Shengtong Technology, a pioneer and leader in the field of interactive artificial intelligence in China, submitted a prospectus on the Hong Kong Stock Exchange, and whether the VAM was cancelled when the listing was submitted and whether the company could continue to achieve growth in the future became the focus of market attention.
The performance growth and VAM have been successfully cancelled
According to the prospectus, from 2020 to 2022, the company's revenue will be 34.7 billion yuan, 46 billion yuan, 51.5 billion yuan, with an average annual compound growth rate of 218%, higher than the growth rate of the industry in the same period; The company's gross profit for the first nine months of 2020 to 2023 was 11.2 billion yuan, 15.2 billion yuan, 20.1 billion and 20.1 billion yuan, gross profit margins were. 1% and 411%。
Among them, the company's operating net profit in 2022 is RMB 716930,000 yuan, maintaining a steady growth year-on-year; The net profit recorded a loss of RMB858110,000 yuan, becoming the focus of market attention. The reason for this is also described in the company's prospectus: the loss does not reflect the actual operation, nor is it the loss of operating net profit, but is mainly caused by the change in fair value related to the equity financing made by the company before: because the terms of the equity financing agreement signed by the company have VAM conditions, part of the company's equity is considered to be a financial liability, resulting in the fair value change of the financial liability when the company's valuation rises, and the change in the fair value of the financial liability increases with the company's valuation. That is, the proportion of equity financing funds in the company's shares remains unchanged, and as the company's valuation rises, the value of this part of the equity increases, but because the equity is regarded as a financial liability, the debt increases, affecting the net profit.
In fact, the impact is a non-operating project, which has nothing to do with the company's daily operations, and only temporarily affects the net profit on the books.
From the above description, it can be seen that the company's VAM clause has been successfully cancelled, indicating that the company has completed the relevant growth performance indicators.
Whether we can achieve sustainable growth in the later period will be the key
At the beginning of February 2024, with the launch of OpenAI's Wensheng ** model SORA, the field of artificial intelligence once again detonated the market, and the advent and popularity of SORA once again allowed everyone to witness the progress and potential of artificial intelligence, and also stimulated infinite imagination for the future application of AI in various fields.
Whether Soundtone, which is also an artificial intelligence company, can achieve sustainable growth in the face of the continuous and rapid development of the industry.
According to the prospectus, the financial performance and future growth of Soundcom Technology depends on the overall growth of the enterprise interactive AI solutions market in China and our competitiveness. According to iResearch, the size of China's enterprise-level interactive AI solutions market reached RMB 53.2 billion in 2022 and is expected to reach RMB 189.7 billion in 2027, with a CAGR of 290%。However, according to the same data source, the market penetration rate of enterprise-grade interactive AI solutions in China in 2022 was only 104%, compared to 16 in the United States7%。
At present, there is still huge room for improvement in the market penetration rate of enterprise-level interactive AI solutions in China, and the penetration rate is expected to increase to 156%。In addition, as China's large economy and considerable level of social activity give rise to a rich and diverse set of use cases, which are increasingly penetrated and expanded by enterprise-grade interactive AI, it is expected that the demand for the Company's solutions will continue to increase, which will further increase the Company's sales in the foreseeable future.
According to public information, Shengtong Technology is establishing partnerships with more reputable and financially strong individuals. At the same time, Shengtong Technology also focuses on providing services for local large central enterprise customers. In the market-oriented operation, Shengtong Technology is not only limited to the relationship with the local government, but is committed to accumulating customer cases from all over the world, and expanding the company's replicability and full-stack product modules to more state-owned enterprise customers.
According to public information, Shengtong Technology is establishing an AI computing center equipped with leading GPU resources in Shandong, which can cloudify computing power and AI model training. Through the intelligent matching of training tasks and computing resources, the task completion rate of the GPU cluster training deep learning model in the computing center can reach 897%, and the average GPU resource utilization rate can reach 580% or so.
Shengtong Technology will also actively explore the international market and continue to strengthen cooperation with overseas customers, which will also become a growth point for the company's future development.