CloudWalk Technology¶

CloudWalk Technology is a company focused on human-computer interaction technology and artificial intelligence applications, dedicated to providing customers with efficient, secure, and intelligent AI solutions. CloudWalk Technology has demonstrated outstanding performance in areas such as facial recognition, voice recognition, and natural language processing, and is widely used in public safety, smart finance, and smart retail sectors. Regarded as one of the "Four Little Dragons" of AI, CloudWalk Technology has also seen significant growth, with its market value at one point exceeding 45.7 billion yuan.

In the first quarter of 2023, CloudWalk Technology reported a loss of 142 million yuan, an increase of 22% compared to the loss of 116 million yuan in the first quarter of 2022. The total loss for 2022 was 869 million yuan, compared to a loss of 632 million yuan in 2021, marking a 37.5% increase in losses. Over the past five years (2018-2022), the cumulative loss has exceeded 3.1 billion yuan.

CloudWalk Technology claims that to ensure high-quality iterations of artificial intelligence algorithms and customized solutions for various application scenarios, and to maintain a technological edge in a highly competitive market, substantial and continuous research and development investment is necessary. As of the end of 2022, the number of R&D personnel at CloudWalk Technology was 552, accounting for 57.08% of the total workforce, with R&D investment representing 106.45% of revenue. In 2022, R&D expenses amounted to 560 million yuan, a slight increase of 4.9% year-on-year, with an average salary of 560,000 yuan for R&D staff.

Interestingly, in its initial public offering prospectus for listing on the Sci-Tech Innovation Board, CloudWalk Technology made a profit forecast, expecting to achieve profitability by 2025. At that time, it was projected that revenue from 2022 to 2025 would maintain rapid growth, with a compound annual growth rate of 33.6%. By 2025, it was estimated that operating revenue would reach around 4 billion yuan, with a gross profit margin maintained at around 50%. If the growth rate of operating expenses continued to decline steadily, profitability was expected to be 177 million yuan (Note: The profit forecast is a preliminary estimate made by CloudWalk based on its operational plans and specific conditions for turning losses into profits, and does not constitute a profit forecast or performance commitment).