Recently, Xuan Wu Cloud (2392.HK) held the first Investor Day at its headquarters in Guangzhou, and analysts and investors from Morgan Stanley, Essence International, Guangfa Fund and other institutions had an in-depth exchange with the company's management and business leaders, including Mr. Chen Yonghui, Chairman of the Board of Directors, Ms. Ge Ping, Chief Financial Officer and Company Secretary, and Dr. Xu Jiebin, Chief Scientist. During the event, Mr. Chen Yonghui elaborated the mid-to-long-term strategic development path of Xuan Wu Cloud, focusing on "AI+FMCG" as the second growth curve of the company and striving to become a leader in the FMCG industry, which provided investors a clearer understanding of the business value and development potential of Xuan Wu Cloud in the future.

Business and technology serve as two major engines to drive performance growth

At the beginning of the event, Mr. Chen Yonghui and the heads of each business department introduced the business overview, technology accumulation and core development strategy of Xuan Wu Cloud to the investors.

As the first domestic intelligent CRM stock, Xuan Wu Cloud has built an AI (artificial intelligence) platform, DI (data intelligence) platform, aPaaS (low code development platform), and cPaaS (cloud communication platform) as the technical base, while marketing cloud, sales cloud, customer service cloud constitute as the core SaaS application of intelligent CRM products and services. At the same time, the company focuses on four fast growing industries, namely FMCG, finance, government and enterprise, and TMT, and has a premium customer base of top clients. According to statistics, Xuan Wu Cloud has a market share of over 20% in the top 100 companies in the following industry segments.

Based on the current leading technology capacity, Xuan Wu Cloud further clarified the core strategy for future development. Mr. Chen Yonghui said that the company will implement the strategy and advance the business development with two major engines of business and technology, in order to consolidate its competitive edge as an intelligent CRM service provider.

Xuan Wu Cloud has been cultivating in the intelligent finance and intelligent FMCG industry for more than 10 years, and has accumulated a large number of key customer service experience and solutions. At the end of 2022, Xuan Wu Cloud also established an industry research institute to promote the industrial digital intelligence transformation and model innovation, aiming to become a trusted digital intelligence transformation partner (think tank) for customers. In a nutshell, Xuan Wu Cloud will maintain its leading business innovation and competitiveness, so as to truly empower its customers achieve high-quality digital intelligence transformation that adapt to their business scenarios.

In addition, the driving force of business innovation naturally comes from R&D innovation. According to the introduction, Xuan Wu Cloud's mid-to-long term technology R&D will be more focused on the company's AI and DI platforms, 5G messaging applications, and Artificial Intelligence and Internet of Things (“AIoT”) field, in particular the AI platform. Xuan Wu Cloud is the only domestic CRM service provider that has its self-developed full-stack AI technology, and has achieved a certain scale in the technical accumulation and terminal services. On this basis, Xuan Wu Cloud has accumulated more than a decade of vertical industrial experiences that will enhance the implementation of AI technology in consumer business scenarios. Consequently, its AI capabilities will be truly integrated into customers ‘business scenarios, in a way to achieve cost reduction, efficiency enhancement and performance growth.

Transition from quantitative to qualitative with clear focus on "AI + FMCG" as the second growth curve

Under the blueprint of the mid-to-long term core strategic plan, Xuan Wu Cloud has also defined "AI+FMCG" as the second growth curve of the company. In this regard, Mr. Chen Yonghui also made an in-depth interpretation on the scene: "First of all, the domestic consumer goods market has huge potential, with a large market demand of RMB44 trillion. But the consumer goods industry is relatively weak in digital intelligence, and the marketing chain is long and complex, so enterprises in general has tremendous market demand for digital intelligence that generates huge market space. Thus we can empower these enterprises through digital intelligence, reconstructing people, goods and fields and empowering consumer goods enterprises to transform through digital intelligence.

Secondly, Xuan Wu cloud in the past ten years, has been cultivating in the FMCG industry and possessing rich and successful industrial experience. Thus, the combination of these practical experiences and AI technology will enable our intelligent CRM products and services to empower customers a stronger digital transformation and probe an upgrade impetus, which AIGC in the field of FMCG application scenarios is a perfect example.”

For the realization of AI + FMCG into the company's second growth curve path, Mr. Chen Yonghui also demonstrated:

1, market share: cover more top 100 and small and medium sized customers, and improve the share in FMCG industry to more than 50%;

2, products: rely on the innovative three business models (co-cultivation among manufacturers, channel cultivation, and BC integration), and AIoT intelligent fridge is to improve terminal sales through AI, DI empowerment of FMCG business scenarios;

3, technology: develop innovative application scenarios of AIGC in the FMCG industry;

Among them, in regard of AI platform empowering FMCG business scenarios, according to the introduction of Dr. Xu Jiebin, Chief Scientist of Xuan Wu Cloud, “based on the accumulation of Xuan Wu Cloud AI technology and the company's experience in FMCG industry, Xuan Wu Cloud AIGC technology has rich application scenarios in the entire business process of FMCG.”Such as:

1, price tag recognition. Price tag semantic OCR recognition, accurate extraction of price information, price tag SKU association, etc.

2、AIGC wengshengtu method to complete 2D/3D image generation, can be used to generate marketing advertising, standard display map (standard placement of intelligent guidelines).

3、AIGC graphical generation of 2D images to complete the generation of 3D images, used for floor stacks and other display 3D modeling identification, to help brands detect display specifications, the implementation of cost implementation.

In terms of DI platform empowerment, according to Lu Chao, general manager of Xuan Wu Cloud Platform Innovation Center, “through authoritative platform big data collection and Xuan Wu Cloud's unique FMCG industry algorithm, Xuan Wu Cloud's DI capability will solve the pain points of brands in business expansion, improve the conversion rate of terminal intelligent store expansion, so as to achieve cost reduction and increase efficiency and improve terminal sales.”

At the same time, it is reported that the AIoT products of Xuan Wu Cloud have been carried out in cooperation with FMCG brands and other large customers, and is expected to achieve an explosive growth this year.

Regarding the expected results of the second growth curve of AI+FMCG, Mr. Chen said, we are committed to building our position as a leader in the FMCG industry, continuously enhancing our brand influence, extending our industry coverage horizontally, penetrating more small and medium-sized customers vertically, and continuously increasing the market share of our products and services in the FMCG industry, thus driving our performance to achieve solid growth