Core Insights - The company achieved a revenue of 2.36 billion yuan in H1 2025, representing a year-on-year growth of 35.6%, driven by the increasing contribution of generative AI to overall revenue [1] - The overall gross margin decreased to 38.5% in H1 2025 from 44.1% in H1 2024 due to the rising share of generative AI revenue [1] - Adjusted net loss narrowed significantly to 1.16 billion yuan, a 50% year-on-year reduction, while adjusted EBITDA loss decreased by 72.5% to 520 million yuan [1] Revenue Breakdown - Generative AI revenue reached 1.82 billion yuan in H1 2025, up 60.4% year-on-year, accounting for 77.0% of total revenue, an increase from 60.4% in H1 2024 [1] - Visual AI revenue, which now includes smart cockpit-related business from the original smart automotive segment, was 436 million yuan, growing 29.4% year-on-year [1] - The X Innovation business, encompassing smart driving, smart healthcare, home robots, and smart retail, generated 107 million yuan, reflecting a 10.2% year-on-year increase [1] Operational Efficiency - Sales expense ratio, administrative expense ratio, and R&D expense ratio were 11.6%, 25.3%, and 89.8%, respectively, showing declines of 7.4 percentage points, 16.9 percentage points, and 18.9 percentage points year-on-year [1] - Operating cash outflow improved significantly, narrowing by 81.9% to 640 million yuan [1] Business Highlights - The company’s large model, "日日新V6.5," has performance metrics that are competitive with top international models, achieving comprehensive testing results on par with Claude 4 Opus [2] - Total computing power reached 25,000 PetaFLOPS as of August 2025, with a 20% year-on-year improvement in computing power per watt [2] - The productivity tool "小浣熊" surpassed 3 million users, processing approximately 10 billion tokens daily [2] Future Outlook - Revenue forecasts for 2025-2027 have been adjusted to 4.86 billion, 6.21 billion, and 7.85 billion yuan, reflecting slight changes from previous estimates [3] - Non-GAAP net profit forecasts for the same period have been revised to -2.14 billion, -230 million, and 170 million yuan, indicating improved operational efficiency [3] - The synergy between large models, computing power, and AI applications is expected to create a robust ecosystem, enhancing the company's competitive edge [3]