During the reporting period, PSAI products successively settled in Alibaba Group's Taobao Qian Niu merchant workstation, 1688 platform, Douyin micro application, and Douyin service market; The net cash flow from operating activities of ArcSoft Technology was -62.8463 million yuan, and ArcSoft Technology explained that this was mainly due to some customers of the company paying in advance for sales in the previous year in order to deepen their cooperation with the company, resulting in a decrease in sales receivables in this period.
On August 26, "Science and Technology Innovation Board Daily" reported that (reporter Qiu Siyu) this evening (August 26), ArcSoft Technology disclosed its 2024 interim report.
In the first half of this year, ArcSoft Technology achieved operating income of 0.381 billion yuan, a year-on-year increase of 11.97%; net income attributable to the parent was 61.4589 million yuan, a year-on-year increase of 22.82%; non-recurring net income was 53.7943 million yuan, a year-on-year increase of 21.7%.
In terms of quarterly performance, the company achieved a net income attributable to the parent of 27.29 million yuan in the second quarter, a year-on-year increase of 24.9%, and a quarter-on-quarter decrease of 20.13%.
Regarding the performance, ArcSoft Technology stated in the financial report that the main reasons for the growth in revenue and net income were that the mobile intelligent terminal visual solution achieved operating income of 0.332 billion yuan, a year-on-year increase of 6.43% compared to the same period last year; the intelligent driving and other IoT intelligent device visual solutions achieved operating income of 43.364 million yuan, a year-on-year increase of 93.19% compared to the same period last year; in addition, the interest income obtained from idle funds for cash management in the current period was 29.2233 million yuan, a year-on-year increase of 21.53%.
ArcSoft Technology's main business is the research and application of visual artificial intelligence technology, providing visual artificial intelligence solutions for smart phones, laptops, automobiles, AIoT, and more. The company's main customers currently include Samsung, Xiaomi, OPPO, vivo, and Honor.
In terms of AI GC business, during the reporting period, multiple algorithms related to ArcSoft Technology's PSAI products have passed the filing of domestic depth synthesis service algorithms, and the PSAI products have launched AI model video production functions; At the same time, its ArcMuse computing technology engine has obtained certificate of filing with large models specified by the provisional measures for the management of generative AI services by the National Internet Information Office.
At the application level, ArcSoft Corporation stated that it is expanding its cooperation with domestic mainstream e-commerce platforms. During the reporting period, it successively entered the Taobao Qian Niu Merchant Workbench and 1688 platform, Douyin Mini Programs, and Douyin Service Market owned by Alibaba Group. In the second half of the year, ArcSoft Corporation will further expand into the international e-commerce platform market and has entered the TikTok application and service market.
In terms of mobile smart terminal business, during the reporting period, ArcSoft Corporation launched the Turbo Fusion instant shooting solution, the Turbo Fusion night scene color solution, and the Turbo Fusion 25M high-resolution fusion solution. At the same time, the company has extended the Turbo Fusion image processing technology to video applications. It is reported that the prototype of its solution has been recognized by several important customers and has received support from platform vendors.
In the smart automobile business, in terms of in-car products, ArcSoft Corporation's health monitoring algorithm engine has currently obtained fixed-point projects for multiple mass-produced vehicle models. For regulatory products, it has passed the latest ADDW in Europe and the testing standards of IVISTA China Smart Automobile Index and C-IASI in China, and has been put into mass production.
In terms of exterior cabin products, the company's 3D AVM and Sentinel monitoring algorithm products have continued to be shipped and have obtained new fixed-point production models. The upgraded version of VisDrive, the cabin docking solution, has expanded to multiple partners, and it is expected that with the drive of projects, the product will gradually mature in the second half of the year.
In terms of research and development input, in the first half of 2024, ArcSoft Corporation's research and development expenses totaled 0.194 billion yuan, accounting for 50.93% of its revenue. In terms of research projects, the current investment in research and development for mobile smart terminal-related technologies was 0.103 billion yuan. In the field of smart phones, the company has successively launched new products and achieved sales. In the field of AI, it has introduced new technologies and products. The research and development investment in IoT technologies such as smart driving in the current period was 91.3696 million yuan.
However, it is worth noting that the net cash flow generated from operating activities of ArcSoft Corporation was -62.8463 million yuan, a decrease of 130.82% compared to the same period last year. In this regard, ArcSoft Corporation explained that it was mainly due to some customers paying sales revenue in advance in the previous year to deepen cooperation with the company, resulting in a decrease in sales revenue collected in this period.