Report|Shangtang handed tens of thousands of patents revenue of 1.4 billion yuan, intelligent car business accounted for 9%

 

With the title of "No. 1 AI stock" in China, Shangtang Technology (00020.HK) holds 12,502 global patent assets, but science and technology have not been fully converted into real productivity.

 

In the evening of August 25, ShangTang Technology released its half-yearly report for the period ended June 30, 2022. During the reporting period, Shangtang achieved total revenue of 1.42 billion, down 14.3% year-on-year; loss of 3.2 billion yuan, narrower than the loss in the same period last year.

 

 

At present, Shang Tang has four major business segments, namely Smart Business, Smart City, Smart Life and Smart Car. Among them, the revenue of two core businesses, smart life and smart car, accelerated growth, with 98% year-on-year growth in the smart life segment and 71% year-on-year growth in the smart car segment. The percentage of revenue contribution from the two segments increased from 9% and 4% in 2021 to 21% and 9%, respectively.

 

Dr. Xu Li, Executive Chairman and CEO of Shangtang Group's Board of Directors, said, "The newly established Smart Car Business Group and Digital Space Business Group are growing rapidly, fully unleashing the development potential of the two emerging businesses of Smart Car and Smart Life, which became growth drivers in the first half of the year."

 

 

Shangtang explained that the decline in revenue in the first half of the year was mainly due to a decline in revenue from the smart city and smart business businesses affected by the new crown pneumonia epidemic, although some of this was offset by increased revenue from smart life and smart cars. Shang Tang said the overall business has seen a significant rebound going into June.

 

In the first half of 2022, Shangtang accumulated total capital reserves of 19.51 billion yuan. The company spent 2.04 billion yuan on research and development in the first half of the year, further improving R&D manpower efficiency by 15% compared to last year. As of June 30, 2022, there were 2,136 new patents and a cumulative total of 12,502 global patent assets.

 

Shangtang's Shanghai Artificial Intelligence Intelligence Computing Center (AIDC), a large-scale strategic project officially opened in 2022, is in full service to the public and receiving strong market demand.

 

Market reports show that Shangtang has been No. 1 in China for five consecutive years in terms of market share for computer vision applications.  

 

According to the financial report, revenues from both Smart Business and Smart City experienced a relatively significant decline. ShangTang attributed this to epidemic factors, which on the one hand affected the progress of smart city construction, and on the other hand, the epidemic affected the delivery and deployment of ShangTang's Enterprise Ark products, resulting in delayed sales revenue recognition.

 

Since its IPO, ShangTang's share price has encountered no small bumps in the road. At the beginning of the IPO, Shangtang's market capitalization once exceeded HK$300 billion. But since then it has gone all the way down. In June 30 this year, affected by the unbundling, Shangtang's share price dropped 46% in one day. The day before the release of the interim report, Shang Tang's market capitalization was HK$78.7 billion.