DeepGlint(688207)2024-08-23 08:56Financial Performance - Revenue for the first half of 2024 decreased by 67.41% year-on-year to RMB 51.31 million, primarily due to delayed product deliveries caused by the need for domestic adaptation and testing to meet the comprehensive information innovation requirements of major customer Agricultural Bank of China, as well as the downturn in the market environment of some customer industries[15][16] - Net profit attributable to shareholders of the listed company turned from profit to loss, with a loss of RMB 77.92 million, compared to a profit of RMB 2.12 million in the same period last year[15] - Net cash flow from operating activities decreased to RMB -87.40 million, mainly due to a year-on-year decrease in cash received from sales of goods[16] - R&D investment accounted for 182.75% of revenue, an increase of 133.80 percentage points compared to the same period last year[16] - Total assets decreased by 4.84% to RMB 2.35 billion compared to the end of the previous year[15] - Non-recurring gains and losses amounted to RMB 3.61 million, including government subsidies of RMB 1.42 million and gains from changes in the fair value of financial assets and liabilities of RMB 4.82 million[18][19] - Revenue for the reporting period was 51.3098 million yuan, a decrease of 67.41% year-on-year, primarily due to delays in product delivery to Agricultural Bank of China caused by domestic adaptation and testing requirements[56] - Gross margin increased to 67.38% from 62.06% in the same period last year, despite a net loss of 77.9239 million yuan attributable to the parent company[56] - Revenue for the first half of 2024 was RMB 51.31 million, a decrease of 67.41% year-over-year[57] - Net profit attributable to the parent company was a loss of RMB 77.92 million, with a non-GAAP net loss of RMB 81.54 million[57] - R&D expenses increased by 21.68% to RMB 93.77 million, accounting for a significant portion of total expenses[59] - Operating cash flow was negative RMB 87.40 million, a significant increase in cash outflow compared to the previous year[59] - Investment cash flow was negative RMB 542.64 million, reflecting increased investment activities[59] - Operating costs decreased due to a reduction in operating income[60] - Sales expenses decreased due to reduced share-based payment expenses and market exhibition costs[60] - Management expenses increased due to new office space rental and decoration amortization[60] - Financial expenses increased due to a decrease in interest income[60] - R&D expenses increased due to higher cloud service leasing and third-party service fees[60] - Net cash flow from operating activities decreased due to reduced cash received from sales[60] - Net cash flow from investing activities decreased due to increased cash payments for purchasing financial products[60] - Net cash flow from financing activities decreased due to increased payments for lease assets[60] - Monetary funds decreased by 42.35% to 811.81 million RMB, mainly due to increased purchases of bank structured deposits[60] - Trading financial assets increased by 70.17% to 611.80 million RMB, mainly due to increased purchases of bank structured deposits[60] - Total operating income decreased from 157.44 million yuan to 51.31 million yuan, a reduction of 67.4%[132] - Total operating costs decreased from 161.93 million yuan to 136.52 million yuan, a reduction of 15.7%[132] - Net profit attributable to the parent company decreased from -186.33 million yuan to -264.25 million yuan, a further loss of 41.8%[128] - Sales expenses increased to 18.75 million RMB, up from 28.6 million RMB in the previous period[133] - Management expenses rose to 23.18 million RMB, compared to 16.97 million RMB in the previous period[133] - R&D expenses increased significantly to 93.77 million RMB, up from 77.06 million RMB in the previous period[133] - Financial expenses showed a negative value of -16.03 million RMB, compared to -21.67 million RMB in the previous period[133] - Interest income decreased to 17.77 million RMB, down from 21.98 million RMB in the previous period[133] - Operating profit turned negative at -77.45 million RMB, compared to a positive 1.99 million RMB in the previous period[133] - Net profit also turned negative at -77.81 million RMB, compared to a positive 1.94 million RMB in the previous period[133] - Basic earnings per share (EPS) were -0.30 RMB, compared to 0.01 RMB in the previous period[134] - Comprehensive income total was -77.60 million RMB, compared to 1.60 million RMB in the previous period[134] - Parent company's operating income decreased to 43.75 million RMB, down from 214.82 million RMB in the previous period[135] - The company's comprehensive income for the first half of 2024 was -65,587,848.54 RMB, compared to 13,123,344.85 RMB in the same period last year[137] - Cash received from selling goods and providing services in the first half of 2024 was 52,101,999.51 RMB, a significant decrease from 143,962,285.13 RMB in the same period last year[137] - Cash received from other operating activities in the first half of 2024 was 2,813,584.82 RMB, down from 7,329,989.20 RMB in the same period last year[137] - Cash paid for goods and services in the first half of 2024 was 27,505,663.59 RMB, compared to 91,175,434.28 RMB in the same period last year[137] - Cash paid to employees in the first half of 2024 was 103,203,080.49 RMB, an increase from 92,855,148.94 RMB in the same period last year[138] - Cash received from investment activities in the first half of 2024 was 2,139,850,369.88 RMB, a significant increase from 912,028,982.78 RMB in the same period last year[138] - Cash paid for investments in the first half of 2024 was 2,675,170,000.00 RMB, compared to 959,840,000.00 RMB in the same period last year[138] - The net increase in cash and cash equivalents in the first half of 2024 was -637,035,335.91 RMB, compared to -106,730,422.16 RMB in the same period last year[139] - The ending balance of cash and cash equivalents in the first half of 2024 was 256,393,747.77 RMB, down from 1,208,207,002.69 RMB in the same period last year[139] - Cash received from selling goods and providing services by the parent company in the first half of 2024 was 45,979,774.51 RMB, a significant decrease from 219,736,301.78 RMB in the same period last year[139] - Investment activities resulted in a net cash outflow of -522,911,162.16 RMB, a significant increase from -53,102,779.67 RMB in the previous period[140] - The company's cash and cash equivalents decreased by -600,969,505.76 RMB, ending with a balance of 143,505,310.43 RMB[140] - Owner's equity decreased by -75,039,594.25 RMB, primarily due to a comprehensive income loss of -77,598,484.41 RMB[141][142] - Capital reserve increased by 2,558,890.16 RMB, mainly from share-based payments[142] - The company's total comprehensive income for the period was -77,713,855.23 RMB, with a minority interest adjustment of 115,370.82 RMB[142] - The company's total assets decreased by -75,154,965.07 RMB, with a corresponding decrease in owner's equity[141] - The company's retained earnings decreased by -264,254,008.32 RMB, reflecting the impact of the period's losses[145] - The company's capital reserve increased by 9,772,364.65 RMB due to owner's contributions[147] - The company's comprehensive income for the period was 1,780,318.55 RMB, with a minority interest adjustment of -177,345.96 RMB[147] - Total owner's equity at the end of the period is RMB 2,371,291,646.23[150] - Capital reserve transfer to capital (or share capital) amounts to RMB 73,992,328[149] - Comprehensive income for the period is RMB -65,587,848.54[151] - Total owner's equity at the beginning of the period is RMB 2,411,755,068.90[151] - The change in owner's equity during the period is RMB 63,028,958.38[151] - Other comprehensive income for the period is RMB 210,050.92[151] - Total owner's equity at the end of the period is RMB 2,348,726,110.52[152] - The change in owner's equity during the period is RMB 22,895,709.50[153] - Comprehensive income for the period is RMB 13,123,344.85[153] - Capital reserve decreased by RMB 64,219,963.35 during the period[153] - Total equity at the end of the period reached RMB 2,514,167,630.08, with owner's equity contributions amounting to RMB 9,772,364.65[154] - The company's total share capital remained unchanged at RMB 258,973,147.00 as of June 30, 2024[155] - The company's registered capital and share capital were RMB 13,873.56 million as of December 31, 2021, and increased to RMB 25,897.31 million after a capital reserve transfer in 2023[155] R&D and Innovation - R&D investment accounted for 182.75% of revenue, an increase of 133.80 percentage points compared to the same period last year[16] - The company's R&D process follows an agile methodology, focusing on user needs and iterative development, with stages including product demand research, feasibility verification, product development, product release, and product operation[24] - The company's AI platform, DeepBrain, supports training data of over 10 billion, hundreds of millions of category tasks, and multi-modal large models with hundreds of billions of parameters[27] - The company has developed a multi-modal large model that can process inputs from images, language, and other modalities, significantly improving accuracy in complex scenarios compared to traditional small models[28] - The company's 3D reconstruction and stereo vision analysis technology achieves a rotation vector error of less than 1 degree and a translation vector error of less than 0.3mm in real-world business test sets[30] - The company's vehicle recognition technology supports license plate recognition with an accuracy rate of over 99% and can identify over 50 attributes of vehicles and pedestrians with key attribute recognition accuracy exceeding 95%[31] - The company's face recognition technology achieves a recognition accuracy of 99.1% on the MegaFace dataset and a 99.97% pass rate in the 1:1 face comparison test at a false acceptance rate of 0.01%[32] - The company's cross-platform model training technology enables one-click training of common business AI algorithms, significantly reducing development costs and improving product competitiveness[28] - The company's motion posture analysis technology has been applied in smart finance and sports health, achieving high detection accuracy in employee behavior analysis and sports action evaluation[29] - The company's traffic scene understanding and event detection technology can automatically identify 11 types of traffic violations without manual annotation[31] - The company's large-scale cross-camera tracking technology supports real-time dynamic clustering for over 10,000 cameras, applicable in both indoor and complex outdoor environments[32] - The company's point cloud registration technology, based on deep learning, has achieved top results on multiple academic datasets and is crucial for product deployment[30] - The company's image search engine can retrieve 3 billion face images in 20 seconds on a single machine, and achieve retrieval performance for tens of billions of images in tens of seconds with cluster support[33] - The short feature technology developed by the company saves at least 4 times the video memory while maintaining a recall rate of 99.9%[33] - The company has accumulated tens of millions of attack samples for its face liveness detection technology, preventing non-live faces from passing through gates[33] - The SLAM technology used in the company's robots achieves millimeter-level positioning accuracy in structured indoor environments and centimeter-level accuracy in semi-outdoor industrial settings[34] - The company's robot virtual teaching technology improves implementation speed by more than 3 times by reducing reliance on real trains[34] - The company has 53 valid patents and 159 valid software copyrights as of the reporting period[37] - The company's R&D investment in the current period increased by 21.68% to 93.77 million yuan compared to the same period last year[39] - The R&D investment accounted for 182.75% of the company's operating revenue, a significant increase from 48.95% in the previous year[39] - The company's AI algorithm platform upgrade project has a total investment of 344.8 million yuan, with 142.39 million yuan already invested[42] - The company completed the development of an industrial inspection robot with real-time intelligence and autonomous control capabilities, achieving low-speed autonomous driving, visual guidance for robotic arms, and remote teaching functions[43] - A high-efficiency, high-accuracy, and lightweight railway inspection equipment was developed, enabling automatic and rapid detection of track conditions, reducing maintenance time, and achieving cost efficiency[43] - The company developed wearable AI devices for the rail transit industry, improving the standardization and safety of operational processes[43] - A 3D sports interaction product and multi-camera collaborative solution supporting over 100 sports training and examination projects was developed, with high visual algorithm accuracy and precise motion posture evaluation[43] - The company launched a smart financial management system for banks, covering cloud-edge-device architecture with functions such as compliance monitoring, risk event warning, and operational efficiency analysis[44] - A public security video big data analysis platform was introduced, integrating video big data systems, video library systems, map services, and multi-biometric management systems[44] - The company developed a smart gas station big data analysis platform, providing quantitative data support for operational decision-making and intelligent methods for safety management[45] - A smart energy farm project was initiated, utilizing AI and controlled photosynthesis technologies to develop efficient photobioreactors and automated control processes for stable and high-yield microalgae cultivation[45] - The company is researching autonomous flying robots for industrial inspection tasks, aiming to build a satellite-independent autonomous drone system[45] - Edge computing product platform achieved revenue of 21.13 million USD, with a cost of 5.74 million USD and a profit of 18.36 million USD, achieving large-scale commercialization[46] - DeepEye intelligent IoT platform generated revenue of 6.02 million USD, with a cost of 1.85 million USD and a profit of 4.79 million USD, also achieving large-scale commercialization[46] - Wearable assistant product is in the pilot and iteration phase, with revenue of 8.87 million USD, cost of 4.41 million USD, and profit of 7.87 million USD[46] - Smart camera product platform, which concluded in July 2024, generated revenue of 5.37 million USD, cost of 0.44 million USD, and profit of 4.51 million USD[46] - Wearable voice recording and analysis device, already concluded, achieved revenue of 7.57 million USD, cost of 1.15 million USD, and profit of 6.60 million USD[46] - Intelligent cognitive system achieved revenue of 3.75 million USD, with a cost of 1.57 million USD and a profit of 2.77 million USD, achieving large-scale commercialization[46] - Total R&D personnel count is 318, accounting for 70.19% of the company's total workforce, with an average salary of 18.97 thousand USD[48] - The company's core algorithm technologies have achieved top rankings in international and domestic competitions, with a 99.1% accuracy rate in face recognition on the MegaFace dataset[49] - The company's DeepEye Brain AI platform has processed billions of training data, improving algorithm model efficiency and automation levels[50] - The company's training task management platform can automatically deploy models to various hardware platforms, including NVIDIA GPUs and Huawei Ascend chips[50] - R&D investment reached 93.7681 million yuan, a year-on-year increase of 21.68%, with a focus on advancing multi-modal large models and expanding application scenarios[56] - The company's R&D team consists of 318 members, accounting for 70.19% of the total workforce, with a core team led by founder Dr. Zhao Yong[55] - R&D expenses increased significantly to 93.77 million RMB, up from 77.06 million RMB in the previous period[133] - R&D expenses increased due to higher cloud service leasing and third-party service fees[60] Business Operations and Strategy - The company belongs to the "Software and Information Technology Services" industry (code I65) and is classified under the "Artificial Intelligence" sector within the "New Generation Information Technology Industry" according to the "Strategic Emerging Industries Classification (2018)"[20] - The company has successfully applied its AI solutions in five major fields: smart finance, urban management, smart commerce, rail transit maintenance, and sports health, with smart finance covering over 10,000 branches of Agricultural Bank of China nationwide[21] - The company's self-developed train intelligent inspection solution has been implemented in high-speed rail and subway projects, covering three major scenarios: rail transit machinery, electrical, and engineering[22] - The company's profit model is based on providing AI products and solutions, including standardized and customized services, with core products such as Zhiyuan Intelligent Front-end Products, Lingxi Data Intelligence Platform, and Shentong Industry Application Platform[23] - The company does not directly produce hardware but outsources production to professional manufacturers, ensuring product quality through strict quality control and production management processes[25] - The company employs a direct sales model complemented by channel partners, with a nationwide sales network divided into seven regions: East China, Central China, North China, Southeast China, Southwest China, Northeast China, and Northwest China[26] - The company's products have been successfully adapted for domestic use and passed Agricultural Bank of China's testing, with new domestic products now being promoted for sale[56] - The company's rail transit operation and