Yitu, China AI Provider, IPO & Financials Examined

By Isabella Cheng, Published Dec 03, 2020, 12:39pm EST

Yitu, one of China's 4 AI Unicorns, has filed for an IPO recently on the technology-focused Shanghai STAR Market.

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In this post, we examine the firm's financials, growth, and products, including:

  • Yitu background
  • Profit loss and growth examined
  • Shareholder structure
  • Public v. business services
  • Yitu's own AI "QuestCore" chip
  • Yitu as a full solutions provider
  • Top customers
  • Domestic v. overseas revenue breakdown
  • Risk and opportunities

Executive *******

**** ** ******** * wide ***** ** ************ from ****** *********** ** smart ****** ** *********** healthcare ********. ****'* "********* Eye" ****** *********** ****** is **** ** ***+ China ******, *** ****** recognition ** *** ****'* only ********. **** *** also ******** ***** *********** analysis, *********** ********** ********, its *** ** ****, and ******** ** ** effort ** ****** ** all-encompassing ******* ********, **** sights *** ** **** domestic *** ******** *******.

**** ********* ***** ******* ~$150-200 ******* *** ******** and ** ******** ** raise ~$* ******* *** through **** ***. * successful *** **** ***** the ******* ****-********** ** the **** *** ***** to ****** *** ******** if **** *** ******** to **** ******* *** keep *** **** *******. Still, ********** *********** *** COVID-19 ********'* ******* ** businesses, ** ** ******* how **** **** ****** and ******* ******* *** other ***** ** ********.

Yitu **********

************ ****** ***********, ***** recognition, *** ***** ** solutions ** *** ***********, hospitals, *** ********** ******* (retail, *********** ***********, ************ sites, ***.) **** ** one ** *****'* * AI ********, ******** ****** over $* *******, ***** with******,*********, ************. *******, **** ** commonly ********** *** "****** brother" *** ** *** 4 ********, ******** ********* ********* ** ~$* billion ****** ** *** *****. The ****, ******* ** 2012 *** ************* ** Shanghai, ******** *,*** ********* as ** **** ****. However, **** ******** ********** by *** ********* ******* December **** *** **** 2020 ** ******+ **** **********, ***** ** ******** for ********* ******* ** IPO.

Revenue ***** *******

****'* ******* *** ***** from **** ***** $** million *** ** **** to **** $*** ******* USD ** ****.

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**** *** **** ~$** million *** ** *** first **** ** ****. However, **** *** *** report *** **** ****-**** revenue *** ********** ** its **** ****-**** *******, so ** ** ******* how **** **** ** on ***** ** ******** for **** ********.

***** ****'* ******* *********** Western ***** ************ ** companies, *** ** ****** larger ***************** ******* **** ********* to ** ***** $** million, ****'* *********** ** eclipsed ** *****'* ****** AI ********. *** *******, Megvii, ***** ********* ** IPO ** **** ********$*** ******* *** ** 2019 ****** *******, *** ******* ******* reported ***** ********* *** expected$*** ******* *** ** 2019 ****** *******.

************

**** **** ********, **** is ************, ****** ******** a *** **** ** ~$1 ******* *** ** the **** * *****, and **** * ******* in **** *****.

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** *** *** **********, Yitu ********** *** *************** to ******* ** *****-***** compensation *** ********** *&* expenses. *** **** *********** factor **** ** ******* Yitu's *************** ** *** change ** **** ***** of ******, ****** **** exorbitant *********** *****. *** example, *********** *****, ********* sales *** *********, **************, accounting, *** *&* *****, were ~$*** ******* *** in ** ****. **** reported * ******* ** ~$54 ******* *** ** this ******, ** *** net ****, ** **** accounting *** **** ************, would **** **** -$** million ***. *******, ****'* total ******** *** **** was -$*** ******* ***, which ***** **** *** to **** ******** * loss ** $*** ******* USD **** *** *** operational ****-*******.

****'* ***** ******** *** losses *** ******** ****** due ** ******* ** the **** ***** ** its ********* ******, ***** are ******** ****** ** a ***** ** ******** financing ****** * ****** listing.

Shareholder *********

****'* ************ ******* * controlling *********** ****** "**** Holdings" *** **+ ******* investment ***** *** ***** shareholder ********.

****'* *********** ***********, ***** controls **% ** *** shares, ** "**** ********", an ****** ****** ***** by*** ***(*** ****) ****** ******, *** *** **-******** of ****. **.**% ** Yitu ******** ** ***** by *** *** *** 36.68% ** ***** ** Lin ******.

*** ************ **** *** more **** *% ** Yitu's ***** ****** *******:

  • ******* **** ********** ******* Limited (**.*%): ********* **** *******, * ******* ****** firm **-******* ** **** Ma, *** ******* ** Alibaba.
  • ******* ***** ******* (*.*%): wholly ***** ** ** Ruhao, *** ************, * ***** ** chip ****** ******* **** Yitu****** ****** ****.
  • ******* ******* ** ** Holdco, ***. (*.*%): * Sequoia ******* ***** ******* fund
  • ****** ******** ******* (*.*%): entity ***** ******* ********** ***** ********** Ltd., ** ***** ********** arm ** *** *****-***** China ********** ****.

Two **** ******** *****: ****** *. ******** ********

**** ********* *** ******** into *** **** *****, a ****** ******** *** a ******** ******** ****. Its ****** ******** ****, which ******** ***-***** **** as *** **********, ******* facilities, *** ***** ***********, is ******* ********* **** two *********:

  • **** **********: ******** **** ********** and ***** ********* *********. Yitu ****** ******* ******, **** ******** and **** ********, *** currently ** **** *********

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****** *********** **** ******* ****'* "Dragonfly ***" ******** ******** used ** **** ****** suspects ** ********* ***** to * ******** ** 1.8 ******* ******. "********* Eye" *** ********** ****** to ****** ************* ** Xiamen's **** ***** ** 30% *** **** ****** to ******** *** ***** of * ****** * years ***** *** ******.

  • ********** **********: ****** "****.**", ******** big **** ********** *** AI ******* ******** ********-****** solutions, **** ** *********** imaging *** ********* ******* for ***** ***, ***********, stroke *******, ******* ***********, etc.

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********* ** ****, *** "intelligent ********** ******" *** chest ***, ***** "************* improves ********** ** *********** coronavirus ******* ********* ********* and ************ ******** ****** 2-3 *******" *********** ** ***+ ********* over ** ********* ** China****** *** *****-** ********.

*********** ************, ***** ******** ***-***** such ** **** ******, finance, **************, ******** *********, and *********, ** ********* into:

  • ****** ******* ******* ** facial ***********: * ******** that **** ** ***** passengers ** *** ******* and ***** ********** ******* facial ***********.

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  • ******** ********: *** ******** that ******* "***** *******" and "***** ******" ********

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  • ********* ******: *********** ********** for *********
  • **** **********: *********** ********** for *****, *****, ****** buildings, ***.

Public *. ******** ******** *********

****'* ******* ******* *** increasingly **** **** *** public ******** ******** (*.*. city ********** *** ********** projects) ******** ** **** retail/business-focused ********. ** ****, ~90% ** *** ******* came **** ****** ******** projects, ***** *** ***** ~10% **** **** ******** projects. ****'* ****** ******** projects ******* **** **** management *** ********** ******** but *** *** ******* a ******* ********* ** the ********** ** **** v. ********** ********.

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***** ****'* ******** **** from ** **** ******** the *** ** ******** more ********, **** *** said ** **** *********** seasonality, **** ~**% ** its ***** ******* ****** in ** ** ******** are ******* **, *** Yitu ** ******* **** for *** ********. **** of ***** ******** *** city/government-directed ********, ** ** is ****** **** **** balance **** ****** *********** when ********** *** **** recent ****.

Yitu ****** ** "*********" **** ************

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****'* ********** ******* *** its ****-********* ** ********* chip ** * ***** of "*** ********". **** launched *** *** ** chip ** ****, ***** Yitu's ***** ********** ********* ***, ***** "*** **** *********** *** cost-effective ***** ******** **** in *** *****," ** **:

*** ********* ***** ********** to ***** ****** ** servers, **** **** *** size *** ** ******* of *** ****** ***********, slashing *** ************ **** by ** ******* *** the ********* *** *********** cost ** ** ******* for **** *******

*** ********* **** *** only ********** "****** * visual ******** *********** *** to **** ***** ****** than ******* ******** ********* on *** ****** **** the **** ***** ***********," but ** **** "*** percent ******** *** ************ in *****." *******, ** is ******* ******* ****'* claim **** **** **** is ***** ******** ** manufactured ** ***** **** completely ****** ** **** supply ***** ****** ** the ** **** ** tighten ****** ******* *********. Much ** **** *************, even ** **** ** China ** ******, ****** on ** **********.

Yitu **** ** ******* **** ******* *********

**** **** *** **** single ***** ** *********, but ******, ******* ** selling **** ******* ********* that ******* **** ****'* hardware *** ********. **** the **** *** *****, software, ***** ********* *** 55% ** ***** ** 2017, *** ****** **** 15% ** ***** ** H1 ****. ******** ***** as * ******* ** total ******* **** **** fallen, ******** ******* ** an ******** ** ******** and ******** "*********** *****" or **** *********. *******, Yitu ******** ** **** margins ** **% ***** are ***** **** *** a ******* ******** **** on ******** ***** *** more ** ********** ******** and ******** ********.

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**** ***/**** *** ** its ******** *** *** not ******* ******* ***** its *******. **** ** its *** ******** *******:

  • ***** / **** ** Analysis ********: ** *******, AI "*********** *********"

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  • ***-*** ********: ** *******, AI ****** *******, ***** recognition / ******* ******** processing ******** ****

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Top * *********

**** *** ************ **% of *** ***** ******* in ***** ** * companies, ***** ** **** and ****, *** *** 5 ********* **** ********* for ~**% ** ***** sales. **** ************ **** concentration ** ***** ** a *** ********* ***** be ***** *** ****'* revenue ** *** ******** were ** *** ***** business ************ **** ****.

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***** ** ** *** company **** ************ ********* significantly **** ****, ********** its ***** *** ****** to *********** **** *** work ** * **** project *****, ********** **** Yitu **** *** ******* needs * ******** ******** (e.g. *** ***** ******* or ***** ****).

***** **** *********' ***** are ******, ****'* ********** showed **** ***** *** its ******* ******** ** 2017, ********** ~$*.* ******* USD ** ~**% ** Yitu's **** ****** *******. Huawei *** ****'* *** largest ******** ** ****, purchasing ~$*.* ******* *** or ~*% ** ****'* 2018 ****** *******. *******, more ********, *** *** Yitu ********* **** ******** China ******'* ****** ******* (call ******),******* *********, * "***** *******" company, *********, * ******* **** "******** *****-**-*** ************* *********** system ********* *** ************ services."

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Expanding ********* ** ******** *******

**** ******** ~**% ** its ***** ** ******** and ~**% ** ******** in ** ****. **** number *** ** ******** in ******** ***** ******* of *** *********** **** sees, *** *** ******** sales ********* ** **** still ***** * *********** growth ** *** ********* overseas. ** *** **********, Yitu **** *** **** overseas ****** *** ****** in ********** ** ***** in ****, ******, *** Europe, *** **** *** specify **** **** ** projects **** **** ********* in ***** *********.

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Risks / ************* *** ****

******** ********* ********** **** the *********** ** ***** own *****, *** **** market ** ****** ***********. There *** **** ********* in ***** *** *** West **** *** **** working ** ********* **** learning *****. ******** **** said ** *** ********** that *** ******* ********** have *** **** ******** by *** ******** ** the** ****** **** ** October ****, ********* *** ********** because **** ***** ********* Yitu's ******* ** ******** foundries **** **** ***** using ** **********. **** could ** ************ ***** to **** *** **** they ****** ***** *** AI **** ** *** in ***** *********. ** Yitu ** * ******* company, **** ****** ** foundries ** ****, *******, and **** ***** *****. The ************* ******** ** still ******* ********* ** US ********** *** ******** more ******** *****, **** as ** *****. ****** controls ***** ***************** ****** *** ****** HiSilicon**** ****, ***, ** its **********, **** **** recognizes *** **** ** the **** ** ********** to *** ************* ****** chain.

**** *** *** *********** to **** ************ *** has *** ****** *** on ******* *************** ** well. ***** **** ****** recognition, **** **** *** significant ********* ** ***** AI *** ***** ***********/******* language **********, *********** **********, and ******** **********. **, Yitu **** ** ** a **** ************* ** company ****** **** **** focus ** ****** ***********. However, ** ** ******** that **** **** ****** itself *** **** ** attempting ** **** **** many ** ******, ****** than **** ************ ** one, ********** ** ** is *** *** * very *********** *******. ****** by *** *** **********'* interest ** ******** *** global ****** ** **, Yitu *** * **** chance ** ******* ******* from ******* ************ ********.

[UPDATE]

** ***** **, ****, the ******** ***** ******** disclosed **** *** ******* to ******* *** ******* review. **** ********** ** China ***** **** **** was * "**********" *** not * "***********" ** its ******* ** ***. China ***** *** ******** different ************ ** ** why **** ***** *** a **********, ********* ********** about *********** ** ******* *** 2020 ********* ******** *** ****** *******-*** *** ** ****'* control *********:

********* ** *** ******** by *** ********* ******** of ******* *******, **** Technology’s ********** ** *** IPO ****** ** ** supplement *** **** ********* report, ******* *** ********* process *** ******* * financial ****, *** *** audit ** *** ********* annual ****** ********* ***** a *****. *******, *** auditors *** **** **** now ** *** ****** report ******.

******* *** ******* ** a ***-**** ********** **** an ********* ******* *********, it ***** ****** *** issuers *** ******** ** implement ***** *** ********** verification ************, ** **** Technology **** *** ********** to ***** ** *** Shanghai ***** ******** *** suspension.

Comments (3)

** ** **** ***** countries *** ******* ***** overseas ******* ******? **** GDPR, * ***'* ******* it ***** ** **** or **** ***** *******.

"**** ******** ~**% ** its ***** ** ******** and ~**% ** ******** in ** ****."

Agree
Disagree
Informative: 1
Unhelpful
Funny

**** ************* ****'* **** specific ********* **** **** up ***** ************* *******. We ** **** **** in ********, ******, *** ****** were *** ********** **** drove ***** ******** ******, but *****, *****'* ******* more ********, *** ** could *** **** ******** of ******** ****** **** were ******* ** ***** news *****.

**, ****** ** ** this **** *** **'* also ******* **** ***** of ******** **** *** doing *****/******* **** ***** interfere **** ****

Agree
Disagree
Informative
Unhelpful
Funny

**** ******* *** ******* on ***** **, **** to ******* ****'* *** review **********.

** ***** **, ****, the ******** ***** ******** disclosed **** *** ******* to ******* *** ******* review. **** ********** ** China ***** **** **** was * "**********" *** not * "***********" ** its ******* ** ***. China ***** *** ******** different ************ ** ** why **** ***** *** a **********, ********* ********** about *********** ** ******* *** 2020 ********* ******** *** ****** *******-*** *** ** ****'* control *********:

********* ** *** ******** by *** ********* ******** of ******* *******, **** Technology’s ********** ** *** IPO ****** ** ** supplement *** **** ********* report, ******* *** ********* process *** ******* * financial ****, *** *** audit ** *** ********* annual ****** ********* ***** a *****. *******, *** auditors *** **** **** now ** *** ****** report ******.

******* *** ******* ** a ***-**** ********** **** an ********* ******* *********, it ***** ****** *** issuers *** ******** ** implement ***** *** ********** verification ************, ** **** Technology **** *** ********** to ***** ** *** Shanghai ***** ******** *** suspension.

Agree
Disagree
Informative
Unhelpful
Funny
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