, with no exercise of the over-allotment option[123] - 38.0% of the net proceeds (approximately HKD 140.5 million) will be used to penetrate and solidify the APaaS business by the end of 2028[123] - 20.0% of the net proceeds (approximately HKD 73.9 million) is allocated for expanding overseas business by the end of 2028[123] - 12.0% of the net proceeds (approximately HKD 44.4 million) will enhance R&D capabilities and improve technical infrastructure by the end of 2028[123] - 20.0% of the net proceeds (approximately HKD 73.9 million) is designated for selected mergers, acquisitions, and strategic investments by the end of 2028[123] Governance and Compliance - The company has implemented internal controls to prevent fraud and bribery, ensuring compliance with relevant trade regulations[113] - The audit committee has been established by the board of directors, consisting of three independent non-executive directors[139] - The external auditor, Ernst & Young, confirmed that the preliminary announcement aligns with the audited consolidated financial statements for the year ending December 31, 2024[140] - The company has established an operational risk management team to comprehensively review content on its platform[109] Employee Information - As of December 31, 2024, the company has 325 full-time employees, including 223 males and 102 females[119] - The company plans to continue granting share-based incentive awards to motivate employees for growth and development[120]