We are a leader in enterprise AI. We are an AI software company which focuses on providing platform-centric AI software which enables enterprises to develop their own decision-making AI applications. Our enterprise-level solutions are designed to serve enterprises, rather than individuals. We offer platform-centric AI solutions that can be rapidly deployed by enterprises on a large scale to uncover hidden patterns in data and comprehensively enhance their decision-making capabilities.
We were the largest player by revenue in the platform-centric decision-making AI market, a sub-segment of the AI market, in China in 2022, according to the CIC Report. China’s AI industry can be categorized into four major segments in terms of fields of application: decision-making AI, visual AI, speech and semantics AI and AI robots. Decision-making AI recognizes patterns hidden in data, guides decision-making process on data insights, and addresses issues that are most pertinent to core business operations. Within the decision- making AI market, the platform-centric decision-making AI market in China is a vastly expanding subsegment. As opposed to non-platform-centric solutions, platform-centric solutions provide end users with an AI development platform in addition to AI applications and underlying computing infrastructure. Such platforms provide end users with uniform development standards, high compatibility as well as flexible expansion of applications per actual demands. The following table sets forth a breakdown of China’s decision-making AI industry for the periods indicated.
We have been leading in the research of advanced AI technologies and the utilization of these technologies in commercial solutions. For example, according to CIC, our proprietary AutoML algorithm is a cutting-edge AutoML algorithm in the world. With our AutoML algorithms, we broke the world records of two Open Graph Benchmark (“OGB”) tasks in April 2021. Our AutoML algorithm also ranks top 1% in Kaggle Structured Data and Image Classification Competition 2019. For details, see “Business – Our Technology – AutoML.”
We emphasize value creation. Our solutions have created value for enterprises in a myriad of industries including, but not limited to, finance, retail, manufacturing, energy and power, telecommunications, transportation, technology, education, media and healthcare. For example, our AI solutions have successfully helped banks enhance anti-fraud accuracy rate, retailers forecast sales volume and formulate precision marketing strategies, manufacturers optimize quality control, and energy companies detect and prevent equipment anomalies and failures. In 2020, 2021, 2022 and in the three months ended March 31, 2022 and 2023, we had 47, 75, 104, 49 and 62 lighthouse users, namely Global Fortune 500 companies and publicly listed companies, respectively.
Our platform-centric AI solutions seek to overcome challenges faced by in-house development of AI capabilities and point solutions that are designed for scenario-specific use cases, and allow enterprises to benefit from the advancement of AI technologies to the largest extent possible. We believe, however, that large-scale AI transformation faces the key challenges including shortage of experts, high total cost of ownership, long deployment time and data and software incompatibility. Our platform-centric AI solutions seek to overcome challenges faced by in-house development of AI capabilities and point solutions that are designed for scenario-specific use cases, allowing us to capture the massive market opportunities in enterprise AI application. For details, see “Business – Our Market Opportunities” and “Industry Overview – Decision-Making AI Market in China.” Leveraging our core technologies, we have developed end-to-end enterprise AI solutions, which include optional bundling infrastructure, operating system, AI developer suites and applications, that cater for enterprises’ needs across application, platform and infrastructure levels. Sage Platform is the backbone of our solutions. It allows enterprises to easily build their customized AI systems that automate the process of machine learning, application, decision-making and evaluation driven by our AutoML algorithms, featuring quick, simple build-up, low- and/or no-code environment, and implementation without significant involvement of AI experts. Our Sage Platform is primarily composed of the following:
‧ Sage AIOS is an AI operating system featuring a user-friendly interface, standardized data processing, automated resource management and allocation and fully compatible middleware that are comparable to personal computer operating systems. Specifically, Sage AIOS provides a more user-friendly interface to visualize AI application development and management. Characterized by its user-friendly interface on which users can easily and conveniently design, develop and operate numerous AI applications, Sage AIOS is able to empower enterprises to deploy AI on a large scale. Based on multiple versions of products and underlying technology previously developed by us, we officially launched Sage AIOS in August 2020, an upgraded and integrated AI operating system with expanded features.
‧ HyperCycle series with no-code development tools and Sage Studio series with low-code and no-code development tools are our core platform-centric AI solutions by which our users can quickly and easily deploy large-scale AI applications.
In addition, we offer ready-to-use AI applications that users could directly deploy to improve their business operations, primarily in the fields of sales and marketing, risk management and operating efficiency in general. We also help users develop customized AI applications on Sage Platform to address their specific business needs.
During the Track Record Period, we have experienced tremendous growth. Our revenue grew by 114.2% from RMB942.2 million in 2020 to RMB2,018.4 million in 2021, and further by 52.7% to RMB3,082.6 million in 2022. Our revenue grew by 33.6% from RMB482.3 million for the three months ended March 31, 2022 to RMB644.4 million for the three months ended March 31, 2023. In line with our revenue growth, we have also experienced increase in our trade receivables, including trade receivables aged over six months. As of December 31, 2020, 2021, 2022 and March 31, 2023, our trade receivables were RMB262.7 million, RMB778.3 million, RMB1,493.2 million and RMB1,494.0 million, respectively. For details, see “– Business Sustainability and Path to Profitability – Working Capital Sufficiency.”
Source: Fourth Paradigm (06682) Prospectus (IPO Date : 2023/09/18) |