Written | Planet
Source | Bedouin Finance
On August 28, SenseTime (HK: 0020) released its performance report for the first half of 2023. From the perspective of financial data, SenseTime's performance in the first half of 2023 will be stable, and the large model and generative AI will drive various business sectors to make great progress.
1. The performance of generative AI is outstanding, driving the steady growth of various performances
SenseTime said in its financial report that it has joined forces with a number of top domestic scientific research institutions to accelerate the development of large language models and Vincent graph models under the "Daily New" large model system, and actively expand the generative model. Artificial intelligence (Generative AI) business.
Specifically, SenseTime launched the chat "SenseChat1.0" in April 2023, and released the pre-trained large language model "InternLM" two months later, becoming the first base in China to surpass the performance of GPT-3.5-turbo. model, and released "Consultation SenseChat 2.0" in early July.
In August 2023, SenseTime's new model InternLM-123B ranked second in the world in terms of test scores on 51 well-known global evaluation sets with a total of 300,000 questions, surpassing GPT-3.5-turbo and Meta's newly released LLaMA2-70B and other models.
On this basis, SenseTime plans to upgrade "SenseChat" to version 3.0 in September.
In addition to "Consulting SenseChat", SenseTime's generative AI product series based on the "Daily New" large model also includes Vincent graph models such as "Miaohua SenseMirage" and "Ruying SenseAvatar". Among them, "Miaohua SenseMirage" has been upgraded to version 3.0, which can achieve professional photography-level picture details.
Not only that, SenseTime is also committed to the systematic construction of trusted AI to promote the sustainable development of AI. In the first half of 2023, the company launched "SenseTrust Trusted AI Infrastructure - SenseTrust", implementing full-cycle security and trustworthy governance on AI training data, models, and application governance links
Thanks to the remarkable commercialization results of generative AI, SenseTime achieved revenue of 1.433 billion yuan in the first half of 2023, a year-on-year increase of 1.3%; a net loss of 3.143 billion yuan, a decrease of 2.0% from 3.208 billion yuan in 2022 % . Under non-international financial reporting standards, the company's adjusted net loss narrowed by 6.7% year-on-year to 2.39 billion yuan.
Among them, SenseTime’s revenue from generative AI achieved a strong growth of 670.4%, accounting for 20.3% of the group’s total revenue from 10.4% in 2022. The significant improvement in the efficiency of AI commercialization has also caused the company's operating costs to drop by 6.5% year-on-year, with a total capital reserve of 14.82 billion yuan.
2. Sustained high investment in research and development, empowering the four major business segments to rejuvenate
The release of commercial growth momentum is bound to be inseparable from SenseTime's continuous investment in research and development. In the first half of 2023, the company's research and development expenditure was 1.783 billion yuan. At the same time, the breakthrough of generative AI has also added new impetus to the development of its four core business lines of smart business, smart life, smart car and smart city.
In the smart business sector, SenseTime has deeply integrated ten vertical industry sectors such as energy, finance, real estate, human resources, media, industrial manufacturing, and consulting, achieving revenue of 853 million yuan, a year-on-year increase of 50.2%; serving 481 customers, The revenue from a single customer increased by 59.9% year-on-year, and the large-scale industry model is widely deployed.
In terms of the daily application of generative AI, SenseTime provided new products and new functions empowered by large models to hundreds of customers in the mobile phone and mobile Internet industries, and finally reached hundreds of millions of terminals, small and medium-sized enterprises and individual users, achieving a revenue of 3.12% 100 million yuan, a year-on-year increase of 6.7%; served 270 customers, a year-on-year increase of 47.5%.
Among them, "Consultation" and "Miaohua" under Shangtang Technology cooperate with customers in more than 20 fields such as e-commerce and traditional media; "Ruying" digital human generation capabilities are implemented in live broadcast and bank customer service scenarios; Already 3D has cooperated with one of the largest jewelry groups in Hong Kong for the 3D digitalization of commodities.
As far as the smart car sector is concerned, SenseTime’s smart car business has transformed from research and development to large-scale mass production. The mass production business has achieved a year-on-year growth of 573%, and the number of mass production deliveries has reached 390,000 units. The large-scale mass production has also driven the gross profit per vehicle. Increased by 29%. In the first half of 2023, Shangtang Technology’s revenue from this business will be 83.9 million yuan.
SenseTime's autonomous driving large-scale model UniAD algorithm integrates the detection, tracking, mapping, prediction and planning of autonomous driving into one framework, realizing global optimization. And based on "consultation", a variety of Chinese interactive products in the car cabin were launched, including health consultation, travel planning, and children's accompanying reading.
In addition, SenseTime continues to promote the strategic transformation of the smart city business, focusing on high-quality projects and optimizing cash flow. In the first half of 2023, it will achieve a revenue of 184 million yuan. % rose to 64%.
Xu Li, executive chairman and CEO of SenseTime, said: "In this half year, large models and generative AI can be said to be the world's most eye-catching technological breakthroughs. We hope to bring stronger large model capabilities to the industry, Help users make disruptive products in the era of generative AI to succeed."