SenseTime sprinted to IPO, with a huge loss of 24.2 billion in three and a half years, what problems

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.

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.

1. At the shareholder level, the prospectus also shows that the largest shareholder of SenseTime is the founder Tang Xiaoou, with a shareholding ratio; Investors with large holdings include: SoftBank.

**China (Primavera Capital (Silver Lake Capital) (etc.) As for the management, the information also shows that SenseTime.

The executive directors are Dr. Xu Li, Professor Tang Xiaoou, Dr. Wang Xiaogang and Xu Bing.

Mr; The non-executive Director is Ms. Fan Mingying; The independent non-executive Directors are Professor Xue Lan, Lin Yizhong and Li Wei. SenseTime will be listed on the Hong Kong Stock Exchange using the AB-share mechanism, with weighted voting rights and A-shares.

With 10 votes, the founding team will still have firm control of the company.

On the occasion of SenseTime's 4th anniversary, the capital winter was particularly cold, but SenseTime directly officially announced two rounds of financing - the completion of more than $600 million in Series C financing in April, and the completion of $100 million in Series C+ financing in May, with a valuation soaring to over $4.5 billion, continuing to remain the "world's largest total financing amount and highest valuation" AI unicorn.

Status. Prior to its listing, SenseTime had completed 12 rounds of financing since its establishment, with a total amount of US$5.2 billion. The last round of pre-IPO funding was completed in June 2021, with a post-IPO valuation of $12 billion.

3. While continuing to take money, SenseTime has also begun to deploy externally, and relevant data show that more than 20 related companies have been invested abroad. For example, recently, Mantis Wisdom announced a round of financing of 100 million yuan, led by SenseTime Guoxiang Capital (artificial intelligence industry**), Wenxing Shengshi and Putuo.

The original shareholder Mantisvision participated in this round of investment. This round of financing funds will be mainly used for the research and development of 3D technology software and hardware, the landing of 3D studios and the metaverse.

Content production. SenseTime participates more as a strategic investor in the middle, and then provides technical value and industrial synergy to the target company, with the aim of expanding the AI ecosystem and its influence in all walks of life.