CLOUDWALK(SH:688327) Xin Lang Zheng Quan·2025-05-09 08:17Core Viewpoint - CloudWalk Technology, one of the "AI Four Little Dragons," reported a significant decline in performance for 2024, with revenue dropping to 398 million yuan, a year-on-year decrease of 36.69%, marking the lowest revenue point in seven years [1][2] Financial Performance - The company recorded a net profit of -722 million yuan, with losses expanding compared to the previous year, marking eight consecutive years of losses [1][2] - Revenue projections made during the company's IPO in 2022 were significantly overestimated, with actual revenues from 2022 to 2024 being 526 million yuan, 628 million yuan, and 398 million yuan respectively, resulting in a negative compound annual growth rate [2][3] - The company's gross margin fell by 16.39 percentage points to 35.81% in 2024, while its peers like SenseTime maintained a gross margin of 42.90% [3] Workforce and R&D - CloudWalk underwent significant layoffs in 2024, reducing its workforce from 801 to 453 employees, a decrease of 43%, with R&D personnel decreasing by 51% [5][6] - The company’s R&D expenses fell by 18.27% to 472 million yuan, yet the R&D expense ratio increased to 118.72% due to declining revenue [5][6] - The departure of key technical personnel, including a core technology staff member, raises concerns about the company's ability to maintain its technological edge [5][6] Strategic Challenges - The company is facing challenges in keeping pace with technological advancements, particularly in the development of large models, which has hindered its competitive position against major players like Baidu and Alibaba [3][4] - CloudWalk's cash flow from operating activities has been negative for three consecutive years, totaling nearly 1.2 billion yuan in cash outflows [3][4] Industry Context - The struggles faced by CloudWalk are not isolated, as other members of the "AI Four Little Dragons" are also experiencing similar issues, including prolonged losses and workforce reductions [6]