Recently, the Cloud Intelligence Market's description of its market position was questioned by iFLYTEK, and the veracity of the information disclosed by the Science and Technology Innovation Board is questionable.

　　On November 3, Yun Zhisheng officially submitted a prospectus to the Science and Technology Innovation Board to be listed on the Science and Technology Innovation Board. According to the prospectus report, in the first quarter of 2020, Cloud Zhisheng achieved operating income of 23.4585 million owners, down 46.44% from the same period last year. The cumulative loss over the past three and a half years reached 790 million yuan.

　　Furthermore, Cloud Intelligence has integrated merchants and is more dependent on the associated World Trade Group and its affiliates; at the same time, the company's product revenue is highly volatile, and its profit stability is questionable.

　　Cloud Zhisheng's prospectus says its voice medical records market share is as high as 70%, and product revenue is highly volatile

　　The company claims that since its establishment in 2012, it has continued to be deeply involved in the field of artificial intelligence and voice, has occupied an important industry position in the fields of smart living, smart medical care, etc., and has won many heavyweight awards many times. Among them, in October 2019, the company won the 9th “Wu Wenjun Artificial Intelligence Technology Progress Award”, and is the only AI voice company selected for this award. In March 2020, the company won the first prize of the 2019 Beijing Science and Technology Progress Award for “Large-scale Knowledge Map Construction Technology and Application”. In August 2020, the company won the first prize in many key indicators in Mandarin Chinese and Shanghai dialect in the Blizzard Challenge 2020 International Speech Synthesis Competition in the field of speech synthesis.

　　The company claims that as one of the first artificial intelligence voice companies to enter the field of smart living and smart medical care, it has been highly recognized by many customers in the industry with advanced technology, excellent products and excellent customer service capabilities, and ranks first in market share. In the sub-field of smart living, the white electronics market, according to insightful consulting and research data, the company's market share is as high as 70% through cooperation with white electronics giants such as Gree;In the field of smart medical care, the company's voice record entry system has a significant advantage, with a market share as high as 70%The medical record quality control system is gradually gaining strength. Currently, the market share is about 30%; the company's smart medical products are already being used in nearly 100 of the top three hospitals, including Peking Union Medical College Hospital.

Source: Prospectus

　　Furthermore,The company's main products are highly volatile, and its profit stability is questionable.

　　In the reporting period, intelligent voice interaction products accounted for 96.93%, 79.22%, 62.56%, and 28.18% of the main business revenue, respectively. The share of revenue declined year by year, while revenue from smart IoT solutions accounted for 0%, 8.54%, 22.96%, and 67.25% of the main business revenue, which increased year by year.

　　Yunzhi claims that the revenue scale of IoT voice interaction products declined in 2019 compared to 2018, mainly due to Internet technology giants such as Baidu and Xiaomi occupying market share through price wars and subsidies in order to seize household traffic, causing smaller downstream customers to drastically reduce prices or withdraw from the market, thus causing the company's smart speakers and intelligent voice modules for child companion robots to drop significantly in price and sales.

　　Three reasons for iFLYTEK to question the false description of Cloud Intelligence's market position

　　The statement by iFLYTEK in Interactive Easy Call Cloud Intelligence that its voice records market share is as high as 70% is seriously untrue.

　　On December 11, investors questioned the director of iFLYTEK in Interactive Easy. The investor said, “Cloud Intelligence claims in the prospectus that its market share of voice medical records is as high as 70%. May I ask if healthcare is the strategic direction of iFLY. Why is it being overtaken by Cloud Intelligence? Is it possible that Xinfei also gave up on this business? It is hoped that the company can be responsible to investors and truthfully disclose specific information. Thank you”

　　On the evening of December 13, the statement by iFLYTEK on Interactive Easy Call Cloud Intelligence that its voice records market share was as high as 70% was seriously untrue. The reasons are as follows:

　　Reason 1. Judging from the dimension of the number of hospitals covered, according to Yunzhisheng's application data related to voice medical records in the past four years, the cumulative number of hospital customers on December 31, 2018, December 31, 2019, and June 30, 2020 was 10, 36, 91, and 112, respectively, while the cumulative number of hospital customers with iFLYTEK voice records during the same period was 11, 77, 264 and 489, respectively. Comparing the cumulative number of hospitals covered by the two sides as of June 30, 2020, Yunzhisheng was only 22.90% of iFLYTEK's.

　　Reason 2. Further verification from the revenue dimension shows that according to the revenue amounts related to Yunzhisheng's last four phonetic medical records, Yunzhisheng's smart voice medical record revenue on 2017/12/31, 2018/12/31, 2019/12/31, and 2020/6/30 was 170.96, 926.39, 162891, and 8.9548 million yuan respectively, while revenue related to iFLY's smart voice medical records during the same period was 664.28, 2937.27, 3554.48, and 357.11,000 yuan respectively. Yunzhisheng's revenue in terms of voice records from January to June 2020 was only 25.08% of iFLYTEK's revenue.

　　Reason 3. In addition to the sale of the intelligent voice medical record system based on the private cloud mentioned above, iFLYTEK also uses a public cloud to provide an intelligent voice medical record module for the medical field to serve Internet medical companies such as Good Doctor Online, Doctor Yulai, Dentist Housekeeper, etc. The application scenarios cover businesses such as intelligent guidance and intelligent voice follow-up systems. The above sales revenue is not included in the statistics of voice electronic medical records. If iFLYTEK of HKUST incorporates the smart voice medical record revenue of the ecological manufacturers mentioned above into the statistics, the market share of Yunzhisheng voice medical records will be further reduced. Furthermore, in addition to voice medical record usage scenarios, iFLYTEK's intelligent voice technology has also been comprehensively deployed in the fields of chronic disease follow-up and chronic disease management, and has formed examples of large-scale applications.

　　In summary, iFLYTEK said that intelligent voice applications in the medical field far surpass cloud intelligence in terms of depth, breadth, and revenue scale.Yun Zhisheng's statement in its prospectus that it has a 70% share of the healthcare market is seriously inconsistent with the facts.

Source: Interactive Easy

　　Cloud Intelligence merchants have a large proportion of integrated transactions

　　Cloud Intelligence integrates merchants, and related transactions account for a relatively large share.

　　According to the prospectus, in 2019, Yunzhisheng reached a strategic partnership with Shimao Group to establish a joint venture with Shanghai Shibin E-Commerce Co., Ltd., a subsidiary of Shimao Group, to establish a subsidiary Yunmao interconnect according to 51% and 49% equity ratios to explore smart IoT solutions in hotel and community scenarios. In accordance with the principle that substance is more important than form, companies within the Shimao Group that have transactions with issuers and their holding subsidiaries are identified as related parties to issuers.

　　According to the prospectus, in 2019 and January-June 2020, the total sales amount of Yunzhisheng to Shimao Group and its subsidiary and its shareholding company Tianjin Jinnan Xincheng Real Estate Development Co., Ltd. was 24.9475 million yuan and 31.8408 million yuan respectively, and many on-going orders are still being delivered one after another.

　　Shimao Group and its subsidiaries suddenly appeared among Cloud Intelligence's top five customers in 2019 and became the largest customer in the first half of 2020. Shanghai Shimao Internet of Things Technology Co., Ltd., a subsidiary of Shimao Group, appeared in the list of the top five suppliers of Cloud Intelligence in 2019 and became its largest supplier in the first half of 2020.

　　According to the prospectus, in the first half of 2020, Yunzhisheng purchased 22.4867 million yuan from Shanghai Shimao Internet of Things Technology Co., Ltd., accounting for 22.15% of its total purchase amount; while the total amount of orders obtained from Shimao Group and its related parties in the same year was 31.888 million yuan, accounting for 37.6% of its overall operating income.It should be pointed out that both integrated merchants and related transactions are the focus of IPO supervision and review.

Source: Prospectus

　　Disclosure of information is a “lifeline” in the registration system era

　　As for the market position statement, we don't know if Cloud Intelligence is overly beautifying, but what needs to be emphasized is,The registration system era emphasized information disclosure as the core, and stricter truthfulness, accuracy, and completeness of information disclosure.

　　Chairman Yi Huiman of the Securities Regulatory Commission once said that starting from reality, the CSRC initially established a registration system structure with “one core, two links, and three market-based arrangements.” “One core” is information disclosure as the core, requiring issuers to fully disclose the information necessary for investors to make value judgments and investment decisions to ensure that information disclosure is true, accurate, and complete.

　　The supervisory authorities have criticized the fact that the prospectus of the Science and Technology Innovation Board has been excessively glorified. Part of the indication is that the information disclosure language is not friendly enough.

　　The supervisory authorities said that the Venture Board prospectus guidelines clearly require that they be easy for investors to read, plain and easy to understand, concise, clear in logic, and be readable and understandable. Overall, the problem of unfriendly disclosure of information in the prospectus is currently quite prominent. For example, some prospectuses fail to use factual descriptive language, highlight the essence of the incident, and use marketing propaganda terms that are clearly glamorized or even exaggerated; some have extensive disclosure of information such as industries that are not very relevant to issuers, have little disclosure of business and technology directly related to themselves, and while the disclosure of information is redundant, it is not effective or very targeted; some use many obscure technical terms that are difficult to understand, and some fail to use charts, images, or other more intuitive disclosure methods, as well as citing data or conclusions that do not indicate the source of the data. (Company Observation/Xia Bug)