“Science and Technology Innovation Board Daily”, May 14 (Reporter Huang Xinyi) According to the annual report disclosed by Danghong Technology, total operating income was 333 million yuan in 2023, up 0.36% year on year; net profit loss due to mother was 138 million yuan, loss of 985.984 million yuan in the same period of the previous year; loss after deducting non-net profit of 140 million yuan, loss for the same period last year was 102 million yuan, up from the same period last year; net cash flow from operating activities was -978.452 million yuan, compared to -378.933 million yuan for the same period last year.

Meanwhile, losses continued to increase in the first quarter of 2024. The company achieved operating income of 62,215,600 yuan, an increase of 19.67% over the previous year; realized net profit to mother of 230,06638 million yuan, an increase of 22.02 percent year-on-year; and realized net cash flow from operating activities of 330.654 million yuan, which continued to deteriorate from the previous year.

At the results conference held today, in response to the increase in losses at the same time that revenue growth slowed last year, Sun Yanlong, Chairman and General Manager of Hong Technology, said in response to the “Science and Technology Innovation Board Daily”, that the pan-security business and intelligent connected vehicle business increased significantly in 2023 compared to the previous year, making up for the decline in media culture revenue, and the company's overall revenue increased slightly compared to the previous year. At the same time, due to the impact of R&D investment, market expansion investment, equity incentive costs, and increased credit impairment losses, etc., the amount of losses for the year increased compared to the same period last year.

In response to the increase in losses in the first quarter of this year, Sun Yanlong explained that a new equity incentive plan was implemented in March 2023. The equity incentive fees confirmed in the first quarter of 2024 increased dramatically compared to the same period of the previous year. At the same time, the entry period for new recruits in 23, especially R&D personnel, was concentrated after the first quarter, which led to an increase in personnel remuneration costs compared to the same period last year. Sun Yanlong further stated that the profit situation and cash flow situation will be improved by actively promoting the expansion of new products and new business scenarios, driving the growth of operating income, and at the same time strengthening the collection of accounts receivable and the management of overall budget expenses.

Danghong Technology recently released the BlackEye multi-modal audiovisual model, which integrates the reasoning and generation capabilities of cross-modal content such as video, audio, images, text, and 3D models, including generative algorithms such as text generation, Wensheng video, and TuSen video, as well as editable algorithms such as AI visual enhancement, AI horizontal and vertical conversion, and AI intelligent focusing. Sun Yanlong said that the integrated application of these technologies can provide complete innovative solutions for industries such as audiovisual media, spatial computing, industrial vision, and smart cockpits.

Driven by AIGC and the big model wave, various chip manufacturers have begun to deploy AI PCs, and major chip makers such as Intel and AMD have released related AI chips. Sun Yanlong revealed that Danghong Technology is currently working closely with Intel to develop multi-modal large model technology and related products based on the Intel Core Ultra CPU. These technologies include optimizing the Transformer autoregressive prediction model, latent space diffusion model, and making full use of the Core Ultra CPU's integrated GPU/NPU capabilities, etc., which can achieve multi-modal content inference and generation on AI PC stand-alone computing power and enrich AI PC applications.