Financial Performance - Total revenue for the first half of 2023 was RMB 1,433,122,000, a 1.3% increase from RMB 1,415,343,000 in the same period of 2022[8]. - Gross profit decreased by 30.6% to RMB 648,673,000, down from RMB 934,043,000 in the previous year, resulting in a gross margin of 45.3%[8]. - The adjusted EBITDA loss improved by 12.8% to RMB (2,025,854,000) compared to RMB (2,322,546,000) in the first half of 2022[8]. - The adjusted net loss for the group was RMB 2,393.4 million, a reduction of 6.7% compared to the same period last year[18]. - The net loss for the six months ended June 30, 2023, was RMB 3,142.6 million, compared to a net loss of RMB 3,208.0 million for the six months ended June 30, 2022[55]. - The company reported a loss attributable to equity holders of RMB 3,122,744 thousand for the six months ended June 30, 2023, compared to a loss of RMB 3,157,653 thousand in the same period of 2022, indicating a slight improvement in performance[156]. - Basic and diluted loss per share remained at RMB 0.10 for both the six months ended June 30, 2023, and 2022, reflecting consistent performance despite ongoing losses[156][157]. Revenue Segmentation - The smart business segment achieved revenue of RMB 853.6 million in the first half of 2023, a year-on-year increase of 50.2%, with a customer base of 481 and a 59.9% increase in revenue per customer[22]. - The smart living segment's revenue grew by 6.7% year-on-year to RMB 311.8 million, accounting for 21.8% of the group's total revenue, with a customer base of 270[23]. - The smart automotive segment experienced a 573% year-on-year growth in production business, delivering 390,000 vehicles, although overall revenue decreased by 30.5% to RMB 83.9 million due to a shift in collaboration models[28]. - The smart city segment's revenue fell by 57.7% year-on-year to RMB 183.8 million, contributing 12.8% to the group's total revenue, down from 28.8% in 2022[32]. - International business revenue for the first half of 2023 was RMB 229.2 million, contributing 16.0% to total revenue, similar to the previous year's 16.8%[33]. Research and Development - The company upgraded its SenseCore AI infrastructure, increasing the number of GPUs from 27,000 to approximately 30,000, and enhancing computing power from 5 ExaFLOPS to 6 ExaFLOPS[10]. - The company invested approximately 10,000 GPUs in the development of large language models, significantly enhancing their capabilities[11]. - The company is actively developing new features for mobile operating systems based on large language models, collaborating with major smartphone manufacturers[25]. - Research and development expenses decreased from RMB 2,035.3 million to RMB 1,783.2 million, reflecting a strategic focus on cost management[38]. - Research and development expenses increased to RMB 232,732,000 in the first half of 2023, up from RMB 212,666,000 in the same period of 2022, highlighting the company's commitment to innovation[162]. Cost Management - The group has reduced operational costs by 6.5% year-on-year, despite increased investment in large model research and development[18]. - Sales costs rose by 63.0% from RMB 481.3 million to RMB 784.4 million, mainly due to increased hardware costs and subcontracting service fees[43]. - Administrative expenses rose by 3.6% from RMB 768.6 million for the six months ended June 30, 2022, to RMB 796.5 million for the six months ended June 30, 2023, primarily due to increased depreciation and amortization[48]. Cash Flow and Liquidity - The group holds a total of RMB 14,818.7 million in cash, bank deposits, and other fixed-income investments as of June 30, 2023[18]. - Cash and cash equivalents as of June 30, 2023, amounted to RMB 7,153.0 million, down from RMB 7,962.8 million as of December 31, 2022[66]. - Net cash used in operating activities for the six months ended June 30, 2023, was RMB 1,804.8 million, showing stability compared to RMB 1,848.1 million for the same period in 2022[68]. - Net cash generated from investing activities for the six months ended June 30, 2023, was RMB 384.7 million, a significant improvement from a net cash used of RMB 5,721.4 million in the same period of 2022[69]. - Total borrowings increased from RMB 3,228.6 million as of December 31, 2022, to RMB 3,792.8 million as of June 30, 2023[71]. Market and Product Development - The generative AI business recorded strong triple-digit year-on-year growth, driven by the launch of new products such as SenseChat and SenseMirage[10]. - The company launched the medical language model "商量 • 大醫," enhancing hospital diagnostic efficiency and patient services through advanced medical language understanding[26]. - The company plans to launch the upgraded SenseMirage 4.0 model in Q3 2023, which will include a new aesthetic system to enhance product competitiveness[16]. - The AI robot product line saw rapid sales growth, with over 1,000 units sold in June 2023, ranking first in the robot category on major e-commerce platforms[27]. Asset Management - Total assets as of June 30, 2023, amounted to RMB 35,601,390 thousand, a decrease of 4.9% from RMB 37,426,993 thousand as of December 31, 2022[94]. - Non-current assets increased to RMB 16,270,488 thousand, up 2.3% from RMB 15,902,814 thousand year-over-year[94]. - Current assets decreased by 10.2% to RMB 19,330,902 thousand from RMB 21,524,179 thousand[94]. - The company had pledged assets with a book value of RMB 4,401.6 million in buildings and land use rights to secure borrowings[81]. Fair Value and Financial Instruments - The fair value loss on preferred shares and other financial liabilities increased from RMB 5.1 million for the six months ended June 30, 2022, to RMB 10.0 million for the six months ended June 30, 2023[53]. - The fair value of financial assets measured at fair value through profit or loss was RMB 7,489,372,000, compared to RMB 7,308,657,000 as of December 31, 2022, reflecting an increase of approximately 2.47%[121]. - The company reported a significant increase in level 3 financial assets, with a total of RMB 5,475,517,000 as of June 30, 2023, compared to RMB 5,126,995,000 as of June 30, 2022, representing a year-over-year growth of approximately 6.81%[125]. Employee and Operational Metrics - Employee count as of June 30, 2023, was 5,016, reflecting the company's staffing needs[74]. - Employee benefits expenses decreased to RMB 1,909,104,000 in the first half of 2023 from RMB 2,093,511,000 in the same period of 2022, representing a reduction of approximately 8.8%[138]. - The total number of issued shares as of June 30, 2023, was 33,468,925,000, a slight increase from 33,507,400,000 shares as of June 30, 2022[199].
商汤(00020) - 2023 - 中期财报