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Jun 9, 2020 · CNR
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Jun 4, 2020 · China News
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Jun 4, 2020 · China News

Megvii is Struggling to Go Public in HK

Analysis EO
May 2, 2020
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Analysis EO
May 2, 2020

Unveiling the ‘Mystery’ of Megvii Part 1

Key investment thesis Attractive secular trends. Megvii occupies a unique place within the computer vision domain and benefits from increasing awareness about leveraging artificial intelligence (AI) and the Internet of Things (IoT) in managing business and public management from the government and business side.  Clear long-term strategic map. With the launch of open platform Face++ and open-source deep learning framework MegEngine, we see the company’s ambition in competing with large tech companies as well as grasping the core competence of AI. Unique customer proposition. The full-stack solutions that contain the IoT layout of cloud-edge-devices, platform software systems and applications allow the company to reduce friction around today’s AI, big data and cloud technologies.   Key investment risks Megvii’s cost structure for its SaaS and IoT solutions remains debatable. The business is a bit far away from being a classic SaaS and more like driven by software + services/consulting.  Services revenue weighs on the gross margins. The services business is naturally not as scalable and operates with low margins. Megvii’s business builds on its IoT solutions, contracting with government agencies (more precisely, system integrators). Only with better margins can the business scale faster – not the other way around. Here, the income statements tell the story already. Data ethics problems. Megvii’s services and products have been interacting with a significant amount of sensitive information. It has an additional responsibility to protect its from information leaks and hacks, as well as a duty to deal with regulatory/compliance issues.  Business overview Megvii is the first so-called artificial intelligence unicorn to try to list on the public market in China. The company provides full-stack solutions that encompass algorithms, software and IoT devices to its customers. In this article, we focus on its business model, revenue potential and competitive risks.  Megvii started in a niche area within the face recognition domain. It then launched the first computer vision (CV) open platform – Face++ – of the company in Oct 2012, one year after its inception.  Megvii derives its revenue through two standard pricing models (SaaS subscription and professional services) and one special business that it calls ‘personal devices.’ Like other Software-as-a-Service (SaaS) companies, Megvii charges by a pay-per-use model for its Face ID (a cloud-based identity authentication product) and Face++ under the SaaS business.  Megvii generates revenues for professional services primarily in two segments and charges on a project basis: government and commercial. Worth noting is that a significant portion of Megvii’s direct customers are system integrators, which provide various types of assistance in project implementation, and are not the end users. 93% of revenue in the first half of 2019 came from its city IoT solutions, whereas the rest was generated from its commercial segment supply chain IoT (retail and logistics).  Megvii’s personal devices business accounted for 9% of revenue in 2019H1 Megvii productized the business and earned CNY 5.9 million in 2017, one year earlier than its SaaS offerings. The gross profit saw a sudden plummet in 2019H1 due to the firm delivering more camera modules. Arcsoft (688088:SH), Nuance Communications (NUAN:NASDAQ) and Gracenote, among others, are competing in the niche worldwide. Arcsoft is now trading on China’s new Star market at a 122x earning level with a valuation of CNY 25 billion as of April 24. Arcsoft provides single/dual camera solutions for smartphone manufacturers, which fit various hardware configurations. It has achieved CNY 438 million revenue from its smartphone business, with a 94% gross margin. While Arcsoft’s revenue and gross margin were on a steady growth stage from 2016 to 2018, Megvii saw a meaningful dip in 2019H1, as mentioned above. As a relatively new player in the market, it is reasonable that Megvii has entered into a new stage in delivering products. In essence, it has to work more closely with camera module manufacturers, camera sensor manufacturers and System on a Chip (SoC) platforms. Megvii might need to switch to a different type of camera module for different types of mobile phones to drive the development of camera technologies fast. As a result, the cost of sales surged 17x to CNY 18 million in 2019H1 from one year before. The cost of sales is attributed to two elements: 1) hardware and 2) project outsourcing or technologies services. Considering Megvii’s own claims, we think the previous assumption is reasonable. In essence, the gross margin dip will jump back to normal levels when Megvii reaches the critical mass of producing deliverable camera modules. Megvii’s SaaS offerings, however, are far beyond the SaaS concept that Wall Street and VCs admire  When it comes to Megvii, its SaaS business contains a data source cost, which is unusual for an SaaS offering. China, famous for its extensive public security market (USD 80 billion) as well as significant spending on tech-enabled surveillance (USD 30 billion), is also well-known for its abundant pool of data. But data alone is not enough for building AI software – data must first be labelled, which requires much labor.  Megvii engages third-party data sources for its Face ID product development, which represented 7% and 58% of revenue and total cost of sales in 2019H1, respectively. Data from 2016 to 2019 shows that data source cost as of the total cost of sales reached a plateau of 58% after 2017.  The current machine learning technology is still in an early stage. Thus companies researching it are running algorithms on various datasets to train their models, which means large overheads for purchasing these data sources.  As such, AI businesses are very different from software businesses, whether it is in terms of cost structure or competitive advantages.  The gross margins are lower. An SaaS business means a high gross margin (60% – 80%), with the cost of sales mainly attributed to cloud services. SaaS stocks maintain their gross margins, ranging from 70% to 85%, with a median margin staying at 72% and averaging at 70%, as of April 22, from the 63 SaaS stocks selected. Compared with these mature firms, Megvii’s gross margin shows a continuous growing trend from 2016 to 2019H1. It even reached 87% in 2019H1, a 106% increase compared with 2016. But we do not think this will continue in the near term, mainly from the observation that data source costs will remain a significant part of revenue.  There’s a long tail problem. A study conducted by Arun Chaganty at Eloquent Labs (quoted by a 16z) that researched questions submitted to a chatbot in the customer support space shows a diminishing marginal value of data. When 40% of queries have been collected, there is no advantage to collecting more in this case. AI startups have to devote more time and resources to deal with noisy, unstructured data. They also need to think through edge case difficulties, which is a tough job that traditional software companies won’t face when they build and deploy their products for their earliest customer cohorts. Megvii’s whole R&D special expenditure – including data obtaining and labeling – represented 14.9%, 11.4%, 6.1% and 6.5% of total revenues in 2016, 2017, 2018 and 2019H1, respectively.  AI is early in its development, and has been witnessing sharp declines in both AI training costs and inference costs. In 2018, the cost to train a neural network like ResNet-50 was USD 358. In 2019, it dropped to around USD 20. The cost of inference has dropped meanwhile. The cost to perform inference on 1 million images went from around USD 15 at the end of 2017 to USD 2 in earlier 2019.   AI companies have been improving computing ability at five times the rate of Moore’s law. No wonder there is a massive hype around AI research and funding activities. But in practice, we found that AI businesses have limits in how their value can be built up and accessed, rented or sold – they are not like those 'builds once / sell many times' software model. It adds pressure to margins, as well as defensibilities.  This article is part I of our analysis on Megvii. Please continue to part II.

Analysis EO
May 2, 2020
report
Analysis EO
May 2, 2020

Unveiling the ‘Mystery’ of Megvii Part 2

This article is part II of our analysis on Megvii, check out part I before you read.  The service business: an albatross around the neck – and a future chokepoint  AI is creating a new type of business that contains elements of both software and services.  Some very successful SaaS products attract customers and keep growing exponentially without spending more on customer acquisition. Leveraging virality – as VCs call it – SaaS companies scale fast while maintaining acquisition costs that change little. Compared with SaaS, services can be a bad business, but AI startups like Megvii have reasons to target the niche. Previous key trends benefitting AI applications and secular growth potential in government IT spending and public security are now a bit clichéd. We focus on the business side here.  Services revenues weigh on gross margins as it is naturally not as scalable and has low margins. Though Megvii claims its IoT solutions involve the integration of hardware, algorithms and IoT devices, we consider this to be a service-heavy business due to the implementation model (as well as financials) falling perfectly with service business definition. Megvii city IoT solutions contributed to 73% of total revenues in 2019H1 while the gross margin sat at 59% in 2019H1. Comparing products and licenses, services have a variable personnel component that adds pressure to the margins. As of June 30, 2019, Megvii had 222 system integrators out of a total of 339 domestic customers that have contracts with the company for its City IoT solutions business.  A crowded competitive landscape. Among the top bidding-winners of the Xueliang project (Chinese official long-term security plan for cities and communities) China Telecom, China Mobile and China Unicom are dominant, followed by such large security system integrators as Hikvision, Vimicro and Tsinghua Tongfang (600100:SH), according to Chinese tech media company Tedahao (in Chinese). Some of them, along with traditional players that focus on offering hardware products, have started to enhance their software abilities. Hikvision and Dahua, two leading surveillance camera vendors in China, pivoted toward other solutions several years ago. In 2018, they announced the strategy to navigate the business – Dahua’s heart of the city (HoC) and Hikvision’s AI Cloud.  Hikvision has been catching up, for instance. Its central control product revenue has been taking up a larger proportion of the total revenue of the company, rising from 13% in 2016 to 15% in 2019H1. Dahua, a smaller one, has also been accelerating its solutions business since 2016 as well.  Megvii’s first-generation solutions roadmap was primarily driven by government use cases. It offers a full-stack IoT product that is heavily used by government agencies to enhance public security, optimize traffic management and improve urban resource planning. The government continues to be a big part of Megvii’s business, but its strategic focus has shifted toward commercial customers. The revenue mix-shift from the government to commercial poses several risks/opportunities to the business. Enterprise asks for more highly standardized products. Megvii’s gross margins are expected to rise as the proportion of personnel expenses (say, consulting, implementation, delivery) used by each new client declines. We also notice that expanding into sectors such as retail and manufacturing and building mindshare. There will be a significant advantage for a company. To solve a strategic problem and build up industry, know-how could likely yield a deep moat.  What’s the future of AI businesses and players? Part of the answer lies in the move Megvii made earlier in 2020. Megvii is trying to leverage the open-source deep learning framework MegEngine, part of Megvii’s proprietary AI platform Brain++, to allow everyone to feed data and train their AI frameworks on it. Google’s TensorFlow and Facebook’s PyTorch hold 95% of share in this market, with an array of new players joining in.  Megvii’s project Hetu is a logistics-focused platform that fits for different software systems (ERP, WMS, MES) and hardware devices (sensors, robots, AGVs) by using APIs, which has led the company to a new strategic direction. More and larger contracts with government or retail are not the ultimate goal. AI’s potential is set to change so many industries, and the best way to ride the wave is to build an operating system. The system combines data with AI approaches, like machine learning and deep learning. It keeps absorbing customer data (generated from business projects and open platforms) as well as market data (users of open-source platforms) and training these data on the system, which drives a virtuous cycle of data. As a result, that trap of data network effects mentioned before can be mitigated and a flywheel of intelligence can be set running – the model will be better, as will the product. 

Announcements
Mar 26, 2020 · Megvii
News EO
Mar 20, 2020
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News EO
Mar 20, 2020

Chinese AI Startup Yitu Tech Raises USD 30 Million as Competitors Postpone IPOs

Yitu Technology, a Chinese AI startup active in the medical field, has received a USD 30 million investment from Runcheng Pilot Fund, an industry fund initiated by CR Capital Management and China Chengtong Hong Kong. Yitu is accepting its first strategic bankroll amid the late stages of the epidemic in China, with its AI systems supporting active diagnostic work in Wuhan. This funding injection corresponds to the current collective determination to fight against the new coronavirus. In the intensive outbreak period, Yitu Tech instantly deployed its AI diagnostic system to help identify cases of nCovid-19 in most Wuhan public hospitals. This system assists front-line doctors to quickly identify infected patients by fast quantitative analysis based on CT scan images. “CT imaging is a critical step for pneumonia diagnosis for the new coronavirus. The application of artificial intelligence can help doctor make fast and accurate medical verdicts, ” says Mr. Chen Qiulin, head of the Social Security Research office at the Institute of Population and Labor Economics at China Academy of Social Sciences, “this technology can help doctor in foreign countries to control the spread more efficiently”. Founded in 2012, Yitu Technology aims to become a world-class AI service provider based on its in-house research team. It leverages computer vision, natural language processing, speech recognition and chip engineering to provide comprehensive AI solutions for multiple business scenarios. As one of the leading startups in the AI business, it focuses on orienting AI technology towards various industries, including public safety, healthcare, finance and retail. So far, this Shanghai-based high-tech firm has received several rounds of fundings, with a post-deal valuation of CNY 15 billion in 2018. The capital gained in the current round will facilitate its future deployment in the intelligent city sector, as well as deeper investment in intelligent healthcare and business systems. Yitu wants to achieve more, to ensure it is not only remembered as a ‘one-hit wonder’ from the epidemic. In the background it is formulating an ‘AI Map of Cancer Screening’ through cooperating with hundreds of top medical institutions nationwide to help realize the national ‘Healthy China 2030’ plan.    Challenges always go with opportunities. Market-based and technological competition are areas all AI enterprises need to consider in terms of long-term development. Its main competitors in the AI computer vision arena, SenseTime and Megvii, are on the pre-IPO list and actively involved in this transformative, high stakes game. Just yesterday, on March 19, SenseTime registered a new company in Nanjing,  to reinforce its back-end data processing. SenseTime postponed its IPO plan and has moved towards the private equity market for other possible alternatives. Another AI-based facial recognition rival, Megvii, filed for a public listing last October to hit Hong Kong Stock Exchange but was waitlisted due to the outbreak.  

Analysis
Feb 28, 2020 · 36Kr
Analysis
Feb 7, 2020 · EO Company
Analysis
Feb 4, 2020 · Tencent
News EO
Jan 3, 2020
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News EO
Jan 3, 2020

MEGVII Joins E-Hualu to Form Joint Venture

Beijing-based facial recognition developer MEGVII (旷视), which recently filed for a public listing in Hong Kong, has joined the Chinese state-owned city database E-Hualu (易华录, 300212:SZ) to form a joint venture company, Shandong Liaoyun Information Technology (山东聊云信息技术有限责任公司). Liaoyun Information was set up on December 27, 2019, according to Chinese database firm, Tianyancha (天眼查), and was registered with a capital of CNY 300 million. The firm's business scope includes information integration services, engineering management services and electronic manufacturing services. The new joint venture will strengthen cooperation between the private holding and the state-owned firm. In November, MEGVII received a "service package" from the government (the details of the package were undisclosed) which can be understood as a sign that the Chinese government is introducing policies to boost the development of the private economy in the background of the China-U.S. trade war. MEGVII, the well-known company behind the face recognition company Face++, filed for Hong Kong IPO on August 26,  with underwriters including renowned American investment firms such as Goldman Sachs (GS:NYSE), J.P Morgan (JPM:NYSE) and Citibank (C:NYSE).  However, the company had to delay its Hong Kong listing until 2020 after facing requests for more information by Hong Kong regulators, as the company was placed among the 27 companies in the trade blacklist issued by the US Department of Commerce, according to yahoo finance. The AI startup has raised more than USD 1.4 billion in funding, accounting for seven rounds in total, increasing the company's value to around USD 4 billion. The latest funding round was raised on May 8, 2019, from a Series D funding round worth USD 750 million led by Bank of China Group Investment (中银集团). No public information has yet been disclosed over whether the company will proceed with an IPO or the date it will be listed in 2020.  MEGVII is the second-largest shareholder of the new joint venture firm, with a 25% shareholding, while E-Hualu is the largest shareholder, with 35% of company shares. Others shareholders include investment firm Liaocheng Antai Urban and Rural Investment and Development (聊城市安泰城乡投资开发有限责任公司) and Liaocheng Caixin Investment (聊城市财信投资有限公司), each holding 20% of Shandong Liaoyun IT shares.

Announcements
Oct 20, 2019 · Megvii
Announcements
Oct 20, 2019 · Megvii

Brain++ was awarded at the sixth World Internet Conference

Announcement: Click here
News EO
Oct 18, 2019
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News EO
Oct 18, 2019

China AI Unicorn Megvii Tech Goes Ahead With IPO plan

Rumors about Megvii (旷视科技) being set to be listed in Hong Kong have been widespread since the second quarter of 2019, with the company engaged in an attempt to raise more than USD 1 billion. This raised many questions among investors about the credibility of the company since it had been blacklisted by the US. However, Megvii is still actively trying to achieve its goal to go public this month.  The tech firm is one of eight Chinese tech companies included in the Commerce department’s ‘Entity List.’  Among them was one of the world’s most valuable AI startups, SenseTime Group (商汤科技).  The firms were targeted over alleged connections to human rights abuses. Halfway through 2019 Megvii had accumulated around CNY 5 billion in losses. However, despite such huge setbacks, the flourishing market of artificial intelligence backed by the Chinese government’s plan to lead the country to become one of the top leaders in the AI industry has given Megvii investors an optimistic view about the future development of the AI market. In order to become the market leader in the AI industry, the Chinese government has plans to invest more than USD 15 billion in the industry by the end of 2020 and USD 140 billion by 2030. More than 10 provinces have been localized with the AI development plan, and Beijing has become the center of China’s AI industry. So far, Megvii has raised more than USD 1.4 billion in funding, accounting for seven rounds in total, raising the company value to around USD 4 billion. The latest funding round was raised on May 8, 2019, from a Series D funding round worth USD 750 million led by Bank of China Group Investment (中银集团). The question has been raised regarding how the market will perform after the company goes public, and it has become the main issue of contention among investors. Low demand for company stakes is expected to inch the market, which will affect a possible decrease in share price after IPO.   An exclusive interview with Li Haoran, manager of Megvii's cloud services, led by EqualOcean analyst, Sylvia Liang, revealed some interesting facts about the company and how it works. Below is an extract from that interview. Q: You mentioned your financial client and we learned that MEGVII has more exposure in the financial industry relative to other players. Besides identification varication, what are the other applications that MEGVII provides to its financial clients? A: Our financial services clients are in banking, insurance, micro-financing, and P2P lending. Our thinking was that since our company specializes in computer vision, how can we use it to help financial institutions in more situations? In speaking with client companies, we found that some of them were hoping to include computer vision in their risk management arms. Right now, we are communicating with multiple clients to explore such applications. If you want to know more about the interview, please read here Since its foundation in 2011, Megvii has expanded its market globally and enhanced its confidence in the global market. The company has operations in Japan, Thailand, the Middle East, and Southeast Asia. In the event the company enters the Hong Kong Stock Exchange, it’s possible it will have a successful entrance, since the company is backed by big investors like Alibaba Group (BABA: NYSE), Foxconn Technology Group (2324: TPE) and recently Bank of China Group Investment, which means confidence in the market. After all, it’s hard to preview the post-IPO market performance based on the limited information provided by the market. One can only sit down and wait for the opportune moment to take the final decision: is it worth buying?

News EO
Aug 25, 2019
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News EO
Aug 25, 2019

MEGVII Files for IPO at Hong Kong Stock Exchange

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.

Analysis EO
Jul 18, 2019
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Analysis EO
Jul 18, 2019

Takeaways from Conversation With MEGVII

While there has been a lot of media hype about artificial intelligence (AI) in recent years, MEGVII is an early mover and a rare game-changer which has caught investors' attention. It recently closed its Series D funding round and raised USD 750 million from Bank of China, Industrial Commercial Bank of China, Abu Dhabi Investment and Macquarie Group. In our previous report, we noted that MEGVII has grown into China's computer vision unicorn with its globally recognized FaceID technology and it has been transforming city management, retail, logistics and many other sectors. This week, we held an exclusive interview with Li Haoran, manager of MEGVII's cloud services and spoke about MEGVII's moat and the future applications of computer vision. Key takeaways from the interview Q: From your perspective, what are MEGVII's competitive edges? How will it continue to differentiate itself going forward? A: We always have competitors in this space, but we believe the moats of our company eventually come down to two things. 1) We are an early mover in computer vision and AI commercialization. Our technology of identifying people with still postures is the first to launch in the world. 2) We are dedicated to being a vertical solution provider that solves real-world problems for our clients. When speaking to clients, we found it is not always so helpful to emphasize how cutting-edge our technology is, but rather pay more attention to their actual problems over the course of conducting their businesses. The more feedback we collect from our clients, the more advanced features we can update accordingly and the more competitive advantages we can establish compared to similar products in the market. For example, one of our clients is extending loans to consumers. When we followed up on our services, we heard that several of its customers stopped the registration process when they were required to shake their heads to confirm their identifications. The users felt that the verification process took too long even if the requirement was easy to fulfill. So we rolled out a new generation of facial recognition to capture users faces even when they keep their heads still. We aim to make the process as easy as possible while making sure the result is accurate. So far we have rolled out three versions of Face ID technology. From users manually uploading their pictures taken from different angles to users moving around their bodies in front of a camera, and finally to users standing still in front of a camera. The technology will identify their pictures automatically and verification is done within seconds. In today's rising customer acquisition costs, companies do not want to lose their prospective clients in the final step of customer identification verification. Q: You mentioned your financial client and we learned that MEGVII has more exposure in the financial industry relative to other players. Besides identification varication, what are the other applications that MEGVII provides to its financial clients? A: Our financial services clients are in banking, insurance, micro-financing and P2P lending. Our thinking is that since our company specializes in computer vision, how can we use it to help financial institutions in more situations? In speaking with client companies, we found that some of them were hoping to include computer vision in their risk management arms. Right now we are communicating with multiple clients to explore such application. Q: Can you cite examples of MEGVII's mature applications in sectors in addition to financial services? A: 70% of Android's apps have adopted MEGVII's FaceID technologies. For example, we are behind various commonly used social and dating apps. Adding identification features largely relieves users' concerns and allows them to build higher trust on the platforms. Furthermore, we have fully penetrated the domestic ride-hailing space. We help the car-hailing apps with driver verification, secure payments and secure money transfer. Uber has also approached us for similar applications. Q: Speaking about MEGVII's global expansion, we are wondering if companies in other geographic regions have more confidence in their domestic vendors? A: We have been preparing ourselves to go global for years. We have expanded to Japan, Thailand, the Middle East and Southeast Asia and our expansion has not materially been affected by the localization effects due to 1) Those countries are lagging behind in the computer vision AI technologies. 2) We do not own clients' data, so they are less concerned. Q: We think MEGVII is very strategic in choosing industry verticals. When first expanding to a new industry, how did the company overcome challenges? A: The process of zero to one is tough. When expanding to a new vertical initially, we do not have any clients. But once we obtain one, especially with those companies which have many complicated lines of businesses, we start to understand the industry and the real business needs. And then we become more effective in solving problems for clients. In the meanwhile, we have also built our brand awareness. For example, other companies who are interested in adding computer vision AI features to their companies will see China's well-known companies such as the top 4 smartphone manufacturers are on our platform. That's why companies selected Megvii even though our price is much higher than the industry average. Q: Now that you mentioned price, can you provide more colors on your pricing model? A: Most of our services are standardized. For our paid services, we use the pay-as-you-go structure so that developers pay for each individual call. For high-paying users, we also offer discounts. Even though our pricing appears to be higher other providers', it has not affected our customer retention rates. Compared to the high customer acquisition costs, the cost of facial recognition represents a relatively low portion of the overall spending of our clients. Recap of MEGVII's trajectory As early as 2011, Yin Qi was researching the topic of AI at Tsinghua University. He founded the company MEGVII with his two college friends, focusing on facial recognition. While the move was ahead of BAT and its three competitors (SenseTime, Yitu, and CloudWalk), the founding team was stuck with the next step on offering meaningful real-world applications, so they made their API public to see which companies might be interested in using this technology. Shortly after, many companies including Meitu, a photo editing app, and Jiayuan.com, a matchmaking agency, connected to the API, providing inputs to the MEGVII  founding team. A more crucial inflection point occurred in 2014, when Alibaba searched for a facial recognition provider and finally selected MEGVII to implement the "pay-with-your-face" feature in its Alipay product. Now, MEGVII is widely recognized internationally and has repeatedly defeated Google, Facebook, and Microsoft in the global AI competitions. The company changed its name to MEGVII which means mega vision, a dedicated act to transit from a technology platform to a vertical solution provider that reshapes traditional industries with AIoT (AI + IoT). MEGVII has selected three main sectors to commercialize its computer vision technology: personal IoT, city IoT and supply chain IoT.

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