YITU was commissioned to build the national next-generation AI open innovation platform for visual computing, Pinduoduo and HUYA Inc. released their Q2 earnings...
More Gaorong Ventures innovation updates, all in the Rongbao newsletter.
About Rong Post: Rong Post will be published monthly, curating noteworthy news and insights from Gaorong Ventures and its portfolio companies.
Each issue shares just ten items — including key funding updates and milestones, but also new trends, innovations, and perspectives.
In line with Gaorong's vision of "creating a better life through innovation," we believe every step forward unlocks infinite possibilities.
AI · YITU Chosen to Build National Next-Generation AI Open Innovation Platform for Visual Computing, Pioneering a New Ecosystem Where Algorithms Meet Chips
On August 29, the 2019 World Artificial Intelligence Conference opened in Shanghai. On its first day, the Ministry of Science and Technology announced its latest batch of national next-generation AI open innovation platform designees, officially selecting YITU to build the "Visual Computing National Next-Generation Artificial Intelligence Open Innovation Platform" — a move aimed at accelerating the integration of China's chip design industry with artificial intelligence.
In May of this year, YITU unveiled QuestCore, the world's first cloud-based visual AI chip developed in-house. Built on globally leading AI algorithms, it was designed to boost intelligence density and represented YITU's successful execution of the trend toward tight coupling between AI algorithms and chip design.
Leveraging YITU's advanced chip design capabilities and world-class algorithms, the visual computing platform will build an open industrial platform and ecosystem, delivering visual capabilities through integrated chip-algorithm output. It will create plug-and-play hardware-software kits and foster a healthy ecosystem where developers of intelligent chips, algorithms, and products mutually reinforce and compete with one another.
At the industry level, the YITU visual computing platform will lower barriers to developing computer vision solutions across sectors by providing unified, open visual computing infrastructure. By sharing and reusing underlying compute modules, it will cultivate an ecosystem for upper-layer AI application development, expanding both the breadth and depth of real-world AI deployment.
Smart Hardware · NYSE: ZEPP Ships 100 Millionth Smart Device, Unveils Multiple New Wearables
In August 2019, NYSE: ZEPP surpassed 100 million smart devices shipped. On August 27, the company held its 2019 product launch event in Beijing, introducing several new wearables including the Amazfit Smart Sports Watch 3, Amazfit Smart Sports Watch 3 Elite Edition, Amazfit GTS, and Amazfit X — bringing the future of wearable devices one step closer.
The Amazfit X concept watch in particular blended fashion sensibility with futuristic science, demonstrating NYSE: ZEPP's deep technical expertise in wearables and its innovative vision for the category's future. The Amazfit X featured a retina-grade high-resolution flexible curved display that extended the watch's viewing area from the front of the wrist to both sides.
Robotics · XYZ Robotics Closes Series A to Empower Logistics and Industrial Automation
XYZ Robotics, a startup aiming to build the world's best hand-eye coordination technology, recently closed a nearly $8 million Series A round led by Gaorong Ventures and 5Y Capital. Angel round investors Sinovation Ventures, New Wheel Capital, and Aurora CTO Drew Bagnell also participated.
Founded in Boston in April 2018, XYZ Robotics' early core R&D team hailed from MIT, CMU, Northwestern, and other top institutions. The company's technical vision is "Pick anything. Place anywhere anyway." — giving robots the intelligence to see fast, pick effortlessly, and place dexterously.
Building on its technical foundation from the Amazon Robotics Challenge, the XYZ Robotics team has developed two core technologies with high competitive moats. The first is machine vision capable of handling tens of thousands of dynamically updated SKUs in warehouses, tightly integrated with robotic motion planning to solve the industry pain point of diverse, rapidly changing product assortments in e-commerce fulfillment. The second is robotic flexible gripper design — XYZ Robotics has developed the world's fastest (0.6 second) end-effector quick-change system, dramatically expanding the range of items the system can handle without sacrificing throughput, using the optimal end-effector for objects of varying sizes and packaging types.
In December 2018, XYZ Robotics launched the world's first automated put-wall workstation for mixed-SKU batch picking, deploying it at a leading domestic logistics company's Suzhou warehouse. The robotic picking efficiency reached 1.5x human levels, with no prior product information collection required.
AI · BOSS Zhipin and Peking University Collaboration Accepted to KDD Research Track
In August, the 2019 KDD conference — the highest-tier international meeting in data mining (ACM SIGKDD Conference on Knowledge Discovery and Data Mining) — was held in Alaska, USA. A collaborative paper between BOSS Zhipin's natural language processing team and Peking University was accepted to the conference's research track.
The paper posits that "recruiters and job seekers exhibit historical behavioral preferences during the hiring process," and that leveraging understanding of these "preferences" can effectively improve matching efficiency between candidates and employers. The BOSS Zhipin and Peking University team incorporated textual preference information from past job-seeking and recruiting interactions into their matching model, experimentally proving that their model (JRMPM) outperformed all existing approaches and substantially boosted matching efficiency.
KDD reviewers noted that globally, data mining techniques have primarily been applied to major domains like e-commerce and finance, making its application to human resources — an industry with public service characteristics — rare and refreshing, with significant innovative value. Since its inception in 1995, KDD has run for over twenty editions with an annual acceptance rate below 20%; this year's rate was 14%.
Decision Intelligence · Ke Yuan World's "StarCraft Commander" Achieves Major Breakthrough, Human-Machine Challenge Set for September
StarCraft II, a classic in real-time strategy gaming, has become an important platform for deep reinforcement learning and game-theoretic decision intelligence research due to its "real-time" and "strategy" characteristics. Since its founding in 2017, Ke Yuan World has been studying decision intelligence and developing agents based on StarCraft II, exploring the path toward AGI.
In 2019, Ke Yuan's StarCraft AI — "StarCraft Commander" (or "Xingzhi" for short) — achieved a major breakthrough. The agent can now compete against amateur skilled players across full games, demonstrating intelligent behaviors from macro to micro strategy: adapting economic and technological development to local conditions, methodically arranging construction and layout, timing reconnaissance and attacks based on battlefield assessment, and commanding hundreds of units in coordinated combat.
"Xingzhi" will make its official Beijing debut this September, beginning challenges against professional players. Ke Yuan World will host a series of offline competitions and livestreams, inviting StarCraft enthusiasts to face off against the AI in person. (Click here to register via Ke Yuan's original post)
Previously, Ke Yuan World released a human-AI collaborative competition based on StarCraft during the 2018 Peking University ACM ICPC Finals in May, demonstrated a self-learning tactical commander at the Canadian AIIDE Strategy Games Workshop in November, and won the Learning track at the NeurIPS Multi-Agent Competition in December.
AI · Tigerobo Releases Financial Information Robot "Tigerobo Personal Assistant"
During the 2019 World Artificial Intelligence Conference, Tigerobo officially launched its intelligent Q&A robot "Tigerobo Personal Assistant" — the industry's first automatic question-answering robot focused on financial information and data, covering full-scenario financial data including global markets, macro industries, company research, and market indices. The product received an innovation achievement certificate from the conference organizers for its innovation and creativity.
Tigerobo founder and CEO Chen Ye noted that AI fundamentals depend on natural language processing and computer vision, while 5G offers high bandwidth, low latency, and massive connectivity. When 5G empowers AI, it can significantly expand existing AI application boundaries and create more growth opportunities for the industry.
Additionally, Tigerobo VP and head of algorithms Zhao Junbo was named a "Young AI Scientist" and joined the Youth AI Scientists Alliance, established under the guidance of the Shanghai Municipal Commission of Economy and Informatization. The alliance invited 15 young scientists globally who have achieved the most in frontier technology exploration this year, dedicated to advancing AI research and development worldwide.
Cloud Computing · Alauda Releases Cloud-Native White Paper
Alauda recently released its "Cloud Native Technology and Solutions White Paper." The paper comprises three main sections: cloud native technology and solutions, cloud native transformation journeys of key traditional industries, and cloud native standards development.
The white paper outlines cloud native concepts and their relationship to enterprise digital transformation amid the current digital wave; then explains cloud native implementation cases from leading customers in financial services, energy, government-enterprise, and industrial internet sectors; and finally covers progress in cloud native standards development and the solutions Alauda has contributed. It presents a comprehensive picture of current domestic cloud native technology and practice for industry participants and practitioners.
Going forward, Alauda aims to help traditional enterprises accelerate innovation and succeed in digital transformation through cloud native technology, committed to becoming the most trusted cloud native technology partner in digital transformation.
Sharing · Gaorong Ventures' Gao Xiang on New Trends in Industrial Finance
On August 23, Gaorong Ventures founding partner Gao Xiang spoke at the Alibaba Cloud Chuang Summit Liaocheng station on "New Trends in Industrial Finance Development." Gao noted that venture capital today increasingly emphasizes opportunities tied to industries. China's VC industry initially found opportunities in IM, search, and portals — all closely linked to consumers, information, and connectivity. Subsequent opportunities came from e-commerce, O2O, and then B2B and cloud — the former tied to consumers, transactions, and operations, the latter to enterprises, information, and connectivity. Going forward, more opportunities will emerge around enterprises, transactions, and operations, meaning industry-related opportunities will proliferate.
Helping platforms build ecosystems is at the core of industrial finance. The industrial internet ecosystem enabled by cloud, and the IoT ecosystem enabled by 5G, both represent massive ecosystem opportunities where more models and outstanding companies will emerge.
Meanwhile, Gao believes the convergence of technology and industry demands greater capital allocation capabilities, requiring the connection of strong industries, government, platforms, and talent.
Rong Hui · How Companies Can Excel at Overseas Communications and Financial PR
On August 2, Gaorong Ventures' innovation community "Rong Hui" hosted a salon on overseas communications and financial PR. Rong Hui invited FT Chinese publisher Zhang Yan, Caixin World Insider CEO An Ti, Futu Consulting founding partner Philip Lisio, NYSE: ZEPP VP Wang Yichao, IPO Zao Zhi Dao founder Bao Jianguang, and other guests for thematic discussions and practical sharing with Gaorong portfolio companies.
The innovation community "Rong Hui" is dedicated to providing entrepreneurs with top-tier industry knowledge and insights, and offering portfolio companies resource connections and strategic support. Previously, Rong Hui has organized multiple salons covering corporate strategy, capital operations, management, human resources, marketing, financial management, brand PR, equity incentives, and user growth.
Public Companies · Pinduoduo, HUYA Inc., Gaotu Techedu, NYSE: ZEPP Report Q2 Earnings
In August, several Gaorong Ventures portfolio companies reported Q2 2019 earnings.
Pinduoduo (NASDAQ: PDD) reported 76.3 million monthly active user additions in Q2 2019, up 26% quarter-over-quarter to 366 million. As of June 30, 2019, annual active buyers reached 483.2 million, with 39.9 million added in the quarter, up 41% year-over-year. GMV for the twelve months ended June 30, 2019 reached RMB 709.1 billion, up 171% year-over-year. Q2 revenue was RMB 7.29 billion, up 169% year-over-year, substantially exceeding market expectations of RMB 6.11 billion.
HUYA Inc. (NYSE: HUYA) reported Q2 2019 revenue up 93.6% year-over-year to RMB 2.0105 billion (approximately $292.9 million). Under non-GAAP standards, net profit attributable to HUYA was RMB 170.4 million (approximately $24.8 million), up 61.7% to a new high, marking seven consecutive profitable quarters. User-wise, average MAUs and mobile MAUs in Q2 were 143.9 million and 55.9 million respectively, up 57.3% and 31.1% year-over-year.
Gaotu Techedu (NYSE: GSX) released its first earnings report since its June 6 IPO. Q2 2019 revenue was RMB 353.7 million, up 413.4% from RMB 68.9 million in the prior year period. Net profit was RMB 16.4 million; gross profit was RMB 252.5 million, up 496.7% from RMB 42.32 million; gross margin improved from 61.4% to 71.4%.
NYSE: ZEPP reported Q2 2019 revenue of RMB 1.0387 billion (approximately $151.3 million), up 36.6% year-over-year. Smart wearable device shipments reached 8.3 million units, up 53.7% from 5.4 million in Q2 2018 — a notable acceleration from Q1.
