Kunlun Wanwei released its third quarter report for 2023. According to the report, Kunlun Technology fully accelerated the strategic layout of "All in" AGI and AIGC in the third quarter and made breakthrough progress in multiple directions. As of the end of this reporting period, Kunlun Wanwei achieved operating income of 3.68 billion yuan , a year-on-year increase of 8%. Achieved operating cash flow of 760 million yuan , a year-on-year increase of 33% .
In the first three quarters of this year, the proportion of Kunlun Wanwei's overseas business revenue further increased to 84%, a year-on-year increase of nearly 9 percentage points; the overall gross profit margin reached 80%, continuing to remain at a high level; the net profit attributable to shareholders of listed companies was 3.3 billion, ranking first in the industry . Kunlun Wanwei achieved operating net profit of 100 million yuan in the third quarter, an increase of 29% from the previous quarter.
In order to fully implement the strategic layout of "All in" AGI and AIGC, Kunlun Technology increased its research and development expenses to 620 million yuan in the first three quarters to accelerate the development of related businesses. In addition, on September 21, Kunlun Wanwei issued an announcement that the company’s controlling shareholder and actual controller Mr. Zhou Yahui and person acting in concert Yingrui Century promised not to Reduce the company's stock holdings in any form, including the new shares generated by the transfer of capital reserves, distribution of stock dividends, allotment, additional issuance and other matters during the commitment period, to help Kunlun Wanwei become a world-leading company in the long term Artificial intelligence technology company.
The report stated that in the field of domestic AGI and AIGC, its "Tiangong" large model has made significant breakthroughs in many aspects such as logical reasoning, text understanding, and multi-modal capabilities. Based on the improvement of the core capabilities of large models, the "Tiangong" APP has undergone a comprehensive iterative upgrade, integrating core functions such as AI search, AI reading, and AI creation, covering multiple application scenarios such as work, study, and life .
The AI search function has been upgraded to improve the accuracy and efficiency of information acquisition. The AI reading function efficiently analyzes article links or document files, generates AI summaries and refines key points, helping users quickly understand the article content. At the same time, it supports question-and-answer interaction, allowing users to query document information more conveniently. AI creation provides an easy and efficient creative experience, meeting the needs of different scenarios such as academic education, workplace documents, creative writing, and advertising and marketing .
AI games, one of Kunlun Wanwei’s AI business matrix, have also made important progress. The first AI game "Club Koala" self-developed by Kunlun Worldwide's Play for Fun game studio was unveiled at the Cologne International Games Show in Germany on August 25. Club Koala introduces AI NPC and controls NPC behavior through the Atom system, giving AI NPC self-awareness and memory capabilities, providing players with a more realistic and immersive gaming experience.
In terms of overseas layout, Kunlun Wanwei has launched a series of cutting-edge AI functions relying on its information distribution and metaverse business Opera's native browser AI assistant Aria.
Aria "reuse" and "paraphrase" features
Aria "Compose" and "My Style" functions
Aria has been launched in more than 180 countries and regions, including the European Union , with over one million users . In addition, Aria has coverage on all major platforms including Mac, Windows, Linux, Android and iOS, as well as Opera GX, the company’s metaverse portal.
As of the end of this quarter, about 6,000 chips previously purchased and leased by Kunlun Technology have arrived , and there are still about 3,000 chips to be delivered. At present, Kunlun Wanwei’s existing computing power is expected to be able to meet the computing power needs of large models other than video AIGC in the next 1 to 2 years.
During the reporting period, Kunlun Wanwei announced that it will take control of the AI computing chip company Beijing Aijie Kexin Technology Co., Ltd. (referred to as "Aijie Kexin") through an increase in capital, completing the entire "computing infrastructure - large model algorithm - AI application" Industrial chain layout. Aijie Kexin aims to develop a programmable, high-performance NPU product that can be used for model training and inference.
In addition, Kunlun Wanwei released the "Tiangong Large Model Device-Cloud Integration Solution" during the "Huawei Full Connection Conference 2023". This solution has three major advantages: out-of-the-box use, customized tuning, and service guarantee. Enterprises can train the model independently or customize it based on the Tiangong model to enable business development and enhance competitiveness based on the real needs of application scenarios.
"Kunlun Worldwide's 2023 third quarter report demonstrates the company's rapid progress in the fields of AGI and AIGC. With the continuous innovation of technology and the continued expansion of business, and driven by the layout of the entire industry chain, Kunlun Worldwide is expected to accelerate to become a global A leading artificial intelligence company."