Today, AI large models have entered a new stage of commercialization, and many products have been unknowingly applied to all aspects of life.
Among them, as a rising star in the field of AI, Innovation Qizhi also recently released its interim performance report for the six months ending June 30, 2023. Data shows that the company achieved revenue of 924 million yuan in the first half of 2023, a year-on-year increase of 43.1% compared with 646 million yuan in the same period last year; it achieved an adjusted loss of 39 million yuan, and the loss narrowed 33.4% compared with the same period last year. .
While revenue increased significantly, Chuangxinqizhi also achieved a significant narrowing of losses. Judging from the trend, it can be said that the certainty of the company's performance growth is getting higher and higher. It is reported that Xu Hui, executive director and CEO of Chuangxin Qizhi, also stated at the 2022 performance communication meeting that the company is expected to fulfill its promise to turn losses into profits when it went public in 2024. So, what exactly did Innovation Qizhi do right?
The commercialization of Innovative Qizhi has begun to show results, with revenue of 924 million yuan in the first half of the year
Currently, more and more companies are announcing the launch of large AI models. Data shows that as of July 3, there are more than 80 large models with more than 1 billion parameters in my country. Innovation Qizhi is no exception. The company recently officially launched its latest large model product.
However, things are rare and expensive. With more and more products on the market, the public's pursuit of AIGC large model technology has gradually become calmer from the beginning. The latest data from SimilarWeb, a third-party monitoring agency, shows that ChatGPT’s traffic began to slow down in April. In June, ChatGPT’s global traffic dropped for the first time, down 9.7% compared to May.
Therefore, the large model launched by Chuangxinqizhi this time is different from the previous general large model, but an industry large model focusing on industry. It is reported that Zhang Faen, CTO of Innovation Qizhi, said: "General-purpose large models are often generalists, not specialists. General-purpose large models usually do not have professional knowledge that needs to be accumulated over a long period of time, such as industrial knowledge."
Under the guidance of this concept, Innovation Qizhi also achieved good results in the first half of 2023. Specifically:
In terms of revenue, in the first half of the year, Innovation Qizhi benefited from business expansion in the manufacturing and financial services industries, and the company achieved a significant increase in revenue. Data shows that in the first half of 2023, the company achieved revenue of 924 million yuan, a year-on-year increase of 43.1% compared with 646 million yuan in the same period last year.
In terms of business segments, the “AI+ manufacturing” business that has received the most market attention has performed more prominently. Data show that the company's "AI + manufacturing" business segment revenue reached 611 million yuan, a year-on-year increase of 81.3%, accounting for 66% of revenue; while the financial services business segment's revenue in the first half of the year reached 232 million yuan, a year-on-year increase of 6%, revenue Accounting for 25.1%. This is due to the fact that in the first half of 2023, Chuangxinqizhi continues to carry out "1*N" scenario replication and "1+N" scenario expansion in manufacturing segments such as steel metallurgy and panel semiconductors.
Comparing industry data, Chuangxin Qizhi’s revenue volume is also relatively high. At present, industry insiders analyze that the latest rankings of the "four new AI technologies" in the first half of 2023 are: SenseTime, Innovation Qizhi, Yuncong Technology and Yuntian Lifei. Among them, the operating income of SenseTime Technology and Innovation Qizhi in the first half of 2023 are both around 1 billion yuan, while the revenue of Yuncong Technology and Yuntian Lifei in the first half of the year is only 100 million to 200 million yuan.
In terms of profit, mainly due to scale effects, increased pricing power and more standardized products and solutions, the company's gross profit in the first half of 2023 was 300 million yuan, a year-on-year increase of 45.3% compared with 206 million yuan in the same period last year; the gross profit margin reached 32.4 %, an increase of 0.5 percentage points compared with the same period last year.
At the same time, as the development of large models has entered a new stage, the commercialization of large model products has become the most concerning issue in the industry. The current difficulty in the commercialization of large models is how to implement security and trustworthiness into the software, products, services and management process systems of large models. That is, there are always challenges such as data privacy protection, industry knowledge, and technical thresholds.
Therefore, the industry’s evaluation of AI companies will pay more attention to their commercialization capabilities. The key indicator that can reflect the commercialization success of an AI company is the company's loss data. Data show that Chuangxin Qizhi achieved an adjusted loss of 39 million yuan in the first half of 2023, a loss narrowed by 33.4% compared with the same period last year; the adjusted net loss rate was 4.3%, narrowed by 53.3% year-on-year. It can be seen that Chuangxin Qizhi’s losses continue to narrow.
However, in the AI industry, most companies are still stuck in a "money-burning cycle." Wind data shows that there are currently 106 companies waiting in line for listing through hearings, and 28 companies involve AI, artificial intelligence or digitalization. Among the 28 companies to be listed, 18 are in the red, showing a general state of loss.
To sum up, in the current AI industry, whoever can be the first to break out of the "money-burning cycle" will have a greater chance of winning. Among the many AI companies, Chuangxin Qizhi's current financial report performance is better. So, how did Chuangxinqizhi find a way to succeed in the difficult commercialization process?
The commercialization of Innovation Qizhi has begun to show results. Is "small sample learning" indispensable?
Previously, Li Kaifu, chairman of Chuangxinqizhi, said, "AI has reached an inflection point from 1.0 to 2.0. The rapid popularity of ChatGPT will further detonate the commercialization of AI 2.0. AI 2.0 will be the most important enabling technology to improve the overall social productivity in the 21st century. , is a revolution that must not be missed.”
So, at this critical turning point, what are the advantages of Innovative Qizhi in terms of commercialization?
Currently, AI has broad room for development in the manufacturing industry. According to Deloitte's forecast, the market size of AI in China's manufacturing industry is expected to reach 14.1 billion in 2025. The author found through searching that the only listed company currently focusing on the "AI + manufacturing" field seems to be Chuangxinqizhi. Therefore, it can be said that Chuangxinqizhi has seized the opportunity of the "AI+ manufacturing" market through precise market positioning. In the future, the company will have huge room for development in the field of AI+ manufacturing.
As a pioneer, Chuangxinqizhi is bound to face many difficulties. Therefore, the company's management team is particularly important.
It is reported that Innovation Qizhi was founded by Kai-fu Lee, and Kai-fu Lee was recently selected as one of the "Global AI Leaders" by Time magazine. Also selected in the "Leader" category are OpenAI CEO Sam Altman, Google DeepMind CEO Demis Hassabis, Baidu Chairman and CEO Robin Li, Tesla and X.ai CEO Elon Musk, NVIDIA founder and CEO Jensen Huang, DeepLearning.AI founder Andrew Ng and other world-renowned figures.
In addition, Kaifu Lee also invited Xu Hui, the former vice president of Microsoft Greater China with more than 20 years of experience in B2B enterprise services, to serve as co-founder and CEO, and Zhang Faen, the former chairman of the technical committee of Baidu Cloud Computing Division, to serve as CTO.
Under the leadership of a luxurious management team, Chuangxinqizhi has achieved rapid development from 0 to 1 to IPO in just over three years. Data shows that from 2018 to 2022, the compound annual growth rate of Chuangxinqizhi’s operating income reached 154.4%.
So, what is the commercialization effect of innovative Qizhi, which has taken the lead in positioning?
In fact, the current AI companies are all in the "polishing" stage of their business models, showing financial characteristics such as high revenue growth, large losses, and high R&D investment. Innovation Qizhi is also one of them. However, compared with other AI companies that focus more on research and development, Chuangxinqizhi pays more attention to commercial implementation.
Therefore, in order to achieve profitability faster, Chuangxin Qizhi also pays more attention to "practicality" in product research and development. First of all, insufficient training data has always been a "heartache" for the commercialization of artificial intelligence. In order to solve this problem, Creative Qizhi adopts a small sample algorithm. It is reported that Haitong International analysts have pointed out that small sample learning is quite consistent with human thinking and reasoning patterns and is the only way to achieve human-like artificial intelligence.
After using the small-sample learning algorithm as the entry point, Innovation Qizhi further developed the vertical model of the manufacturing industry based on small-sample learning, and officially launched the entire product matrix of the "Qizhi Kongming" industrial large model on September 1 . It is reported that Qizhi Kongming has now entered a stage that is closer to practicality, and has made a lot of improvements to meet commercial needs in vertical scenarios focusing on manufacturing. Many of its products are already quite practical. sex.
The capabilities demonstrated by this product series of Innovation Qizhi such as "large models act as production managers" and "large models can control industrial robots to complete tasks" will bring more assistance to the replacement of manual labor in the manufacturing industry. It is reported that due to rising labor costs in the manufacturing industry, the industry as a whole has entered a transformation period of machine replacement. According to Caijiang Intelligent Manufacturing Research Institute, data shows that from 2014 to 2022, the domestic population engaged in manufacturing dropped from 52.43 million to 38.28 million, with basically negative growth every year.
Before the product was officially released, Innovation Qizhi’s related products had already been recognized by many manufacturing customers. Data show that Innovative Qizhi had 270 customers in the first half of the year, a year-on-year increase of 105%, including 213 manufacturing customers, a year-on-year increase of 157%.
In short, in the hot AI track, strong demand is always the basis for the survival and healthy development of independent third-party AI companies. Backed by a luxury think tank, Chuangxinqizhi has won with precise positioning since its establishment. By choosing the manufacturing to B field, coupled with efficient technology research and development and AI engineering implementation capabilities, it successfully emerged from the industry in the first half of the year.
Summarize:
As a typical artificial intelligence company in the AI+ manufacturing industry, Chuangxinqizhi has once again demonstrated to the market the company's pragmatic development ideas and high efficiency by virtue of its sustained rapid growth and improvement in operating indicators at the node of AI+ commercialization. The implementation capabilities of AI engineering.
In the future, with the intelligent transformation of the manufacturing industry, Innovation Qizhi, relying on its excellent product research and development capabilities, is expected to be the first to break out of the "money-burning cycle" and achieve profitability through commercialization in 2024.
Author: Buffett's Destiny
Source: Hong Kong Stock Research Institute