Core Insights - CloudWalk Technology (stock code: 688327) reported a revenue of approximately 169 million yuan for the first half of 2025, representing a year-on-year growth of 40.21% [2][5] - The net loss attributable to shareholders was approximately -230 million yuan, with a year-on-year reduction of 35.5% [2][5] - The significant reduction in net loss was primarily due to cost-cutting measures, including a 48.05% decrease in total salary expenses during the reporting period [2][5][6] Financial Performance - Revenue growth was driven by the artificial intelligence solutions business, which saw a year-on-year increase of 59.24% [5] - The company achieved a total revenue of approximately 169 million yuan, with a notable increase in new signed orders [5][6] - The total salary expenditure for the reporting period was 90.87 million yuan, a significant decrease compared to the previous year [6] Cost Management - The company successfully reduced third-party service fees to 38.44 million yuan, a year-on-year decline of 45.37% [6] - The reduction in costs, alongside revenue growth, contributed to a significant decrease in losses compared to the previous year [6] Research and Development - The company maintained a focus on R&D despite ongoing losses, with a strategic balance between short-term profitability and long-term innovation [6] - R&D expenditure as a percentage of revenue decreased from 220.84% in the previous year to 73.83% in the current reporting period, a reduction of 147.01 percentage points [6] - R&D investment decreased by 55.11% year-on-year, reflecting a strategic adjustment in resource allocation [6] Personnel Changes - The company experienced a change in its core technical personnel, with Zhang Ling resigning for personal reasons, while the remaining team members are managing ongoing R&D activities effectively [7] - The number of R&D personnel decreased to 182 from 296 year-on-year, while the average salary for R&D staff fell from 284,000 yuan to 209,800 yuan [9]

Core Viewpoint - The company, Jiadu Technology, announced the disposal of part of its equity in its associate company, CloudWalk Technology, to lock in investment gains, resulting in a tax-adjusted investment loss of 16.29 million yuan, which represents 14.18% of the company's audited net profit attributable to shareholders for 2024 [2]. Group 1: Equity Disposal Details - Between May 13, 2025, and May 26, 2025, Jiadu Technology disposed of 7,664,200 shares of CloudWalk Technology for a transaction amount of 99.64 million yuan (excluding transaction taxes) [2]. - This transaction marks the fifth time Jiadu Technology has reduced its holdings in CloudWalk Technology since May 2023, with a total of over 46 million shares disposed of, amounting to 643 million yuan in cash [4]. - As of the end of Q1 2025, Jiadu Technology held 25,802,100 shares of CloudWalk Technology, representing a 2.48% stake, which will decrease further after this disposal [4]. Group 2: Company Performance and Market Context - CloudWalk Technology, which went public on the STAR Market on May 27, 2022, has faced continuous losses for eight years, with a reported loss of 696 million yuan in 2024 [4]. - In Q1 2025, CloudWalk Technology reported revenue of 37.23 million yuan, a year-on-year decline of 31.56%, and a net loss attributable to shareholders of 124 million yuan [4]. - In contrast, Jiadu Technology reported a revenue of 2.254 billion yuan in Q1 2025, reflecting a year-on-year growth of 106.26%, with a net profit of 120 million yuan [4].

Core 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]