SenseTime Technology has suffered a huge loss of 24.2 billion yuan in three and a half years, why is

There may be two reasons for the loss, one is that this group of people makes money in the name of AI development, and the other is that this group of people is overconfident and does not consider reality.

SenseTime. Known as the AI Four Little Dragons.

One of them can be said to be in the limelight in the AI industry, but this company is not as glamorous as it seems, according to news reports.

They have already lost 24.2 billion. Of course, this is only news, most of them are superficial data, and it should not reach this level for those who understand reports. Having said that, losses are an immutable fact, and there seems to be no better solution than going public.

The cause of the incident should start with Tang Xiaoou.

In 2014, the team released the content of face recognition, which had a very high accuracy rate, so it became famous in the circle. After being recognized, there was capital to invest, and Tang Xiaoou's team moved from the laboratory to the company. Affected by the general environment, people's attention to AI has always been very high, and SenseTime, which is dominated by Tang Xiaoou, is also known as the AI Four Dragons.

But after so many years, the team that transformed into a company has not developed very well, fromProspectusIt looks like they have lost 100 million in three and a half years (it should actually be 100 million).

From a personal point of view, there are probably two reasons for the loss, one is that Tang Xiaoou himself wants to rely on the guise of AI.

Make hay. This statement has some "conspiracy theory" implications, and it should not be so; Second, the team's ambition is too great, and the investment of capital cannot meet their R&D needs. To put it simply, it doesn't consider the reality, and the money it gives is only enough to travel around China, and the team just wants to travel the whole thingSolar system

From the perspective of ordinary people, it is very tragic to lose more than 2 billion yuan, but in fact, this problem does not exist. Looking carefully at the relevant data, part of the company's losses are due to the use of high-level management, which can be understood as "wages". Now that SenseTime is about to go public, there may be a large number of shareholders who are optimistic about the prospects of AI and help capital stop loss.

There is e-commerce, and some people can buy what they like without leaving home, which is why this place has such a big loss.

Because the company's development is not particularly good now, and it has encountered many people's difficulties, it has suffered such a big loss.

Affected by the epidemic, coupled with the fact that the company's recent profitability is not particularly good, and there are no particularly high-quality products, the sales volume of the products is relatively low, and the **** is also relatively low.

On December 30, 2021, SenseTime officially landed on the Hong Kong Stock Exchange, once rising by more than 21%, with a market value of more than HK $150 billion. According to the prospectus, Futu, CICC, Haitong International, HSBC and others jointly served as the underwriters of the IPO.

According to a report by Frost & Sullivan, SenseTime is the largest AI software company in Asia in terms of revenue in 2020, and has become the largest computer vision software provider in China with an 11% revenue market share in 2020.

Since its inception, SenseTime has won more than 70 championships in various global competitions, published more than 600 top-level academic papers**, and has more than 8,000 AI patents and patent applications.

According to the prospectus, SenseTime's revenue in 2018, 2019 and 2020 was 100 million yuan, 100 million yuan and 100 million yuan respectively; Revenue in the first half of 2021 was 100 million yuan, an increase compared with the first half of 2020. Gross profit margin reached and reached in 2018, 2019 and 2020, respectively, and reached 73% in the first half of 2021.

The main boards of Shanghai and Shenzhen, the small and medium-sized boards, and the Growth Enterprise Market have not been found. I don't know if there are other markets.

There is a Shangtong Technology, I don't know if it's what you're looking for. Shangtong Technology ** 837839.

Now many people are not optimistic about SenseTime, including myself, I also expressed an attitude towards this, and then I will tell you the reason why I am not optimistic about SenseTime, which can be regarded as an exchange with you.

1.There is no main business.

Although SenseTime Technology is very well-known, many people are familiar with it. But ask yourself, do you know what the main and core business of SenseTime is? Even if it comes out, haven't you found that everyone is indifferent to this issue?

Yes, SenseTime is indeed well-known in the technology industry, and it has also had many landing cases, and its business scope is also very wide. Personally, I think that the business scope is so wide that I feel that SenseTime is a company that does everything and does everything. It's not that he's bad, but the wide range of involvement may be SenseTime's own business strategy and market positioning.

But the scope of the business is too wide, and none of the businesses can beat the leaders of the same industry. In today's high-speed development of network technology, what we need is not exactly, updated fast and efficient products, if a company can not adapt to the changes of the times and the taste of the public, then be eliminated, is not a normal fact.

2.High financing and high valuation.

Sina Finance, Straight Flush, etc. are all well-known financial **, and we can see a company's financial statements on these financial **. After looking at SenseTime's financial statements, we found that its main business income does not look good? This is mainly due to SenseTime's rounds of huge investments and pushing up valuations.

The reason for this is to deliberately create profits and losses, or losses, to shape operating income. The most direct way to put it is that the economy caused by this is actually a bubble farce. Now that many AI companies in the capital market are carrying out such operations, we have to worry about how the bubble farce will end in the future.

Because the technology is not mature enough, it is really lacking in confidence at present, because the ability shown is not very strong, and many people question it for a reason.

Because it has no landing cases, it is not favored by many people.

Because SenseTime does not have a main business, it does everything, but it does not have its own unique aspects.

Moreover, the financing and valuation of Shangtang Technology are too high, the actual revenue is relatively ugly, and the bubble value is high.

December 30, 2021, SenseTime.

Officially listed. 1. On December 30, SenseTime was officially listed on the Hong Kong Stock Exchange.

Listed on the stock market at the opening price of Hong Kong dollars.

Compared with the issue price of about HK$**, the total market capitalization is about HK$130.1 billion. Subsequently, SenseTime's share price rose by more than 22% all the way.

1.Judging from the detailed rules of the issuance, the amount of funds raised, the issuance scale and the ** range of SenseTime's re-offering have not changed, but the cornerstone investors have changed greatly.

2.According to the relevant announcement, the previous 9 cornerstone investors of SenseTime Technology are mixed ownership reform**, Guosheng Overseas Hong Kong, Shanghai Artificial Intelligence Industry Equity Investment**, SAIC Hong Kong, GF**, Pleiad**, WT, Focustar hot apital and Focustar stewed und and hel 燇ed, the latter 4 are foreign capital.

3.In the updated list of cornerstone investors, the above four foreign investors are no longer visible, and GF** has not appeared; And Xuhui.

Capital, Guotai Junan.

Five new cornerstone investors, including Investment, Hong Kong Science and Technology Parks Ventures, C-MER and Taizhou Cultural Tourism, have joined.

In addition, in this IPO, SenseTime issued a total of 1.5 billion shares, raising a total of about HK $5.8 billion.

2. Regarding the use of this fund, SenseTime said:

It will be used to enhance R&D capabilities; Plums.

It will be used to invest in emerging business opportunities and increase the adoption and penetration of products and services across various industry verticals and corporate levels, both domestically and internationally;

It will be used to pursue strategic investment and acquisition opportunities, and to nurture the ecosystem.

Further expand the influence of the industry.

And for the capital market.

On the one hand, SenseTime's successful IPO in Hong Kong stocks can help the market re-understand hard technology companies, and on the other hand, it is also expected to drive more outstanding hard technology companies to compete in the capital market.

After this IPO, domestic artificial intelligence companies represented by SenseTime will usher in the test of secondary market capital.

Recently, SenseTime, known as the "AI Four Tigers", has shown a cumulative loss of 100 million yuan in three and a half years. If non-operating performance items such as preferred shares are excluded, SenseTime will lose 100 million yuan after adjustment. As the last company to submit a prospectus among the four AI tigers, SenseTime is accelerating its IPO.

What is the future of AI?

Some people say that the bottleneck of AI has arrived, but in fact, there are still a lot of opportunities for AI, and it is not too late to enter the industry, and the future is the first decade of AI development. Innovations such as edge AI, computer vision decision-making, intelligence, and machine learning will all have a transformative impact on the market in the coming years. Therefore, with the improvement of low-cost computing power and data storage capacity, big data processing technology has gradually become mature, and the emergence of algorithms such as deep learning has made AI unprecedentedly developed.

The development plan for the new generation of AI points out that by 2030, China will become the world's major AI innovation center, and the R&D capabilities of China's leading Internet enterprises are gradually increasing. It is more committed to promoting the implementation of computer vision and natural language processing, two key areas of AI research. Especially in the financial field, the legal field is known as the three most promising areas of AI.

The lack of technical staff and datasets limits the development of AI.

The main reason why AI technology is difficult to continue to develop is the lack of experienced and sufficient technical personnel, and the threshold of artificial intelligence technology is still relatively high. However, with the continuous development of education in the future, this problem will be gradually solved. The second is the lack of datasets with high data quality, so if there are not enough datasets to support it, it is difficult to implement the time value of artificial intelligence.

Finally, the application scenarios are not clear, so even if we have technology and data, we must find the corresponding scenarios to truly bring the value of artificial intelligence into play. <>

Invest in the cost of the AI project and the support of the business side.

If we want to pursue the valuable implementation of artificial intelligence, then we need to analyze the scenario we have chosen so far, and whether its input-output ratio is cost-effective, which is also a very critical issue. The participation and support of the business side is also one of the problems faced by the AI industry, and artificial intelligence is different from other courses, it is an academic field that can truly give full play to the value of scenarios with cross-field and multi-party participation. Without the understanding, participation and support of the business side, it is equally difficult to rely on our data and technology to achieve valuable implementation.

It reflects that the system of the AI industry has some security vulnerabilities, and there are also some bugs that have not been fixed, the competition in the industry is very fierce, and it is not so easy to succeed, and it is also an industry that needs to be improved, so there is such a situation.

The problem reflected is that the AI industry is not particularly concerned, the performance of the AI industry is not high, the development of the AI industry is not particularly good, the attention of the AI industry is not particularly high, and the sales of the AI industry are not particularly good.

Because many investors have lost confidence in SenseTime, many people do not believe that SenseTime's shareholders will continue to accept their own **.

For AI companies like SenseTime, the field studied by SenseTime itself is very good, and many people are also very optimistic about the development of SenseTime. It is for this reason that SenseTime was officially listed on the Hong Kong Stock Exchange. But after that, SenseTime not only did not make a big breakthrough, but also ushered in a comprehensive lifting of the ban, which also led to many investors being very dissatisfied with SenseTime, and even many people will understand this behavior as SenseTime's investors and shareholders cashing out.

The market value of SenseTime Technology has increased by hundreds of billions of yuan in a short period of time.

This is a very exaggerated concept, when SenseTime Technology ushered in the first comprehensive lifting of the ban for the first time, because many investors, including the founding team of SenseTime, all lifted the ban, which directly led to the stock price of SenseTime Technology on the day of more than 40%, and then it went all the way down. In this process, the comprehensive market value of SenseTime Technology has evaporated hundreds of billions of yuan, and investors have also chosen to leave the market directly. <>

The first reason is that investors simply do not believe in SenseTime's lockdown.

After this incident, although the shareholders of SenseTime voluntarily imposed a ban on sales for half a year, this behavior did not restore the trust of investors at all, and even many people thought that the shareholders of SenseTime were just delaying cashing out**. Because of the experience of the full lifting of the ban, investors do not believe in the stock price trend of SenseTime at all, and all they want is to withdraw as soon as possible. <>

The second reason is that SenseTime's R&D results are not convincing.

Many years after the establishment of SenseTime, even if SenseTime has been successfully listed, SenseTime has not had any R&D results. For the majority of investors, after SenseTime used up tens of billions of R&D funds, SenseTime did not bring investors what they could look forward to, so many people have lost confidence and patience in SenseTime. <>