Xiangtang Technology’s Financial Report Shows a Net Loss of 4.3 Billion Last Year, Totaling Over 54.6 Billion in Seven Years

On March 26, China’s artificial intelligence software company Shangtang Technology announced its annual performance for the year ending December 31, 2024. The company recorded a net loss of 4.307 billion RMB last year, accumulating a total loss of over 54.6 billion RMB over the past seven years.

According to the financial report, Shangtang Technology’s total revenue in 2024 was 3.77 billion RMB, a 10.8% year-on-year increase, but lower than the analysts’ estimated 4.5 billion RMB.

The net loss for 2024 was 4.31 billion RMB, showing a 33.7% decrease compared to the previous year, exceeding analysts’ expectations of a 4 billion RMB loss.

In terms of core businesses, the revenue from generative AI increased by 103.1% to 2.4 billion RMB, becoming the biggest source of revenue, accounting for 63.7%; revenue from visual AI decreased by 39.5% to 1.11 billion RMB, accounting for 29.5%; revenue from smart cars decreased by 33.2% to 260 million RMB, accounting for 6.8%.

Shangtang Technology is a leading enterprise in AI security and surveillance technology in China, with its technology widely used in the Chinese Communist Party’s public safety system.

On October 8, 2019, the U.S. Department of Commerce decided to include Shangtang Technology and 28 other Chinese entities on the U.S. Entity List under the Export Control Act, citing their involvement in violating the human rights of minorities in Xinjiang through the Chinese government’s surveillance. Entities or companies on the Entity List are prohibited from purchasing regulated items from U.S. companies without approval from the U.S. government.

In December 2021, on the pricing day of Shangtang Technology’s listing on the Hong Kong Stock Exchange, the U.S. Department of the Treasury blacklisted Shangtang Technology by categorizing it as a “Chinese military-industrial complex enterprise” in a statement.

As reported by mainland media earlier, in December 2021, Shangtang Technology went public on the Hong Kong Stock Exchange, with its stock price skyrocketing from 3.85 Hong Kong dollars per share to 9.7 Hong Kong dollars per share, reaching a market capitalization of nearly 350 billion Hong Kong dollars. However, the stock price of Shangtang plummeted by 90% in just two years.

In terms of performance, from 2018 to 2023, Shangtang Technology recorded net losses of 3.433 billion RMB, 4.968 billion RMB, 12.158 billion RMB, 17.177 billion RMB, 6.093 billion RMB, and 6.495 billion RMB respectively, alongside the 2024 net loss of 4.307 billion RMB, accumulating a total loss of over 54.6 billion RMB over seven years.