Pay attention, this man's name is Xiaoshuai/This woman's name is Xiaomei......
I believe that everyone who has watched the short video of the movie commentary will be familiar with this sentence, this popular dubbing is generated by the magic sound workshop, and the company behind it landed on the Hong Kong Stock Exchange today.
On April 24, Mobvoi, an AIGC solution provider, was listed on the Hong Kong Stock Exchange, becoming the "first AIGC stock" in Hong Kong.
Two local state-owned platforms, a large number of star shareholders, more than 100 times oversubscribed, the first profitable large model company, and 12 years of AI layout...... Mobvoi became the focus of market attention before it went public.
However, on the first day of listing, Mobvoi broke down, falling nearly 20% at the opening, and then narrowed the decline, closing at HK$3.68 per share, down 3.16%, with a market value of HK$5.489 billion.
At present, the AI boom is in full swing, as a long-established AI company, what is the future growth space?
AIGC先行者、明星股东云集
Founded in 2012, the company has experienced the era of mobile Internet, the era of AIoT represented by intelligent hardware, and deployed AIGC before the wave of generative AI.
The prospectus shows that from February 2013 to September 2019, a total of 7 rounds of financing have been obtained, with a cumulative financing amount of more than 255 million US dollars, and its investors include Sequoia Capital, Google, Haina Asia Venture Capital Fund (SIG), Zhen Fund, Gome Optics, Goertek and so on.
Mobvoi also introduced two heavyweight cornerstone investors in this issuance, Zhongguancun International Co., Ltd. and Nanjing Economic Development Juzhi Science and Technology Innovation Investment Partnership, with a cumulative subscription scale of 95 million Hong Kong dollars.
Market sentiment was also particularly frenzied during the placement period, with Mobvoi being oversubscribed by 117.39 times.
Make both products and models AI voice is a fist product
From the perspective of the company's business model, Mobvoi is a company that combines production and model, software and hardware, and is both To B and To C.
In terms of AI products, it is mainly divided into three categories: dubbing, generative AI, and digital humans, and Mobvoi launched the AI dubbing platform "Moyin Workshop" as early as 2020.
In the field of AI dubbing, Moyin Workshop has become a popular product with its rich product line and diversified dubbing options, the platform provides more than 1,000 dubbing styles, and has accumulated 3.62 million registered users and 404,000 paid users as of 2023, contributing the vast majority of customers to the AIGC business.
In addition, Mobvoi has also launched generative AI based on wonderful texts and paintings, as well as digital human products such as Wonderful Yuan and Wonderful Question. However, at the moment when various AI products are blooming, most of the products on Mobvoi are not outstanding, and they rely on the Moyin Workshop to take the lead.
As early as 2020, the company developed UCLAI, a large model that understands and generates text, and is one of the first companies in China to implement a large model, and last year upgraded it to a general large model "Sequence Monkey".
With AIGC's high gross profit, Mobvoi is the first to achieve profitability among a number of large model companies. In terms of market share, according to data from CIC Consulting, in terms of revenue recognized in 2022, Mobvoi ranked third with a market share of 1.4% in the field of AI speech technology and natural language processing software solutions in China.
In addition to the C-end business, the B-end business is also mainly focused on voice, Mobvoi mainly provides AI language interaction solutions for automobile manufacturers, and is also expanding customers in finance, TMT and other industries.
In addition, Mobvoi's business also includes the smart hardware business, and it first launched TicWatch, an AIoT smart device with a voice assistant and a combination of software and hardware, in 2015. It is worth mentioning that in the past three years, with the rapid development of AIGC products and B-end business, the revenue share of the hardware business has been shrinking.
Last year, the adjusted net profit plummeted by 80%, and the cash flow fell seriously
From the perspective of performance, the prospectus shows that the company's revenue from 2021 to 2023 will be 398 million yuan, 500 million yuan, and 507 million yuan respectively, with a small increase of only 1.4% in 2023.
The overall profitability fluctuated greatly, with adjusted net profit of -73.44 million yuan, 109 million yuan, and 17.54 million yuan respectively, with a decline of more than 80% in 2023 after turning losses into profits in 2022.
By business, Mobvoi's revenue is mainly composed of AI software solutions (accounting for nearly 70%) and AIoT hardware. Although the revenue of AIGC solutions has grown rapidly in recent years, the main reason is the increase in paying users, the number of paying users has increased from 63,000 to 410,000 in three years, and the average revenue of a single paying user has doubled, from 104 yuan to 248 yuan.
However, AI enterprise solutions still account for the majority of revenue, accounting for more than 40% of revenue. The B-end business is extremely dependent on large customers, and the revenue mainly comes from automotive subsidiary company A, Mobvoi JV and technology company A, which account for more than 80% of the B-end business revenue.
Last year, affected by the end of the cooperation with Volkswagen, the largest customer, Mobvoi AI enterprise solution revenue and gross profit margin declined.
In recent years, Mobvoi's R&D investment has increased to 91 million yuan, 119 million yuan and 155 million yuan respectively from 2021 to 2023.
While revenue and profits fluctuated sharply, Mobvoi's cash flow declined seriously, with cash flow from operating activities of 72.435 million yuan in 2022 and 28.392 million yuan in 2023.
Cash flow is declining, large models are burning money, and for Mobvoi, which is in the current situation, going public is a way out.
Mobvoi said that more than half of the funds raised in this IPO will be used for AI-related R&D investment, of which 4.3% will be used for model training and 35.7% will be used for solution development and marketing in the next three years.
On the whole, although Mobvoi seized the tuyere of AI and wore the halo of "AIGC No. 1", the competition is fierce and commercialization needs to be broken urgently, and Mobvoi is also facing many challenges under the halo.
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