Financial Data and Key Metrics Changes - Total annual revenue for the group in 2023 was RMB 3,400,000,000, a decrease of 11% compared to the previous year, primarily due to a strategic reduction in reliance on the smart city business [11][49] - EBITDA losses narrowed to RMB 5,500,000,000, with operating expenses in R&D, G&A, and sales decreasing by 10.6% year on year [12][50] - Trade receivables collected in 2023 amounted to RMB 3,800,000,000, reflecting a year-on-year growth of 48.5% [11][54] Business Line Data and Key Metrics Changes - The generative AI business achieved revenue of RMB 1,180,000,000, representing a 200% year-on-year increase and accounting for 35% of total revenue [15][49] - Traditional AI revenue decreased by 41%, generating RMB 1,840,000,000 [15] - The smart auto business generated RMB 384,000,000 in revenue, a 31% increase, accounting for 11% of total revenue [16] Market Data and Key Metrics Changes - The smart city segment's revenue contribution significantly declined from about 30% in 2022 to less than 10% in 2023 [11][39] - The generative AI business has become the core business, expected to continue rapid growth in 2024 [16][17] Company Strategy and Development Direction - The company is focusing on generative AI, traditional AI, and smart auto as its three core business segments, with a strong emphasis on developing the generative AI business [14][15] - The company aims to optimize operational efficiency and reduce losses by incubating and spinning off non-core businesses [12][47] - Future strategic goals include maintaining technological leadership, driving business growth, and promoting the core business [46][47] Management's Comments on Operating Environment and Future Outlook - Management highlighted the rapid advancements in AI technology and the significant demand for generative AI across various industries [8][17] - The company anticipates that generative AI will account for about half of total revenue in 2024, with a projected CAGR of around 50% from 2023 to 2028 [73] - Management expressed confidence in overcoming challenges during the transformation period and securing a leading position in the AI industry [48][80] Other Important Information - The company underwent business restructuring in 2023, focusing on generative AI and reducing reliance on the smart city business [11][14] - The passing of the founder, Professor Tang, was acknowledged, with management committing to continue his legacy in AI innovation [6][7] Q&A Session Summary Question: What is SenseTime's exploration in the multimodal domain? - Management emphasized the importance of historical technology accumulation and the role of synthetic data in multimodal research, predicting its significance in future developments [60] Question: What are the expansion plans for computing power for 2024 and beyond? - The company plans to double its computing power in 2024, addressing the increasing demand for both training and inference in large models [63][64] Question: What are the current business models for generative AI and growth expectations? - The company operates three business models: public cloud, private cloud, and customized model services, with expectations for generative AI to contribute significantly to total revenue in the coming years [71][73] Question: What are the impacts of the founder's passing on shareholding and strategy? - The founder's shares were inherited by his family, who continue to support the management, ensuring stability in governance and strategy [75][80]
商汤-W(00020) - 2023 H2 - 业绩电话会