Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 1,415,343, a decrease of 14.3% compared to RMB 1,651,809 in the same period of 2021[5]. - Gross profit for the same period was RMB 934,043, representing a gross margin of 66.0%, down from 73.0% in 2021[5]. - The company reported a loss of RMB (3,207,988) for the six months, an improvement of 13.6% compared to a loss of RMB (3,712,873) in 2021[5]. - Adjusted EBITDA for the period was RMB (2,322,546), significantly worse than the adjusted EBITDA of RMB (556,160) in the previous year, reflecting a 317.6% increase in losses[5]. - The adjusted net loss for the period was RMB (2,564,180), a significant increase of 264.9% compared to RMB (702,665) in the same period of 2021[5]. - The net loss for the six months ended June 30, 2022, was RMB 3,208.0 million, compared to a net gain of RMB 206.4 million for the six months ended June 30, 2021[34]. - The company reported a total comprehensive loss of RMB 1,893,618 for the period, compared to RMB 3,474,356 in the previous year, suggesting a reduction in overall losses[64]. - The group reported a basic loss per share of RMB 0.10 for the six months ending June 30, 2022, compared to RMB 0.39 for the same period in 2021[116]. Revenue Breakdown - The smart business segment generated revenue of RMB 570 million, a year-on-year decrease of 12%, with a customer base of 512, down 19%[10]. - The smart city segment achieved revenue of RMB 430 million, a year-on-year decline of 45%, with 15 new cities added[11]. - The Smart Living segment achieved revenue of RMB 290 million in the first half of 2022, representing a 98% year-over-year growth and accounting for 21% of the group's total revenue, up from 9% in 2021[13]. - Smart automotive revenue increased by 71.1% to RMB 120.8 million, attributed to a growing customer base and new partnerships for advanced driver assistance systems[27]. - Revenue from Mainland China for the six months ended June 30, 2022, was RMB 1,140,734 thousand, a decrease of 19.2% compared to RMB 1,412,976 thousand for the same period in 2021[94]. - The total revenue from Southeast Asia for the six months ended June 30, 2022, was RMB 4,213 thousand, a significant decrease of 80.6% from RMB 21,671 thousand in the same period of 2021[94]. Customer Metrics - The number of customers in the Smart Business segment decreased by 19.4% to 512 from 635 in the previous year[6]. - The Smart Life segment saw an 18.1% increase in customers, reaching 183 compared to 155 in 2021[6]. - The Smart Auto segment experienced a 53.8% increase in customers, growing from 13 to 20[6]. - The number of customers served in the Smart Living segment increased by 18% to 183, with average revenue per customer rising by 67%[13]. Research and Development - Research and development expenses for the first half of 2022 amounted to RMB 1.88 billion, representing 133.1% of the revenue[8]. - R&D expenditure reached RMB 2.04 billion in the first half of 2022, with cumulative investment exceeding RMB 10 billion since 2018[17]. - The number of R&D personnel reached 4,093, accounting for 69% of total employees, with an average model production per person increasing by 15% to 6.8 models annually[17]. - The AI model achieved over 90% accuracy in the ImageNet large-scale recognition task, ranking among the top three globally alongside Google and Microsoft[17]. - The company is committed to ongoing research and development in artificial intelligence technology, aiming to enhance its product offerings and market competitiveness[73]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased to RMB 10,373.6 million as of June 30, 2022, from RMB 16,529.5 million at the beginning of the period[44]. - Net cash used in operating activities was RMB 1,848.1 million for the six months ended June 30, 2022, compared to RMB 830.9 million in the same period of 2021[47]. - Net cash used in investing activities was RMB 5,721.4 million, primarily due to investments in financial assets and property purchases[49]. - The company has sufficient financial resources totaling RMB 17,873.1 million as of June 30, 2022, to support business development[44]. - The total amount of structured deposits increased to RMB 466,678,000 as of June 30, 2022, from RMB 2,186,374,000 a year earlier, indicating a significant reduction of about 78.7%[154]. Financial Position - Total assets as of June 30, 2022, were RMB 36,666,655, a decrease from RMB 36,944,319 at the end of 2021[66]. - Total liabilities rose to RMB 5,563,819 from RMB 4,957,235, indicating an increase in financial obligations[66]. - The total equity attributable to equity holders of the company as of June 30, 2022, was RMB 31,102,836 thousand, compared to RMB 31,987,084 thousand at the beginning of the year, reflecting a decrease of approximately 2.8%[68]. - The company’s total liabilities included preferred share liabilities of RMB 1,048,291 thousand and other financial liabilities of RMB 127,877 thousand, contributing to a total liability of RMB 1,176,168 thousand[84]. Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings in response to the changing market dynamics[5]. - The company aims to strengthen its competitive advantages in smart cities and smart business, enhance autonomous driving technology, and continue the development of AI sensors and consumer robotics[22]. - The company signed strategic agreements with GAC Group to accelerate smart vehicle development and production, with over 3 million units of the smart vehicle cabin AI software delivered[15]. - The company has connected over 1.5 million IoT devices through its urban platform, with an increase of approximately 26% in the first half of 2022[12]. Market Conditions - The company maintained the number one market share in China's AI algorithm analysis software market as of 2021[8]. - The overseas market revenue contribution increased by approximately 760 basis points compared to the full year of 2021, accounting for 19% of total revenue[9]. - The company continues to monitor currency exchange rate fluctuations and will take necessary measures to mitigate their impact[51]. Compliance and Governance - The company received the BS10012:2017 certification for personal information management, demonstrating its commitment to data security and privacy protection[21]. - The interim financial data has been prepared in accordance with International Accounting Standard 34, ensuring compliance with international financial reporting standards[74]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[55].
商汤-W(00020) - 2022 - 中期财报