TMTPOST--Hong Kong-listed AI firm 4Paradigm recorded an adjusted net loss of 169 million yuan ($24 million), narrowing from a net loss margin of 12% last year to 9% this year, according to its unaudited consolidated financial results for the first half of fiscal year 2024 released on Thursday.

The company generated revenues of 1.867 billion yuan (US$ 260 million) in the first half of 2024, marking a 27.1% year-on-year increase. The company recorded a gross profit of 790 million yuan,  a 12.1% rise compared to the same period last year.

The company’s core business, the Sage AI Platform, contributed 1.251 billion yuan in revenue, a robust 65.4% increase year-on-year, accounting for 67% of the group’s total revenue.

During the reporting period, the company’s industry-specific large models achieved scaled applications across 14 sectors, driving the productization of AI technologies and creating a matrix-style AI product ecosystem.

In the first half of the year, 4Paradigm launched over 30 AI products, covering more than 20 industries with diverse application scenarios.

Dai Wenyuan, the chairman, founder, and CEO of 4Paradigm, highlighted the company’s strategy of "AI technology productization" by leveraging the capabilities of the Sage AI platform. The "Sage Inside" model facilitated the delivery of high-quality AI products, expanding the boundaries of AI applications and building an industry ecosystem.

Dai emphasized that the company’s focus on enhancing core competitiveness and scaling industry-specific large models is a crucial driver for the ongoing penetration of AI across various sectors.

Additionally, 4Paradigm has significantly increased its financial investments. In the first half of this year alone, the company held financial assets of 1.022 billion yuan, including non-listed shares and listed investments.

The company’s heavy reliance on financial investments introduces a degree of risk and raises questions about whether future profitability will be driven by AI technologies or financial returns. Despite these concerns, 4Paradigm remains poised for growth, with potential to achieve profitability in the coming years.