Financial Performance - The company's revenue increased from RMB 3,446.2 million in 2020 to RMB 4,700.3 million in 2021, representing a growth of approximately 36.4%[7] - Gross profit rose from RMB 2,432.1 million in 2020 to RMB 3,277.6 million in 2021, marking an increase of about 34.8%[7] - The annual loss widened from RMB 12,158.3 million in 2020 to RMB 17,177.1 million in 2021, reflecting an increase of approximately 41.5%[7] - Adjusted EBITDA loss increased from RMB 531.8 million in 2020 to RMB 879.0 million in 2021[7] - The loss attributable to equity holders of the company increased from RMB 12,158.2 million in 2020 to RMB 17,140.1 million in 2021[5] - The company reported an adjusted EBITDA loss of RMB 878.97 million for 2021, compared to a loss of RMB 531.85 million in 2020[26] - Operating loss widened to RMB 3,729.73 million in 2021 from RMB 1,811.78 million in 2020[26] - Total annual loss increased to RMB 17,177.05 million in 2021 from RMB 12,158.35 million in 2020[26] Assets and Liabilities - Total assets as of 2021 were RMB 36,944.3 million, while total liabilities were RMB 4,957.2 million[6] - The company's cash and bank deposits at the end of 2021 amounted to RMB 13.5% of total assets, down from 14.6% in 2020[8] - The company reported a total equity of RMB 31,987.1 million as of 2021[6] - The company's asset-liability ratio stood at -85.4% as of December 31, 2021, reflecting a net cash position, which is a positive indicator of financial health[53] Market and Business Segments - In 2021, SenseTime's total revenue increased by 36.4% year-over-year to RMB 4.7 billion, up from RMB 3.45 billion in 2020, with a gross margin of 69.7%[9] - The smart business segment generated revenue of RMB 1.96 billion in 2021, reflecting a year-over-year growth of 31.8%[10] - Smart business revenue rose by 31.8% from RMB 1,485.0 million in 2020 to RMB 1,957.9 million in 2021, with the customer base expanding from 848 to 922[28] - Smart city revenue surged by 56.5% from RMB 1,368.9 million in 2020 to RMB 2,142.8 million in 2021, attributed to increased market penetration and expanded city coverage[29] - The Smart Living segment achieved revenue of RMB 420 million in 2021, serving consumer-facing enterprises such as mobile manufacturers and healthcare institutions[12] Research and Development - Research and development expenses reached RMB 3.06 billion, accounting for 65.1% of total revenue, while management expenses decreased from 29.6% in 2020 to 25.1% in 2021[9] - Research and development expenses grew by 47.3% from RMB 2,453.9 million in 2020 to RMB 3,614.1 million in 2021, primarily due to increased employee compensation[33] - The company aims to leverage AI technology across four major revenue sources: smart business, smart cities, smart living, and intelligent vehicles, maintaining industry leadership in all segments[10] Technology and Innovation - The number of commercial AI models produced through SenseCore exceeded 34,000 by the end of 2021, a 152% increase from 13,000 at the end of 2020[10] - SenseTime's AI computing power reached 1.17 exaflops with 23 operational supercomputing clusters by the end of 2021, and a new AI computing center was launched in January 2022 with a peak computing power of 3.74 exaflops[10] - The newly launched "Shusheng" general vision technology system improved accuracy and data efficiency significantly, achieving a 40.2% reduction in average error rate for classification tasks compared to the best open-source model[16] - SenseTime's self-developed AI inference chip, STPU S100-0AC, has been shipped over 16,000 units by the end of 2021, demonstrating three times the video stream processing capability compared to traditional GPUs at the same cost[16] Corporate Governance - The board of directors has complied with listing rules by appointing at least three independent non-executive directors, constituting at least one-third of the board[56] - The company has established a corporate governance committee to ensure operations align with shareholder interests and compliance with listing rules[66] - The audit committee consists of three members, including Mr. Lin Yizhong, Ms. Fan YuanYuan, and Mr. Li Wei, with Mr. Lin serving as the chairman[64] - The company has established a practice of holding board meetings at least four times a year, approximately once per quarter[58] Shareholder Communication - The company emphasizes the importance of effective communication with shareholders, particularly regarding compliance with listing rules[68] - The company has established a shareholder communication policy to ensure equal and timely access to information for shareholders[91] - Shareholders can submit written inquiries to the company to bring matters to the attention of the board of directors[90] - The company’s website serves as a platform for communication with shareholders and investors, regularly updating information[89] Sustainability and ESG Initiatives - The company aims to achieve peak carbon emissions by 2025 and operational carbon neutrality by 2030, with a long-term goal of net-zero emissions by 2050[17] - The company has established an ESG governance structure to manage environmental, social, and governance matters, aiming for sustainable development[170] - The ESG report is the company's first, highlighting its commitment to responsible AI leadership and sustainable practices[170] - The company is committed to promoting social responsibility and community engagement through charitable activities and environmental protection initiatives[174] Strategic Partnerships and Acquisitions - The company is focused on enhancing its market position through strategic partnerships and potential acquisitions in the technology sector[141] - A strategic acquisition of a smaller tech firm was announced, expected to enhance the company's capabilities in computer vision technology[121] - The company is exploring strategic acquisitions to bolster its technology portfolio, with a budget of 500 million allocated for potential deals[130] Risk Management - The company has implemented a risk management and internal control system to oversee risks undertaken by the group[65] - The company has a dedicated compliance risk management framework to effectively identify and manage compliance risks, ensuring operations align with applicable laws and regulations[79] - The company has established a compliance monitoring department to investigate serious violations and strengthen fraud risk prevention mechanisms[181] Product Quality and Customer Satisfaction - The company has established a comprehensive quality management system, achieving certifications such as ISO9001 and CMMI Level 3, ensuring compliance with various operational standards[191] - The company has achieved ASPICE Level 2 and ASIL-B certification in the smart automotive sector, enhancing its product safety standards[191] - The company aims to improve customer satisfaction and product quality through diversified communication channels, including surveys and direct feedback[191]
商汤(00020) - 2021 - 年度财报