Lei Jianping September 8
Paradigm 4 has passed a hearing and is preparing to list in Hong Kong.
Fourth Paradigm first submitted its prospectus in August 2021 and only passed the hearing in September 2023, which has lasted more than two years, and it has to be said that the efficiency of Hong Kong stocks is "touching".
Annual revenue of 3.1 billion and adjusted loss of 500 million
According to reports, Fourth Paradigm was established in September 2014 and is an enterprise in the field of enterprise-level artificial intelligence.
The fourth paradigm said that it provides platform-centric artificial intelligence solutions and uses core technologies to develop end-to-end enterprise-level artificial intelligence products, which is committed to solving the efficiency, cost and value problems faced by enterprises in intelligent transformation and improving the decision-making level of enterprises. Fourth Paradigm's products are now widely used in finance, retail, manufacturing, energy and power, telecommunications, and healthcare.
According to the prospectus, the revenue of Fourth Paradigm in 2020, 2021 and 2022 will be 942 million yuan, 2.018 billion yuan and 3.083 billion yuan respectively; gross profit was RMB429 million, RMB953 million and RMB1.487 billion, respectively; R&D expenses were RMB566 million, RMB1.25 billion and RMB1.65 billion, respectively.
The operating losses of the fourth paradigm in 2020, 2021 and 2022 were 560 million yuan, 1.173 billion yuan and 1.026 billion yuan, respectively; The losses during the period were RMB750 million, RMB1.8 billion and RMB1.653 billion respectively.
The adjusted losses of the fourth paradigm in 2020, 2021 and 2022 were 390 million yuan, 559 million yuan and 504 million yuan, respectively.
Fourth Paradigm's revenue for the first quarter of 2023 was 644 million, compared to 482 million in the same period last year, an operating loss of 125 million yuan, compared to an operating loss of 123 million yuan in the same period last year, a loss of 304 million yuan for the period compared to a loss of 268 million yuan in the same period last year, and an adjusted loss of 65.13 million yuan in the first quarter of 2023
The largest source of revenue for Fourth Paradigm in 2022 came from the energy and power sector, with revenue of 627 million, accounting for 20.3% of revenue; Revenue from the financial sector was RMB520 million, accounting for 16.9% of revenue;
Fourth Paradigm's revenue from the transportation sector in 2022 will be 405 million yuan, accounting for 13.1% of revenue, and before 2022, Fourth Paradigm's revenue in this area will be 0; Revenue from the telecommunications sector was 328 million yuan, accounting for 10.7% of revenue; Revenue from the technology sector was 300 million, accounting for 9.7% of revenue; Revenue from the manufacturing segment was $200 million, accounting for 6.5% of revenue.
Fourth Paradigm's largest revenue source in the first quarter of 2023 was transportation, accounting for 30% of revenue; The revenue source from the financial version was 130 million yuan, accounting for 19.8%, and the revenue from the energy and power sector was 73.2 million yuan, accounting for 11.4%.
As of March 31, 2023, Fourth Paradigm held cash and cash equivalents of $1,425 million.
Shen Nanpeng ceased to be a non-executive Director
The executive directors of Fourth Paradigm are Dai Wenyuan, Chen Yuqiang and Yu Zhonghao; The non-executive Directors are Yang Qiang, Shen Nanpeng, Dou Shuai and Zhang Jing; The independent non-executive Directors are Li Jianbin, Liu Zhijin, Dr. Hou Xiaodi and Dr. Ni Mingxuan.
Comparing with the updated prospectus of Fourth Paradigm in April 2023, it can be found that Shen Nanpeng, partner of Sequoia China, is no longer a non-executive director of Fourth Paradigm.
According to the data, Dai Wenyuan, founder and CEO of Fourth Paradigm, is an AI scholar with more than 10 years of experience in the AI technology industry. Dai Wenyuan designed the commercial AI system - Baidu "Phoenix Nest" system; Fourth Paradigm was created in 2014. Dai Wenyuan was also selected as one of the 35 outstanding elites in scientific and technological innovation under the age of 35 by MIT Technology Review; Selected by Fortune China's 40 business elites under the age of 40.
With nearly 20 years of B2B corporate service experience, Fourth Paradigm joined Fourth Paradigm as President in July 2019. Prior to joining Fourth Paradigm, he was Senior Vice President of SAP China, where he was one of the fastest-promoted and youngest Vice Presidents at SAP. He has deep practical experience and industry insights in the fields of B2B enterprise-level services, enterprise digital transformation, and large-scale enterprise management.
Sequoia and Innovation Factory are shareholders
Since its inception, Fourth Paradigm has received financing several times, namely:
In December 2018, Fourth Paradigm completed its Series C financing, with a financing amount of more than 1 billion yuan and a valuation of about US$1.2 billion, and the investors Agricultural Bank of China and Bank of Communications and the original shareholders of Fourth Paradigm are among the "Top Five Banks in China".
In April 2020, Fourth Paradigm announced the completion of the Series C+ financing, with a total financing amount of US$230 million and a post-investment valuation of approximately US$2 billion. In this round of financing, new strategic shareholders were introduced including Cisco, China CITIC Bank, Lenovo, Songhe Capital and Cornerstone Capital as financial investors.
In January 2021, Fourth Paradigm announced the completion of its Series D financing, raising US$700 million. This round of financing is led by Primavera Capital, Boyu Capital and HOPU Investment, and introduces strategic shareholders such as China Manufacturing Transformation Fund, China Development Bank, Guoxin Guotong, CCIC Huake, Xicheng Jinrui, CSC, Haitong Securities, Sequoia China, CITIC Industrial Fund, Goldman Sachs, Jinyi Capital and FountainVest Capital.
Prior to the IPO, Dai Wenyuan controlled 40.44% of the equity by himself and through close contacts Wu Ming (Dai Wenyuan's wife), Beijing Xinzhi, Paradigm Investment, Paradigm Yinyuan, Paradigm Surprise and Paradigm Tianqin.
Among them, Dai Wenyuan directly holds 23.82%, Paradigm Investment holds 14.35%, Sequoia China's HongShan Venture holds 7.24%, Boyu Jingtai holds 3.17%, Guoxin Tus holds 2.72%, Sino No. 1 holds 2.71%, Park Rui Tianjin holds 2.54%, Paradigm Yinyuan holds 2.27%, and YSC Investment I managed by Genesis Capital holds 2.21% (Tencent 55.6%, Genesis Capital 44.4%);
China-UAE Investment and Sequoia Hanchen each hold 1.9%, Nanjing Paradigm holds 1.79%, Beijing Innovation holds 1.6%, Zhuhai Hongmai and China Mobile Equity Fund each hold 1.58%, and Sinovation Fund III holds 1.45%;
CDB Manufacturing Fund holds 1.43%, Sequoia Mingde holds 1.43%, Ruihui Haina holds 1.1%, Jiangsu Binquan and Panxin Shanghai each hold 0.95%, China Mutual Gold No. 1 holds 0.93%, Sequoia Zhisheng holds 0.92%, Qingdao Chuangxin Venture Capital Enterprise (Limited Partnership) holds 0.85%, BOCOM International Holdings Co., Ltd. holds 0.82%, Zhuhai Xuren holds 0.79%, and Major Awesome holds 0.77%.
Gongqingcheng Yuanchun Investment Management Partnership (Limited Partnership) holds 0.76% of the shares, Shenzhen Songhe and Shenzhen Lingyu each hold 0.75%; Value Global holds 0.73%, Shanghai Saixin Business Consulting Management Center (Limited Partnership) holds 0.72%, Guangxi Tencent Venture Capital Co., Ltd. holds 0.70%, and MIC Capital holds 0.67%;
Hangzhou Fantong holds 0.63%, CPE Investment (Hong Kong) 2018 Limited holds 0.63%, Hubei Boheng holds 0.61%, CCIC Huake Investment, Zhuhai Jinyiming, Beijing New Power, Guangzhou Yuexiu Emerging Industry Phase II Investment Fund Partnership (Limited Partnership) holds 0.48% respectively, and Qiushi Xingde holds 0.46%;
GS Asia II and CNCB (Hong Kong) Investment Co., Ltd. each hold 0.45%, Beijing Lenovo Intelligent Internet Innovation Fund Partnership (limited partnership) holds 0.42%, Shenzhen Link REIT and Zhuhai Zhongyu Investment Enterprise (Limited Partnership) hold 0.38% respectively, Zhuhai Hui Yuan Investment Partnership (limited partnership) holds 0.37%, CITIC Securities Investment holds 0.35%, Everbright Zhongying, Fangyuan Chuangying, Haitong International, Jiaxing Chenyue holds 0.32% of the shares respectively;
Nongwan Investment holds 0.26%, Shenzhen Runxin New Vision Strategic Emerging Industry Private Equity Fund holds 0.25%, Chance Talent holds 0.24%, Cisco China and Lenovo Yangtze River each hold 0.22%, and Jinshi Jinxian holds 0.2%.
Stonebridge 2020 (B) holds 0.18%, Tibet Lingyu holds 0.17%, and Growing Fam, Jinshi Haofeng and Jinshi Smart Entertainment each hold 0.16%.
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