香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Beijing Fourth Paradigm Technology Co., Ltd. 北京第四範式智能技術股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：6682） 截至二零二四年十二月三十一日止年度 全年業績公告 董 事 會 謹 此 宣 佈，本 集 團 截 至 二 零 二 四 年 十 二 月 三 十 一 日 止 年 度 的 合 併 全 年 業 績，連 同 截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 年 度 的 可 比 較 數 字。本 集 團 於 報 告 期 內 的 合 併 全 年 業 績 已 經 本 公 司 核 數 師 審 核 並 由 審 計 委 員 會 審 閱。 | 財務摘要 | | | | | | | --- | --- | --- | --- | --- | ...

陈雨强表示，AI技术正进入推理周期的新阶段，这一转变为中国AI企业提供了巨大的发展机会。在传 统的训练周期中，AI模型依赖大量数据和强大算力进行学习和训练。但随着算力瓶颈的显现，AI的进 化将更加注重推理能力的提升。中国在这一新阶段具备独特优势，特别是在基础模型的突破上。随着推 理能力的提升，中国AI企业不再受制于全球领先的算力资源，而是在丰富的行业数据和技术基础上实 现快速进步。DeepSeek等中国企业在基础模型方面的突破，正是这一转折点的体现。 陈雨强还探讨了AI Agent（智能体）在产业中的应用前景。他指出，AI Agent的出现正在改变To B和To C两端的产业格局。在To B领域，AI Agent让企业和机构能够以更高效的方式使用AI。过去隐藏在菜单 深处的功能，现在只需表达需求即可调用，大大提升了企业运营效率。而在To C领域，陈雨强认为，消 费端的入口可能会发生变化，可调用模型的Agent未来可能成为巨大的流量入口。他以购物为例，说明 消费者从相信搜索引擎到电商App推荐，再到未来可能信任Agent推荐的内容，这一趋势预示着AI Agent 在消费端的巨大潜力。（青山） 然而，他同时指出， ...

开年以来，国产大模型DeepSeek的爆火出圈，让越来越多企业意识到AI在商业中的巨大应 用潜力。深入理解AI如何塑造未来商业，成为每一个企业和管理者必须面对的关键课题。 2025年2月22日，在嘉宾派北京站访学中，校友们一同走进企业级人工智能领军企业第四范 式。第四范式联合创始人、首席科学家陈雨强为大家带来《行业大模型场景落地》的主题授 课，从技术演进的角度讲述了AI的发展逻辑和未来趋势，并通过实际案例阐释了行业大模 型的具体应用。 以下为授课内容精编版，Enjoy~ 最初，人工智能训练仅依靠几万条数据，而如今数据量已增至上千亿条，相当于增长了1亿倍。这一飞 跃不仅让模型的"容量"大大提升，也使得智能系统在面对复杂问题时具备了更强的能力。 欢迎各位嘉宾商学的企业家校友前来第四范式访学，我代公司创始人戴文渊向大家问好。我是第四范式 的联合创始人兼CTO陈雨强，创业前曾在百度和字节跳动任职。 当下，行业最火的莫过于DeepSeek。这些天来，全球同行们都在研究，DeepSeek是如何出现在被美国 技术封锁的中国的？从深层次看，这一现象反映了人工智能技术发展中的周期性变化和不同阶段的表现 特征。 公众最早接触到的 ...

Investment Rating - The report initiates coverage on the company with a "Buy" rating, setting a target price of HKD 64.00, indicating a potential upside of 25.6% from the current price of HKD 50.95 [2][5][17]. Core Insights - The report highlights that the company is positioned as a premium AI stock in the Hong Kong market, with three main highlights constructing its competitive moat [3]. - The company is expected to achieve a revenue compound annual growth rate (CAGR) of 24% from 2024 to 2027, with profitability anticipated to turn positive in 2026 [13][16][33]. Financial Overview - Revenue projections show a steady increase from RMB 3,083 million in 2022 to RMB 8,150 million by 2026, with year-on-year growth rates of 52.7% in 2022, 36.4% in 2023, and expected 24.9% in 2024 [4][19]. - The net profit is projected to improve from a loss of RMB 496 million in 2022 to a profit of RMB 251 million by 2026, indicating a significant turnaround [4][33]. - The company’s gross margin is expected to stabilize around 43-44% in the coming years, with a potential increase if hardware product margins improve [28][32]. Business Highlights - The "XianZhi AI Platform" is central to the company's strategy, having maintained the largest market share in China's machine learning platform sector for six consecutive years [11]. - The company has a diverse industry coverage, including finance, retail, manufacturing, and healthcare, with significant potential for further penetration [12][14]. - The integration of AI Agent technology is expected to enhance product capabilities and operational efficiency, driving further growth [15]. Valuation Insights - The current price corresponds to a price-to-sales (P/S) ratio of 3.8 for 2025, which is below the average P/S ratios of comparable AI companies in both the US and China [17][57]. - The report suggests that the company’s valuation remains attractive, with a target price based on a P/S ratio of 4.5, reflecting the potential for valuation recovery [17][57]. Shareholder Structure and Market Dynamics - Following the unlocking of H shares, the shareholder structure has been optimized, contributing to increased trading volume and market interest [13][67]. - The company was included in the MSCI Global Small Cap Index, which is expected to further enhance its visibility and attractiveness to investors [52][67].

最近各位投资人大家下午好我是国投传媒团队的王一卉今天这场是传媒2025年沙龙的第九场我们邀请到的是迪斯汗市一家公司我先简单的介绍一下我们整个会议的一个背景 不管是说系统模式能力的提升还是包括算力基础设施的一个建设经过前面的这些固件的话我们2025年会看到更多的应用逻辑不管是在端测还是说一些在无需和端直接相关的一些应用的层面整个基础算是在整个AI方向上首先它处在整个AI的一个大的行程大海的赛道里面然后其次的话我们去看这家公司 您的落实和基本面上都会非常踏实的一家公司所以我们今天也非常有幸的邀请到了第四范式的这个美术总和我们进行一个沟通和交流那美术总要不就是你先帮我们先拆一下就是整个2025年整个的一个业务板块和整个的一个大业务规划和方向你先简单的做一下介绍你看可以吗 谢谢丽华老师,2014年刚过起来,过去公司业绩还是整体表现非常稳健的,包括我们去年全年给市场释放的一个全年的预期,虽然整体的数字还没出来, 达到了 达到利息了然后也算 也还是蛮不容易的因为今年整个的这个宏观市场环境是比较波动那到二五年来看的话未来的公司的业务战略的拓展重点依旧是在公司的核心产品我们的这次算是Central AI平台上面对 然后另外的 ...

Investment Rating - The report gives the company a "Buy" rating with a target price of HKD 47.20 per share for 2024 [4] Core Views - The company is a leading provider of decision intelligence solutions in China, focusing on platform-centric solutions that help enterprises achieve intelligent transformation [2] - The decision intelligence market is vast and diverse, with generative AI offering significant opportunities for reshaping enterprise software and improving product standardization [2][75] - The company emphasizes commercialization and practical application in specific industry scenarios, avoiding direct competition with giants like OpenAI [2][81] - Generative AI enhances the value proposition for downstream customers, but profitability and market expansion potential remain to be observed [2][82] Financial Projections - Revenue is projected to be RMB 5.076 billion, RMB 5.963 billion, and RMB 7.006 billion for 2024, 2025, and 2026, respectively [3] - The company is expected to achieve positive EBITDA and net profit by 2026, with EBITDA turning positive at RMB 126 million and net profit at RMB 177 million [3] Business Overview - The company offers three main business segments: the Prophet AI Platform, SHIFT Intelligent Solutions, and AIGS services, with the Prophet AI Platform contributing 60% of revenue in 2023 [74] - The company has developed four core technologies: automated machine learning, transfer learning, environmental learning, and automated reinforcement learning, which are widely applied in its decision intelligence solutions [113] - The company has expanded its industry coverage, with financial and energy sectors being its strongholds, while manufacturing, retail, and healthcare sectors show growth potential [126] Market and Industry Analysis - Decision intelligence is a typical application scenario for generative AI, with large language models (LLMs) empowering the entire decision-making process [147][148] - The decision intelligence platform market is highly competitive, with participants ranging from vertical industry solution providers to cross-industry technology suppliers [158] - In China, the company leads the decision AI market with a 22.6% market share, ahead of major internet companies like Baidu, Alibaba, Huawei, and Tencent [160][163] Competitive Analysis - The company is compared with Palantir, a global leader in big data analytics, with both companies leveraging generative AI to enhance their decision intelligence platforms [191] - While Palantir focuses on real-time decision-making platforms and global high-value clients, the company emphasizes industry-specific models and localized solutions for the Chinese market [80] Growth Strategy - The company adopts a "Prophet Inside" model, embedding its AI platform capabilities into industry-specific products and solutions, which aligns with the trend of product standardization driven by generative AI [178][181] - The company collaborates with ecosystem partners to expand its industry applications, covering over 20 industries and various scenarios, which is expected to drive future growth [182]

这个代表的意义是在于同样的进程中他在去年贡献的这个收入跟今年贡献的收入之间需要一个增量的一个增长 那比如说假设说去年收入一去年就收入百分之一百零四五它的意义在于我们二十二年来大概一百零四家客户然后这一百零四家客户在二十三年首先流通两亿九十然后几次这一百零四家客户在二十二年份的收入 跟二三年相比是一个一百比一百一十五这样的一个比例就说明这些客户不但不够了而且他还在我们去年投入的这些市场今年还加大了一些投入就带来一些收入增长的一个增速接下来可以看到我们每年二十多亿的增幅平均是有接近百分之十二十五的这个部分取代原有的互联网投资也证明了就是算是在整个企业服务海岛商业模式不是说每年要去重新去 去做属于归心的客户然后去把这个生意订单从一开始就发现其实从网客户里面已经能够收到很多的一个收入增速的一个基础成果这种谈判可以这么去理解所以在这个客户层面对这几年经营的下来的结果我觉得还是非常不错的他们是横跨有14个行业而且来自于经营来自于营业来自于交通运输然后运营商零售制造 教育、传媒等等这几个行业当然最头部的这几个行业可能还是相对来说在这几个行业里面本身自己产生的是比较大型的行业像青龙能源制造和这个印象和教育这几个行业基本上占了 ...

Investment Rating and Target Price - The report maintains a "Buy" rating for Fourth Paradigm (6682 HK) with a target price of HKD 61.33 [4][7] - The target price is based on a 4.3x 2025E PS multiple, reflecting the company's broad industry coverage and large enterprise client base [4] Financial Performance - Fourth Paradigm reported revenue of RMB 3.22 billion for the first three quarters of 2024, a 26.1% YoY increase, with gross profit of RMB 1.35 billion and a gross margin of 42.0% [1] - In 3Q24, revenue reached RMB 1.35 billion (+24.7% YoY), with gross profit of RMB 560 million (+13% YoY) and a gross margin of 41.4% [1] - The company's revenue growth is primarily driven by its Prophet AI platform, which contributed RMB 920 million in 3Q24, accounting for 68.1% of total revenue [2] Business Highlights - Fourth Paradigm continues to expand its presence in key industries such as transportation, energy, finance, and telecommunications, with a total of 244 users, including 98 benchmark users [3] - The company has developed the Prophet AI Platform 5.0, which offers end-to-end capabilities in computing power, model layers, and application layers, enhancing AI Agent and GPU resource pooling capabilities [3] - Fourth Paradigm has collaborated with ecosystem partners to launch over 40 AI products using the "Prophet Inside" model [3] Future Outlook - The report forecasts revenue of RMB 5.0 billion, RMB 6.0 billion, and RMB 7.18 billion for 2024E, 2025E, and 2026E, respectively, representing a 19-20% YoY growth [4] - Net profit is expected to improve significantly, with forecasts of RMB -380 million, RMB -120 million, and RMB 120 million for 2024E, 2025E, and 2026E, respectively [4] Valuation and Peer Comparison - The company's 2025E PS multiple of 4.3x is higher than the peer average of 3.9x, reflecting its strong market position and growth potential [4] - Fourth Paradigm's valuation metrics, including PE and PB ratios, are expected to improve as profitability increases in the coming years [6]

Financial Performance - Total revenue for the first half of 2024 reached RMB 1.87 billion, a year-on-year increase of 27.1%[7] - Gross profit for the first half of 2024 was RMB 789.9 million, up 12.1% year-on-year[7] - Adjusted net loss for the first half of 2024 was RMB 168.5 million, narrowing by 4.0% year-on-year[7] - Revenue from the core business "4Paradigm Prophet AI Platform" reached RMB 1.25 billion, a year-on-year increase of 65.4%[7] - The company's gross margin for the first half of 2024 was 42.3%[7] - Fourth Paradigm Sage AI platform revenue reached RMB 1.251 billion, a year-on-year increase of 65.4%, accounting for 67.0% of the company's total revenue[8] - SHIFT intelligent solutions revenue was RMB 453 million, accounting for 24.3% of total revenue, but decreased by 22.1% year-on-year due to strategic focus on the Sage AI platform[10] - AIGS service revenue increased by 25.0% year-on-year to RMB 163 million, providing generative AI tools and services for the Sage AI platform[11] - Total revenue for the first half of 2024 increased by 27.1% year-over-year to RMB 1,866.6 million[14] - Core business, the Prophet AI platform, generated RMB 1,250.5 million in revenue, accounting for 67.0% of total revenue, with a year-over-year growth of 65.4%[15][17] - SHIFT intelligent solutions revenue decreased by 22.1% year-over-year to RMB 452.9 million[15][18] - AIGS services revenue increased by 25.0% year-over-year to RMB 163.1 million[15][19] - Gross profit increased by 12.1% year-over-year to RMB 789.9 million, while gross margin decreased from 48.0% to 42.3%[21] - R&D expenses increased by 28.4% year-over-year to RMB 850.0 million[24] - Operating loss decreased by 25.2% year-over-year to RMB 189.1 million[28] - Financial income increased by 33.9% year-over-year to RMB 28.6 million[28] - Other income increased significantly to RMB 77.0 million, primarily due to higher VAT refunds[26] - Other net gains increased by 39.8% year-over-year to RMB 54.2 million, mainly due to gains from the sale of a portion of Guangzhou Jianxin's equity[27] - The company's loss for the period was RMB 168.5 million, a decrease of 64.7% compared to RMB 477.7 million in the same period last year[30] - Adjusted loss for the period was RMB 168.5 million, a decrease of 4.0% compared to RMB 175.5 million in the same period last year[33] - Revenue for the six months ended June 30, 2024, increased to RMB 1,866,600 thousand, up 27.1% from RMB 1,468,104 thousand in the same period in 2023[80] - Gross profit for the six months ended June 30, 2024, was RMB 789,946 thousand, compared to RMB 704,581 thousand in the same period in 2023, reflecting a 12.1% increase[80] - Operating loss for the six months ended June 30, 2024, improved to RMB 189,120 thousand, down from RMB 252,953 thousand in the same period in 2023[80] - Net loss for the six months ended June 30, 2024, was RMB 168,532 thousand, a significant improvement from the net loss of RMB 477,678 thousand in the same period in 2023[80] - R&D expenses for the six months ended June 30, 2024, increased to RMB 850,045 thousand, up 28.4% from RMB 661,832 thousand in the same period in 2023[80] - Basic and diluted loss per share improved to RMB 0.33 in 2024 from RMB 1.66 in 2023, reflecting a reduction in net loss[115] R&D and Innovation - R&D expenses for the first half of 2024 were RMB 850 million, with an R&D expense ratio of 45.5%[7] - The company developed over 30 AI products for various industries in the first half of 2024[7] - The company launched over 30 AI products based on the Sage AI platform, covering more than 20 industries and various scenarios as of August 1, 2024[12] - The Sage AI platform 5.0, launched in March 2024, focuses on industry-specific large model development and management, supporting multimodal data and low-threshold modeling tools[8] - The "Sage Inside" model has been used to create an AI product matrix, enabling AI technology to empower various industries and scenarios[8] - The company's product matrix includes computing power, data, model tools, and ecosystem applications, expanding partnerships and industry coverage[12] - The company developed a smart flood prevention model in collaboration with a water conservancy unit, improving decision-making efficiency by 5 times[13] - The flood prevention model reduces warning and response time to minutes, enhancing real-time monitoring and resource allocation[13] - The company's AI-related technologies include AI-generated software (AIGS), AIoT, and enterprise-level AI solutions[181] - The company's AI platform-centric approach integrates AI applications, underlying computing infrastructure, and AI development platforms[181] - The company's AI technologies are focused on machine learning algorithms and statistical models for specific tasks without explicit programming[181] - The company's cloud computing strategy involves storing computer data and programs on multiple servers accessible via the internet[181] - The company's AIoT combines IoT connectivity with data-driven knowledge from AI[181] - The company's enterprise-level AI solutions aim to meet business needs and drive digital and automation transformation[181] - The company's AI development platform supports AI applications and underlying computing infrastructure[181] Market and Industry Coverage - The company covered 14 industries with a total of 185 users, including 86 benchmark users[7] - Average revenue contribution from benchmark users was RMB 11.48 million, up 26.9% year-on-year[7] - The company has cumulatively served 1,112 users from January 1, 2020, to June 30, 2024[7] - The Sage AI platform has expanded to cover 14 major industries, including transportation, finance, energy, and retail, supporting multi-scenario digital transformation[8] - Revenue from one external customer accounted for approximately 18.0% of the company's total revenue, amounting to RMB 335,632,000 for the six months ended June 30, 2024[104] - Customer contract revenue from the sale of the Prophet platform and products was RMB 1,252,055,000 for the six months ended June 30, 2024, compared to RMB 755,956,000 for the same period in 2023[104] - Revenue from application development and other services was RMB 614,545,000 for the six months ended June 30, 2024, compared to RMB 712,148,000 for the same period in 2023[104] Investments and Financial Position - The company's cash and cash equivalents and term deposits totaled approximately RMB 2,253.2 million as of June 30, 2024, compared to RMB 2,675.0 million as of December 31, 2023[35] - The company's liquid cash resources amounted to approximately RMB 2,778.0 million as of June 30, 2024, compared to RMB 3,295.3 million as of December 31, 2023[36] - The company's net current assets decreased from RMB 4,013.4 million as of December 31, 2023, to RMB 3,460.2 million as of June 30, 2024[37] - The company's current ratio increased to 3.5 as of June 30, 2024, from 3.4 as of December 31, 2023[38] - The company's capital gearing ratio decreased to 0.7% as of June 30, 2024, from 2.0% as of December 31, 2023[39] - The company's capital commitments for equity amounted to RMB 12.0 million as of June 30, 2024, unchanged from December 31, 2023[40] - The company had no significant contingent liabilities as of June 30, 2024[40] - The company invested RMB 390 million in the Gaoteng Overseas Equity No. 3 Private Equity Fund, which accounted for approximately 5.9% of the group's total assets as of June 30, 2024[46][47] - The company acquired a 22% stake in Guangzhou Jianxin Technology Co., Ltd. for RMB 88 million[45] - The company's investment in the Gaoteng Overseas Equity No. 3 Private Equity Fund generated a dividend income of RMB 10.341 million in the first half of 2024[48] - The company completed the conversion of 131,549,046 domestic shares into H shares, which were listed on the Hong Kong Stock Exchange on September 13, 2024[51] - The company adopted a stock incentive plan and a share option plan, which were approved by the shareholders' meeting on September 19, 2024[52] - The company manages idle cash by purchasing and redeeming low-risk wealth management products issued by state-owned or high-credit banks[44] - The company maintains a strong cash position and a robust debt structure, with a comprehensive and professional review mechanism for annual and monthly capital planning[44] - The company repurchased a total of 259,800 H shares during the reporting period, with a total consideration of HKD 13,707,920 (excluding fees)[58] - As of the reporting date, the company holds 186,100 H shares that have been repurchased but not canceled, and 193,300 H shares held as treasury shares for potential employee incentives or liquidity purposes[60] - The net proceeds from the global offering amounted to approximately HKD 925.6 million, with HKD 117.6 million utilized as of June 30, 2024, and the remaining HKD 807.8 million to be used according to the prospectus[62] - 60% of the net proceeds from the global offering, amounting to HKD 555.4 million, have been allocated to strengthening the company's foundational research, technological capabilities, and solution development[63] - 20% of the net proceeds, totaling HKD 185.1 million, are designated for expanding the company's product offerings, building its brand, and entering new industry sectors[63] - 10% of the net proceeds, amounting to HKD 92.6 million, are reserved for strategic investments and acquisition opportunities[63] - 10% of the net proceeds, totaling HKD 92.6 million, are allocated for general corporate purposes[63] - The total net proceeds from the global offering amount to HKD 925.6 million, with HKD 807.8 million remaining unused as of June 30, 2024[63] - The company plans to fully utilize the remaining net proceeds according to the disclosed purposes and expected implementation timeline in the prospectus[64] - The company's audit committee reviewed the unaudited interim financial information for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards, laws, and regulations[56] - The company's independent auditor, PricewaterhouseCoopers, conducted a review of the interim financial information for the six months ended June 30, 2024, in accordance with International Standard on Review Engagements 2410[57] - Total assets as of June 30, 2024, were RMB 6,619,933 thousand, a decrease from RMB 7,147,274 thousand as of December 31, 2023[82] - Cash and cash equivalents as of June 30, 2024, were RMB 1,181,736 thousand, down from RMB 1,977,891 thousand as of December 31, 2023[82] - The company's equity attributable to owners of the company as of June 30, 2024, was RMB 5,180,053 thousand, compared to RMB 5,349,122 thousand as of December 31, 2023[82] - Non-current assets as of June 30, 2024, increased to RMB 1,756,377 thousand, up from RMB 1,490,748 thousand as of December 31, 2023[82] - The company's total equity and liabilities as of June 30, 2024, were RMB 6,619,933 thousand, down from RMB 7,147,274 thousand as of December 31, 2023[82] - Total liabilities decreased to RMB 1,416,306 thousand as of June 30, 2024, compared to RMB 1,694,760 thousand as of December 31, 2023[83] - Trade payables decreased to RMB 1,024,553 thousand as of June 30, 2024, from RMB 1,043,189 thousand as of December 31, 2023[83] - The company's total equity decreased to RMB 5,203,627 thousand as of June 30, 2024, from RMB 5,452,514 thousand as of January 1, 2024[84] - Net cash used in operating activities was RMB 402,193 thousand for the six months ended June 30, 2024, compared to RMB 863,282 thousand for the same period in 2023[86] - Net cash used in investing activities was RMB 385,497 thousand for the six months ended June 30, 2024, compared to net cash generated of RMB 1,175,511 thousand for the same period in 2023[86] - The company's accumulated losses increased to RMB 5,237,973 thousand as of June 30, 2024, from RMB 5,086,375 thousand as of January 1, 2024[84] - The company repurchased shares worth RMB 12,495 thousand during the six months ended June 30, 2024[84] - The company's non-current liabilities decreased to RMB 12,979 thousand as of June 30, 2024, from RMB 51,610 thousand as of December 31, 2023[83] - The company's current liabilities decreased to RMB 1,403,327 thousand as of June 30, 2024, from RMB 1,643,150 thousand as of December 31, 2023[83] - The company's total equity and liabilities decreased to RMB 6,619,933 thousand as of June 30, 2024, from RMB 7,147,274 thousand as of December 31, 2023[83] - Net cash used in financing activities was RMB 12,014 thousand, a significant improvement from RMB 76,534 thousand in the same period last year[87] - Cash and cash equivalents decreased by RMB 799,704 thousand, compared to an increase of RMB 235,695 thousand in the same period last year[87] - The company's total financial assets measured at fair value were RMB 1,022,999 thousand, with RMB 500,636 thousand in long-term investments and RMB 522,363 thousand in short-term investments[94] - Long-term investments measured at fair value increased by RMB 43,812 thousand, from RMB 456,824 thousand at the end of 2023 to RMB 500,636 thousand at the end of June 2024[94][97] - Short-term investments measured at fair value decreased by RMB 39,972 thousand, from RMB 562,335 thousand at the end of 2023 to RMB 522,363 thousand at the end of June 2024[94][96] - The company received RMB 42,300 thousand from borrowings and repaid RMB 33,950 thousand, resulting in a net borrowing of RMB 8,350 thousand[87] - Shareholder contributions were zero in 2024, compared to RMB 194,666 thousand in 2023[87] - The company paid RMB 12,495 thousand for share repurchases, significantly lower than the RMB 259,022 thousand paid in 2023[87] - The company received RMB 8,500 thousand from related party advances, compared to zero in 2023[87] - The company's cash and cash equivalents at the end of June 2024 were RMB 1,181,736 thousand, down from RMB 1,977,891 thousand at the beginning of the period[87] - The fair value of long-term investments measured at fair value through profit or loss was RMB 500,636,000 as of June 30, 2024, compared to RMB 456,824,000 as of December 31, 2023[102] - The fair value of short-term investments measured at fair value through profit or loss was RMB 522,363,000 as of June 30, 2024, compared to RMB 562,335,000 as of December 31, 2023[102] - Contract liabilities amounted to RMB 161,702,000 as of June 30, 2024, compared to RMB 146,184,000 as of December 31, 2023[106] - Government grants and VAT refunds contributed RMB 76,976,000 to other income for the six months ended June 30, 2024, compared to RMB 33,823,000 for the same period in 2023[107] - The company's contract assets amounted to RMB 19,972,000 as of June 30, 2024, compared to RMB 63,377,000 as of December 31, 2023[105] - The company's unrealized net gains for the six months ended June 30, 2024, were RMB 16,867,000, compared to RMB 10,561,000 for the same period in 2023[99] - Other net income increased to RMB 54,164 thousand in 2024 from RMB 38,755 thousand in 2023, driven by gains from fair value changes in financial assets and partial disposal of subsidiaries[108] - Employee benefit expenses decreased to RMB 254,007 thousand in 2024 from RMB 321,289 thousand in 2023, reflecting cost optimization efforts[108] - Technology service fees increased to RMB 1,032

Investment Rating - The report assigns an "Outperform" rating to the company, indicating an expectation of better performance compared to the market [4]. Core Insights - The company is leveraging its "Prophet Inside Model" to facilitate the application of AI across various industries, having evolved its AI platform from version 1.0 to 5.0 over ten years. As of H1 2024, the platform supports 14 major industries, including transportation, data centers, finance, and energy [4][6]. - The company has developed over 30 AI products that cover more than 20 industries, focusing on areas such as academic translation, health management, and supply chain solutions [4][6]. - The introduction of the "Prophet AIOS 5.1" version enhances GPU resource pooling capabilities, significantly improving hardware cost efficiency and GPU utilization [7]. Financial Summary - Revenue is projected to grow from 4,204 million in 2023 to 5,277 million in 2024, reflecting a year-on-year growth of 26% [5]. - The net profit is expected to improve from a loss of 909 million in 2023 to a loss of 349 million in 2024, indicating a 62% year-on-year improvement [5]. - The gross margin is expected to remain stable around 47% from 2023 to 2026, with a gradual increase in net profit margin projected to turn positive by 2026 [5][9]. Cash Flow and Balance Sheet - Operating cash flow is expected to improve from -999 million in 2023 to -497 million in 2024, indicating a trend towards positive cash flow in the future [9]. - The total assets are projected to grow from 6,316 million in 2024 to 7,434 million in 2026, while total liabilities are expected to increase from 2,437 million to 3,240 million in the same period [10]. Valuation and Price Target - The report suggests a price-to-sales (PS) ratio of 6-7 times for 2024, leading to a fair value range of 74.21 to 86.58 HKD per share [7].