Bairong Inc. Reports Solid Growth in 2024 Annual Results, Highlighting AI-Driven Services

Bairong Inc. Reports Strong Financial Performance for 2024

Bairong Inc. (HKEX: 6608), a leading cloud-based AI turnkey service provider, has announced its consolidated financial results for the year ended December 31, 2024. The company demonstrated resilience and growth in a challenging market environment, with solid revenue increases and sustained profitability 1

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Revenue Growth and Key Financial Metrics

Bairong reported a 9% increase in total revenue, reaching RMB 2,929 million for the year 2024, up from RMB 2,680 million in 2023. The company's gross profit rose by 10% to RMB 2,141 million, maintaining a high gross margin of 73% 1

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Key financial highlights include:

• Model as a Service (MaaS) revenue: RMB 932 million, up 5% year-over-year
• Business as a Service (BaaS) - Financial Scenario revenue: RMB 1,410 million, a 19% increase
• Non-IFRS profit: RMB 376 million
• Operating cash flow: RMB 303 million 2

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AI-Driven Product Innovation

Bairong's CEO, Mr. Zhang Shaofeng, emphasized the company's focus on AI technology and product development. Notable advancements include:

1. Rapid iteration of VoiceGPT
2. Implementation of new products such as the digital human All-in-One Machine AvatarGPT
3. Further development of the Cybotstar Agent Platform 1

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Strategic Investments and Future Outlook

Looking ahead to 2025, Bairong plans to increase investments in new businesses and scenarios, with a particular focus on two key areas:

1. Pan-financial AI
2. Pan-industry AI

The company aims to achieve a vertical and horizontal business layout supported by Artificial General Intelligence (AGI) 2

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Research and Development Focus

Bairong demonstrated its commitment to innovation by increasing research and development expenses by 34% to RMB 509 million in 2024. This investment supports:

• Product offerings
• Technology development in AI applications
• Algorithm-driven machine learning platforms
• Underlying database performance improvements 1

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Market Position and Client Retention

Despite industry challenges, Bairong maintained strong client relationships:

• 211 Key Clients in the MaaS business
• 97% Key Client retention rate
• Average revenue per Key Client: RMB 3 million 2

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The company's brand recognition continues to grow, with an increasing number of institutions choosing Bairong as their preferred partner.

Challenges and Adjustments

While overall performance was strong, Bairong faced some challenges:

• BaaS - Insurance Scenario revenue decreased by 3% year-over-year
• Profit for the year decreased by 21% to RMB 266 million
• Other income decreased by 28% due to reduced government grants 1

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Despite these challenges, the company's focus on AI-driven services and strategic investments positions it for continued growth in the evolving AI market.