In terms of news flow, Fourth Paradigm released its latest financial results, revealing that for the first three quarters of the year, the company generated revenues of HKD 3.218 billion, marking a robust year-on-year growth of 26.1%. The gross profit stood at HKD 1.35 billion, up by 12.5% compared to the same period last year.

Among the highlights of this report, the standout performer was the company’s Prophet AI platform, which generated revenues of HKD 2.171 billion during the reporting period, reflecting a dramatic growth of 50.2% year-on-year

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This segment now accounts for over two-thirds of the company’s total revenue, solidifying its status as the cornerstone of Fourth Paradigm's income.

The Prophet AI platform serves as the core of all Fourth Paradigm’s operationsThis platform, in turn, catalyzed the growth of AIGS services, which also reported revenue of HKD 359 million for the first three quarters, marking a 17.0% year-on-year increase and contributing 11.1% to total revenue.

In the first three quarters, Fourth Paradigm allocated HKD 1.373 billion to research and development, constituting 42.7% of its revenuesAlthough the company’s current profitability remains uncertain, it is encouraging to note that, despite an adjusted net loss of HKD 169 million in the first half of the year—a significant narrowing compared to prior levels—there's a reason for optimism regarding future earnings.

Currently, while many AI language models focus primarily on generating text, images, or videos, Fourth Paradigm has opted for a differentiated competitive strategy

They have chosen to specialize in the B2B decision-making AI market, with the Prophet AI platform designed specifically to enhance operational efficiency within enterprises, successively aiding businesses in cost reduction and increased productivity.

During the first three quarters of the year, Fourth Paradigm has developed over 40 artificial intelligence products through its Prophet Inside modelThese products include an intelligent mouse solution, smart conference solutions, and a three-dimensional scanning and modeling equipment for AI digital human video synthesis, all of which have found diverse applications across various business scenarios.

As of now, Fourth Paradigm boasts a total of 224 users, including 98 key clients, with an average revenue contribution of HKD 14.87 million from these leading customers.

In terms of commercial realization, Fourth Paradigm has collaborated with its benchmark clients to develop a suite of exemplary industry models, significantly accelerating the incorporation of AI technology into a myriad of sectors.

For example, in the transportation sector, the company partnered with the world’s largest port group to construct a port supply chain model aimed at transforming comprehensive service delivery capabilities

Additionally, in the academic translation sphere, Fourth Paradigm has collaborated with modern publishing entities to build China’s first specialized publishing model, achieving translation quality at an academic publication level.

Notably, there's been a surge of interest in the AI sector within global capital markets recently.

As of November 19, local time, the US stock market saw AI e-commerce advertising concept stock AppLovin reach a staggering cumulative increase of 706% for the year, sparking considerable excitement within the capital markets surrounding AI applications.

Moreover, recent quarterly reports from US stocks indicate robust growth rates among AI-driven companies such as Palantir, AppLovin, and Duolingo.

Since the introduction of ChatGPT, AI technology has catapulted into a rapid growth trajectory, evolving at an unprecedented pace