As the concept of "new quality productive forces" becomes the core driving force for China's high-quality economic development, the artificial intelligence industry's focus is accelerating its shift from technological breakthroughs to scenario implementation and industrial integration. In this trend, AINNOVATION (02121) has consistently maintained its strategic focus on the "AI + Manufacturing" track, deeply penetrating industrial scenarios and driving multiple mature commercialization cases to fruition, gradually building differentiated competitive advantages. Notably, the company's latest interim results demonstrate a strong positive trajectory: revenue achieved steady growth, losses narrowed significantly, and gross margin climbed to historical highs. Multiple indicators suggest the company is rapidly approaching its profitability inflection point. The highly focused strategic positioning, solid R&D innovation capabilities, and efficient commercialization implementation ability, combined with clear signals of an impending performance inflection point, collectively indicate that the company's stock price has upward potential and is becoming an investment target worthy of market attention.
**Revenue Returns to High Growth Track, Profitability Inflection Point Approaches**
Following proactive strategic focus and business adjustments in 2024, AINNOVATION successfully divested non-core and inefficient businesses, returning to a high-quality growth track in the first half of this year with multiple financial indicators showing healthy and robust development momentum.
In the first half, the company achieved operating revenue of 699 million RMB, up 22.3% year-over-year. During the period, adjusted net loss narrowed to 6.68 million RMB, decreasing by 82.1% year-over-year, with the adjusted loss ratio at only 0.96%. This marks the first time the company's adjusted net loss has fallen to the millions level, indicating the company has approached the break-even point with the profitability inflection point becoming increasingly clear.
During the same period, the company's gross margin improved to 35.0%, up 1.2 percentage points year-over-year, maintaining growth for five consecutive reporting periods since 2023, reflecting continued improvement in product competitiveness and cost control capabilities.
At the business level, the "AI + Manufacturing" strategic focus showed significant results, with related core business revenue reaching 556 million RMB, up 27% year-over-year, outpacing overall revenue growth and confirming that the company's earlier strategic adjustment measures were effective and core competitive advantages were further consolidated.
The company demonstrated notable cost control effectiveness in the first half, with sales expenses and administrative expenses declining 7.2% and 6.5% respectively year-over-year while revenue recovered, showcasing excellent operational efficiency and refined management capabilities. Simultaneously, the company continued to increase R&D investment, with R&D expenses reaching 165 million RMB, up 11.2% year-over-year.
The company maintains a healthy and stable financial structure with significantly improved operating cash flow. Net cash used in operating activities in the first half was 8.4 million RMB, an improvement of 67.6% year-over-year, demonstrating strong self-generating cash capabilities. Additionally, collection efficiency improved substantially during the period, with accounts receivable collection days shortened to 122 days, an improvement of 52 days year-over-year, leading the industry and reflecting excellent asset operation quality.
Overall, the company achieved comprehensive improvements in profitability quality, cost control, accounts receivable, and cash flow while revenue resumed growth in the first half, presenting a favorable situation of coordinated development between scale and quality.
**Commercialization Implementation Accelerates Comprehensively, Technical Value Rapidly Materializes**
As a company established just over seven years ago, AINNOVATION has rapidly risen in two core AI fields - computer vision and machine learning platforms - through solid technical accumulation and highly focused strategic layout, steadily joining the industry's first tier and demonstrating strong growth momentum.
International Data Corporation (IDC) noted in its "China Artificial Intelligence Software 2024 Market Share" report that AINNOVATION has maintained a top-three position in the computer vision application market for three consecutive years and entered the top three in machine learning platforms for the first time, with continuously increasing market share, reflecting its leading competitiveness in AI industrialization applications.
AINNOVATION adheres to its core strategy of "one model, one entity, two wings," using its self-developed AInnoGC industrial large model as the foundation, AI intelligent agents as the engine, and industrial robots and industrial software as the two application wings to comprehensively advance deep integration and practical implementation of AI technology in industrial scenarios.
In the first half, AINNOVATION achieved multiple breakthroughs in both technical iteration and commercial implementation. Regarding the "AInnoGC Industrial Large Model," AINNOVATION formed a strategic partnership with KUKA Robotics to jointly develop next-generation intelligent industrial robot systems, advancing deep applications of large models in industrial robotic arm control and flexible manufacturing. This industrial large model project was recently selected for the UN "AI for Good" global innovation case collection, making AINNOVATION one of 14 companies globally selected in the "Manufacturing" field, with the project's technical strength and social value receiving high industry recognition.
In ChatRobot development, the company established a joint laboratory with Qinglang Intelligence, leveraging its industrial large model platform, ChatRobot industrial embodied intelligence robot technology stack, and Qinglang Intelligence's full-chain capabilities in embodied intelligent robots to jointly explore innovative application solutions for embodied intelligent robot technology in industrial fields, driving continuous iteration and breakthroughs in embodied intelligence technology.
Regarding ChatCAD, AINNOVATION partnered with Bentley to launch iPID, the first generative AI design product based on multimodal industrial large models. It integrates AINNOVATION's multimodal industrial large model with Bentley's infrastructure design software capabilities, representing a truly AI-native industrial design product. The key AI technology behind iPID stems from AINNOVATION's ChatCAD generative assisted industrial design application developed specifically for "CAD," a unique industrial modality. Preliminary calculations indicate it can improve work efficiency by over 10 times in design scenarios and achieve automatic recognition and reconstruction from old PDF drawings to new intelligent PID drawings in renovation projects, helping clients achieve digital upgrades across design, operation, maintenance, and transformation phases.
According to financial reports, the company added 337 new paying enterprise customers in the first half, with manufacturing customers accounting for 83.4%, bringing total customers to 1,462, with over 75% from manufacturing sectors. The continuously expanding customer base confirms the practicality and reliability of its solutions, providing strong support for sustained business growth.
Through continuously strengthening ecological cooperation with industry-leading enterprises, AINNOVATION is persistently expanding the industrial boundaries of "AI + Manufacturing." In this process, the company has not only established significant first-mover advantages but also demonstrated market-validated capabilities for large-scale commercial application of its technology, providing solid support for future profit growth.
The interim results' return to high-quality growth trajectory and significant loss-to-profit trend have confirmed the effectiveness and sustainability of AINNOVATION's business model, demonstrating the company's healthy and positive development momentum. Currently, the company has established a leading market position in the promising "AI + Manufacturing" track. As industry demand continues to be released in the future, it is positioned to further raise its growth ceiling and enter a new cycle of value expansion.