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Recently, Beijing No.4 Paradigm Intelligent Technology Co., Ltd. (hereinafter referred to as "No.4 Paradigm") disclosed the data set after the hearing of the Hong Kong Stock Exchange and proposed to list on the main board, with CICC as the sole sponsor. The net amount of funds raised from IPO will mainly be used to strengthen basic research, technical capabilities and solution development; Expand products, build brands and enter new industries; Seeking strategic investment and acquisition opportunities; And for general corporate use.

Public information shows that the fourth paradigm was established in 2014, focusing on providing platform centric AI software, enabling enterprises to develop their own decision-making AI applications, explore the implicit laws of data, and comprehensively improve the business decision-making ability of enterprises.

In addition, according to the Insight Consulting Report, in terms of revenue in 2022, the fourth paradigm is China's largest platform centric AI provider for decision-making, accounting for 22.6% of the market share, significantly ahead of the second 12.3% of the industry.

In terms of performance, according to the latest disclosure of the Hong Kong Stock Exchange, the revenue of the fourth paradigm in the three months ended March 31, 2023 was 640 million yuan, compared with 480 million yuan in the same period of 2022, with a year-on-year growth of 33.6% in the first quarter. In addition, the company's revenue scale has grown rapidly, from 940 million yuan in 2020 to 2.02 billion yuan in 2021, and further increased by 52.7% to 3.08 billion yuan in 2022.

In terms of profits, the adjusted losses of the fourth paradigm narrowed significantly. Excluding the impact of share based compensation expenses and other one-time expenses, the adjusted net losses from 2020 to 2022 were 390 million yuan, 560 million yuan and 500 million yuan respectively. According to the data set after the hearing, the adjusted loss in the first quarter of 2023 was 65.13 million yuan, with an adjusted loss rate of 10.1%, down from 13.8% in the same period of 2022.

In terms of customers, from 2020 to 2022, the total number of customers of the fourth paradigm service will be 156, 245 and 409 respectively. Among them, the number of benchmark customers (Fortune Global 500 enterprises or listed companies) is 47, 75 and 104 respectively. From 2020 to 2022, the net income expansion rate of benchmark users of the fourth paradigm will be 167%, 140% and 126% respectively, maintaining a high level.

At present, since Shangtang Technology landed in Hong Kong shares on December 30, 2021, no AI star unicorn enterprises have landed in Hong Kong shares in the past two years. When completing the D2 round, the last round of financing before IPO, the valuation of the fourth paradigm was about US $3 billion. It has obtained well-known VC/PE such as Sequoia China, Boyu Capital, Chunhua Capital, Yuansheng Capital, Innovation Works, Longma Peak Venture Capital, Zhongwei Capital, Songhe Capital, Lenovo Venture Capital, Cornerstone Capital, CPE Yuanfeng, as well as investment from many large state-owned funds and banks.

In the current AI wave, the fourth paradigm has become an important vane for subsequent AI enterprises to launch an impact on the Hong Kong Stock Exchange. This is because the company has maintained its first position in the decision-making AI subdivision track for years. What do you think about the future of the fourth paradigm? Welcome to leave a comment.

Author: Jiucai