Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 571.7 million, a decrease of 38.1% compared to RMB 923.9 million in the same period of 2023[2]. - Gross profit for the same period was RMB 193.2 million, with a gross margin of 33.8%, an increase of 1.4 percentage points year-on-year[7]. - Adjusted net loss narrowed to RMB 37.4 million, a decrease of 5.1% from RMB 39.4 million in the previous year[7]. - The company's cash and cash equivalents amounted to approximately RMB 1,332.9 million as of June 30, 2024[7]. - The company's cost of sales for the six months ended June 30, 2024, was RMB 378.5 million, a reduction of 39.4% from RMB 625.0 million in 2023[32]. - The overall gross profit for the same period was RMB 193.2 million, down 35.4% from RMB 298.9 million in 2023[34]. - The overall gross margin improved to 33.8%, an increase of 1.4% from 32.4% in 2023, due to higher delivery efficiency and cost optimization[34]. - Operating loss for the six months ended June 30, 2024, was RMB 190.8 million, a decrease of 9.6% compared to an operating loss of RMB 211.0 million for the same period in 2023[40]. - Net loss for the six months ended June 30, 2024, was RMB 184.6 million, a decline of 5.9% from a net loss of RMB 196.1 million for the same period in 2023[43]. - Financial income for the six months ended June 30, 2024, was RMB 7.7 million, down from RMB 16.0 million for the same period in 2023, mainly due to decreased interest income from bank deposits[41]. - Financial costs decreased from RMB 4.6 million for the six months ended June 30, 2023, to RMB 3.8 million for the same period in 2024, primarily due to reduced interest expenses on convertible bonds[42]. - Other income for the six months ended June 30, 2024, was RMB 23.3 million, primarily related to government subsidies associated with financial assistance from local governments in China[38]. - The adjusted net loss for the six months ended June 30, 2024, was RMB 37.4 million, compared to an adjusted net loss of RMB 39.4 million for the same period in 2023[45]. - The company reported a significant decrease in financial asset impairment losses, from RMB 35,968,000 in the previous year to RMB 4,538,000[61]. - The company incurred a net loss of RMB 184,553,000 for the six months ended June 30, 2024, compared to a net loss of RMB 196,053,000 in the prior year[62]. - The net loss attributable to owners of the company for the six months ended June 30, 2024, was RMB (195,483) thousand, slightly improved from RMB (195,688) thousand in 2023[82]. - Basic loss per share remained at RMB (0.36) for both the six months ended June 30, 2024, and 2023[82]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with 2023[81]. Revenue Breakdown - The sales of products and solutions accounted for 94.4% of total revenue, while data solution services contributed 5.6%[3]. - Revenue from end-users was RMB 351.5 million, representing 61.5% of total revenue, while system integrators contributed RMB 220.2 million, or 38.5%[4]. - The manufacturing sector generated RMB 437.5 million, accounting for 76.5% of total revenue, while the automotive equipment sector contributed RMB 88.6 million, or 15.5%[5]. - Revenue from the financial services sector decreased by 64.2%, amounting to RMB 82.9 million compared to RMB 231.6 million in 2023[31]. - Revenue from Customer B for the six months ended June 30, 2024, was RMB 60,424 thousand, while Customer A contributed RMB 113,381 thousand in the previous period[74]. Research and Development - The company has filed a total of 1,326 patents, including 1,079 invention patents, as of June 30, 2024[7]. - Research and development expenses for the six months ended June 30, 2024, were RMB 148.0 million, down 33.7% from RMB 223.1 million for the same period in 2023, mainly due to improved R&D efficiency and effective management of R&D expenditures[37]. - The company plans to enhance its research and commercialization capabilities, with approximately RMB 392.05 million and RMB 217.81 million allocated for these purposes, respectively[59]. Innovation and Technology - The AInno-75B model achieved the highest rating (4+) in the China Academy of Information and Communications Technology's evaluation of industrial AI models[7]. - The company launched the upgraded version of its industrial large model technology platform, AInno-75B, and several generative AI applications during the reporting period[6]. - Innovation Qizhi ranked first in the "2024 Forbes China AI Technology Companies TOP 50" and "2024 Forbes China AI Innovation Technology TOP 10" lists[8]. - The company launched the AInnoGC 2.0 industrial model in March 2023, enhancing capabilities in generative AI applications and establishing a data closed-loop with industrial clients[10]. - The AInno-75B multimodal industrial model was successfully released in the first half of 2024, achieving a 50% reduction in deployment costs without significant performance loss[13]. - The ChatX series applications, including ChatDoc and ChatBI, have improved data analysis efficiency and user experience, with enhanced capabilities for various data types[12]. - The company is expanding its AI+MOM product strategy, integrating AI technology into existing MOM core products across various industries[15]. - The MMOC AI platform continues to mature, supporting industrial intelligence applications and driving high-quality business growth[14]. - The company has been recognized as a leading AI industrial quality inspection solution provider in China by IDC[8]. - The ChatRobot Pro has been upgraded to enhance task generalization and user interaction in industrial settings[12]. - Innovation Qizhi has established a research center for AI industrial models in Shandong Province, recognized by the provincial development and reform commission[8]. - The company continues to promote integrated hardware and software solutions in the machine vision sector, significantly accelerating product promotion processes in niche markets[16]. - In the automotive equipment sector, the company has developed an advanced conveyor demonstration line, enhancing operational efficiency and reducing reliance on professional data analysts through real-time data insights[17]. - The company has successfully implemented multiple first-of-its-kind applications in the industrial logistics sector, including the first AI+5G electric locomotive hardware transformation, which is nearing completion[18]. - The company is enhancing its industrial sustainability efforts by leveraging AI dual platforms to drive rapid iteration and upgrade of intelligent products and services[19]. - The company has achieved significant results in the digital software sector by applying AI technology and data solutions, improving data governance efficiency and accuracy through tailored solutions[20]. - The introduction of intelligent data governance solutions has effectively addressed challenges related to rapid business development and frequent data table construction[20]. - The company has developed personalized SQL query and intelligent question-asking functions, significantly lowering technical barriers for non-technical users[20]. - The company aims to enhance the effectiveness of financial industry clients in key business scenarios through integrated product features and customized industry suites[20]. - The company is committed to increasing investment in AI solutions and data product development to expand its industry coverage[20]. - The implementation of intelligent quality inspection solutions in the glass panel semiconductor industry has led to more efficient production process feedback through large model technology[16]. - The ChatX series of generative AI applications will continue to enhance product maturity and expand solution sales, focusing on core capabilities like RAG, Text-To-SQL, and Text-To-Chart[22]. - The company is committed to optimizing the AInno-15B/75B industrial large model to meet practical business application needs while ensuring low computational costs[24]. - The integration of large model technology with MOM industrial software will be deepened, particularly in sectors like food and beverage, new materials, and equipment manufacturing[26]. - The company plans to leverage existing customer resources and industry understanding to accelerate the application of large model technology for business value[25]. - The development of industrial intelligent robots will focus on optimizing end-to-end pre-trained VLA large models to enhance generalization capabilities[22]. - The company aims to provide more specialized and targeted intelligent solutions by utilizing the increasingly mature large model intelligent platform[26]. - The company will continue to invest in the optimization of industrial large models and supporting service engines to drive innovation in the ChatX series applications[24]. - The strategy of "1+N/1XN" will be implemented to achieve the embedding of mature large model products in lighthouse customers and replicate this success in other industry clients[26]. - The company will explore more applications of large model technology in intelligent equipment, maintaining an open attitude towards product technology exploration[26]. Cost Management - Selling and distribution expenses were RMB 79.3 million, a decrease of 13.0% from RMB 91.2 million in 2023, attributed to reduced share-based payment expenses[35]. - General and administrative expenses for the six months ended June 30, 2024, were RMB 96.4 million, a decrease of 49.3% compared to RMB 190.0 million for the same period in 2023, primarily due to reduced share-based payment expenses and effective cost control[36]. - Employee benefits expenses decreased to RMB 207,192 thousand, a reduction of 28.0% compared to RMB 288,084 thousand in the previous year[76]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 3,066,955 thousand, a decrease of 6.7% from RMB 3,289,157 thousand as of December 31, 2023[63]. - Non-current assets totaled RMB 752,807 thousand, down 5.4% from RMB 795,900 thousand in the previous period[63]. - Current assets decreased to RMB 2,314,148 thousand, a decline of 7.2% from RMB 2,493,257 thousand[63]. - The company's total equity was RMB 2,089,647 thousand, down 6.0% from RMB 2,224,145 thousand[65]. - Cumulative losses increased to RMB 2,043,735 thousand, compared to RMB 1,848,252 thousand in the previous period, reflecting a rise of 10.6%[65]. - The total liabilities decreased to RMB 977,308 thousand, down 8.2% from RMB 1,065,012 thousand[66]. - The company reported a non-current liability total of RMB 201,380 thousand, which is a slight increase from RMB 199,545 thousand[66]. - Trade receivables decreased from RMB 789,512,000 as of December 31, 2023, to RMB 558,808,000 as of June 30, 2024, representing a decline of approximately 29.2%[88]. - The net amount of other receivables increased from RMB 18,607,000 as of December 31, 2023, to RMB 31,233,000 as of June 30, 2024, reflecting a growth of approximately 67.6%[90]. - The total borrowings increased from RMB 76,651,000 as of December 31, 2023, to RMB 101,557,000 as of June 30, 2024, indicating an increase of approximately 32.4%[93]. - The fair value of contingent consideration increased from RMB 174,355,000 as of December 31, 2023, to RMB 185,559,000 as of June 30, 2024, showing an increase of approximately 6.9%[97]. - The total amount of trade payables decreased from RMB 353,707,000 as of December 31, 2023, to RMB 277,930,000 as of June 30, 2024, representing a decline of approximately 21.4%[95]. - The total amount of prepayments to suppliers increased from RMB 48,460,000 as of December 31, 2023, to RMB 107,701,000 as of June 30, 2024, reflecting a growth of approximately 122.2%[90]. - The fair value of financial assets at fair value through profit or loss decreased from RMB 103,826,000 as of December 31, 2023, to RMB 51,995,000 as of June 30, 2024, indicating a decline of approximately 50.0%[92]. Corporate Governance - The company was established as a limited company in February 2018 and transitioned to a joint-stock company in May 2021, with H-shares listed on the Hong Kong Stock Exchange on January 27, 2022[99]. - The board of directors includes executive and non-executive members, ensuring a diverse governance structure[100]. - The company operates under the regulations of the Hong Kong Stock Exchange, adhering to the latest listing rules[100].
创新奇智(02121) - 2024 - 中期业绩