Yitu, China AI Provider, IPO & Financials Examined

Executive *******

**** ** ******** * **** ***** of ************ **** ****** *********** ** smart ****** ** *********** ********** ********. Yitu's "********* ***" ****** *********** ****** is **** ** ***+ ***** ******, but ****** *********** ** *** ****'* only ********. **** *** **** ******** voice *********** ********, *********** ********** ********, its *** ** ****, *** ******** in ** ****** ** ****** ** all-encompassing ******* ********, **** ****** *** on **** ******** *** ******** *******.

**** ********* ***** ******* ~$***-*** ******* USD ******** *** ** ******** ** raise ~$* ******* *** ******* **** IPO. * ********** *** **** ***** the ******* ****-********** ** *** **** few ***** ** ****** *** ******** if **** *** ******** ** **** revenue *** **** *** **** *******. Still, ********** *********** *** *****-** ********'* effects ** **********, ** ** ******* how **** **** ****** *** ******* against *** ***** ***** ** ********.

Yitu **********

************ ****** ***********, ***** ***********, *** other ** ********* ** *** ***********, hospitals, *** ********** ******* (******, *********** communities, ************ *****, ***.) **** ** one ** *****'* * ** ********, startups ****** **** $* *******, ***** with******,*********, ************. *******, **** ** ******** ********** the "****** *******" *** ** *** 4 ********, ******** ********* ********* ** ~$* ******* ****** ** *** *****. *** ****, started ** **** *** ************* ** Shanghai, ******** *,*** ********* ** ** June ****. *******, **** ******** ********** by *** ********* ******* ******** **** and **** **** ** ******+ **** **********, ***** ** ******** *** ********* looking ** ***.

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

****'* ******* *** ***** **** **** under $** ******* *** ** **** to **** $*** ******* *** ** 2019.

**** *** **** ~$** ******* *** in *** ***** **** ** ****. However, **** *** *** ****** *** 2019 ****-**** ******* *** ********** ** its **** ****-**** *******, ** ** is ******* *** **** **** ** on ***** ** ******** *** **** annually.

***** ****'* ******* *********** ******* ***** surveillance ** *********, *** ** ****** larger ***************** ******* **** ********* ** ** under $** *******, ****'* *********** ** eclipsed ** *****'* ****** ** ********. For *******, ******, ***** ********* ** IPO ** **** ********$*** ******* *** ** **** ****** revenue, *** ******* ******* ******** ***** SenseTime *** ********$*** ******* *** ** **** ****** revenue.

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

**** **** ********, **** ** ************, having ******** * *** **** ** ~$1 ******* *** ** *** **** 3 *****, *** **** * ******* in **** *****.

** *** *** **********, **** ********** its *************** ** ******* ** *****-***** compensation *** ********** *&* ********. *** more *********** ****** **** ** ******* Yitu's *************** ** *** ****** ** fair ***** ** ******, ****** **** exorbitant *********** *****. *** *******, *********** costs, ********* ***** *** *********, **************, accounting, *** *&* *****, **** ~$*** million *** ** ** ****. **** reported * ******* ** ~$** ******* USD ** **** ******, ** *** net ****, ** **** ********** *** cost ************, ***** **** **** -$** million ***. *******, ****'* ***** ******** net **** *** -$*** ******* ***, which ***** **** *** ** **** recorded * **** ** $*** ******* USD **** *** *** *********** ****-*******.

****'* ***** ******** *** ****** *** actually ****** *** ** ******* ** the **** ***** ** *** ********* shares, ***** *** ******** ****** ** a ***** ** ******** ********* ****** a ****** *******.

Shareholder *********

****'* ************ ******* * *********** *********** called "**** ********" *** **+ ******* investment ***** *** ***** *********** ********.

****'* *********** ***********, ***** ******** **% of *** ******, ** "**** ********", an ****** ****** ***** ***** ***(*** ****) ****** ******, *** *** **-******** ** ****. 63.32% ** **** ******** ** ***** by *** *** *** **.**% ** owned ** *** ******.

*** ************ **** *** **** **** 5% ** ****'* ***** ****** *******:

• ******* **** ********** ******* ******* (**.*%): connected **** *******, * ******* ****** **** **-******* by **** **, *** ******* ** Alibaba.
• ******* ***** ******* (*.*%): ****** ***** by ** *****, *** ************, * ***** ** **** ****** company **** ********** ****** ****.
• ******* ******* ** ** ******, ***. (5.4%): * ******* ******* ***** ******* fund
• ****** ******** ******* (*.*%): ****** ***** by***** ********** ***** ********** ***., ** ***** ********** *** ** the *****-***** ***** ********** ****.

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

**** ********* *** ******** **** *** main *****, * ****** ******** *** a ******** ******** ****. *** ****** services ****, ***** ******** ***-***** **** as *** **********, ******* **********, *** large ***********, ** ******* ********* **** two *********:

• **** **********: ******** **** ********** *** ***** community *********. **** ****** ******* ******, **** ******** *** **** overseas, *** ********* ** **** *********

****** *********** **** ******* ****'* "********* ***" portrait ******** **** ** **** ****** suspects ** ********* ***** ** * database ** *.* ******* ******. "********* Eye" *** ********** ****** ** ****** pickpocketing ** ******'* **** ***** ** 30% *** **** ****** ** ******** the ***** ** * ****** * years ***** *** ******.

• ********** **********: ****** "****.**", ******** *** **** management *** ** ******* ******** ********-****** solutions, **** ** *********** ******* *** diagnosis ******* *** ***** ***, ***********, stroke *******, ******* ***********, ***.

********* ** ****, *** "*********** ********** system" *** ***** ***, ***** "************* improves ********** ** *********** *********** ******* automatic ********* *** ************ ******** ****** 2-3 *******" *********** ** ***+ ********* **** ** provinces ** *********** *** *****-** ********.

*********** ************, ***** ******** ***-***** **** ** real ******, *******, **************, ******** *********, and *********, ** ********* ****:

• ****** ******* ******* ** ****** ***********: a ******** **** **** ** ***** passengers ** *** ******* *** ***** turnstiles ******* ****** ***********.

• ******** ********: *** ******** **** ******* "smart *******" *** "***** ******" ********

  

• ********* ******: *********** ********** *** *********
• **** **********: *********** ********** *** *****, malls, ****** *********, ***.

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

****'* ******* ******* *** ************ **** from *** ****** ******** ******** (*.*. city ********** *** ********** ********) ******** to **** ******/********-******* ********. ** ****, ~90% ** *** ******* **** **** public ******** ********, ***** *** ***** ~10% **** **** ******** ********. ****'* public ******** ******** ******* **** **** management *** ********** ******** *** *** not ******* * ******* ********* ** the ********** ** **** *. ********** projects.

***** ****'* ******** **** **** ** 2020 ******** *** *** ** ******** more ********, **** *** **** ** sees *********** ***********, **** ~**% ** its ***** ******* ****** ** ** as ******** *** ******* **, *** Yitu ** ******* **** *** *** projects. **** ** ***** ******** *** city/government-directed ********, ** ** ** ****** that **** ******* **** ****** *********** when ********** *** **** ****** ****.

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

****'* ********** ******* *** *** ****-********* AI ********* **** ** * ***** of "*** ********". **** ******** *** own ** **** ** ****, ***** Yitu's ***** ********** ********* ***, ***** "*** **** *********** *** ****-********* ***** analysis **** ** *** *****," ** **:

*** ********* ***** ********** ** ***** Nvidia ** *******, **** **** *** size *** ** ******* ** *** energy ***********, ******** *** ************ **** by ** ******* *** *** ********* and *********** **** ** ** ******* for **** *******

*** ********* **** *** **** ********** "offers * ****** ******** *********** *** to **** ***** ****** **** ******* products ********* ** *** ****** **** the **** ***** ***********," *** ** also "*** ******* ******** *** ************ in *****." *******, ** ** ******* whether ****'* ***** **** **** **** is ***** ******** ** ************ ** China **** ********** ****** ** **** supply ***** ****** ** *** ** were ** ******* ****** ******* *********. Much ** **** *************, **** ** done ** ***** ** ******, ****** on ** **********.

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

**** **** *** **** ****** ***** to *********, *** ******, ******* ** selling **** ******* ********* **** ******* both ****'* ******** *** ********. **** the **** *** *****, ********, ***** accounted *** **% ** ***** ** 2017, *** ****** **** **% ** sales ** ** ****. ******** ***** as * ******* ** ***** ******* have **** ******, ******** ******* ** an ******** ** ******** *** ******** "combination *****" ** **** *********. *******, Yitu ******** ** **** ******* ** 70% ***** *** ***** **** *** a ******* ******** **** ** ******** sales *** **** ** ********** ******** and ******** ********.

**** ***/**** *** ** *** ******** but *** *** ******* ******* ***** its *******. **** ** *** *** hardware *******:

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

• ***-*** ********: ** *******, ** ****** control, ***** *********** / ******* ******** processing ******** ****

Top * *********

**** *** ************ **% ** *** total ******* ** ***** ** * companies, ***** ** **** *** ****, its *** * ********* **** ********* for ~**% ** ***** *****. **** increasingly **** ************* ** ***** ** a *** ********* ***** ** ***** for ****'* ******* ** *** ******** were ** *** ***** ******** ************ with ****.

***** ** ** *** ******* **** consistently ********* ************* **** ****, ********** its ***** *** ****** ** *********** that *** **** ** * **** project *****, ********** **** **** **** the ******* ***** * ******** ******** (e.g. *** ***** ******* ** ***** city).

***** **** *********' ***** *** ******, Yitu's ********** ****** **** ***** *** its ******* ******** ** ****, ********** ~$1.3 ******* *** ** ~**% ** Yitu's **** ****** *******. ****** *** Yitu's *** ******* ******** ** ****, purchasing ~$*.* ******* *** ** ~*% of ****'* **** ****** *******. *******, more ********, *** *** **** ********* have ******** ***** ******'* ****** ******* (call ******),******* *********, * "***** *******" *******, *********, * ******* **** "******** *****-**-*** ************* *********** ****** ********* and ************ ********."

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

**** ******** ~**% ** *** ***** as ******** *** ~**% ** ******** in ** ****. **** ****** *** be ******** ** ******** ***** ******* of *** *********** **** ****, *** its ******** ***** ********* ** **** still ***** * *********** ****** ** its ********* ********. ** *** **********, Yitu **** *** **** ******** ****** was ****** ** ********** ** ***** in ****, ******, *** ******, *** does *** ******* **** **** ** projects **** **** ********* ** ***** countries.

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

******** ********* ********** **** *** *********** of ***** *** *****, *** **** market ** ****** ***********. ***** *** many ********* ** ***** *** *** West **** *** **** ******* ** designing **** ******** *****. ******** **** said ** *** ********** **** *** current ********** **** *** **** ******** by *** ******** ** ***** ****** **** ** ******* ****, ********* *** ********** ******* **** could ********* ****'* ******* ** ******** foundries **** **** ***** ***** ** technology. **** ***** ** ************ ***** to **** *** **** **** ****** their *** ** **** ** *** in ***** *********. ** **** ** a ******* *******, **** ****** ** foundries ** ****, *******, *** **** their *****. *** ************* ******** ** still ******* ********* ** ** ********** for ******** **** ******** *****, **** as ** *****. ****** ******** ***** significant****** ****** *** ****** ************* ****, ***, ** *** **********, Yitu **** ********** *** **** ** the **** ** ********** ** *** semiconductor ****** *****.

**** *** *** *********** ** **** domestically *** *** *** ****** *** on ******* *************** ** ****. ***** from ****** ***********, **** **** *** significant ********* ** ***** ** *** voice ***********/******* ******** **********, *********** **********, and ******** **********. **, **** **** to ** * **** ************* ** company ****** **** **** ***** ** facial ***********. *******, ** ** ******** that **** **** ****** ****** *** thin ** ********** ** **** **** many ** ******, ****** **** **** specializing ** ***, ********** ** ** is *** *** * **** *********** company. ****** ** *** *** **********'* interest ** ******** *** ****** ****** in **, **** *** * **** chance ** ******* ******* **** ******* governmental ********.

[UPDATE]

** ***** **, ****, *** ******** Stock ******** ********* **** *** ******* to ******* *** ******* ******. **** emphasized ** ***** ***** **** **** was * "**********" *** *** * "termination" ** *** ******* ** ***. China ***** *** ******** ********* ************ as ** *** **** ***** *** a **********, ********* ********** ***** *********** ** ******* *** **** ********* report** *** ****** *******-*** *** ** ****'* ******* *********:

********* ** *** ******** ** *** executive ******** ** ******* *******, **** Technology’s ********** ** *** *** ****** be ** ********** *** **** ********* report, ******* *** ********* ******* *** spanned * ********* ****, *** *** audit ** *** ********* ****** ****** generally ***** * *****. *******, *** auditors *** **** **** *** ** the ****** ****** ******.

******* *** ******* ** * ***-**** enterprise **** ** ********* ******* *********, it ***** ****** *** ******* *** sponsors ** ********* ***** *** ********** verification ************, ** **** ********** **** the ********** ** ***** ** *** Shanghai ***** ******** *** **********.