The Star Daily News reported on August 31 (Reporter Wu Xuguang) that on the evening of August 30, Cloud Technology released its 2024 interim report.

The report shows that the company's revenue in the first half of 2024 was 0.121 billion yuan, a year-on-year decrease of 26.35%; the net income attributable to the parent company was -0.356 billion yuan, a year-on-year decrease of 16.45%; the non-gaap net profit attributable to the parent company was -0.369 billion yuan, a year-on-year decrease of 14.41%; basic earnings per share was -0.34 yuan share.

Cloud Technology stated that during the reporting period, the company promoted the optimization of products and customer structure, leading to a year-on-year decrease in the scale of new signed orders, resulting in a decline in its revenue scale; the decrease in net income was mainly due to an increase in the company's share-based payment expenses compared to the previous year, as well as a heavier financial burden from the depreciation expenses of a large number of computational servers.

The Star Daily News reporters noted that recently, the company's net income has been continuously losing, and its continued operating capacity is under pressure. In the past three years, from 2021 to June 2024, its net income attributable to the parent company was -0.632 billion yuan, -0.869 billion yuan, -0.644 billion yuan, and -3.56 billion yuan respectively; with year-on-year changes of 22.24%, -37.46%, 25.95%, and -16.45%, showing a fluctuating downward trend.

The timing of recovery remains uncertain. Pacific Securities estimates that the company's earnings per share for 2024 and 2025 are expected to be -0.69 yuan and -0.52 yuan respectively.

In the view of industry practitioners, the artificial intelligence industry in which Cloud Technology operates has characteristics such as high technological content, high research and development investment, long R&D cycles, and slow manifestation of economies of scale, leading to the company's continued operational losses.

TF International Securities also pointed out in their research reports that AI has not yet fully realized monetization, and is still in its early stages. As AI's actual monetization capabilities become evident, there may be a reversal in the supply-demand relationship.

Yuncong Technology stated that although the company is currently facing a situation of declining revenue and expanding losses year-on-year, the management remains optimistic about the future.

To address the current revenue decline, during the reporting period, Yuncong Technology made substantial progress in strengthening sales collection management and optimizing resource allocation, achieving a net cash flow from operating activities of -0.13 billion yuan, an improvement of 24.12% compared to the same period last year.

In terms of R&D investment, in the first half of this year, Yuncong Technology's R&D expenses were 0.217 billion yuan, a year-on-year increase of 9.37%. The company stated that its self-developed technologies such as the calm multimodal large model, cross-mirror tracking, 3D structured light facial recognition, dual-layer heterogeneous deep neural network, and adversarial neural network are currently at the industry-leading level.

Yuncong Technology is an AI platform-type enterprise, mainly focusing on the research and development of computer vision technology products, and is dedicated to providing more commercially valuable large model applications and intelligent integrated products for the ToB industry.

During the reporting period, the company continued its cooperation with domestic computing power companies such as Huawei, Cambricon, and Sugon, providing training/inferencing integrated machines and inferencing integrated machine products to help clients build customized large model computing platforms.

Meanwhile, Yuncong Technology continues to explore AI. During the reporting period, the company continued to explore the application of AI large model technology in the fields of smart finance, intelligent manufacturing, smart energy, and ToC intelligent hardware, launching a series of new products and solutions.

It is important to note that on the evening of August 6th this year, Yuncong Technology announced that, due to recent changes in the external market environment, it has terminated the issuance of A-shares to specific entities for the year 2023 and withdrawn the application.

At that time, Yuncong Technology stated that the private placement was "helpful in reducing the company's financial risks" and "conducive to improving the company's cash flow, reducing operational risks and costs".

With the setback in this financing, the company will take measures to meet its business development needs, which remains to be seen.

Looking ahead, the company stated that it will continue to optimize its business structure, strengthen cost control, actively expand the market, narrow the losses, and achieve a turnaround to profit.