Founded in 2014, Fourth Paradigm focuses on AI-driven decision-making to help enterprises achieve a rapid scale-up of AI and deepen the digital transformation of vertical industries.
Decision-making AI company 4Paradigm (Chinese: 第四范式) updated its prospectus on September 5 to proceed with its listing on HKEX, with Goldman Sachs and CICC as joint sponsors. In August 2021, 4Paradigm first filed an application to the HKEX for listing on the Main Board, and this is the third time that 4Paradigm has filed a form.
In the prospectus, 4Paradigm updated its performance data: operating revenue for H1 2022 was CNY 1.06 billion, up 34.3% year on year from CNY 790 million in H1 2021.
Adjusted net loss in H1 2022 was USD 200 million, compared to USD 260 million for the same period in 2021, down by approximately 20%. In addition, adjusted operating loss for the first half of 2022 was USD 220 million, compared to $250 million in H1 2021, with a year-over-year decrease of around 12%.
From 2019-2021, 4Paradigm achieved revenues of CNY 460 million, CNY 940 million and CNY 2.02 billion, respectively. The revenue growth in H1 2022 comes from the increase of users on the one hand, and the increased revenue contribution from its Prophet platform (先知平台) and related products on the other hand, which grows from 47.7% in H1 2021 to 50.2% in H1 2022.
Despite the revenue growth, 4Paradigm has not yet achieved profitability, with adjusted net losses of USD 320 million, USD 390 million and USD 560 million from 2019 to 2021, respectively, and adjusted net losses of USD 200 million in the first half of 2022. The losses are mainly due to the company's long-term investment in research and development.