MEGVII Files Prospectus at Hong Kong Stock Exchange
In the first half of 2019, the company achieved a revenue of USD 133 million, up 210.3% from the same period of last year. The loss was USD 732 million, which is caused by the changes of the fair value of preferred stock and continuing R&D costs.
Chinese AI Unicorn MEGVII, specializing in computer vision and is known for its face recognition technology, has submitted its prospectus at the Hong Kong Stock Exchange.
According to the prospectus released on Aug 17, MEGVII achieved revenues of CNY 67.8 million (USD 9.55 million) in 2016, and CNY 313.2 million (USD 44.14 million) and CNY 1,426.9 million (USD 201 million) in 2017 and 2018 respectively, with a compound annual growth rate (CAGR) of 358.8%.
The company had losses of CNY 342.8 million (USD 48 million), CNY 758.8 million (USD 106 million) and CNY 3351.6 million (USD 472 million) in 2016, 2017 and 2018.
In the first half of 2019, the company achieved a revenue of CNY 949.0 million (USD 133 million), up 210.3% from the same period of last year. The loss was CNY 5,200.2 million (USD 732 million) , which is caused by the changes of the fair value of preferred stock and continuing R&D costs. The adjusted net profit is CNY 32.7 million (USD 4.61 million) in 2019 H1.
The computer vision specialist focuses on applying AI in three industries, including consumer electronics, smart city and community governance, and supply chain in the logistics and retail sectors.
It emphasizes the competitive edge in its self-designed deep learning structure, its AI full-stack capability, monetization experiences in multiple verticals, loyal clients & strategic partners and talents. While the risks include uncertainty in R&D and uncertainty in government policy and government expenditures.
MEGVII plans to go public under WVR structure.