Successful mass production of the Cuckoo 3.0 chip, which features significantly enhanced performance compared to the Cuckoo 2.0 chip.
Significant growth in revenue from 3D printing products, increasing to RMB459,200 from RMB22,000.
Total operating expenses decreased by 20.1% to RMB58.72 million, indicating improved cost management.
Selling and marketing expenses dropped by 54.4%, mainly due to reduced sales commissions and product shipping expenses.
The company has established profound collaborations with various institutions and organizations, laying the groundwork for substantial growth potential.
Negative Points
Net revenue for the first half of 2024 was RMB24.7 million, a significant decline from RMB52.27 million in the same period last year.
Cost of revenues for the first half of 2024 were RMB24.71 million, indicating a high cost relative to revenue.
Net loss for the first half of 2024 was RMB59.50 million, compared to a net loss of RMB134.3 million in the same period of 2023.
Cash and cash equivalents decreased to RMB23.51 million as of June 30, 2024, from RMB48.16 million as of December 31, 2023.
Research and development expenses decreased by 12.2%, which could impact future innovation and product development.
Q & A Highlights
Q: Could you provide some more details about your new iterative products? A: Our company's newly launched Cuckoo 3.0 chip is an upgraded integration of the original Cuckoo 2, with significantly improved performance. The Cuckoo 3 has reached a leading position globally, machines equipped with varying quantities of these chips can be used not only in data center environments but also independently in-home or consumer settings, offering flexibility for various user scenarios. - Jianping Kong, Chairman and CEO
Q: What are the company's expectations for the market and financial figures in the second half of this year? A: Our company plans to launch our computing machine equipped with Cuckoo 3 chip in the second half of the year, which is expected to drive an increase in sales of V1 Series products. Additionally, we are gradually introducing new product lines to the market, and we anticipate the sales volume to grow over time. - Bing Chen, CFO
Q: What sort of competitive advantage does the recently launched Cuckoo 3.0 have? Are they highly relevant to the recent AI trends? A: The Cuckoo 3.0 chip offers the highest computing power and the lowest power efficiency among our current products. Our company has developed multiple models to cater to different application scenarios. Regarding AI, the Cuckoo 3 features high-bandwidth multichannel, 3D DRAM with dedicated distributed on-chip network to enable efficient data exchange between computing and storage units, which is a key technology in AI chips. Additionally, the chip specializes in low-voltage circuit design to reduce power consumption, providing a comparative advantage for AI chip design. - Jianping Kong, Chairman and CEO
Q: Will the company introduce any new product lines that could support its business revenue in the future? A: As mentioned before, our company plans to launch complete machines equipped with Cuckoo 3.0 chips in the second half of this year and the first half of next year, which is expected to significantly boost sales. Additionally, our photo studio services will contribute to the company's overall revenue. We are also exploring new opportunities in fields such as AI computing to drive our future revenue growth. - Bing Chen, CFO
Q: How is the company addressing the decline in net revenue and what are the future plans to improve financial performance? A: The decline in net revenue was primarily due to decreased sales of the iPollo V1 Series product. However, we are focusing on the growth of our 3D printing products and the upcoming launch of new products equipped with the Cuckoo 3.0 chip. We are also reducing operating expenses and exploring new revenue streams such as AI computing and our Metaverse business suite. - Bing Chen, CFO
