Cloud Ark (02512.HK) announced on August 27 that as of June 30, 2024, the company has implemented a localization strategy to optimize the deployment of cross-regional data center resources and equipment, and promote efficient use of data. The company's research and development focuses on (i) innovation in artificial intelligence algorithm models, AIoT services, and CDN services to empower the company's edge computing services and provide various solutions to customers to meet specific business scenarios; and (ii) strengthening the company's IDC solution services to better serve its customers. During the reporting period, the company achieved a total revenue of 36.97 million yuan, an increase of 22.5% compared to the same period of the previous fiscal year. The group achieved a net profit of 1.25 million yuan during the period.

Compared with the same period of the previous fiscal year, the company's IDC solution services achieved a steady revenue growth of 18.2% during the reporting period. In order to increase the company's market share, the company has expanded the scope of IDC solution services to more geographical locations, such as Suqian and Taizhou in Jiangsu Province, and Jiangxi Province.

In addition, compared with the same period of the previous fiscal year, the company's edge computing services recorded a significant increase in business volume during the reporting period, with a revenue increase of nearly 300%. Considering the rapid development of CDN, IoT, and 5G technologies in recent years, edge computing has become a major theme and direction of technological innovation. The company's edge computing services have demonstrated great potential in many industries, such as intelligent transportation, intelligent manufacturing, and smart city management. In the first half of 2024, the company continuously optimized the artificial intelligence road inspection function of its EdgeAIoT platform by integrating closed-loop scheduling and maintenance functions to meet the evolving needs of customers. The company has upgraded its existing AI algorithm models more than 50 times and developed nearly 100 new AI algorithm models applicable to different industries and scenarios, such as road hazard detection, drone river inspection, intelligent urban management patrol, intelligent community elevators, and electric vehicle alarms. With the expansion of business, the cumulative number of data samples has exceeded 20 million, further promoting the development of the company's AI algorithm models.

The company stated that with the promotion of the national digitalization and quantification trend, the demand for edge computing and intelligent computing continues to grow, demonstrating tremendous potential for the company's development. With the support of mature customers and suppliers, the company will seize opportunities and continuously improve its solutions to meet different market demands. In addition to developing existing businesses through strengthened marketing capabilities, the company will actively make progress to promote growth and seek new business opportunities.

In the second half of the year, the company will continue to consolidate its foundation in cloud computing services and collaborate with operators to promote its edge computing services. Meanwhile, the company will further focus on the sinking market and improve its infrastructure based on the sinking strategy to support the growing digital demands in offline scenarios, thereby reducing costs and improving efficiency for its customers. In addition, in the process of integrating computing networks with lower-level networks, the company will collaborate with telecommunication operators, renowned universities, and other partners in their respective leading positions to explore applications in artificial intelligence, large-scale model training, and computing power.