Investment Rating - The investment rating for the company is "Outperform the Market" [3] Core Views - The company is expected to achieve steady growth with a significant reduction in net losses, driven by strong performance in its core business and the introduction of new product lines [7][8] - The establishment of Paradigm Group marks a strategic shift towards a dual business model focusing on both B2B and B2C markets, with the consumer electronics segment anticipated to become a key growth driver [7][8] Financial Performance and Forecast - Revenue is projected to grow from 42.04 billion in 2023 to 66.01 billion in 2025, reflecting a year-on-year growth of 25% [7] - The net profit is expected to turn positive by 2025, with a forecasted net profit of 0.49 billion, following a significant reduction in losses from 9.09 billion in 2023 to 0.27 billion in 2024 [7] - The gross margin is expected to stabilize around 44% in 2025, with a gradual increase to 47% by 2027 [7] Business Segments and Growth Drivers - The AI platform business, particularly the "Xianzhi AI Platform," has shown exceptional growth, with revenues increasing by 46.7% in 2024 [7] - The company is focusing on expanding its customer base and enhancing service depth, with benchmark users averaging revenue close to 19.1 million [7] - The consumer electronics segment, Phancy, aims to provide AI-integrated hardware and software solutions, leveraging the company's proprietary AI capabilities [7][8] Strategic Initiatives - The company is heavily investing in R&D, with expenses reaching 2.17 billion in 2024, representing 41.2% of revenue [7] - The launch of the ModelHubAIoT solution is expected to facilitate the deployment of AI models on edge devices, addressing privacy and real-time needs [8] - Collaboration with major partners like Huawei to develop integrated AI solutions is anticipated to enhance product offerings and market reach [8] Valuation and Price Target - The company is valued at a price-to-sales ratio of 5-6 times for 2025, with a target price range of 71.66 to 85.99 HKD [8]

Core Insights - Fourth Paradigm reported a total revenue of 5.261 billion yuan for 2024, representing a year-on-year growth of 25.1% [1] - The net loss attributable to the parent company was 269 million yuan, narrowing by 70.4% compared to the previous year [1] - Adjusted net loss was 292 million yuan, with a quarter-on-quarter reduction of 29.6%, marking the fourth consecutive year of reduced losses [1] Financial Performance - The core business, "Prophet AI Platform," generated revenue of 3.676 billion yuan, a year-on-year increase of 46.7%, contributing 69.9% to total revenue [1] - SHIFT Intelligent Solutions and Shishuo AIGS services contributed 1.022 billion yuan and 563 million yuan, with year-on-year changes of -20.3% and 35.4% respectively [1] - As of the end of 2024, the company had liquid cash resources of 2.3 billion yuan, bolstered by a recent new share placement of approximately 1.4 billion HKD [1] Business Development - The company has launched hundreds of AI Agent applications across various sectors, including aircraft design and intelligent vehicle manufacturing [2] - In 2024, Fourth Paradigm introduced an enterprise AI Agent development platform that significantly reduces development time by over 95% [2] - The establishment of Paradigm Group marks a shift towards diversified business development, with a focus on B-end clients and their needs for AI Agent applications [2]

第四范式董事会主席兼首席执行官戴文渊表示，公司收入持续多年增长，减亏成效显著，特别是在2024 年，按归母净亏损计算，减亏幅度超过70%。他表示，预期2025年公司能够维持当前良好态势，收入增 长与亏损缩窄的双重趋势有望得到持续巩固，公司将继续稳步推进既定发展策略。 目前，第四范式已建立了三大主要业务板块：先知AI平台、SHIFT智能解决方案和式说AIGS服务。具 体到各业务板块，先知AI平台表现尤为突出，实现收入36.759亿元，同比增长46.7%。该平台及产品在 总收入中的占比也从2023年的59.6%提升至2024年的69.9%。财报分析认为，这一显著增长主要归因于 整体AI市场需求的持续增长，以及公司在大模型及生成式AI能力方面对产品的有效赋能。 SHIFT智能解决方案在报告期内实现收入10.223亿元，相较于2023年的12.829亿元，出现了20.3%的同比 下降。该解决方案在总收入中的占比也从2023年的30.5%下降至2024年的19.4%。财报指出，这一变化 主要是由于公司业务拓展策略的调整，以及先知AI平台收入占比的显著增加所致。 （原标题：第四范式2024年度业绩：核心业务收入增长46. ...

Core Insights - Fourth Paradigm reported a revenue growth of 25.1% year-on-year, with a narrowed annual loss of 70.4% for 2024 [1][2] - The company emphasized the increasing application of AI Agents across various industries, indicating a significant market potential [1][2] Financial Performance - Total revenue for 2024 reached RMB 5.261 billion, a 25.1% increase compared to the previous year [2] - Gross profit was RMB 2.245 billion, resulting in a gross margin of 42.7% [2] - The annual loss attributable to the parent company was reduced by RMB 640 million, a 70.4% year-on-year improvement [2] AI Agent Development - The company has implemented hundreds of AI Agent applications, with expectations for further market expansion in 2024 [1][2] - The core product, the Prophet platform, saw revenue growth of nearly RMB 1.2 billion, a 46.7% increase from 2023 [2] - Various sectors such as finance, risk control, and smart education have adopted AI Agents, showcasing the technology's versatility [2] Future Outlook - Fourth Paradigm anticipates 2025 to be a pivotal year for edge AI, driven by advancements in large language models and reduced application costs [4] - The development of AI Agents is expected to enhance interaction capabilities, allowing for more complex task execution and broader application across devices [4] - The company aims to leverage technological advancements to explore opportunities in enterprise-level Agents and consumer electronics [5]

Financial Performance - In 2024, the company achieved total revenue of 5.261 billion RMB, a year-on-year increase of 25.1% compared to 4.204 billion RMB in 2023 [2] - The annual loss attributable to the parent company was 268.8 million RMB, a reduction of 70.4% from the previous year's loss of 908.7 million RMB [2] - The gross profit for 2024 was 2.245 billion RMB, representing 42.7% of total revenue, compared to 1.980 billion RMB and 47.1% in 2023 [2] Business Segments - The "Prophet AI Platform" generated revenue of 3.676 billion RMB, accounting for 69.9% of total revenue, with a growth of 46.7% year-on-year [4] - The "SHIFT Intelligent Solutions" business reported revenue of 1.022 billion RMB, a decline of 20.3%, making up 19.4% of total revenue [4] - The "Shisuo AIGS Services" generated 563 million RMB, contributing 10.7% to total revenue [4] Market Trends and Future Outlook - The CEO indicated that the market is transitioning from a large model competition to industry penetration, with AI Agents becoming crucial for implementation [1][4] - There is a growing demand for enterprise-level AI Agents, particularly in high-value industries such as finance, energy, retail, and manufacturing [1][5] - The company anticipates that 2025 will be a pivotal year for the explosion of AI Agents, although market enthusiasm is expected to stabilize by mid-year [1][5] Strategic Direction - The company plans to position itself as a third-party AI technology supplier, providing integrated AI Agent solutions rather than developing proprietary brands [1][11] - The establishment of Paradigm Group will allow the company to diversify its business while maintaining a focus on enterprise services [7][10] - The consumption electronics segment aims to offer AI Agent-based solutions, leveraging the growing capabilities of AI to enhance communication and operational efficiency [10][11] Technology and Innovation - The company emphasizes the importance of AI Agents in transforming enterprise software, enabling better communication and problem-solving capabilities [4][5] - The integration of AI with various devices, including those without screens, is seen as a key factor for the future of AI applications [6] - The company maintains a commitment to developing foundational large models tailored to specific hardware requirements, differentiating itself from competitors [11][12]

Core Insights - Fourth Paradigm (06682) reported strong growth in its overall business for the fiscal year 2024, achieving total revenue of RMB 5.261 billion, a year-on-year increase of 25.1% [1] - The company emphasizes technology research and development, with R&D expenses amounting to RMB 2.170 billion, representing 41.2% of total revenue [1] - The annual loss attributable to the parent company narrowed by RMB 640 million compared to 2023, a reduction of 70.4% [1] Revenue Breakdown - The core business, the "Prophet AI Platform," generated revenue of RMB 3.676 billion, reflecting a year-on-year growth of 46.7% and accounting for 69.9% of total revenue [3] - The SHIFT Intelligent Solutions business generated RMB 1.022 billion, making up 19.4% of total revenue, but saw a year-on-year decline of 20.3% [5] - The "Prophet AI Platform" continues to support the overall business growth, with the "Saying AIGS" service contributing RMB 563 million, or 10.7% of total revenue [5] Technological Advancements - The company launched the "Prophet AI Platform 5.0" in March 2024, enhancing capabilities for vertical world model development and enterprise-level AI applications [2] - The AI Agent capabilities have been improved to solve complex problems with greater precision, reducing development cycles by over 95% [4] - Fourth Paradigm has maintained its position as the market leader in China's machine learning platform sector for six consecutive years, according to IDC [4] Business Expansion - The company is focusing on the "Agent + World Model" dual-core architecture to advance towards General Artificial Intelligence (AGI) [6] - Numerous enterprise-level AI Agent applications have been developed across various industries, enhancing the overall intelligence rate of enterprises [6] - The company has introduced several user-level Agent solutions, such as smart meeting and desktop AI search tools, to improve operational efficiency [7] Product Innovations - The company launched the "SageOne IA" all-in-one model inference solution, which enhances GPU utilization by over 30% and improves inference performance by 5-10 times [7] - The "ModelHub AIoT" solution allows edge devices to run distilled models offline, addressing deployment complexities [8] - Fourth Paradigm is extending its capabilities into consumer electronics, providing AI Agent-based hardware and software solutions [8]

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 5,260.65 million, a year-on-year increase of 25.1%[3] - Gross profit amounted to RMB 2,244.83 million, with a gross margin of 42.7%[3] - The annual loss attributable to the parent company was RMB 268.79 million, a reduction of RMB 640 million compared to 2023, narrowing by 70.4%[4] - Adjusted net loss for the year was RMB 292.47 million, a decrease of RMB 123 million compared to 2023, narrowing by 29.6%[4] - Total revenue for the year ended December 31, 2024, was RMB 5,260,650, an increase of 25.2% compared to RMB 4,204,142 in 2023[30] - Gross profit for the same period was RMB 2,244,829, up 13.4% from RMB 1,979,548 in 2023[30] - The company reported a net loss of RMB 296,267 for 2024, a decrease in loss compared to RMB 920,569 in 2023[32] - The group reported a loss before tax of RMB 290,088,000 for the year ended December 31, 2024, compared to a loss of RMB 930,829,000 for 2023, indicating a significant reduction in losses[56] - The basic and diluted loss per share for the year ended December 31, 2024, was RMB 0.58, down from RMB 2.80 in 2023, reflecting improved performance[61] - Annual loss for the reporting period was approximately RMB 296.3 million, a decrease of 67.8% compared to RMB 920.6 million in the same period of 2023[87] Revenue Sources - Revenue from the 4Paradigm Sage AI platform reached RMB 3,676 million, representing a year-on-year growth of 46.7% and accounting for 69.9% of total revenue[9] - In 2024, the revenue from SHIFT Intelligent Solutions reached RMB 1.022 billion, accounting for 19.4% of the group's total revenue, but saw a year-on-year decline of 20.3% due to strategic business expansion focusing on the AI platform[14] - The AIGS service revenue for 2024 was RMB 563 million, representing 10.7% of the group's total revenue, providing efficient development tools and services based on generative AI[16] - Revenue from a single external customer amounted to RMB 558,295,000, representing about 10.6% of total revenue for the fiscal year ending December 31, 2024, compared to 12.7% in 2023[51] Research and Development - Research and development expenses totaled RMB 2,170 million, with an R&D expense ratio of 41.2%[8] - Research and development expenses rose to RMB 2,169,767, representing a 22.6% increase from RMB 1,768,996 in 2023[30] - The company is focusing on AI agent development to enhance task decomposition and planning capabilities, aiming for comprehensive AI integration in business processes[11] - The company is committed to research and development, particularly in enterprise-level artificial intelligence technologies[128] Operational Strategies - The company continues to expand its customer base and deepen service engagement across various industries, including energy, finance, and transportation[6] - The company has implemented hundreds of agent applications across various sectors, including financial risk control and smart course learning, providing a solid foundation for clients' performance improvement in the AI era[19] - The company continues to iterate and update existing solutions to meet the specific requirements of different vertical scenarios, ensuring accuracy and reliability[15] - The company is actively pursuing strategies for market expansion and potential mergers and acquisitions to enhance its competitive edge[128] Market Position and Future Outlook - The company maintained its position as the leading player in the Chinese machine learning platform market for six consecutive years, according to IDC[70] - The overall revenue from the company's AI platform is expected to grow rapidly as enterprise customers fully adopt agentic AI capabilities[13] - The company predicts that 2025 will be a pivotal year for edge AI, with significant advancements expected in edge AI frameworks and privacy computing technologies[24] - The company believes that the consumer electronics sector will be a key growth driver, transforming traditional devices into AI smart terminals[28] Financial Management - Cash and cash equivalents decreased to RMB 858,618 from RMB 1,977,891 in 2023, a decline of 56.6%[34] - The company manages its cash and working capital through a centralized finance department, implementing policies to enhance financial safety and reduce costs[101] - The company primarily invests in low-risk financial products issued by state-owned banks or reputable financial institutions to manage idle cash[102] Corporate Governance - The company has a strong governance structure with a board of directors comprising both executive and independent non-executive members[126] - The audit committee consists of two independent non-executive directors and one non-executive director, ensuring compliance with applicable accounting standards and regulations[115] - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting period, except for the separation of the roles of Chairman and CEO[111] Employee and Shareholder Engagement - As of December 31, 2024, the company has a total of 967 employees and provides competitive salaries, bonuses, and equity-based compensation to attract and retain talent[105] - The company has adopted an equity incentive plan on September 19, 2024, which includes restricted share units and a partner employee stockholding plan[106] - The company acknowledges the support and contributions from shareholders, management team, employees, business partners, and customers[118]

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].