Xiao-I Corporation Q4 FY2023 earnings call

• Launched Hua Zang Universal Large Language Model in July 2023, which drove growth in the MaaS business.
• Introduced the Hua Zang ecosystem in October 2023, collaborating with thousands of partners across over 50 industries.
• R&D team had 158 members (56.2% of workforce) as of March 31, 2024; filed 258 patent applications, 318 patent grants, and 137 software copyrights in 2023.
• Established two overseas subsidiaries in the US and the United Arab Emirates for globalization.
• Announced new products like OOTDiffusion and Diff Daily Investor Focus.

Total revenue for 2023 was $59.2 million, a year-on-year increase of 22.8%. The MaaS business grew by 48.5% to $19.2 million, contributing approximately 32.4% of total revenue. The non-MaaS business saw revenues increase by 13.4% to $40 million, accounting for around 67.6% of total revenue.

• Expect Hua Zang LLM to strengthen commercialization efforts.
• B2B operations projected to grow ~20% yearly.
• Expand into B2C market with new products.
• R&D investments to continue, with approximately 50% of revenue allocated to R&D.

• Actual events or results could differ materially due to risks and uncertainties mentioned in SEC filings.

Q: About OOTDiffusion commercialization and pricing model A: OOTDiffusion will be launched in May, with a subscription-based business model, and possibly one-off generative models in the future Q: About Diff Daily Investor Focus A: This product is first in the financial industry, launched in May, targeting retail investors to provide market information and support investment decisions Q: Future of large language models A: Focus on aligning with business needs for cost-effective and commercializable models; consumer applications of AI products are expanding Q: Client focus and strategies A: Focus on B2B by deepening with existing clients; for overseas, conduct market analysis and expand product lines; for B2C, introduce new products like OOTDiffusion Q: B2C and overseas strategy A: Overseas expansion with market analysis of global AI application scenarios; B2C with new products such as OOTDiffusion and Diff Daily Investor Focus Q: IMD investment and profit A: R&D investment remains at ~50% of revenue; expect 20% growth in B2B, aim to reduce losses in 2024 with expanded revenue and optimized operations