Sciyon Wisdom: Revenue Barely Grew, But Non-GAAP Profit Rose 30%

Wujie Aniu · Wujie Frontier

Third-quarter revenue was 374 million yuan, up 0.41% year on year; non-GAAP net profit was 97.06 million yuan, up 31.44% year on year. Revenue barely changed, but the company earned about 23.22 million yuan more.

Higher gross profit and lower selling expenses both helped Sciyon earn more. Of the two, the drop in selling expenses contributed more.

Third-quarter revenue and non-GAAP profit. Source: Sciyon Wisdom Q3 report

1. Where the extra profit came from

Based on the financial report data, third-quarter revenue rose by about 1.53 million yuan compared with the same period last year, while operating costs fell by about 4.91 million yuan, increasing gross profit by about 6.44 million yuan. The gross margin rose to 46.84%, up from 45.30% a year earlier.

Selling expenses fell even more noticeably. They were about 45.16 million yuan in last year's third quarter and about 28.89 million yuan this year, a decrease of 16.27 million yuan, or about 36%. Selling expenses as a share of revenue also fell from about 12.1% to 7.7%.

2. Industrial AI contributed more than half of first-half incremental gross profit

In the first half, Sciyon's industrial AI business revenue was 183 million yuan, up 34.12% year on year, accounting for 16.88% of the company's total revenue. The gross margin for industrial AI was 51.15%, up 8.4 percentage points from the same period last year and higher than the 39.37% for the industrial automation business.

Based on the half-year report data, the company's total gross profit across all businesses increased by about 61.61 million yuan, of which industrial AI contributed about 35.24 million yuan.

Industrial AI accounted for only about 17% of revenue, yet contributed 57.2% of first-half incremental gross profit.

Industrial AI operating costs rose 14.44%, lower than the 34.12% revenue increase.

Gross margins, revenue, and cost growth for industrial AI and industrial automation. Source: Sciyon Wisdom half-year report

3. After control systems are installed, how Sciyon sells more to existing customers

Sciyon sells control systems and other software and hardware to power plants and steel and chemical companies. Sensors collect data such as temperature and pressure, and the control system issues commands based on production requirements so equipment runs as needed. Industrial AI further analyzes production data to help power plants and factories detect hidden fault risks and adjust operating parameters.

Work from Creator Alliance, reviewed and approved.