Core Insights - Kunlun Wanwei has launched its self-developed large language model "Tiangong 1.0," marking a significant step in the rise of domestic large models [1] - The upcoming "Tiangong Model 4.0 O1" (Skywork O1) will be the first domestic model with Chinese logical reasoning capabilities, enhancing the model's ability to think, plan, and reflect [2][3] - The company has established a comprehensive AI business matrix, including AI music, search, gaming, social media, and short dramas, demonstrating its commitment to the full industry chain layout [4] Model Development - The "Tiangong Model 3.0" will feature a 400 billion parameter MoE (Mixture of Experts) model, which is one of the largest and most powerful in the world [1] - The "Tiangong Model 4.0 O1" will include two versions: an open-source model based on Llama 3.1 8B and a more advanced version with enhanced capabilities [3] - The release of the "Tiangong Model 4.0 O1" is expected to significantly improve reasoning capabilities compared to existing models [2] Product Launches - Kunlun Wanwei plans to launch several innovative AI products, including the world's first AI streaming music platform Melodio and an AI music commercial creation platform Mureka by August 14, 2024 [3] - The company will also introduce an advanced AI search function on November 5, 2024, aimed at enhancing user experience in various fields [3] - The AI short drama platform SkyReels is set to launch in the U.S. on December 10, 2024, marking the company's expansion into the global AI entertainment market [3] Strategic Vision - The launch of the "Tiangong Model 4.0 O1" reflects the company's commitment to AI model development and its determination for self-reform [4] - The company is focused on innovation and exploration in AI technology, aiming to enhance its comprehensive competitiveness in AI theory, technology, and applications [4] - The overarching mission is to achieve general artificial intelligence (AGI) and enable individuals to better shape and express themselves [5]

Investment Rating - The report maintains an "Accumulate" rating for the company [3]. Core Insights - The company reported a revenue of 3.828 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 4.00%. However, it incurred a net loss attributable to shareholders of 627 million yuan [5]. - The overseas business has shown strong performance, with its revenue share increasing to 89.68%, up by 5.62 percentage points year-on-year. The overall gross margin stands at 76.90% [5]. - The company has significantly increased its R&D expenses to 1.144 billion yuan, a rise of 84.47% year-on-year, to accelerate AI technology applications [5]. - The company is advancing its AI short drama and social applications, with the launch of the SkyReels platform scheduled for December 10, 2024 [5]. - The profit forecast has been adjusted due to increased R&D investments, with expected net profits for 2024-2026 being -214 million, 329 million, and 422 million yuan respectively [5]. Financial Summary - For 2023, the company reported a revenue of 4.915 billion yuan, with a projected increase to 5.435 billion yuan in 2024, reflecting a year-on-year growth of 10.6% [4]. - The gross margin is expected to improve from 78.8% in 2023 to 80.8% in 2024 [4]. - The return on equity (ROE) is projected to decline to -1.4% in 2024, with a gradual recovery to 2.2% and 2.7% in 2025 and 2026 respectively [4].

Key Points Industry/Company - **Company**: Kunlun Tech - **Industry**: AI, Advertising Technology, Gaming Core Views and Arguments - **AI Progress**: - Kunlun Tech has made significant advancements in AI, launching new features for its Tian Gong AI Assistant, including advanced search, industry, and encyclopedia functionalities ([2](2)). - Tian Gong AI's advanced search function utilizes human-like thinking and reasoning processes to ensure accurate results, outperforming other AI search platforms in terms of information concentration, accuracy, and efficiency ([2](2)). - The App Lala, an AI-driven advertising technology platform, has demonstrated the effectiveness of AI in optimizing advertising strategies, improving installation conversion rates, and enhancing operational efficiency ([2](2)). - Tian Gong AI's color pages and encyclopedia features reflect Kunlun Tech's exploration of community platform attributes and monetization paths ([2](2)). - Kunlun Tech plans to launch the global first AI short-form drama creation platform, Sky, in early December, featuring self-developed script, scene, and 3D generation large models ([2](2)). - The company also plans to launch two new games with significant AI elements next year, incorporating AI NPCs and user-generated tools to enhance player creativity and game playability ([2](2)). - **Financial Analysis**: - Tian Gong AI excels in financial analysis, providing detailed breakdowns and accurate identification of non-recurring gains and losses' impact on profits, as well as the reasons for changes in expenses ([2](2)). - Compared to other similar products, Tian Gong AI demonstrates significant improvements in functionality and细分领域 ([8](8)). - **Advertising Technology**: - The App Lala, an AI-driven advertising technology platform, has proven the effectiveness of AI in optimizing advertising strategies and improving installation conversion rates ([5](5)). - The recent earnings report of Latin Company, a subsidiary of Kunlun Tech, exceeded market expectations, driven by strong advertising marketing and AI technology applications ([10](10)). - The advertising marketing industry benefits significantly from AI technology, improving efficiency and effectiveness ([11](11)). Other Important Content - **Latin Company's Performance**: - Latin Company's third-quarter revenue reached $1.2 billion, a year-on-year increase of 39%, and profits reached $434 million, a year-on-year increase of 300%. The adjusted net profit margin reached 60% ([10](10)). - **Investment Opportunities**: - The AI application industry is a promising investment direction, with significant growth potential ([12](12)).

Company Announcement - Kunlun Tech announced that its AI short drama platform SkyReels will officially launch in the US on December 10, marking the company's further expansion in the global AI entertainment market [1] Product Innovation - SkyReels integrates Kunlun Tech's self-developed script generation model SkyScript, storyboard generation model StoryboardGen, and 3D generation model Sky3DGen [1] - The platform is the first in the industry to deeply integrate AI 3D engine with video generation models, featuring the innovative WorldEngine platform [1] Market Positioning - SkyReels was initially released on August 19 as the world's first AI short drama platform combining video generation models and 3D generation models [1]

Summary of the Conference Call Company and Industry Overview - The conference call focused on Kunlun Wanwei, a company that has made significant advancements in AI technology, particularly in the field of AIGC (Artificial Intelligence Generated Content) [1][2]. Key Points and Arguments AI Development Strategy - Kunlun has committed to an "all-in" AIGC strategy since last year, focusing on six key areas of AI development [1]. - The company has developed a series of large models, starting with a 14 billion parameter model in 2021 and progressing to the latest Tian Gong 3.0 model with 400 billion parameters, which was released in April 2023 [1][2]. Product Offerings 1. **AI Search Engine**: - Launched Tian Gong AI Search in August 2022, combining traditional search with AIGC responses [2]. - As of September, the monthly active users (MAU) reached approximately 5.7 million, ranking fourth among domestic AI user platforms [3]. - The search engine aims to address user pain points in traditional search engines, which often prioritize ads over relevant content [8][9]. 2. **AI Social Product (Linky)**: - Introduced in early 2023, primarily operating in the US and Southeast Asia, with a DAU of around 500,000 [14]. - The product has begun monetization, with a daily revenue per user (DRPU) of $0.1 to $0.2 [14]. 3. **AI Gaming (Kara Club)**: - Set to launch in Q2 2024, this social simulation game incorporates AI elements to enhance user experience [4][23]. 4. **AI Music**: - Released Tian Gong Music model in April 2023, with updates in September, achieving state-of-the-art (SOTA) capabilities in the music model domain [5][6]. 5. **AI Video (Skyrose)**: - Launched in September 2023, allowing users to generate short dramas with a maximum length of 180 seconds [6][7]. Competitive Landscape - The AI sector is highly competitive, with major players like Meta and Baidu also investing heavily in AI technologies [12]. - Kunlun's competitive advantages include its extensive experience in model training and a strong focus on Chinese language processing, which enhances its capabilities in the domestic market [12][13][20]. Financial Outlook - The company expects to generate revenues of approximately 5.5 billion this year, with projections of 6 billion next year [25]. - The monetization strategy for AI applications will primarily rely on a free-to-use model supplemented by advertising, rather than subscription fees, which have not gained significant traction in the domestic market [11][22]. Research and Development - R&D expenses have tripled compared to the previous year, with a focus on enhancing model accuracy and efficiency [25][26]. - The company has released new reward models that have performed well in global evaluations, indicating ongoing improvements in AI capabilities [26]. Other Important Insights - The AI search engine's user demographics show a diverse user base, with one-third being students and another third being working professionals [9][10]. - The company is cautious about scaling its advertising efforts, indicating a strategic approach to user acquisition and retention [21][22]. - The AI social product Linky is expected to grow significantly, with long-term goals of reaching a DAU of over 1 million [14][20]. This summary encapsulates the key developments and strategic directions of Kunlun Wanwei as discussed in the conference call, highlighting its innovative AI products and competitive positioning in the market.

Summary of Conference Call Records Company Overview - **Company**: Kunlun Wanwei - **Industry**: AI and Technology Key Points and Arguments Financial Performance - For the first three quarters of 2024, the company reported a revenue of **3.828 billion** yuan, representing a **4% year-over-year growth** [1] - The overseas business revenue share increased to **89.68%**, up by **5.62 percentage points** year-over-year [1] - Annual R&D investment reached **1.144 billion** yuan, marking an **84.47% increase** [1] AI Product Development - The company launched two new reward models in September 2024, ranking **first and third** globally on the authoritative reward model evaluation standard [1][17] - The Tian Gong AI underwent a comprehensive upgrade, introducing new AI search capabilities and a knowledge web feature that generates in-depth reading pages for user queries [2] - The SkyReels platform, launched in August 2024, integrates video and 3D models for AI short film production, allowing creators to generate scripts and scenes easily [2][3] AI Gaming and Music Innovations - The AI game Club Cora combines social simulation and party game elements, providing an immersive experience through AI-generated characters and environments [3] - The AI music model Sky Music 2.0 can generate songs based on specific styles and user inputs, with a new streaming platform, Melody, allowing users to create and share music [4] Strategic Partnerships and New Ventures - In October 2024, the company partnered with Facebook's subsidiary to establish an AI recruitment joint venture, aiming to enhance recruitment efficiency through AI technology [4] - The company is focusing on expanding its AI applications in various sectors, including recruitment and content creation [5][6] Market Trends and Future Outlook - The company believes that AICC (AI Content Creation) will be a significant growth area, with plans to enhance AI tools for content creators to improve efficiency and reduce costs [6][7] - There is a noted disparity in AI application financing between domestic and overseas markets, with the latter showing faster growth and investment [7][8] - The company anticipates a significant explosion in C-end applications globally within the next two to three years, driven by continuous advancements in foundational models [8] Product Development and Innovation - The company is committed to self-research and development of large models, with recent releases including Tian Gong 3.0, which surpassed GPT-4 in several evaluation metrics [9][10] - Innovations in model architecture, such as the MOE++ framework, have improved computational efficiency significantly [16] - The company is exploring new AI applications in various fields, including video generation and music, with expectations of substantial performance improvements [14][19] User Engagement and Market Penetration - The average usage time for the LinkedIn product is reported to be over **60 minutes**, indicating strong user engagement [17] - The company aims to expand its user base significantly, targeting a **10 million daily active users** for LinkedIn [17][19] Conclusion - Kunlun Wanwei is strategically positioned in the AI and technology sector, focusing on innovative product development, strategic partnerships, and expanding its market presence both domestically and internationally. The company is optimistic about future growth driven by advancements in AI technology and applications across various industries.

证券代码： 300418 证券简称：昆仑万维 编号：2024-004 昆仑万维科技股份有限公司投资者关系活动记录表 | --- | --- | --- | |--------------|----------------------------------|-------------------------------------------------------------------------------------------------------------| | | | | | 投资者关系活 | □特定对象调研 □分析师会议 | | | 动类别 | □媒体采访 √业绩说明会 | | | | □新闻发布会 | □路演活动 | | | □现场参观 | | | | □其他 | （请文字说明其他活动内容） | | 参与单位名称 | | 来自东吴证券、海通证券、华泰证券、招商证券、山西证券、 | | 及人员姓名 | | 民生证券、国信证券、国投证券、国海证券、国盛证券、中 | | | | 信证券、中信建投、中金公司、西南证券、中泰证券、高盛、 大和日华、瑞银证券、摩根士丹利、西部利得、金鹰基金、 | | ...

Investment Rating - The report maintains a "Buy" rating for Kunlun Wanwei [1] Core Views - The company achieved a revenue of 3.828 billion yuan in Q1-Q3 2024, representing a year-on-year increase of 4.00%, while the net profit attributable to the parent company was a loss of 627 million yuan, a year-on-year decrease of 290.81% [2] - The company continues to invest in AI applications, with multiple projects showing initial commercial success, including AI social platform Linky and AI music platform Melodio [4] - Due to ongoing R&D investments and fluctuations in investment income, the company's profitability has been under pressure, with a significant increase in R&D and management expense ratios [3][4] Financial Performance Summary - Total revenue for 2024 is projected to be 5.391 billion yuan, with a year-on-year growth of 9.69% [5] - The net profit attributable to the parent company is expected to be a loss of 855.62 million yuan in 2024, reflecting a year-on-year decline of 167.99% [5] - The latest diluted EPS is forecasted to be -0.69 yuan for 2024, with a P/E ratio of 40.80 for the current price [5] Revenue and Profitability Trends - In Q3 2024, the company reported revenue of 1.327 billion yuan, a year-on-year increase of 5.62% and a quarter-on-quarter increase of 2.50% [2] - The adjusted EBITDA for Opera in Q3 2024 was 30.8 million USD, showing a year-on-year increase of 29.66% and a quarter-on-quarter increase of 15.75% [3] - The company’s R&D expense ratio reached 29.17% in Q3 2024, up 7.73 percentage points year-on-year [3] AI Development and Applications - The company is actively exploring various AI applications, including AI short drama platform SkyReels and AI gaming projects [4] - The commercial success of AI applications is beginning to materialize, particularly in the AI social and music sectors [4] Adjusted Financial Forecasts - The revenue forecasts for 2024-2026 have been adjusted to 54 billion yuan, 59 billion yuan, and 64 billion yuan respectively [5] - The EPS estimates for the same period have been revised to -0.69 yuan, 0.06 yuan, and 0.08 yuan respectively [5]

Investment Rating - The report maintains a "Buy" rating for the company [2][5][21]. Core Views - The company reported Q3 revenue of 1.327 billion RMB, a year-over-year increase of 5.62% and a quarter-over-quarter increase of 2.5%. However, it incurred a net loss of 237 million RMB, which aligns with previous forecasts [2]. - The company has made significant advancements in AI applications, including the launch of the SkyReels platform, which integrates video and 3D models, and the development of AI games [3][19]. - The report highlights a substantial increase in R&D and management expenses due to AI investments and stock incentive costs, with R&D expenses rising by 1.18 billion RMB year-over-year [4][9]. - The profit forecast has been adjusted downward due to increased R&D costs and uncertain investment returns, with expected net losses of 2.2 billion RMB, 3.2 billion RMB, and 4.1 billion RMB for 2024-2026 [5][9]. Summary by Sections Financial Performance - Q1-Q3 revenue reached 3.828 billion RMB, a 4% year-over-year increase, while the net loss for the same period was 627 million RMB, compared to a profit of 328 million RMB in the previous year [2]. - The company’s gross margin for Q3 was 74.5%, maintaining a high level despite increased expenses [4]. R&D and Management Expenses - Management expenses increased by 250 million RMB year-over-year, with a management expense ratio of 30.6%, reflecting an 18.2 percentage point increase [4]. - R&D expenses rose by 1.18 billion RMB year-over-year, with an R&D expense ratio of 29.2% [4]. Valuation and Price Target - The target market value for the company is estimated at 55.96 billion RMB, corresponding to a target price of 45.46 RMB per share [5][21]. - The report employs a step-by-step valuation method, considering various business segments and their respective market values [21][22]. AI Business Development - The company is expanding its AI product matrix, including the launch of multiple platforms and applications, which are expected to enhance its competitive edge in the market [19][20].

证券代码：300418 证券简称：昆仑万维 公告编号：2024-064 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 一、董事会会议召开情况 1、昆仑万维科技股份有限公司（以下简称"公司"）第五届董事会第十八次会议通 知于 2024 年 10 月 24 日采取通讯方式通知了全体董事、监事。 2、公司第五届董事会第十八次会议于 2024 年 10 月 29 日以通讯方式召开。 3、本次会议应参加的董事 7 名，实际参加的董事 7 名。 4、会议由方汉董事长主持。公司部分监事、高级管理人员列席了本次会议。 5、董事会的举行和召开符合国家有关法律、法规及公司章程的规定。 昆仑万维科技股份有限公司 第五届董事会第十八次会议决议公告 （一）审议通过《关于公司<2024 年第三季度报告>的议案》 内容详见刊登于中国证监会指定信息披露网站巨潮资讯网（www.cninfo.com.cn） 的公司《2024 年第三季度报告》。 本项议案已经公司董事会审计委员会审议通过，董事会对此项议题进行了讨论和表 决。 表决结果：赞成票 7 票，占出席会议有效表决票的 100%，反对票 0 ...