"Science and Technology Innovation Board Daily" August 26th news (Reporter Qiu Siyu) Tonight (August 26th), Arcsoft Technology disclosed the 2024 semi-annual report.

In the first half of this year, Arcsoft Corporation achieved a revenue of 0.381 billion yuan, an increase of 11.97% year-on-year; the net income attributable to the parent company was 61.4589 million yuan, an increase of 22.82% year-on-year; and the non-net profit was 53.7943 million yuan, an increase of 21.7% year-on-year.

In terms of quarterly performance, the company achieved a net profit attributable to the parent company of 27.29 million yuan in the second quarter, a year-on-year increase of 24.9%, and a quarter-on-quarter decrease of 20.13%.

Regarding the performance, Arcsoft Corporation stated in the financial report that the main reasons for the growth in revenue and net income were the realization of mobile intelligent terminal visual solutions with this period's revenue of 0.332 billion yuan, a 6.43% increase over the same period of the previous year; the realization of intelligent driving and other IoT intelligent device visual solutions with this period's revenue of 43.364 million yuan, a 93.19% increase over the same period of the previous year; in addition, the interest income obtained from the idle funds for cash management in this period was 29.2233 million yuan, a 21.53% increase over the same period of the previous year.

Arcsoft Corporation's main business is the research and application of visual artificial intelligence technology, providing visual artificial intelligence solutions for smart phones, laptops, autos, AIoT, etc. The company's main customers currently include Samsung, Xiaomi, OPPO, vivo, and Honor.

In terms of the AIGC business, during the reporting period, multiple algorithms related to the PSAI product of Arcsoft Corporation passed the domestic deep synthesis service algorithm filing, and the PSAI product launched the AI Model Video Production function; at the same time, its ArcMuse computing technology engine passed the filing permit for large model of generative artificial intelligence service management measures set by the State Internet Information Office.

At the application level, Arcsoft Corporation stated that it is expanding its cooperation with domestic mainstream e-commerce platforms. During the reporting period, it successively settled in Taobao Qian Niu Merchant Workstation and 1688 platform, Dou Dian Wei Ying Yong (Doustore Micro Application), and Dou Dian Fu Wu Market. In the second half of the year, PSAI will further enter the international e-commerce platform market and has settled in the TikTok application and service market.

In terms of mobile smart terminal business, during the reporting period, Arcsoft Corporation launched the Turbo Fusion instant shooting solution, the Turbo Fusion night view tone solution, and the Turbo Fusion 25M high-resolution fusion solution. At the same time, the company also extended the Turbo Fusion image processing technology to video applications. It is reported that the prototype of its solution has been recognized by several important customers and has received support from platform manufacturers.

In the smart automobile business, in terms of in-car products, Arcsoft Corporation's health monitoring algorithm engine has now obtained designated projects for multiple mass-produced vehicle models. For regulatory products, it has passed the latest European ADDW and domestic IVISTA China Smart Automobile Index (C-IASI) test standards and has been put into mass production.

In terms of exterior products, the company's 3D AVM and Sentry monitoring algorithm products continue to be shipped and have obtained new designated mass-produced vehicle models. The cabin docking solution in the upgraded version of VisDrive has expanded to multiple partners, and it is expected to gradually mature with the help of project-driven products in the second half of the year.

In terms of R&D investment, in the first half of 2024, Arcsoft Corporation's R&D expenses totaled 0.194 billion yuan, accounting for 50.93% of revenue. In terms of research projects, the research and development investment in mobile smart terminal related technologies in this period amounted to 0.103 billion yuan. In the field of smart phones, the company has successively launched new products to the market and achieved sales. In the AI ​​field, it has launched related new technologies and products. The research and development investment in IoT field technologies such as smart driving in this period was 91.3696 million yuan.

However, attention needs to be paid to the fact that the net cash flow from operating activities of Arcsoft Corporation is -62.8463 million yuan, a decrease of 130.82% compared to the same period last year. In this regard, Arcsoft Corporation explained that this is mainly due to some customers of the company making advance payments for sales in the previous year to deepen cooperation with the company, resulting in a reduction in the amount of sales receipts in this period.