Reporter Lu Xiao Beijing reported
002230.SZ, known as "the first share of artificial intelligence," has been rather quiet recently.
On October 25, Dong Mijiangtao, senior vice president of HKUST News Flight, clarified the AI incident and the HKUST news flight into real estate rumors again at the 2008 quarterly report investors'exchange meeting. He also said that in the three quarter, the non net profit of the HKUST fell nearly 90%, resulting from excessive investment in the future.
The favor of the capital market for artificial intelligence subjects, so that the market value of HKUST Xunfei in November last year once broke through hundreds of billions of dollars. But its recent trap in the whirlpool of public opinion not only reflects the profound contradiction between high valuations and low profits, but also reflects the market's questioning of the extent of the fall of AI technology. And after many Internet giants have set foot in the AI industry, can AI afford the future of HKUST?
Net profit fell 90% of "puffy performance"
Revenues and deducting non net profit are running counter to the three quarterly report of HKUST 2018.
Earnings report shows that the third quarter of this year, the company's revenue nearly 2 billion 100 million yuan, an increase of 61.43% over the same period last year. However, the net profit of less than 4 million 430 thousand yuan in the current period dropped by nearly 90% over the same period. Throughout the first three quarters of this year, HKUST Flying nearly 5.3 billion yuan in revenue growth of 56%, but about 24.63 million yuan of non-net profit deduction is also down nearly 80%. In addition, in the first three quarters of this year, the net cash flow generated by the operation of HKUST Xunfei was negative about 700 million yuan, down more than 7% from the same period last year.
Jiang Tao said that the net profit deduction from the high investment in the future.
The results show that the sales expenses of HKUST Xunfei in the first three quarters grew by nearly 69% year-on-year, higher than revenue growth. Jiang Tao said that the to B business, which originated from the big head of HKUST, is experiencing a downward trend. He pointed out that in the past, HKUST has undertaken a lot of provincial-level projects, accounting for a relatively large proportion of revenue, but now more and more cities have achieved sales and service system coverage.
In addition, the cost of research and development of HKUST's current flight grew by nearly 70% over the same period. Jiang Tao said that in the first three quarters of this year, HKUST Xunfei added a gross profit of 898 million yuan, basically invested in research and development, sales system construction and so on. He also said that the cost of HKUST's flight 76% is related to the salaries of personnel. He revealed that in the first half of this year, 2550 new talents were set up. As a reference, the 2017 annual report of HKUST flight shows more than 8000 employees.
Jiang Tao also said that HKUST Xunfei did have a relatively large negative cash flow in the first half of the year, but the cash flow in the third quarter has been positive 129 million yuan, which is related to the pace of the industry to B.
However, a number of industry insiders to the "China Times" reporter analysis said that the high subsidy received by HKUST News Flight is one of the reasons for its substantial decline in non-net profit deduction.
According to the financial report, HKUST Flight made a net profit of 219 million yuan in the first three quarters, but its non-recurrent profit and loss amounted to 194 million yuan, including a government subsidy of 57 million yuan. In addition, HKUST Xunfei also disposed of the financial assets available for sale and minority stakes in its subsidiaries during the three-quarter report period, resulting in a profit of $059 million.
Jiang Tao said that the subsidies received by HKUST include government project subsidies, software tax rebates and school-running subsidies. Among them, the government project subsidy accounts for only a small part of the revenue and gross profit of the HKUST. Government projects in the first three quarters of 2018 accounted for 4.2% of the current revenue. "Each project subsidy has a clear direction of use and meet the requirements of the standard, subject to strict audit by the competent government departments and third-party institutions." Jiang Tao said.
What needs to be mentioned is that the government's support for HKUST is increasing. In 2017, the company received a total of 149 million yuan, including government subsidy of 67 million yuan. In the first three quarters of this year, it received a subsidy of 222 million yuan, of which the state project subsidy reached 101 million yuan.
Where is the business realisation mode?
The AI industry has attracted a lot of attention from the outside world, behind the repeated subsidies for government projects.
In November 2017, the Ministry of Science and Technology announced the construction of the National Artificial Intelligence Open Innovation Platform for Intelligent Speech by relying on ITU. At the same time, we announced the construction of the state-level open platform for artificial intelligence, as well as the 3 BAT Internet giants. Also in November of last year, the stock price of HKUST soared to a peak of 49.75 yuan, and the market value broke through the 100 billion mark, known as the monster stock.
In addition to the surge in the secondary capital market, HKUST also received a large amount of capital through a continuous increase in funding. In May 2018, the University of Technology (HKUST) also faced more than 10 specific targets and launched a fixed increase of 3 billion 500 million yuan. This is also the largest increase since its listing. Public information shows that it has raised more than 5 billion yuan in the past few years.
The potential market value of AI technology contributes to the capital boost of HKUST, but there has been no explosive growth in the liquidity of the entire AI industry. Some AI entrepreneurs told the Huaxia Times that the company's main focus now is to constantly explore new application scenarios, seize as many users as possible, and then consider a viable business liquidity model.
The 2018 semi annual report of HKUST flight shows that the to B education informatization is the largest source of revenue. During the current period, the two incomes of educational products and services and teaching business account for 22.26% of total revenue. But this part of the revenue scale is only about 700 million. It should be mentioned that the proportion of current education business in revenue is down by more than 7% over the same period last year.
At present, to C business is regarded as the new revenue growth engine of HKUST.
Jiang Tao disclosed that the consumer product business in the third quarter of this year's revenue reached 1.8 billion, an increase of 118%. In the company's revenue accounted for more than 1/3. The gross profit ratio can reach 37%. In the first three quarters of the education business, revenue reached 1 billion 130 million yuan, an increase of 28.64% over the same period last year.
He also pointed out that one of the reasons why HUST has invested a lot in marketing is the growth of HUST's to C business. "We are now starting to advertise and start building terminal stores and channel systems all over the country. These are all staged inputs."
But the to C business clearly means more competition. In addition to BAT Internet giants, there are many start-ups in this field.
According to Xiang Ligang, CEO of Flying Elephant Network, the voice technology capability of HKUST is ahead of the industry, but the liquidity is poor and the product capability is not enough. As for KUST's efforts in consumer products, he told the Huaxia Times that everything has boundaries. The enterprises that do low-level technology lack the accumulation of manufacturing and channels. To be a consumer product is not KUST's strength.
He also told reporters that voice is only a part of artificial intelligence, AI also needs to deal with engine, large data, intelligent sensing and other aspects of technology, the relevant layout of the University of Science and Technology Flight is not perfect. "At present, the information technology of the University of science and technology is less than ten billion, and it is impossible to make a complete ecological layout. It is more suitable for some vertical areas. "
As of the "China Times" reporter, HKUST News Fei shares currently 22.2 yuan, compared with the peak in November last year has been cut. Its market value has also dropped to around 46 billion 500 million yuan. Although senior executives at HKUST have announced plans to increase their holdings, one of the pressing issues facing HKUST is that it will achieve a net profit of at least $435 million in 2018. Leaving the remaining 216 million yuan target, there are only two months left.
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