Financial Performance - Total net revenues for the six months ended June 30, 2025, decreased to $11,516,908 from $32,953,765 in the same period of 2024, representing a decline of approximately 65%[7] - Gross profit for the six months ended June 30, 2025, was $6,691,312, down from $21,267,261 in 2024, indicating a decrease of about 68%[7] - The net loss attributable to XIAO-I CORPORATION shareholders increased to $30,125,449 for the six months ended June 30, 2025, compared to $15,499,990 in 2024, reflecting a 94% increase in losses[7] - The company reported a loss per ordinary share attributable to shareholders of $0.84 for the six months ended June 30, 2025, compared to $0.64 in 2024, indicating a worsening of the loss per share by about 31%[7] - Total comprehensive loss attributable to XIAO-I CORPORATION shareholders for the six months ended June 30, 2025, was $30,472,464, compared to $15,316,529 in 2024, reflecting an increase of approximately 99%[7] - For the six months ended June 30, 2024, the net loss was $15,542,475, which increased to $30,389,811 for the same period in 2025, indicating a significant rise in losses[10] - Net revenue for the six months ended June 30, 2025, was $11,924,360, a significant drop from $32,953,740 for the same period in 2024, representing a decrease of about 63.9%[15] - The net loss increased to $22,455,335 for the six months ended June 30, 2025, compared to a net loss of $14,367,159 for the same period in 2024, indicating a worsening of approximately 56.5%[15] Cash Flow and Liquidity - Cash and cash equivalents increased significantly from $846,593 as of December 31, 2024, to $5,011,540 as of June 30, 2025, marking a growth of approximately 493%[4] - Cash used in operating activities for the first half of 2025 was $2,328,970, a decrease from $10,054,183 in the same period of 2024, showing improved cash flow management[10] - The company reported a total cash, cash equivalents, and restricted cash of $5,011,540 at the end of June 2025, up from $1,849,477 at the end of June 2024[10] - The Group reported net cash used in operating activities of $2,328,970 for the six months ended June 30, 2025, compared to $10,054,183 for the same period in 2024, indicating improved cash flow management despite ongoing losses[20] Assets and Liabilities - The company’s total assets decreased from $85,511,474 as of December 31, 2024, to $82,392,318 as of June 30, 2025, a decline of about 4%[4] - As of June 30, 2025, total assets decreased to $75,690,939 from $84,208,263 as of December 31, 2024, reflecting a decline of approximately 10.8%[15] - Total current liabilities rose from $86,603,467 as of December 31, 2024, to $104,242,968 as of June 30, 2025, an increase of about 20%[4] - The accumulated deficit reached $155,463,958 by June 30, 2025, compared to $126,333,035 at the end of June 2024, highlighting ongoing financial challenges[10] - The total shareholders' deficit was $36,781,083 as of June 30, 2025, compared to $23,123,342 at the end of June 2024, indicating a worsening financial position[10] - Negative working capital increased from $10,111,451 as of December 31, 2024, to $30,529,489 as of June 30, 2025, reflecting a deterioration of approximately 202.5%[20] Shareholder and Equity Information - The number of ordinary shares outstanding increased from 24,049,072 as of June 30, 2024, to 35,972,462 as of June 30, 2025, representing a growth of approximately 50%[7] - Share-based compensation expenses surged from $488,231 in the first half of 2024 to $4,992,881 in the first half of 2025, reflecting increased employee incentives[10] - The 2025 Share Incentive Plan allows for the issuance of up to 4,214,684 ordinary shares, with adjustments based on the total shares outstanding[82] - The company granted 3,813,639 RSUs to external consultants in the first half of 2025, with a weighted average fair value of $1.11 per share[95] - As of June 30, 2025, there were 889,937 share options outstanding, with a weighted average exercise price of $3.71[86] Legal and Regulatory Matters - The Group is involved in multiple legal proceedings, including a patent infringement case against Apple, which seeks damages of 10 billion yuan (approximately $1.4 billion)[112] - A securities class action lawsuit was filed against the Group on June 26, 2024, alleging misleading statements related to its AI capabilities and customer contracts[113] - The Group has recorded contingent liabilities for various legal claims, with amounts reasonably estimable[111] - Xiao-I Corporation is involved in 15 lawsuits in China during 2025, with a total amount in dispute of approximately RMB 8,014,190.09 ($1,105,737.79)[125] - The company faces claims exceeding RMB 18 million related to labor disputes involving more than 109 former employees laid off as part of a workforce optimization plan[128] - In June 2025, a shareholder rights infringement case was filed against Xiao-I Corporation, seeking compensation of RMB 2,265,315.41[126] - Another shareholder rights infringement case in September 2025 seeks compensation of RMB 12,108,027.86 ($1,690,216)[127] - Management does not expect the ongoing disputes to have a material adverse effect on the financial statements[128] Financing Activities - Proceeds from convertible loans increased significantly from $2,496,945 in the first half of 2024 to $9,885,500 in the first half of 2025, indicating a reliance on convertible financing[10] - The Group's borrowings were overdue, and discussions with the bank regarding repayment arrangements are ongoing[55] - The Group entered into a Convertible Loan Agreement on June 17, 2024, for a principal amount of $3,260,869.57, intended for general working capital purposes[52] - Convertible Loan I has a conversion price of $1.00 per ADS, with an interest rate of 6.0% per annum, increasing to 15% upon default[56] - Convertible Loan II was issued for a principal amount of $2,175,000 with an 8% Original Issue Discount, and the proceeds are intended for general working capital[59] - Convertible Loan III was issued for a principal amount of $4,637,840 with an 8% Original Issue Discount, and the proceeds are also for general working capital[66] - Convertible Loan IV was issued for a principal amount of $6,128,000 with an Original Issue Discount of $518,000, with proceeds for general working capital[71] Operational Insights - Xiao-I Corporation primarily engages in artificial intelligence technology in China, focusing on innovation and market expansion[13] - The Group is focusing on improving operational efficiency and implementing strict cost control measures to enhance financial stability[21] - The Group's future minimum lease payments under non-cancellable operating leases total $609,201, with $503,139 due by June 30, 2026[110] - The Group's investment in Jiaxing Yuanbeibei was recorded at a cost of $704,235, reflecting a 1.82% shareholding[48]

Core Insights - Xiao-I Corporation has renewed its contract with a major Sino-European automotive joint venture for its intelligent dialogue robot and smart voice customer service solutions, indicating strong ROI and business improvements from its AI platforms [1][2] - The partnership aims to modernize customer service operations, showcasing the client's confidence in AI for sustained growth [1] - The integration of AI solutions has led to enhanced customer experience, operational efficiency, and significant cost savings [2] Company Overview - Xiao-I Corporation is a leading cognitive intelligence enterprise in China, specializing in AI solutions such as natural language processing, voice and image recognition, and machine learning [3] - The company has developed a diverse portfolio of cognitive intelligence technologies since its inception in 2001, promoting industrial digitization and intelligent transformation [3] Product Offerings - The Intelligent Dialogue Robot (iBot Pro) is a multi-channel platform that addresses a wide range of customer inquiries with a 0-code/low-code architecture for rapid deployment [5] - The Smart Voice Customer Service solution provides 24/7 voice-based support, allowing natural customer interactions and ensuring seamless transitions to human agents when necessary [5]

Core Insights - Xiao-I Corporation has renewed its strategic partnership with a leading multinational life insurance provider, focusing on the deployment of its iBot Pro platform, which enhances customer service in the insurance sector [1][2]. Company Overview - Xiao-I Corporation is a prominent cognitive intelligence enterprise in China, specializing in artificial intelligence solutions, including natural language processing, voice and image recognition, and machine learning [3]. Partnership Details - The renewal of the partnership emphasizes the effectiveness of iBot Pro in providing intelligent, scalable, and personalized customer service while ensuring compliance with industry regulations [1][2]. - iBot Pro facilitates seamless support across various customer touchpoints, including web portals, mobile apps, and social messaging platforms [1]. Technological Advancements - The iBot Pro platform offers 24/7 intelligent customer engagement, significantly reducing waiting times and enhancing customer satisfaction [5]. - It provides unified omnichannel support, ensuring a consistent service experience across digital platforms [5]. - High-accuracy intent recognition through advanced natural language processing allows for precise routing of complex insurance-related queries [5]. - The platform enhances operational efficiency by automating routine inquiries, enabling human agents to focus on more complex tasks [5]. - Rapid deployment capabilities allow for quick updates to the platform based on new products or regulatory changes without heavy IT reliance [5].

Core Insights - Xiao-I Corporation has renewed its strategic partnership with a leading multinational automotive manufacturer, extending a collaboration that began in 2015, highlighting a decade of innovation in cognitive intelligence technologies [1] - The renewed agreement aims to optimize the client's customer service ecosystem through Xiao-I's flagship solutions, enhancing customer engagement and operational excellence [1][3] Company Overview - Xiao-I Corporation is a prominent cognitive intelligence enterprise in China, specializing in artificial intelligence solutions, including natural language processing, voice and image recognition, machine learning, and affective computing [4] - Since its establishment in 2001, the company has developed a comprehensive portfolio of cognitive intelligence technologies applicable to various business cases, promoting industrial digitization and intelligent transformation [4] Key Outcomes of the Solutions - The cognitive intelligence platform has evolved to meet the automotive manufacturer's needs, incorporating advancements in natural language processing, machine learning, and multimodal interaction capabilities [3] - The deployment of 24/7 AI-powered assistance across multiple channels ensures consistent and instant responses to customer inquiries [6] - Enhanced technical support through AI-augmented tools for field technicians improves resolution time and first-visit fix rates [6] - Intelligent virtual assistants facilitate personalized product recommendations and promotional campaign management, boosting conversion rates and customer satisfaction [6] - Automation of routine queries has significantly reduced operational costs, allowing human agents to focus on complex problem-solving [6]

Core Viewpoint - Chinese concept stocks experienced significant declines, with the top five losers showing steep drops in their stock prices. Group 1: Stock Performance - Libang Kitchenware (LBGJ) fell by 50.93%, closing at 0.660, with a decrease of 0.685 and a trading volume of 3.6995 million [1] - Zhengye Biological (ZYBT) dropped by 39.64%, ending at 3.000, down by 1.970, with a trading volume of 8.2297 million [1] - Reaya Electronics (RAYA) decreased by 33.05%, closing at 0.0476, down by 0.0235, with a trading volume of 3.9496 million [1] - Xiao i Robot (AIXI) saw a decline of 23.21%, closing at 1.290, down by 0.390, with a trading volume of 1.4258 million [1] - Easy Electric (EZGO) fell by 16.08%, ending at 0.1879, down by 0.0360, with a trading volume of 0.9919 million [1]

Core Insights - Xiao-I Corporation has successfully renewed its strategic partnership with a leading multinational banking organization, focusing on enhancing digital customer engagement through AI solutions [1][2]. Group 1: Partnership and AI Solutions - The partnership emphasizes the deployment and enhancement of Xiao-I's intelligent customer service platform, iBot Pro, which has significantly improved the Bank's digital customer engagement capabilities [2]. - Xiao-I's AI technologies, including natural language processing and deep learning algorithms, have led to remarkable improvements in service quality and operational efficiency for the Bank [2][3]. Group 2: Operational Improvements - The AI solution provides instant and accurate responses to various banking inquiries, reducing customer wait times and improving first-contact resolution rates [3]. - Automation of routine inquiries and transactions has allowed human representatives to focus on complex financial advisory services, resulting in reduced operational costs and enhanced service quality [4]. - The platform has shown scalability in managing fluctuating inquiry volumes, particularly during peak periods, providing the Bank with operational flexibility and cost advantages [5]. Group 3: Data-Driven Insights - Xiao-I's platform generates valuable insights from customer interactions, enabling the Bank to identify emerging needs and optimize service processes [6]. - These insights have informed strategic decision-making in product development, service improvement, and risk management [6]. Group 4: Commitment to Innovation - Xiao-I Corporation is committed to continuous innovation in the financial services sector, investing in research and development of next-generation AI solutions tailored for banking challenges [7]. - The company explores AI technologies across various financial scenarios, from retail banking to wealth management applications [7].

Core Insights - Xiao-I Corporation has renewed its strategic partnership with a leading multinational fast-fashion retailer for the fifth consecutive year, highlighting the importance of its cognitive AI platform in enhancing customer experience and operational efficiency in high-volume retail [1][2]. AI-Driven Value Delivery Highlights - The iBot Pro platform provides instant, localized responses to frequent inquiries regarding product availability, order tracking, returns, and promotions, significantly reducing average response times [3]. - Unified knowledge management across various digital channels ensures a consistent brand voice and service quality, minimizing consumer friction during channel-switching [3]. - The platform proactively engages with cart-abandonment scenarios by offering personalized incentives to customers [3]. Strategic Implications - In the competitive fast-fashion industry, where consumer loyalty is driven by speed and personalization, the iBot Pro platform allows the retailer to maintain agility across 27 markets [4]. - The AI solution adapts to regional trends through machine learning, analyzing over 4.2 million monthly interactions to enhance product recommendations and service workflows [4]. Company Overview - Xiao-I Corporation is a leading cognitive intelligence enterprise in China, specializing in a wide range of AI solutions, including natural language processing, voice and image recognition, and machine learning [5]. - Since its establishment in 2001, the company has developed a comprehensive portfolio of cognitive intelligence technologies applicable to various business scenarios, promoting industrial digitization and intelligent transformation [5].

Group 1 - The top five gainers among Chinese concept stocks include: Hong Kong Pharmaceutical Digital Technology up 35.24%, Oriental Culture up 33.22%, Rich Sparkle Holdings up 26.81%, Xiao I Robot up 22.3%, and Huibao Holdings up 21.62% [1][1][1] - Hong Kong Pharmaceutical Digital Technology (HKPD) closed at 1.420 with a gain of 0.370 and a trading volume of 297 million [1][1][1] - Oriental Culture (OCG) closed at 3.850 with a gain of 0.960 and a trading volume of 3.8226 million [1][1][1] - Rich Sparkle Holdings (ANPA) closed at 52.880 with a gain of 11.180 and a trading volume of 1.2434 million [1][1][1] - Xiao I Robot (AIXI) closed at 1.810 with a gain of 0.330 and a trading volume of 1.4992 million [1][1][1] - Huibao Holdings (FEBO) closed at 0.9000 with a gain of 0.1600 and a trading volume of 862.84 thousand [1][1][1]

Core Insights - Xiao-I Corporation has renewed its service contract with a major China-based mutual fund management company, highlighting its significant role in enhancing financial services through AI technology [1][4] - The partnership focuses on deploying the iBot Pro platform, which is a multi-channel conversational AI solution designed to provide personalized services to clients [2][4] Company Overview - Xiao-I Corporation is a leading cognitive intelligence enterprise in China, specializing in AI solutions such as natural language processing, voice and image recognition, and machine learning [5] - The company has been operational since 2001 and has developed a wide range of cognitive intelligence technologies applicable to various business scenarios [5] Partnership Benefits - The collaboration aims to improve client experience and operational efficiency in asset management through AI-driven solutions [4] - Key services provided include intelligent 24/7 customer service, automated handling of high-volume inquiries, and streamlined internal operations [7] - The partnership also emphasizes scalability and cost efficiency, allowing the asset manager to manage peak inquiry volumes without proportional cost increases [7]

Group 1 - The stock price of Xiao i Robot (AIXI) increased by 4.05% on August 25, reaching $1.54 per share, with a total market capitalization of $20.3467 million [1] - For the fiscal year ending December 31, 2024, Xiao i Robot reported total revenue of $70.3143 million, representing a year-on-year growth of 18.84% [1] - The company recorded a net loss attributable to shareholders of $14.5055 million, which is an improvement with a year-on-year decrease in loss of 45.18% [1] Group 2 - Xiao i Company is a Cayman Islands-registered holding company that operates primarily through its domestic subsidiary, Shanghai Zhizhen Intelligent Network Technology Co., Ltd. [1] - The subsidiary is recognized as a leading cognitive intelligence enterprise in China, integrating natural language processing and computer vision technologies [1] - The company provides a wide range of AI commercial services, including natural language processing, computer vision, machine learning, and cloud computing, and serves various sectors such as smart cities, software business, and architectural design [1]