PCI-STCL(SH:600728)2023-08-24 16:00Financial Performance - The net profit attributable to shareholders increased by 86.34%, primarily due to the rise in the equity value of strategic investments in artificial intelligence companies, resulting in increased fair value gains [33]. - The company's operating revenue increased by 7.83% compared to the same period last year, attributed to a stable economic environment and the ongoing implementation of intelligent rail transit projects [41]. - The company achieved operating revenue of RMB 2,514,850,879.99, representing a year-on-year increase of 7.83% compared to RMB 2,332,181,968.58 in the same period last year [57]. - Net profit attributable to shareholders of the listed company reached RMB 364,255,127.77, an increase of 86.34% from RMB 195,478,609.68 in the previous year [57]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -RMB 43,820,373.59, a decrease of 182.87% compared to RMB 52,878,414.25 in the same period last year [57]. - The company's total assets increased by 18.06% to RMB 13,180,842,812.28 from RMB 11,164,916,320.40 at the end of the previous year [57]. - The company reported an operating profit of RMB 3,402.78 million for the reporting period [175]. Research and Development - The company is focusing on the development of large models in the artificial intelligence industry, leading to a significant rise in R&D expenditures compared to the previous year [52]. - Research and development expenses rose to ¥125,254,697.57, marking a 22.15% increase from the previous year [1]. - The company launched the "Knowledge and Action Urban Transportation Industry Large Model" product and solutions to maintain its technological advantage in the "AI + Transportation" field [71]. - The company has developed the "Zhixing Large Model" for urban transportation, leveraging AI technologies in CV, NLP, and data science, with hundreds of patents and software copyrights [73]. - The company has accumulated 100 billion tokens of industry data for training the Zhixing Large Model, with over 2 million instruction data points, growing at approximately 150GB daily [74]. - The Zhixing Large Model has been applied in smart customer service and emergency command scenarios, significantly improving maintenance efficiency and quality in rail transit [76]. Strategic Investments - The company raised a net amount of RMB 1.814 billion through a new round of private placement to enhance its research and development in AI technology applications [68]. - The fair value change of strategic investment in AI company CloudWalk Technology resulted in a profit of ¥577,279,446.32, significantly impacting overall profit [2]. - The company reported a net profit impact of 469.52 million RMB from holding CloudWalk shares, with a net profit impact of 41.49 million RMB from the disposed shares [113]. - The company disposed of part of its equity in CloudWalk Technology to lock in investment gains and reduce volatility impact on short-term performance [4]. - The company holds a 5.82% stake in CloudWalk Technology, which focuses on computer vision and AI, with a registered capital of 740.67 million RMB [119]. Shareholder and Equity Management - The employee stock ownership plan's first phase lock-up period expired on January 27, 2023, allowing for the release of 3.6 million shares, which is 30% of the total plan [32]. - The average transaction price for shares sold during the release period was RMB 6.52 per share, with a total transaction amount of RMB 23.46 million (excluding transaction fees) [32]. - The company completed the repurchase and cancellation of 59,000 restricted shares held by the board secretary due to unmet performance targets in 2022 [197]. - The total share capital decreased from 2,154,331,565 shares to 2,144,492,465 shares following the repurchase of restricted shares [199]. - The company has implemented a strategy to manage its share capital through repurchase programs to enhance shareholder value [197]. - The report indicates that the company is actively managing its equity structure to align with performance metrics and shareholder interests [197]. Market and Business Strategy - The company is actively exploring new smart city business models, including "one network management" and urban operation management platforms [71]. - The company plans to accelerate the delivery of smart rail transit projects and explore new business models for the Zhixing Large Model in the second half of the year [88]. - The company aims to strengthen investment and acquisition efforts to enhance capabilities in smart transportation and operational management [88]. - The company is focusing on expanding its market presence in cities like Chongqing and Nanchang as part of its "Five Years, Ten Cities" strategy [84]. - The company plans to enhance business focus and resource allocation efficiency in response to increasing market competition and potential underperformance of AI technology products [127]. Compliance and Governance - The company has established a dual compliance review mechanism for training data to ensure the safety and reliability of the Zhixing Large Model [75]. - The company is actively participating in the formulation of industry standards for AI large models, aiming to position itself strategically with key clients [88]. - The company committed to avoiding non-operational fund occupation by controlling shareholders and related parties, ensuring the protection of minority shareholders' interests [162]. - The company is focused on maintaining independence and protecting the rights of minority shareholders post-restructuring [162]. - The company did not report any violations of environmental protection laws during the reporting period [152]. Operational Performance - The company's intelligent solutions business generated revenue of 1.063 billion yuan, a year-on-year increase of 25.24%, while ICT products and services revenue was 1.348 billion yuan, a decline of 2.27% [84]. - Operating costs amounted to ¥2,197,028,266.28, reflecting a 9.13% increase year-over-year [1]. - The net cash flow from operating activities improved to -¥432,543,321.70, an improvement from -¥747,566,580.10 in the previous year [1]. - The net cash flow from financing activities surged to ¥1,847,916,550.15, a significant increase of 1,008.29% year-over-year due to a private placement raising net funds of ¥1.814 billion [1]. - The company has multiple patents and successful application cases in the field of rail transit intelligence, enhancing its market position [175].