FOURTH PARADIGM ANNOUNCES 2024 ANNUAL RESULTS

HONG KONG, Apr 1, 2025 – (ACN Newswire) – A leading enterprise AI software company – Beijing Fourth Paradigm Technology Co., Ltd. (“Fourth Paradigm” or the “Company”, Stock Code: 6682.HK) today announced the consolidated annual results for the year ended December 31, 2024 (the “Reporting Period”).

In 2024, Fourth Paradigm achieved strong growth in its overall business. The Company’s total revenue reached RMB5,261 million, representing a YoY increase of 25.1%. Gross profit was RMB2,245 million, with a gross profit margin of 42.7%. The Company highly values technological R&D, and has clear profitability goals. During the Reporting Period, the R&D expenses reached RMB2,170 million, accounting for 41.2% of revenue. The annual loss attributable to the owners of the Company was RMB269 million, with a reduction of RMB640 million compared to the full year of 2023, narrowing by 70.4% YoY. This marks the fourth consecutive fiscal year of sequential loss reduction since 2021.

In 2024, Fourth Paradigm committed to creating value for customers, continuously enhancing digital transformation experience for existing customers and increasing user stickiness. During the Reporting Period, the number of lighthouse users served by the Company reached 161, a YoY increase of 16%. The average revenue per lighthouse user was RMB19 million, with a Net Dollar Expansion Rate (NDER) of 110% for lighthouse users in 2024.

Benefiting from the surge in AI market demand, the Company’s Sage AI Platform business achieved significant growth, driving steady performance improvement of core business. In March 2024, Fourth Paradigm launched Sage AI Platform 5.0, which integrates vertical world model development and management, enterprise AI agent application suites, GPU resource pooling and other end-to-end capabilities, supporting the large-scale production and application of vertical world models and enterprise AI agents, and continuously driving intelligent transformation and high-quality development across industries.

Core business revenue increased by 46.7%, with scaled expansion driving rapid business

As the core of the Fourth Paradigm’s all businesses, the 4Paradigm Sage AI Platform business achieved significant growth during the Reporting Period, with revenue reaching RMB3,676 million, representing a YoY increase of 46.7% and accounting for 69.9% of total revenue. Scale effects are deepening progressively.

In 2024, Fourth Paradigm remained committed to technological innovation, comprehensively enhancing the capabilities of Sage AI Platform. On the basis of end-to-end capabilities across the computing layer, platform layer, model layer, and application layer, Sage AI Platform continued to optimize key capabilities such as AI agent and GPU resource pooling. Among these, AI agent further enhanced its ability to solve complex problems and improve execution accuracy, and developed the enterprise AI agent development platform that covers the entire lifecycle of AI agent design, development, debugging, deployment, operational analysis, and iterative optimization. This empowers enterprise developers to efficiently and scalably build business AI agents with cognitive, decision-making, and execution capabilities – all on demand. As a result, development cycles have been reduced by over 95% in most cases. The GPU resource pooling capability enables enterprises to achieve platform-level management of hardware clusters, on-demand allocation of computing resources, and rapid scheduling, helping to address challenges such as low utilization of heterogeneous computing resources and high costs of adapting large models to computing power. According to the latest report from the internationally authoritative research firm IDC, Fourth Paradigm has maintained its position as the leader in China’s machine learning platform market share for six consecutive years.

While scaling its core business, Fourth Paradigm has also made steady progress in its two other major businesses – SHIFT Intelligent Solutions business and 4Paradigm AIGS service business, which provide strong support for the core business – Sage AI Platform, driving efficient growth across the overall business.

During the Reporting Period, revenue from SHIFT Intelligent Solutions totaled RMB1,022 million, comprising 19.4% of the total revenue. This business is built on the Sage AI Platform, tailored to different industry business scenarios. These solutions enable Fourth Paradigm’s technology and capabilities to penetrate a wider range of industries and scenarios, addressing critical business challenges for traditional enterprises and driving digital and intelligent transformation across industries. Due to the impact of the business expansion strategy, the revenue from this business decreased by 20.3% YoY while the revenue from Sage AI Platform business achieved 46.7% YoY growth.

In addition, the revenue from the 4Paradigm SageGPT AIGS Services business during the Reporting Period reached RMB563 million, accounting for 10.7% of the Company’s total revenue. This business provides efficient development tools and services based on generative AI for the Sage AI Platform business, enabling multi-fold increases in enterprise R&D productivity.

“AI agent + Vertical World Model” dual-core architecture builds the AGI foundation, enabling continuous expansion of the business ecosystem

In recent years, the continuous advancement of generative AI technologies has accelerated progress toward Artificial General Intelligence (AGI), a consensus widely recognized across the industry. As an enterprise with over a decade of experience in the AI sector, Fourth Paradigm is committed to empowering industries through its core philosophy of “AI agent + Vertical World Model”, which uses AI agents to understand human needs and leveraging corresponding vertical world models to solve problems, while continuously enhancing their respective capabilities – will ultimately drive the realization of AGI.

Over the past year, adhering to the philosophy of “AI agent + Vertical World Model”, Fourth Paradigm has collaborated with numerous industry partners and has successfully implemented hundreds of reliable and controllable enterprise-level AI agent applications, covering scenarios such as financial credit risk control, water and electricity equipment maintenance, hydrological data monitoring, chronic disease management, intelligent course learning, automotive manufacturing MES system management, fluid dynamics design, intelligent after-sales customer service and academic administration assistant, comprehensively driving the intelligent transformation for enterprises.

At the same time, Fourth Paradigm, in collaboration with partners, has released several out-of-the-box user-level agent solutions, such as intelligent meeting solutions, intelligent mouse solutions, and desktop AI search tools. These solutions cover AI agent capabilities such as simultaneous interpretation, one-click translation, robotic assistants, AI writing, and intelligent cross-platform search, helping enterprise business personnel achieve a leap in daily work efficiency.

In addition, since the advent of DeepSeek, the inference and deployment costs of large models have significantly decreased, catalyzing market demand across large model implementation, integrated solutions deployment, and on-device AI applications. Fourth Paradigm has rapidly iterated its technical capabilities and product adaptations to deliver high-value solutions addressing these market needs.

In terms of integrated solutions, Fourth Paradigm launched the out-of-the-box SageOne IA large model inference integrated solution, which enables seamless switching between the full-capacity model and multiple distilled models while supporting mainstream large models. This increases GPU utilization by over 30% and improves inference performance by an average of 5-10 times. Furthermore, SageOne IA comes with a rich suite of AI applications, helping developers efficiently create enterprise-level generative AI applications.

For on-device AI, Fourth Paradigm launched the ModelHub AIoT on-device inference solution. This solution allows users to easily deploy small-sized distilled models such as DeepSeek R1, Qwen 2.5, and Llama 2/3 series on on-device devices for offline operation. It also balances model compression and inference performance while addressing the complexities of deployment and optimization. In addition, the Company has further expanded these capabilities into the consumer electronics sector, delivering AI Agent solutions that integrate hardware and software. That empowers consumer electronics manufacturers to launch AI-enabled terminal products that resonate with their users.

In terms of Strategic Outlooks, Dr. Dai Wenyuan, Chairman of the Board, Executive Director, Chief Executive Officer and General Manager of Beijing Fourth Paradigm Technology Co., Ltd. said, “In recent years, generative AI has gained widespread recognition globally. As an AI technology service provider with over a decade of experience in the enterprise service sector, we have a deeper and more accurate understanding of how to organically integrate these rapidly evolving AI technologies to empower our enterprise clients, create tangible business value, and deliver practical efficiency improvements for both enterprises and individuals. This aligns with our ultimate vision that has always guided our business – AI for Everyone. Looking ahead, we will build on our decade-long expertise in the enterprise service sector, look toward the broader AI market, and leverage our AI capabilities to transform all possible business domains. We believe that the convergence of these diverse capabilities will form the cornerstone for achieving AGI.”

Topic: Press release summary

Source: Beijing Fourth Paradigm Technology Co., Ltd.

Sectors: Artificial Intel [AI]

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