Xiao-I Corporation (“Xiao-I” or the “Company”), a leading cognitive
artificial intelligence (“AI”) enterprise in China, today announced
its unaudited financial results for the full year ended December
31, 2022.
Full Year 2022 Financial Highlights
- Net revenues increased 48% year
over year to a record-high of US$48.2 million.
- Sale of cloud platform products
increased 364% year over year to US$25.7 million.
- Sale of technology development
service increased 78% year over year to US$16.4 million.
- Gross profit increased 42% year
over year to US$30.8 million.
Mr. Hui Yuan, Chairman and Chief Executive
Officer of Xiao-I, commented, “Despite challenges and
uncertainties, we nonetheless generated record revenue in 2022.
Notably for this year, we successfully became a publicly traded
company in the U.S. following an initial public offering in March.
The proceeds of almost US$39 million added strength and flexibility
for implementing our growth strategies.”
“We achieved significant progress by making
record investments in AI technology R&D, improving our product
and service capabilities, expanding our partnership ecosystem, and
continuing our strong momentum. As we enter 2023, we are
experiencing tailwinds from increased demand for our products and
services due to macroeconomic recovery and greater recognition and
interest in robotics and AI technology. We are confident that our
advanced AI technology and commitment to our mission and strategies
will enable us to meet the diverse user needs across broader
industry verticals and capture sustainable growth in this expansive
market.”
Recent Developments and Strategic
Highlights:
- Closing of Initial Public
Offering: In March 2023, Xiao-I closed its initial public
offering of 5,700,000 American Depositary Shares ("ADSs") at a
price of US$6.8 per ADS for total proceeds of US$38.76 million.
Each ADS represents one third of an ordinary share of the Company.
Xiao-I’s ADSs are listed on the Nasdaq Global Market under the
ticker symbol “AIXI”.
- Strategic Partnership with
Chinadatapay: In April 2023, Xiao-I entered into a
strategic partnership with Guizhou Chinadatapay Network Technology
Co., Ltd. (“Chinadatapay”) to drive Xiao-I's growth as a global
leader in cognitive intelligence by combining Xiao-I’s cognitive
intelligence capabilities and Chinadatapay’s big data
expertise.
Full Year 2022 Financial
Results
Net RevenuesNet revenues were
US$48.2 million in 2022, up 48% year over year from US$32.5 million
in 2021. The increase was primarily due to the increased sales of
SaaS model-based cloud platform products and technology development
service.
By Revenue Type |
|
|
2022 |
|
|
2021 |
|
%ChangeYoY |
|
Sale of cloud platform products |
|
$ |
25,742,135 |
|
$ |
5,550,959 |
|
364 |
|
Technology development
service |
|
|
16,419,889 |
|
|
9,246,992 |
|
78 |
|
Sale of software products |
|
|
3,547,113 |
|
|
14,878,256 |
|
(76 |
) |
Maintenance & support
service |
|
|
2,429,526 |
|
|
2,772,795 |
|
(12 |
) |
Sale of hardware products |
|
|
46,295 |
|
|
75,011 |
|
(38 |
) |
Total |
|
$ |
48,184,958 |
|
$ |
32,524,013 |
|
48 |
|
Cost of RevenuesCost of
revenues in 2022 was US$17.4 million, up 60% year over year from
US$10.9 million in 2021, mainly driven by the increase of sales and
the Company's expansion of product applications into certain new
industries.
Gross ProfitGross profit was
US$30.8 million in 2022, up 42% year over year from US$21.6 million
in 2021. Gross margin was 63.9% in 2022, compared to 66.5% in 2021.
The decrease in gross margin was mainly due to the Company's
expansion of product applications into certain new industries that
initially had relatively lower margins before the applications
matured.
Operating ExpensesTotal
operating expenses were US$33.9 million in 2022, representing an
increase of 104% year over year from US$16.6 million in 2021. The
increase was primarily due to the 347% increase in research and
development expenses, offsetting the decreases in sales, marketing,
general, and administrative expenses.
Income (Loss) from
OperationsLoss from operations was US$3.1 million in 2022,
compared to an income of US$5.0 million from operations in
2021.
Total Other Income (Loss)Total other loss was
US$2.2 million in 2022, compared to US$1.1 million in 2021, mainly
due to increased interest expenses arising from loans.
Net Income (Loss)Net loss was
US$6.0 million in 2022, compared to a net income of US$3.4 million
in 2021.
The financial statements for the year ended
December 31, 2022 herein have not been audited or reviewed by the
Company’s independent registered accounting firm. The audited
financial statements for the year ended December 31, 2022 to be
disclosed in the Company’s Form 20-F may differ from the
above-mentioned unaudited and unreviewed financial statements.
Conference Call InformationThe
Company will conduct a corresponding conference call at 8:00 a.m.
U.S. Eastern Time (8:00 p.m. China Time) to discuss the
results.
What: |
Xiao-I Full
Year (ended December 31, 2022) Earnings Call |
When: |
8:00 a.m. U.S. Eastern Time on Wednesday, April 26, 2023 |
Webcast: |
ir.xiaoi.com/events |
To join the conference call via telephone, participants must use
the following link to complete an online registration process. Upon
registering, each participant will receive email instructions to
access the conference call, including dial-in information and a PIN
number allowing access to the conference call. This
pre-registration process is designed by the operator to reduce
delays due to operator congestion when accessing the live call.
Online Registration:
https://register.vevent.com/register/BIa6261524526c403d9c15cac8e9e5361d
Participants who have not pre-registered may
join the webcast by accessing the link at ir.xiaoi.com/events.
A live and archived webcast of the conference
call will be available on the Investors section of Xiao-I’s website
at www.xiaoi.com.
About Xiao-I CorporationXiao-I
Corporation is a leading cognitive intelligence enterprise in China
that offers a diverse range of business solutions and services in
artificial intelligence, covering natural language processing,
voice and image recognition, machine learning and affective
computing. Since its inception in 2001, the Company has developed
an extensive portfolio of cognitive intelligence technologies that
are highly suitable and have been applied to a wide variety of
business cases. Xiao-I powers its cognitive intelligence products
and services with its cutting-edge, proprietary AI technologies to
enable and promote industrial digitization, intelligent upgrading,
and transformation.
Forward-Looking
StatementsCertain statements in this announcement are
forward-looking statements. These forward-looking statements
involve known and unknown risks and uncertainties and are based on
the Company’s current expectations and projections about future
events that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as “approximates,” “assesses,” “believes,”
“hopes,” “expects,” “anticipates,” “estimates,” “projects,”
“intends,” “plans,” “will,” “would,” “should,” “could,” “may” or
similar expressions. The Company undertakes no obligation to update
or revise publicly any forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you
that such expectations will turn out to be correct, and the Company
cautions investors that actual results may differ materially from
the anticipated results and encourages investors to review other
factors that may affect its future results in the Company’s
registration statement and other filings with the SEC.
For investor and media inquiries, please
contact:Ms. Sarah GuPhone: +1 5713269722Email:
ir@xiaoi.com
XIAO-I
CORPORATIONUNAUDITED CONSOLIDATED BALANCE
SHEETS(in U.S. dollars, except for share and
per share data, or otherwise noted)
|
|
As of December 31, |
|
|
2021 |
|
2022 |
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,311,846 |
|
|
$ |
1,026,245 |
|
Accounts receivable, net |
|
|
31,184,779 |
|
|
|
41,362,705 |
|
Amounts due from related parties |
|
|
391,919 |
|
|
|
346,517 |
|
Inventories |
|
|
768,762 |
|
|
|
768,216 |
|
Contract costs |
|
|
1,669,519 |
|
|
|
2,012,309 |
|
Deferred offering costs |
|
|
- |
|
|
|
1,330,902 |
|
Advance to suppliers |
|
|
90,350 |
|
|
|
1,115,672 |
|
Prepaid expenses and other current assets, net |
|
|
388,848 |
|
|
|
460,854 |
|
Total current
assets |
|
|
35,806,023 |
|
|
|
48,423,420 |
|
Non-current
assets: |
|
|
|
|
|
|
Property and equipment, net |
|
|
207,989 |
|
|
|
219,470 |
|
Intangible assets, net |
|
|
798,459 |
|
|
|
637,114 |
|
Long-term investment |
|
|
335,448 |
|
|
|
2,852,492 |
|
Right of use assets |
|
|
1,194,859 |
|
|
|
865,399 |
|
Deferred tax assets, net |
|
|
4,906,287 |
|
|
|
3,888,574 |
|
Prepaid expenses and other, non-current assets |
|
|
3,941,346 |
|
|
|
3,697,675 |
|
Total non-current
assets |
|
|
11,384,388 |
|
|
|
12,160,724 |
|
TOTAL
ASSETS |
|
$ |
47,190,411 |
|
|
$ |
60,584,144 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term borrowings |
|
$ |
9,117,158 |
|
|
$ |
18,784,459 |
|
Accounts payable |
|
|
5,581,879 |
|
|
|
9,180,532 |
|
Amount due to related parties-current |
|
|
1,558,642 |
|
|
|
896,431 |
|
Deferred revenue |
|
|
2,953,238 |
|
|
|
2,553,808 |
|
Convertible loans |
|
|
5,717,737 |
|
|
|
3,754,269 |
|
Accrued expenses and other current liabilities |
|
|
10,316,432 |
|
|
|
17,006,713 |
|
Lease liabilities, current |
|
|
800,658 |
|
|
|
435,462 |
|
Income tax payable |
|
|
17,904 |
|
|
|
- |
|
Total current
liabilities |
|
|
36,063,648 |
|
|
|
52,611,674 |
|
Non-current
liabilities: |
|
|
|
|
|
|
Amount due to related parties-non current |
|
|
8,905,313 |
|
|
|
8,581,743 |
|
Accrued liabilities, non-current |
|
|
5,157,971 |
|
|
|
8,073,912 |
|
Lease liabilities, non-current |
|
|
446,140 |
|
|
|
300,974 |
|
Total non-current
liabilities |
|
|
14,509,424 |
|
|
|
16,956,629 |
|
TOTAL
LIABILITIES |
|
|
50,573,072 |
|
|
|
69,568,303 |
|
Shareholders’
deficit |
|
|
|
|
|
|
Ordinary shares (par value of $0.00005 per share; 1,000,000,000
shares authorized as of December 31, 2021 and December 31, 2022,
respectively; 22,115,592 shares issued and outstanding as of
December 31,2021 and December 31, 2022, respectively) |
|
$ |
1,106 |
|
|
$ |
1,106 |
|
Additional paid-in capital |
|
|
75,621,294 |
|
|
|
75,621,294 |
|
Statutory reserve |
|
|
237,486 |
|
|
|
237,486 |
|
Accumulated deficit |
|
|
(72,584,621 |
) |
|
|
(78,483,156 |
) |
Accumulated other comprehensive loss |
|
|
(3,464,423 |
) |
|
|
(3,262,666 |
) |
XIAO-I CORPORATION shareholders' deficit |
|
|
(189,158 |
) |
|
|
(5,885,936 |
) |
Non-controlling interests |
|
|
(3,193,503 |
) |
|
|
(3,098,223 |
) |
Total shareholders’
deficit |
|
|
(3,382,661 |
) |
|
|
(8,984,159 |
) |
TOTAL LIABILITIES AND
SHAREHOLDERS’ DEFICIT |
|
$ |
47,190,411 |
|
|
$ |
60,584,144 |
|
|
|
|
|
|
|
|
|
|
XIAO-I
CORPORATIONUNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME/(LOSS)(in U.S. dollars, except
for share and per share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
2021 |
|
2022 |
Sale of software products |
|
$ |
14,878,256 |
|
|
$ |
3,547,113 |
|
Sale of hardware products |
|
|
75,011 |
|
|
|
46,295 |
|
Technology development service |
|
|
9,246,992 |
|
|
|
16,419,889 |
|
M&S service |
|
|
2,772,795 |
|
|
|
2,429,526 |
|
Sale of cloud platform products |
|
|
5,550,959 |
|
|
|
25,742,135 |
|
Net revenues (including sales
to related parties of $2,449,560, $286,875 and nil for the years
ended December 31, 2020, 2021 and 2022, respectively) |
|
|
32,524,013 |
|
|
|
48,184,958 |
|
Cost of revenues |
|
|
(10,885,731 |
) |
|
|
(17,379,144 |
) |
Gross
profit |
|
|
21,638,282 |
|
|
|
30,805,814 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Selling expenses |
|
|
(4,620,113 |
) |
|
|
(3,911,818 |
) |
General and administrative expenses |
|
|
(6,657,251 |
) |
|
|
(6,028,637 |
) |
Research and development expenses |
|
|
(5,363,909 |
) |
|
|
(24,001,138 |
) |
Total operating
expenses |
|
|
(16,641,273 |
) |
|
|
(33,941,593 |
) |
|
|
|
|
|
|
|
Income/(Loss) from
operations |
|
|
4,997,009 |
|
|
|
(3,135,779 |
) |
|
|
|
|
|
|
|
Other loss: |
|
|
|
|
|
|
Investment losses |
|
|
(156,630 |
) |
|
|
(143,181 |
) |
Interest expense |
|
|
(1,866,831 |
) |
|
|
(2,440,815 |
) |
Foreign currency exchange gain/(loss) |
|
|
11,252 |
|
|
|
(68,902 |
) |
Other income, net |
|
|
932,557 |
|
|
|
444,018 |
|
Total other
loss |
|
|
(1,079,652 |
) |
|
|
(2,208,880 |
) |
|
|
|
|
|
|
|
Income/(Loss) before income
tax expense |
|
|
3,917,357 |
|
|
|
(5,344,659 |
) |
Income tax expense |
|
|
(552,355 |
) |
|
|
(660,655 |
) |
Net
income/(loss) |
|
$ |
3,365,002 |
|
|
$ |
(6,005,314 |
) |
Net loss attributable to non-controlling interests |
|
|
(312,811 |
) |
|
|
(106,779 |
) |
Net (loss)/income attributable to XIAO-I CORPORATION
shareholders |
|
|
3,677,813 |
|
|
|
(5,898,535 |
) |
Other comprehensive
(loss)/income |
|
|
|
|
|
|
Foreign currency translation change, net of nil income taxes |
|
|
(117,291 |
) |
|
|
403,816 |
|
Total other comprehensive (loss)/income |
|
|
(117,291 |
) |
|
|
403,816 |
|
Total comprehensive
income/(loss) |
|
$ |
3,247,711 |
|
|
$ |
(5,601,498 |
) |
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