Hong Kong stock AIGC is the first stock to go IPO, and hardware companies are riding the AI bandwagon

Under the global AI trend, the Hong Kong Stock Exchange will also usher in the first AIGC shares.

On May 30, artificial intelligence company Mobvoi officially submitted an application to the Hong Kong Stock Exchange. CICC and CMB International serve as joint sponsors.

Mobvoi was founded in 2012 and is one of the few AI companies in Asia with the ability to build general large models. In 2014, it became one of the very few AI companies with software and hardware integration capabilities. In 2020, we developed a universal large-scale model called "UCLAI" while providing a full set of AIGC applications for content creators. This year, Mobvoi announced that it will further upgrade its iterative model to "Sequence Monkey".

Mobvoi’s business is divided into two main areas, namely AI software solutions and AIoT solutions. Initially, Mobvoi’s main business focused on AloT solutions and positioned itself as an intelligent hardware company. AloT smart hardware device series includes TicWatch AI smart watches, AI smart treadmills, etc.

At that time, competition in the domestic smart hardware field was fierce, but Mobvoi’s smart hardware products did not form a clear advantage, sales were low, and the company even reported news of layoffs. In 2019, in order to increase revenue, the company chose to expand its SaaS service business. In 2020, Mobvoi began to lay out generative artificial intelligence, and at the end of 2022, we ushered in the AIGC boom launched by ChatGPT.

From 2020 to 2022, Mobvoi’s AIoT solution revenue accounted for 83.0%, 85.0%, and 39.4% of total revenue respectively; AI software solution revenue accounted for 17.0% of total revenue respectively. , 15.0%, 60.6%. Due to delays in the launch of new flagship products and old products entering the later stages of the product life cycle, Mobvoi's revenue share from AloT solutions will decline sharply in 2022.

Currently, in terms of AI software solutions, Mobvoi has launched a product matrix for content creators including AI dubbing assistant "Magic Sound Workshop", AI writing assistant "Magic Writing" and AI digital human "Wonderful Yuan" ".

According to data from the Zhuoshi Consulting Industry Report, China’s AI market has increased from US$8.4 billion in 2018 to US$31.9 billion in 2022, with a compound annual growth rate of 39.7%, and is expected to reach US$115 billion in 2027. The compound annual growth rate from 2022 to 2027 is 29.2%.

The prospectus shows that from 2020 to 2022, Mobvoi’s revenue was 265 million yuan, 398 million yuan, and 500 million yuan respectively; its net profits attributable to the parent company were 251 million yuan, -205 million yuan, and -986 million yuan respectively; gross The interest rates can reach 30.12%, 37.49% and 67.20% respectively.Because software services generally have higher gross profit margins than hardware sales, the company's gross profit margin will increase significantly in 2022, which is also related to the increase in the proportion of AI software solution business.

Regarding whether Mobvoi is a smart hardware company or an AI software service company, the company’s founder and CEO Li Zhifei once firmly stated in an interview with the media: “What we mainly do is AI, and we will not do anything next. Hardware." This graduated from the computer science department of Johns Hopkins University in the United States and was an expert in machine learning and machine translation at Google's U.S. headquarters. He believes that the company's previous hardware was to allow AI technology to be implemented in better scenarios.

The professional background of the team has also allowed Mobvoi to receive investments from many well-known venture capital institutions. ZhenFund, Sequoia China, Haina Asia, Google Ventures and Volkswagen Group are all investors in Mobvoi. It is worth mentioning that Mobvoi has not raised new financing since 2017.

Pure smart hardware is already a red ocean and can no longer attract capital investment. chatgpt came to the ground with a thunder, giving Moutouwen new growth opportunities. Due to his Google background and keen industry sense, Li Zhifei began to actively invest in the field of large-scale AI models in 2020, which allowed him to accumulate a certain first-mover advantage.

Mobvoi has become increasingly clear about its positioning. Since the terminal cannot do what others do, it is better to make full use of its technological advantages to become an enabler. Including Spring Airlines, China Mobile, China Telecom and Industrial and Commercial Bank of China, the company's B-side customers have exceeded 500.

Currently, many companies have joined the AIGC competition. In the past, major Internet companies such as Baidu were rushing to produce the Chinese version of chatgpt. Later, Wang Huiwen, a retired Internet veteran, posted a "hero post" to start an AI business. Mobvoi also needs more ammunition support. It is understood that the funds raised from this initial public offering will be mainly used to develop general large-scale models, expand market share and promote solutions, as well as seek possible investment and acquisition opportunities.

Author/Yideng

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