Remark Holdings Inc (MARK) 2023 Q2 法說會逐字稿

Good day, and welcome to the Remark Holdings Fiscal Second Quarter 2023 Financial Results Earnings Call. (Operator Instructions) Please note that this event is being recorded. Now I'd like to turn the call over to Ms. Fay Tian, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Remark Holdings 2023 財年第二季度財務業績收益電話會議。 （操作員說明）請注意，該事件正在被記錄。現在我想把電話轉給投資者關係部田菲女士。請繼續。

Thank you, Nick. Good afternoon, everyone, and welcome to Remark Holdings' Second Quarter Fiscal 2023 Financial Results Conference Call. I am Fay Tian, Vice President of Investor Relations for Remark. On the call with me this afternoon is Kai-Shing Tao, Remark's Chairman and Chief Executive Officer; and Mr. Todd Brown, Vice President of Finance. In just a moment, Mr. Tao will provide an update on our businesses and Mr. Brown will recap our second quarter 2023 fiscal results.

謝謝你，尼克。大家下午好，歡迎參加 Remark Holdings 2023 財年第二季度財務業績電話會議。我是投資者關係副總裁田飛，請發言。今天下午與我通話的是 Remark 董事長兼首席執行官陶開成。以及財務副總裁 Todd Brown 先生。稍後，陶先生將介紹我們業務的最新情況，布朗先生將回顧我們 2023 年第二季度的財務業績。

Following these remarks, we will open the call to questions. But before I turn the call over to Mr. Tao, I would like to take this opportunity to remind you that some of the statements made today may be forward-looking statements. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

在這些發言之後，我們將開始提問。但在我把電話轉給陶先生之前，我想藉此機會提醒您，今天發表的一些陳述可能是前瞻性陳述。這些陳述涉及風險、不確定性和其他因素，可能導致實際結果與這些前瞻性陳述明示或暗示的結果存在重大差異。

Any forward-looking statements reflect Remark Holdings' current views, and Remark Holdings expressly disclaims any obligation to update or revise any forward-looking statements after this date hereof. This disclaimer is only a summary of Remark Holdings' statutory forward-looking statements disclaimer, which is included in full in its filings with the SEC.

任何前瞻性陳述均反映 Remark Holdings 目前的觀點，並且 Remark Holdings 明確表示不承擔在此日期之後更新或修改任何前瞻性陳述的義務。本免責聲明只是 Remark Holdings 法定前瞻性聲明免責聲明的摘要，該免責聲明完整包含在其向 SEC 提交的文件中。

I will now turn the call over to Remark's Chairman and Chief Executive Officer, Mr. Tao, so he can provide additional information on Remark's businesses and recent developments.

現在我將把電話轉給 Remark 董事長兼首席執行官陶先生，以便他提供有關 Remark 業務和近期發展的更多信息。

Please go ahead, Shing.

請繼續吧，盛。

Thank you for taking the time to listen to our Q2 update, and we're excited to share what lies ahead of us. But first, a recap of Q2, which was revenue that was strongly driven by our business in China by the current economic and political headwinds that China is facing.

感謝您花時間收聽我們的第二季度更新，我們很高興與您分享我們即將面臨的挑戰。但首先，回顧一下第二季度的情況，由於中國當前面臨的經濟和政治逆風，我們在中國的業務有力地推動了收入的增長。

First, the construction sector. In Q2 2023, we've completed 25 Remark AI construction product deployments, which contributed over $2 million. The deployments are for smart construction platform, which includes worker check-in and checkout, worker PPE monitoring, worker safety enforcement, hazard zone intrusion prevention, fire and smoke alerts, environmental protection monitoring. We continue to develop construction SOP and autonomous operation-related AI algorithms and applications, which will include autonomous crane operation system and autonomous cement mixing system.

一是建築業。 2023 年第二季度，我們完成了 25 個 Remark AI 建築產品部署，貢獻了超過 200 萬美元。這些部署用於智能施工平台，包括工人簽入和簽出、工人個人防護裝備監控、工人安全執法、危險區域入侵預防、火災和煙霧警報、環境保護監控。我們繼續開發施工SOP和自主操作相關的人工智能算法和應用，其中將包括自主起重機操作系統和自主水泥攪拌系統。

Two, school sector. In Q2 '23, we continue our Remark AI school product development and deployment. We've added 43 schools in our customer base in Q2, which makes our AI school products to serve over 700 schools and 1.5 million students. Our school safety, food safety and AI energy controlling system, along with new products released in Q2, which include eye protection and restroom environment monitoring system are making us a unique AI product provider in the school education market.

二、學校部門。 23 年第二季度，我們繼續 Remark AI school 產品的開發和部署。第二季度我們的客戶群新增了 43 所學校，這使得我們的 AI 學校產品可以服務超過 700 所學校和 150 萬學生。我們的學校安全、食品安全和人工智能能源控制系統，以及第二季度發布的護眼、衛生間環境監測系統等新產品，使我們成為學校教育市場上獨一無二的人工智能產品提供商。

We are now expanding our footprint into 2 new provinces in China and into the city of (inaudible), which is 1 of the 4 principal municipalities of China. To date, our systems cover less than 1% of the total of 400,000 campuses in China. Three, our community. We completed the entire deployment of our smart community projects, over 1,800 communities deployed in which we do that in conjunction with China Mobile for Phase I. We are in the process of negotiating additional Smart Community project Phase 2, which will cover an additional 3,000 residential communities and over 5 million residents. Phase 2 is expected to start in Q3, Q4 of this year.

我們現在正在將業務擴展到中國的 2 個新省份以及中國 4 個主要直轄市之一的（聽不清）市。迄今為止，我們的系統覆蓋中國40萬個校園的不到1%。三、我們的社區。我們完成了智慧社區項目的全部部署，一期項目已部署超過 1,800 個社區。我們正在洽談額外的智慧社區項目二期項目，該項目將覆蓋另外 3,000 個住宅區社區和超過 500 萬居民。第二階段預計於今年第三、第四季度啟動。

Four, Airline sector. As we mentioned before in our calls, Remark AI has introduced the first AI aviation platform in the industry. We are currently in the final bidding process for 3 of the airline AI projects after delay due to COVID from 2022. The projects include airport safety system, engine inspection system and airplane collision prevention system. To remind you of the use cases here, typically, it takes 1 hour plus for 10 workers to inspect the engine to make sure there are no burns or cracks in the blade. With our computer vision AI, we are now able to do this inspection in under 10 minutes and with only 1 inspector.

四、航空板塊。正如我們之前在電話會議中提到的，Remark AI推出了業內第一個AI航空平台。由於新冠疫情從 2022 年開始推遲，目前我們正處於 3 個航空公司人工智能項目的最終招標過程中。這些項目包括機場安全系統、發動機檢查系統和飛機防撞系統。提醒您這裡的用例，通常需要 10 名工人花費 1 個多小時來檢查發動機，以確保葉片沒有燒傷或裂紋。借助我們的計算機視覺 AI，我們現在只需 1 名檢查員即可在 10 分鐘內完成此檢查。

And lastly, in the retail sector, we are currently working with 1 of the largest ice cream and pizza chains in China and have deployed our AI smart retail products to over 600 stores. The products include staff, check-in and checkout and performance analysis, food processing, safety, theft prevention, store food material waste management, product presentation and placement, and loss of sales prevention, replenishment management and et cetera.

最後，在零售領域，我們目前正在與中國最大的冰淇淋和披薩連鎖店之一合作，並將我們的人工智能智能零售產品部署到600多家商店。產品包括員工、簽入和結賬及績效分析、食品加工、安全、防盜、店內食材浪費管理、產品展示和擺放、銷售損失預防、補貨管理等。

We are expecting an additional 600 more chain stores to be online by the end of Q1 '24. Going beyond China. During the last 2 conference calls, we have shared with you the large total addressable markets, otherwise known as TAM, Remark Holdings is seeking to capture. To recap, there are currently approximately 100 million cameras in the United States and another 200 million globally, excluding Greater China.

我們預計到 24 年第一季度末將有 600 多家連鎖店上線。超越中國。在過去的兩次電話會議中，我們與您分享了 Remark Holdings 正在尋求佔領的大型總體潛在市場，也稱為 TAM。回顧一下，目前美國大約有 1 億台攝像機，全球（不包括大中華區）還有 2 億台。

Our mission is to utilize our award-winning AI power technology to bring intelligence to the 300 million sum cameras that are in the marketplace outside China, providing detailed analytics such as identity recognition, large density people counting, loitering object detection, weapons detection through our SSP, otherwise known as our Smart Safety platform that is camera and platform-agnostic. Modeling $100 per month analytic fee per video stream or $1,200 annually. That reflects an annual total addressable market of $3.6 billion in recurring revenue globally, excluding Greater China.

我們的使命是利用我們屢獲殊榮的人工智能技術，為中國以外市場上的 3 億台攝像機提供智能，通過我們的技術提供身份識別、大密度人數統計、徘徊物體檢測、武器檢測等詳細分析。 SSP，也稱為我們的智能安全平台，與攝像頭和平台無關。每個視頻流的建模分析費每月 100 美元，或每年 1,200 美元。這反映了全球（不包括大中華區）每年可尋址市場的經常性收入總額為 36 億美元。

With such a large TAM, how are we going to capture this market opportunity. We have been in discussions actively with sales and marketing partnerships with technology market share leaders that have wide distribution and a vested interest in participating in the rapid growth in the implementation of AI technology. It's not a secret that the competition is very intense for market share out there, and these large companies want to fund the best partners to help them rapidly advance their AI business.

這麼大的TAM，我們如何抓住這個市場機會。我們一直在與技術市場份額領先者積極討論銷售和營銷合作夥伴關係，這些領先者擁有廣泛的分佈，並且有參與人工智能技術實施快速增長的既得利益。眾所周知，市場份額的競爭非常激烈，這些大公司希望資助最好的合作夥伴，幫助他們快速推進人工智能業務。

While Remark AI's platform is broadening its capabilities, what we have uniquely distinct ourselves is in the specific AI area of computer vision. Our focus is on making industrial applications run more efficiently as that is a large-scale business that is moving rapidly too and is what customers are paying for now. As we deepen our relationships and partnerships, it is very clear that we are 1 of the leaders in this area, and we are well positioned to further our lead in this race.

雖然 Remark AI 的平台正在擴展其功能，但我們獨特的優勢在於計算機視覺的特定 AI 領域。我們的重點是使工業應用程序更有效地運行，因為這是一項發展迅速的大型業務，也是客戶現在正在付費的。隨著我們加深關係和夥伴關係，很明顯我們是這一領域的領導者之一，並且我們有能力進一步在這場競賽中保持領先地位。

We also recently announced our partnership in working with global leaders with both NVIDIA and Intel. We have optimized our AI computer technology with each respective company's latest chip, which now allows us to jointly market our computer vision technology to their customer bases, utilizing their 5,000-plus sales force who are trained to help sell our Smart Safety Platform. The collaboration with Intel does not stop within the U.S. as we are actively partnering to deliver the SSP to their Latin American customers that complement our existing system integrator relationships.

我們最近還宣布與 NVIDIA 和 Intel 等全球領先企業建立合作夥伴關係。我們利用各自公司的最新芯片優化了我們的人工智能計算機技術，現在我們可以利用他們的5,000 多名接受過培訓來幫助銷售我們的智能安全平台的銷售人員，共同向他們的客戶群推銷我們的計算機視覺技術。與英特爾的合作並不僅限於美國，我們正在積極合作，向他們的拉丁美洲客戶提供 SSP，以補充我們現有的系統集成商關係。

With Intel, we will be initially working with them in retail and quick service restaurant space with both understanding how their customers shop and eat on the front end and then working with their food and customer safety and security on the back end. This is exciting for us as we first worked with Intel a couple of years ago in launching a kitchen safety platform in China and have now jointly upgraded offering globally.

與英特爾合作，我們首先將在零售和快餐店領域與他們合作，了解他們的客戶如何在前端購物和就餐，然後在後端處理他們的食品和客戶安全問題。這對我們來說是令人興奮的，因為我們幾年前首次與英特爾合作在中國推出了廚房安全平台，現在又在全球範圍內聯合升級了產品。

Each group will be initially focused on different areas. Some may overlap, but in general, it's a divide and conquer strategy. Our partnership with NVIDIA through its metropolis ecosystem was recently acknowledged by NVIDIA program manager, David Gregory, who recognize our team's successful working relationship in establishing a strong foothold in the smart city space. This includes traffic control and providing meaningful analytics and data insights to cities, stadiums, and major events.

每個小組最初將專注於不同的領域。有些可能會重疊，但總的來說，這是一種分而治之的策略。我們通過大都市生態系統與 NVIDIA 建立的合作夥伴關係最近得到了 NVIDIA 項目經理 David Gregory 的認可，他認可我們團隊在智慧城市領域建立牢固立足點的成功工作關係。這包括交通控制以及為城市、體育場館和重大活動提供有意義的分析和數據洞察。

We are now also working with the largest global software company and the largest EV manufacturer in the world to train their product and salespeople on Remark's Smart Safety Platform and how they can help their end customers enjoy an immediate return on investment by providing real-time analytical data that helps to understand their customer preferences as well as augmenting their security teams monitoring capabilities with AI tools to prevent disruptive incidents.

我們現在還與全球最大的軟件公司和世界上最大的電動汽車製造商合作，對他們的產品和銷售人員進行 Remark 智能安全平台的培訓，以及他們如何通過提供實時分析來幫助最終客戶立即獲得投資回報這些數據有助於了解客戶偏好，並利用人工智能工具增強安全團隊的監控能力，以防止破壞性事件。

This operating leverage gained from our partner's existing distribution channels changes the playing field and allows us to scale quickly. During the quarter, we announced a partnership with 1 of the best companies in the people counting space called WaitTime. We expect to share sales resources with them as they have very established sales channels with Cisco and Intel has made a strong entry here in the U.S., selling their people counting products.

從我們合作夥伴現有的分銷渠道中獲得的這種運營槓桿改變了競爭環境，並使我們能夠快速擴大規模。在本季度，我們宣布與人數統計領域最好的公司之一（名為 WaitTime）建立合作夥伴關係。我們希望與他們共享銷售資源，因為他們與思科建立了非常成熟的銷售渠道，而英特爾已經在美國大舉進軍，銷售他們的人數統計產品。

Our strategy is to piggyback our sales team and relationships to help expand their offerings to their customers. As you know, once we win this, many similar opportunities will present themselves after we win. As a point of reference, these deals are all 7-figure opportunities with a combination of both hardware and software, which ultimately means high-margin business for Remark AI. To provide another example, previously, we've disclosed our relationship with the Barclays arena, where we are integrating our AI analytics with their existing Genentech video management system to help provide area, arena security, monitor crowd density as well as extend coverage for the exterior square attached to the public transit station.

我們的策略是利用我們的銷售團隊和關係來幫助他們向客戶擴展產品。正如你所知，一旦我們贏得了這場胜利，許多類似的機會也會在我們獲勝後出現。作為參考，這些交易都是硬件和軟件結合的 7 位數機會，這最終意味著 Remark AI 的高利潤業務。再舉一個例子，之前，我們已經披露了我們與巴克萊競技場的關係，我們正在將我們的人工智能分析與他們現有的Genentech 視頻管理系統集成，以幫助提供區域、競技場安全、監控人群密度以及擴大對球場的覆蓋範圍。附屬於公共交通站的外部廣場。

Our software partner has direct relationships with 150 sports teams in the NBA, NFL, NHL, MLB, MLS as well as over 200 stadiums and arena, speeding up the sales conversations with decision-makers as we leverage our future placement in their platform marketplace as a preferred supplier we sell directly by their sales force. More importantly, the credibility from this partnership provides an indirect technology stamp of approval for most corporate IT departments, which are already running on their operating systems.

我們的軟件合作夥伴與NBA、NFL、NHL、MLB、MLS 的150 支運動隊以及200 多個體育場館和競技場建立了直接關係，加快了與決策者的銷售對話，因為我們利用我們未來在他們的平台市場中的地位我們通過其銷售人員直接銷售的首選供應商。更重要的是，這種合作夥伴關係的可信度為大多數已經在其操作系統上運行的企業 IT 部門提供了間接的技術認可印章。

Recently, we are in discussions with the world's largest EV manufacturer for them to bring EV transport buses and school buses to Nevada. Given Remark's extensive expertise in AI-powered video analytics and our proven track record of developing fast and effective innovative solutions, we are well positioned to have our suite of SSP products to outfit the EV bus to provide functions such as people counting, violence detection and driver monitoring. The federal government through the Federal Transit Administration, FTA will be funding Axis 2050, which is focused on improving the transportation system through the U.S., the #1 of the top 5 priorities of this plan is safety.

最近，我們正在與世界上最大的電動汽車製造商討論，讓他們將電動公交車和校車引入內華達州。鑑於 Remark 在人工智能視頻分析方面的豐富專業知識以及我們在開發快速有效的創新解決方案方面的良好記錄，我們完全有能力利用我們的 SSP 產品套件來裝備電動巴士，以提供人數統計、暴力檢測和駕駛員監控。聯邦政府將通過聯邦運輸管理局、FTA 為 Axis 2050 提供資金，該計劃的重點是改善經過美國的運輸系統，該計劃的 5 個優先事項中排名第一的是安全。

Safety is what Remark's products are built to provide as we have now shown through our deployments around the world. This includes here in Fremont Street Las Vegas to Brazil with the police departments and 2, the U.K. with border and traffic control. Our capabilities drive meaningful change, foster efficiency and contribute to the realization of Axis 2050's overarching mission solidifying our role as a front runner in the pursuit of the $3.74 billion that is allocated for improving safety from the Axis 2050 overall spend.

正如我們現在通過在世界各地的部署所展示的那樣，Remark 的產品旨在提供安全性。這包括拉斯維加斯弗里蒙特街到巴西的警察部門以及 2、英國的邊境和交通管制。我們的能力推動有意義的變革，提高效率，並為實現 Axis 2050 的總體使命做出貢獻，鞏固我們在追求 Axis 2050 總體支出中用於提高安全性的 37.4 億美元的領跑者角色。

As you may recall in our last earnings, I noted about the opportunity for us to work with 1 of the largest providers of school buses in the U.S. using our AI safety security technology. We're able to make progress in those discussions and with this opportunity in Nevada will only significantly enhance the opportunity. In addition, we are partnering with large global systems integrators with deep industry relationships who already sell and service the end market that we are seeking to capture. One example of this partnership is with [Intellicity], working with them to outfit the Rio de Janeiro police car fleet with mobile facial and license plate recognition capabilities as police officers patrol the city looking for wanted persons or vehicles.

您可能還記得在我們上一份財報中，我注意到我們有機會使用我們的人工智能安全技術與美國最大的校車供應商之一合作。我們能夠在這些討論中取得進展，在內華達州的這個機會只會大大增加這個機會。此外，我們還與具有深厚行業關係的大型全球系統集成商合作，他們已經為我們尋求佔領的終端市場提供銷售和服務。這種合作關係的一個例子是與 [Intellicity] 合作，與他們合作為里約熱內盧警車配備移動面部和車牌識別功能，以便警察在城市巡邏尋找通緝人員或車輛。

In a short period of time, we were able to customize our technology offerings for the Brazil market and subsequently win. While this is just the initial phase, it showcased our ability to move fast and make the requirements of our customers, and we're confident you will see many opportunities like this in Latin America in the second half of the year. One of the key advantages to Remark AI is the speed we are able to move in the versatility of our Remark AI platform. Recently, we are presented with a very small window of opportunity to present our platform to address the 911, 311 call center problems that cities around the U.S. are facing.

在很短的時間內，我們能夠為巴西市場定制我們的技術產品並隨後獲勝。雖然這只是初始階段，但它展示了我們快速行動並滿足客戶要求的能力，我們相信今年下半年您將在拉丁美洲看到許多這樣的機會。 Remark AI 的主要優勢之一是我們能夠快速實現 Remark AI 平台的多功能性。最近，我們有一個非常小的機會來展示我們的平台，以解決美國各地城市面臨的 911、311 呼叫中心問題。

Our competitors thought we would be unable to customize our AI, however, in the short time frame, we were able to do so. We built a platform that was unique and embrace the latest AI technology to help address the issues that city was facing. Many of you know the wait times for 311 or 911 are very long. A key reason for that is the lack of dispatches. Remark AI's 311 platform can simultaneously service 20 sessions in 40 different languages. With the average 311 session costing $3.50 per session and as high as $7 in some major cities, Remark AI's platform immediately delivers cost savings and a return on investments for its urban customers, while increasing the speed and breadth of services through a wider audience.

我們的競爭對手認為我們無法定制我們的人工智能，但是，在很短的時間內，我們能夠做到這一點。我們建立了一個獨特的平台，採用最新的人工智能技術來幫助解決城市面臨的問題。很多人都知道 311 或 911 的等待時間很長。造成這種情況的一個關鍵原因是缺乏派遣。 Remark AI的311平台可以同時為20個會話提供40種不同語言的服務。 311 會議的平均費用為每次 3.5 美元，在一些主要城市高達 7 美元，Remark AI 的平台可立即為其城市客戶節省成本並獲得投資回報，同時通過更廣泛的受眾提高服務的速度和廣度。

Our platform combines the best in generative AI and computer vision AI. When a caller dials 311, our AI agent will speak to them to help understand this situation. Simultaneously as they are speaking, our AI agent fills out the necessary paperwork to document this call. Lastly, if they say a picture is worth a thousand words, the caller would take a picture or video to showcase the situation and our computer vision AI would better understand and independently verify the nature of the call.

我們的平台結合了生成式人工智能和計算機視覺人工智能的最佳技術。當呼叫者撥打 311 時，我們的人工智能代理會與他們交談以幫助了解這種情況。在他們說話的同時，我們的人工智能代理填寫了必要的文件來記錄這次通話。最後，如果他們說一張圖片勝過一千個單詞，呼叫者會拍攝照片或視頻來展示情況，我們的計算機視覺人工智能將更好地理解並獨立驗證呼叫的性質。

This solution was unique and very well received by our listeners. We are confident that after we win this opportunity, similar opportunities will present itself not only in other cities, but any other -- in any business that deals with forms and paperwork, and obviously as well as anything to do with customer service, like airports and restaurants.

這個解決方案是獨一無二的，深受聽眾的歡迎。我們相信，在我們贏得這個機會後，類似的機會不僅會出現在其他城市，而且會出現在任何其他城市——任何涉及表格和文書工作的行業，顯然也包括與客戶服務有關的任何行業，例如機場和餐館。

On a final note, we would like to begin letting you know about the new market, which will be a Q3, Q4 story is Remark AI entering the Middle East, in particular with Saudi Arabia. As it appears this is a special opportunity to take part in the rapid transformation of the Saudi's economy and national infrastructure. Unless you've been hiding under a rock, Saudi is spending hundreds of billions of dollars to transform the economy into 1 that is not reliant solely on oil.

最後一點，我們想開始讓您了解新市場，這將是第三季度、第四季度的故事，即 Remark AI 進入中東，特別是沙特阿拉伯。看來，這是參與沙特經濟和國家基礎設施快速轉型的特殊機會。除非你一直躲在岩石下，否則沙特正在花費數千億美元將經濟轉變為不完全依賴石油的國家。

We have been approached by several groups that are involved in this transformation, who want our expertise in handling large-scale construction projects like in China and bring it back to the Kingdom of Saudi Arabia. We are very excited about the opportunity as it is unprecedented. And also, we are confident we are 1 of the very few that can provide such solutions.

參與這一轉型的多個團體已與我們接洽，他們希望我們擁有處理中國等大型建設項目的專業知識，並將其帶回沙特阿拉伯王國。我們對這個機會感到非常興奮，因為這是前所未有的。而且，我們相信我們是極少數能夠提供此類解決方案的公司之一。

These include managing a workforce that will grow from a current number of 50,000 workers to 400,000 workers by the end of the year, using AI and LiDAR jointly for construction planning or having construction run 24/7 autonomously and in the dark to save power. This is a once-in-a-lifetime opportunity for Remark, and we intend to open an office sometime in 2023 in Riyadh to handle these opportunities.

其中包括管理員工數量，到今年年底將從目前的 5 萬名工人增加到 40 萬名工人，聯合使用人工智能和激光雷達進行施工規劃，或者讓施工在黑暗中 24/7 自主運行以節省電力。這對 Remark 來說是千載難逢的機會，我們計劃於 2023 年的某個時候在利雅得開設辦事處來把握這些機會。

In conclusion, I'd like to emphasize that our business model is built upon annual multiyear recurring subscription revenue that provides a total turnkey AI-powered platform for our customers and partners. Our technology has been proven by our partners and clients to be robust and flexible at the same time. As we set a solid footing into the various markets we have mentioned, our continuous focus is on the mutual goals of positive cash flow generation and growth and believe that this quarter has set us on the trajectory to reach our goals by the end of the fiscal year.

總之，我想強調的是，我們的業務模式建立在年度多年經常性訂閱收入的基礎上，為我們的客戶和合作夥伴提供了一個全面的交鑰匙人工智能驅動平台。我們的技術已被我們的合作夥伴和客戶證明是強大且靈活的。當我們在我們提到的各個市場中奠定堅實的基礎時，我們持續關注正現金流產生和增長的共同目標，並相信本季度使我們走上了在本財年末實現目標的軌道。年。

All right. Thank you, Shing, and thank you to everybody for joining us on today's call. As we noted when we last spoke to you during the first quarter earnings call, we expected that our project completions in China would begin to accelerate in the second quarter and they have. Though China's former zero-COVID policy had been adversely affecting our business in China and such policies lingering effects as well as COVID infections continued during the first quarter of 2023, we were able to ramp up our work with vendors and customers during the 2023 second quarter to complete many more projects than we did in the first quarter of '23 and even more projects than we did in the 2022 second quarter.

好的。謝謝成，也感謝大家參加今天的電話會議。正如我們上次在第一季度財報電話會議期間與您交談時指出的那樣，我們預計我們在中國的項目完成情況將在第二季度開始加速，而且確實如此。儘管中國之前的零新冠政策對我們在中國的業務產生了不利影響，並且此類政策的揮之不去的影響以及新冠病毒感染在2023 年第一季度仍在繼續，但我們能夠在2023 年第二季度加強與供應商和客戶的合作完成比 23 年第一季度更多的項目，甚至比 2022 年第二季度更多的項目。

The increase in project completions led to revenue for the 2023 second quarter, totaling $3.2 million, reflecting a 24% increase from the $2.6 million earned during the same quarter in 2022. The revenue in Q2 is almost entirely related to our smart construction project, under which we were able to complete installations of 25 more sites and our smart campus solutions, which we were able to deploy yet an additional 43 educational campuses in China, bringing total installations to more than 700 campuses and helping to protect more than 1.5 million students.

項目完工量的增加導致 2023 年第二季度的收入總計 320 萬美元，比 2022 年同一季度的 260 萬美元增長了 24%。第二季度的收入幾乎完全與我們的智能建築項目有關，我們能夠完成另外25 個站點的安裝以及我們的智慧校園解決方案，我們能夠在中國另外部署43 個教育校園，使安裝總量達到700 多個校園，並幫助保護超過150 萬學生。

With revenue and cost of revenue increasing by about the same amount during the 2023 second quarter compared to the same period of 2022, gross profit remained essentially unchanged at approximately $0.7 million.

與 2022 年同期相比，2023 年第二季度的收入和收入成本增幅大致相同，毛利潤基本保持不變，約為 70 萬美元。

Our operating loss also remained essentially unchanged at $4 million. Though operating loss did not change, we did experience a $0.7 million decrease in general and administrative expense that resulted from a $0.5 million reduction in stock-based compensation and a $0.4 million decrease in business development expense. Those decreases in G&A expense were partially offset because we recorded a total of $0.4 million of asset impairments in the 2023 second quarter compared to having no impairments in the same quarter of 2022.

我們的營業虧損也基本保持在 400 萬美元不變。儘管營業虧損沒有變化，但我們的一般和管理費用確實減少了 70 萬美元，這是由於股票薪酬減少了 50 萬美元，業務開發費用減少了 40 萬美元。 G&A 費用的減少被部分抵消，因為我們在 2023 年第二季度記錄了總計 40 萬美元的資產減值，而 2022 年同一季度沒有減值。

Increases in sales and marketing expense and technology and development expense also partially offset the decrease in G&A. Net loss totaled $5.9 million or $0.42 per basic and diluted share in the 2023 second quarter compared to a net loss of $12.5 million or $1.19 per basic and diluted share in the same quarter of 2022.

銷售和營銷費用以及技術和開發費用的增加也部分抵消了一般管理費用的減少。 2023 年第二季度的淨虧損總計 590 萬美元，或每股基本股和稀釋股 0.42 美元，而 2022 年同一季度的淨虧損為 1,250 萬美元，即每股基本股和稀釋股 1.19 美元。

Since operating loss was unchanged, the decrease in net loss was primarily the result of the 2022 second quarter including $6.9 million of loss on an investment that did not recur in the 2023 second quarter. Also, a decrease in interest expense because significantly less debt principal was outstanding during the 2023 second quarter and during the same period of the prior year was offset by an increase in finance costs related to the obligations to issue our common stock that resulted from our transactions with Ionic Ventures LLC.

由於運營虧損沒有變化，淨虧損的減少主要是 2022 年第二季度的結果，其中包括 2023 年第二季度未發生的投資損失 690 萬美元。此外，由於2023 年第二季度和上一年同期未償債務本金顯著減少，利息支出有所減少，但由於我們的交易而導致發行普通股的義務相關的財務成本增加，抵消了利息支出的減少與 Ionic Ventures LLC 合作。

On April 12, 2023, we issued the second of 2 debentures to Ionic Ventures pursuant to the debenture purchase agreement that we and Ionic signed on March 14, 2023, and we received $1 million pursuant to such debenture. We also received an advance of $2 million during the 2023 second quarter pursuant to the equity line of credit with Ionic Ventures that was established in October of 2022. The convertible debentures we issued in March and April of 2023 plus the advance pursuant to the equity line of credit during the 2023 second quarter give rise to obligations to issue our common stock and, in turn, caused the increase in finance costs.

2023 年 4 月 12 日，根據我們與 Ionic Ventures 於 2023 年 3 月 14 日簽署的債券購買協議，我們向 Ionic Ventures 發行了 2 張債券中的第二張，並根據該債券獲得了 100 萬美元。根據2022 年10 月設立的Ionic Ventures 股本信貸額度，我們還在2023 年第二季度收到了200 萬美元的預付款。我們於2023 年3 月和4 月發行的可轉換債券加上根據股本額度的預付款2023 年第二季度的信貸增加導致我們有發行普通股的義務，進而導致財務成本增加。

As of June 30, 2023, we were obligated to issue an estimated 5,711,148 shares of our common stock to Ionic, representing an obligation with an estimated aggregate fair value of [5.6 million]. As of June 30, 2023, we still owed an aggregate total of $16.3 million to our lenders, an amount which currently must be repaid by October 31, 2023.

截至 2023 年 6 月 30 日，我們有義務向 Ionic 發行估計 5,711,148 股普通股，相當於估計總公允價值 [560 萬] 的義務。截至 2023 年 6 月 30 日，我們仍欠貸方總計 1,630 萬美元，目前必須在 2023 年 10 月 31 日之前償還該金額。

We continue to have ongoing conversations with our lenders regarding that outstanding debt and are confident that we will reach a positive solution that is beneficial to all stakeholders. Also as of June 30, 2023, our cash balance totaled $0.2 million compared to a cash balance of $0.1 million at December 31, 2022. Net cash used in operating activities was $5.2 million for the 6 months ended June 30, 2023, representing a 53% decrease compared to the $11.1 million we used in operating activities during the same period of 2022.

我們將繼續與貸方就未償債務進行持續對話，並相信我們將達成一個有利於所有利益相關者的積極解決方案。截至2023 年6 月30 日，我們的現金餘額總計為20 萬美元，而截至2022 年12 月31 日的現金餘額為10 萬美元。截至2023 年6 月30 日的6 個月，經營活動使用的現金淨額為520 萬美元，相當於53與 2022 年同期經營活動中使用的 1110 萬美元相比，減少了 %。

And with that, I will turn the call over to the operator to begin the question-and-answer portion of the call.

然後，我將把電話轉給接線員，開始電話的問答部分。

(Operator Instructions) The first question will be from Steve Wagner of Integrity Wealth Advisors.

（操作員說明）第一個問題將由 Integrity Wealth Advisors 的 Steve Wagner 提出。

I just -- we are hearing so much about AI -- and I've had some -- I read -- actually, I read a really good book on it called The Spatial Web. And I'm learning that there -- everyone's doing generative AI, but -- it seems like that's a commodity. Is that what you're doing? Is there any difference between what you're doing than what everybody else is doing in this regard with the computer vision and (inaudible)?

我只是——我們聽說了很多關於人工智能的事——而且我讀過一些——實際上，我讀了一本關於人工智能的非常好的書，叫做《空間網絡》。我了解到，每個人都在做生成人工智能，但是，這似乎是一種商品。你就是這麼做的嗎？在計算機視覺方面，您正在做的事情與其他人正在做的事情之間有什麼區別（聽不清）？

I would -- thanks, Steve. I think within AI and certainly generative AI with what we're seeing with ChatGPT has definitely garnered the attraction. Where we focus on is computer vision. We feel that's a much bigger market, that's where customers are paying. And I really believe the value that AI brings us in the industrial applications. So we've been -- we have our own large language model.

我會——謝謝，史蒂夫。我認為在人工智能領域，當然還有我們在 ChatGPT 上看到的生成式人工智能，肯定已經吸引了人們的注意力。我們關注的是計算機視覺。我們認為這是一個更大的市場，也是客戶付費的地方。我非常相信人工智能在工業應用中給我們帶來的價值。因此，我們擁有自己的大型語言模型。

We -- actually, that was what we -- one of our first ventures in AI, and I think those back in 2017, 2018. So we've actually been able to update our model and been able to use that with some of our customers. But as a stand-alone business, it's very difficult. It's very difficult to get customers to pay for it. And so that's why we had pivoted almost 6 or 7 years ago. And we're glad that we do that. You can see once ChatGPT had released their product, very quickly, there were a lot of other companies that introduced their language model. So the barriers to entry is not very high.

事實上，這就是我們在人工智能領域的第一批企業之一，我想那些早在2017 年、2018 年就已經完成了。所以我們實際上已經能夠更新我們的模型，並能夠將其與我們的一些模型一起使用。顧客。但作為一個獨立的企業，這是非常困難的。讓顧客付錢是非常困難的。這就是我們在六七年前進行轉型的原因。我們很高興我們這樣做了。你可以看到，一旦 ChatGPT 發布了他們的產品，很快就有很多其他公司推出了他們的語言模型。所以進入門檻並不是很高。

For what we do, we think the barriers to entry are very high because it's not just the -- it's not just coming up with the technology, but it's the ability to deploy it as well. The implementation is not so simple.

對於我們所做的事情，我們認為進入壁壘非常高，因為這不僅是技術的提出，而且是部署技術的能力。實施起來並不那麼簡單。

Sure. As you look across the spectrum of AI outside of the magnificent 7, it seems like there's been just a gigantic fair market sell-off in market valuations. I mean what are you seeing in private wise -- private valuations on AI? And what -- I mean, how would you measure where Remark should be given what you guys are doing and seem to be really enthusiastic over?

當然。當你縱觀 7 強之外的人工智能領域時，你會發現市場估值似乎出現了巨大的公平市場拋售。我的意思是，您在私人方面看到了什麼——對人工智能的私人估值？我的意思是，你們如何衡量你們正在做的事情以及似乎真正熱衷的事情應該在哪裡給予評論？

Yes. I mean it's obviously frustrating where our share price is and where our valuation is. But I think this is a -- this is not a sprint. It's certainly a long-distance race. And so yes, it's -- I think you see a lot of private companies right now that are raising monies with -- in the several hundred million dollar valuations with less than $2 million of revenue. I just don't think that's sustainable.

是的。我的意思是，我們的股價和估值顯然令人沮喪。但我認為這不是衝刺。這無疑是一場長距離比賽。所以，是的，我想你現在看到很多私營公司正在籌集資金，估值高達數億美元，但收入卻不足 200 萬美元。我只是認為這是不可持續的。

I feel that where there are companies that are incredibly overvalued in terms of their metrics where we obviously feel we're very undervalued. We have a technology that we built from the ground up. We've got a blue chip customers around the world, and we're generating real numbers without taking huge losses to get there. And we feel we're on track to breakeven this year, which I think will be the first for any AI company doing these kinds of numbers.

我覺得有些公司的指標被嚴重高估，而我們顯然覺得自己被嚴重低估。我們擁有一項從頭開始構建的技術。我們在世界各地擁有藍籌客戶，並且我們正在產生真實的數字，而無需承擔巨大的損失。我們覺得今年我們有望實現盈虧平衡，我認為這將是任何人工智能公司中首次實現此類數字。

So it is -- inevitably, it is a distraction when you read it in the press but when it comes down to actual execution, I like where we are -- what path we're going down.

所以，當你在媒體上讀到它時，不可避免地會分散注意力，但當涉及到實際執行時，我喜歡我們所處的位置——我們要走的路。

Okay. In terms of headcount, I mean where are you guys now that way? I mean -- and do you see -- obviously, as you get these contracts, there may be more of a need for capital? Or do you think that will be offset by upfront deposits or revenue. And I would like you to expand on that because I think 1 of the things we shareholders are kind of looking at is we understand that you've been hearing about the revenue. And obviously, it's great to see some money coming in from the China side of things. But like bringing on a domestic customer, is there any upfront revenue? How is that going to work?

好的。就員工人數而言，我的意思是你們現在在哪裡？我的意思是——你看到了嗎——顯然，當你獲得這些合同時，可能會更需要資金？或者您認為這會被預付存款或收入所抵消。我希望您能詳細闡述這一點，因為我認為我們股東關注的一件事是我們了解您一直在聽說有關收入的情況。顯然，很高興看到一些資金來自中國方面。但就像吸引國內客戶一樣，有預付費用嗎？這將如何運作？

Yes. I mean we don't do unpaid POCs, right? So that's -- it's not -- when we go through a proof-of-concept, they're paying customers. So I think we're kind of -- we certainly feel we're past that stage where we're doing things for free, right? So -- but as we expand, I think certainly with our partnerships that we mentioned with Intel and with NVIDIA and the software partners that will -- there won't be that unformed cost for, just say, additional salespeople because we'll be able to leverage upon their existing sales team.

是的。我的意思是我們不做無償的 POC，對嗎？所以，這不是——當我們進行概念驗證時，他們是付費客戶。所以我認為我們確實覺得我們已經過了免費做事的階段，對嗎？因此，隨著我們的擴張，我認為，通過我們提到的與英特爾、英偉達以及軟件合作夥伴的合作夥伴關係，額外的銷售人員不會產生未形成的成本，因為我們將能夠利用現有的銷售團隊。

As far as deployment, we will be covering as these opportunities are being presented, of course, we're working with local systems integrators, but a lot of times, we'll need our guys on the ground as well. So I could see certainly an expansion there. Certainly, the ability to handle so many different projects. I mean, I think we're uniquely positioned to do that. So we didn't -- we've been doing this for almost 10 years now.

就部署而言，我們將在出現這些機會時進行介紹，當然，我們正在與本地系統集成商合作，但很多時候，我們也需要我們的人員在現場。所以我可以肯定看到那裡的擴張。當然，處理這麼多不同項目的能力。我的意思是，我認為我們具有獨特的優勢來做到這一點。所以我們沒有——我們這樣做已經快十年了。

So we didn't do this spend all this time to just be a one-trick pony, right? So we had a vision 10 years ago to really build a comprehensive AI platform, and now we're seeing that. And these opportunities are presented to us that no one else is able to execute. They may claim they do it, but when it comes to execution, it's different. So yes, so obviously, we would have to staff appropriately for that. But obviously, with these partnerships, that upfront cost will come at a lot lower number than what it would have been if we're going to do everything ourselves.

所以我們花這麼多時間做這件事並不是為了成為一匹只會一招的小馬，對吧？因此，我們 10 年前就有一個願景，要真正構建一個全面的人工智能平台，現在我們已經看到了這一點。這些機會擺在我們面前，是其他人無法執行的。他們可能聲稱他們做到了，但當涉及到執行時，情況就不同了。所以，是的，很明顯，我們必須為此配備適當的人員。但顯然，通過這些合作夥伴關係，前期成本將比我們自己做所有事情的情況低得多。

Okay. So -- and again, I apologize. I was -- I came into the call literally 20 minutes late. So I missed a lot of it. So it sounds like these are partnerships, as you mentioned, I think, with Intel and NVIDIA that they will provide funding for. Is that -- am I hearing that correctly?

好的。所以——我再次道歉。我確實遲到了 20 分鐘才接到電話。所以我錯過了很多。因此，正如您所提到的，我認為這些是與英特爾和 NVIDIA 的合作夥伴關係，他們將為其提供資金。那是——我沒聽錯嗎？

No, you didn't hear that correctly. What they're providing is their sales team, right? So I think each company has their own marketing program where say, for example, if there is a potential customer that's a little bit hesitant on incurring the cost of a paid POC, that company will come in and provide $300,000, $400,000 that would pay us to execute that, right? So obviously, that's very -- that's -- that's exciting.

不，你沒有聽錯。他們提供的是他們的銷售團隊，對吧？所以我認為每家公司都有自己的營銷計劃，例如，如果有一個潛在客戶對支付付費 POC 的成本有點猶豫，那麼該公司就會介入並提供 30 萬、40 萬美元，這將支付給我們執行那個，對嗎？顯然，這非常令人興奮。

Even more exciting is the fact that now we can leverage they have over 5,000 kind of a sales force and being trained on how to sell the Remark's AI solutions obviously speeds everything up for us. We cover a lot of areas faster. I can get to the -- frankly, get to the key decision-makers great. So I think in any type of enterprise account, you have to hit the company from a bunch of different angles. And I think this just makes our pitch more compelling.

更令人興奮的是，現在我們可以利用他們 5,000 多名銷售人員，並接受有關如何銷售 Remark 人工智能解決方案的培訓，這顯然加快了我們的速度。我們更快地覆蓋了很多領域。坦率地說，我可以接觸到關鍵決策者。所以我認為在任何類型的企業帳戶中，你都必須從許多不同的角度來打擊公司。我認為這只會讓我們的宣傳更具吸引力。

Our next question will come from Ross (inaudible), [Silvan International].

我們的下一個問題將來自 [Silvan International] 的羅斯（聽不清）。

Yes. So a question I have for you is -- you look at a lot of companies in the AI space, you don't see a ton of execution. I look at Remark, and I see you've already won an initial $6 million agreement for -- with the Rio de Janeiro police cars. And then you've got a $1 trillion company in NVIDIA, who you've joined this metropolis ecosystem. I mean what's -- how are you so differentiated from these other, like what's differentiating you or what's your secret sauce as it relates to these opportunities? And what's making you stand out, I guess, is what my question is?

是的。所以我要問你的一個問題是——你觀察了人工智能領域的很多公司，你沒有看到大量的執行力。我查看了 Remark，發現您已經贏得了一份 600 萬美元的初始協議——與里約熱內盧警車。然後你就有了 NVIDIA 一家價值 1 萬億美元的公司，你已經加入了這個大都市生態系統。我的意思是，你與其他人有何不同，比如是什麼讓你與眾不同，或者你與這些機會相關的秘訣是什麼？我想是什麼讓你脫穎而出，我的問題是什麼？

Okay. So I think I'd answer that in 3 -- kind of the 3-part answer. The number 1 is we've been doing this for a long time, and we're not -- we didn't just start this AI company in the last 2 years and certainly over the last 6 months to capture the wave. So it took us 6 years to build the technology in just in the last 3 or 4 years to gain the experience on how to deploy it.

好的。所以我想我會用 3 部分來回答這個問題——類似於由 3 部分組成的答案。第一個是我們已經這樣做了很長時間，而且我們不是——我們不是在過去兩年、當然是在過去六個月才創辦這家人工智能公司來捕捉這股浪潮的。因此，我們花了 6 年的時間來構建該技術，僅在過去的 3 或 4 年內就獲得瞭如何部署它的經驗。

Each customer obviously has different requests and the actual expertise in putting up these cameras and the angles and the placements and all that takes time. And obviously, every type of vertical has their own intricacies. But I would say, taking a step back, the 2 most important part, which answers a bigger question, which is why are we able to go into these different industries, is really our core algorithm, right?

顯然，每個客戶在安裝這些攝像機、角度和位置方面都有不同的要求和實際專業知識，所有這些都需要時間。顯然，每種類型的垂直行業都有其複雜性。但我想說，退一步來說，最重要的兩個部分，它回答了一個更大的問題，這就是為什麼我們能夠進入這些不同的行業，這確實是我們的核心算法，對吧？

So the way that our algorithm is trained allows us to is number one, train any type of solution that we don't have under kind of our stable to do it in a very fast manner. So typically, it takes 9 to 10 months to train something new, we can do it under 1 month. And then the second part is you probably have heard about with these AI algorithms you need, it's all about the data sets and how much data you need.

因此，我們的算法訓練方式使我們能夠第一，訓練我們穩定的任何類型的解決方案，以非常快速的方式做到這一點。因此，通常情況下，訓練新東西需要 9 到 10 個月的時間，我們可以在 1 個月內完成。第二部分是你可能聽說過你需要的這些人工智能算法，這都是關於數據集和你需要多少數據的。

A key point to ours is that we don't need a lot of data to train our algorithms. We actually call that our few-shot training algorithm. And we'll post a white paper on it just to give further detail on it. But that allows us to train the algorithm much faster than anybody else and with a lot less data. And because many times, the solution pain point that you're looking to solve doesn't have the data sets to train it under.

我們的一個關鍵點是我們不需要大量數據來訓練我們的算法。我們實際上稱其為小樣本訓練算法。我們將發布一份白皮書來提供更多詳細信息。但這使我們能夠比其他任何人更快地訓練算法，並且使用更少的數據。因為很多時候，您想要解決的解決方案痛點沒有用於訓練它的數據集。

So I think those are the things that really differentiate ourselves from a preparation standpoint and then number two, from an execution standpoint. I hope that answers it.

所以我認為，從準備的角度來看，這些才是真正讓我們與眾不同的事情，而從執行的角度來看，這些才是真正讓我們與眾不同的事情。我希望這能回答這個問題。

(Operator Instructions) Next question will be from Brendan O'Neill, Ionic Ventures.

（操作員說明）下一個問題將由 Ionic Ventures 的 Brendan O'Neill 提出。

I have a couple of questions for you around kind of your interest in developing the non-China-based revenue streams. And kind of going back to kind of the earlier calls, April and May calls, you touched on a couple of things. I was wondering if you could give a further update on the yellow school bus program in partnership with Netwatch. I think at the time in April on the call, you had launched a pilot program and school starting up here, so I just wonder if you could update us on how that program is going.

關於您對開發非中國收入來源的興趣，我有幾個問題想問您。回到之前的電話會議，四月和五月的電話會議，您談到了一些事情。我想知道您是否可以提供有關與 Netwatch 合作的黃色校車計劃的進一步更新信息。我想在四月份的電話會議上，你們啟動了一項試點計劃，並在這裡開辦了學校，所以我想知道你們能否向我們介紹該計劃的最新進展情況。

Okay. Sure. That was what I kind of alluded to in our discussions with the trends in school buses. I would say the discussions are moving along. As you can imagine, this is covering a large school bus space. But the opportunity is right there in front of us. So we continue to customize our algorithms for their needs, and we hope to have something for you over the next couple of months as this is a big deal for everyone, right? Because we would be outfitting over 50,000 buses using our algorithms. But we think there will be something where you'll see in the future where, with Taiwan, what we were doing with them. Also with the large EV company we mentioned on our call and what they're doing in Nevada.

好的。當然。這就是我在討論校車趨勢時提到的。我想說的是，討論正在取得進展。正如您可以想像的那樣，這覆蓋了一個很大的校車空間。但機會就在我們面前。因此，我們繼續根據他們的需求定制我們的算法，我們希望在接下來的幾個月里為您提供一些東西，因為這對每個人來說都是一件大事，對吧？因為我們將使用我們的算法裝備超過 50,000 輛公交車。但我們認為，將來你會看到我們與台灣一起所做的事情。我們還在電話中提到了大型電動汽車公司以及他們在內華達州所做的事情。

Okay. And similar to other opportunities, I know on August 1, you announced your 311 product that you kind of alluded to on the May call of a various opportunity. Is that a product launch? Do you have a current customer? Or what would be your strategy to now getting municipalities and people to use this product?

好的。與其他機會類似，我知道您在 8 月 1 日宣布了 311 產品，您在 5 月的各種機會電話會議上提到了這一產品。這是產品發布會嗎？您現在有客戶嗎？或者，您現在讓市政當局和人們使用該產品的策略是什麼？

Yes. Right now, as you can imagine, when you do with municipalities is that you have to go through their technology governance board, which is always -- always a hurdle. We just passed one. And right now, we're waiting for the formal approval from the other one, from the other city (inaudible) right now, I'd say, close to the finish line for really on 2 major cities in the U.S. And it's a major problem. It's a very -- of very high urgency.

是的。現在，正如你可以想像的那樣，當你與市政當局合作時，你必須通過他們的技術治理委員會，這始終是一個障礙。我們剛剛通過了一個。現在，我們正在等待另一個城市（聽不清）的正式批准，我想說，現在已經接近美國兩個主要城市的終點線了。問題。這是非常非常緊急的事情。

We were doing 1 presentation just 3 weeks ago. And tragically, a mother was shot while the daughter was waiting on hold for a 911 call. So this is something and this is what we were presenting to the technology board. So this is obviously something of very high importance. But obviously, we have to jump through the hoops. But I say we're -- because of the urgency, we're moving faster than any other group is on this area. But it would be 1 major city on the West Coast and 1 major city on the East Coast that we're doing this.

就在三週前，我們剛剛做了 1 個演示。悲慘的是，一位母親在女兒等待 911 電話時被槍殺。這就是我們向技術委員會展示的內容。所以這顯然是非常重要的事情。但顯然，我們必須跨越困境。但我說，由於緊迫性，我們在這一領域的行動比任何其他組織都快。但我們正在做這件事的將是西海岸的 1 個主要城市和東海岸的 1 個主要城市。

Our next question will be from Andrew (inaudible), Breton Capital.

我們的下一個問題將來自 Breton Capital 的 Andrew（聽不清）。

I have a quick question. I know you mentioned the Neom, the -- the Saudi Arabian city of the future and all the investments they're making in AI. And so I'm wondering how you think you're able to compete there and what your competitive advantage is participating (inaudible) in the business? It seems like all the really big players are trying to get a stead in there.

我有一個快速的問題。我知道你提到了 Neom，沙特阿拉伯的未來城市以及他們在人工智能方面進行的所有投資。所以我想知道您認為您如何能夠在那裡競爭以及您參與（聽不清）該業務的競爭優勢是什麼？似乎所有真正的大玩家都在試圖在那裡佔據一席之地。

Yes. I mean it's not easy. I mean, a lot of these things were, for sure, the smallest company, that's probably participating there. But what we do have and what we keep on saying is our AI is unique. And very few companies have the experience in working on large-scale projects like we do. We've had over 5-plus years of working with the largest construction company in China working on their largest projects. So we can take that expertise and bring it to Neom, which is where similar-sized projects are now being designed and built.

是的。我的意思是這並不容易。我的意思是，其中很多肯定是參與其中的最小公司。但我們確實擁有並且一直在說的是我們的人工智能是獨一無二的。很少有公司像我們一樣擁有從事大型項目的經驗。我們與中國最大的建築公司合作了超過 5 年的時間，參與了他們最大的項目。因此，我們可以將這些專業知識帶到 Neom，這裡現在正在設計和建造類似規模的項目。

So I think we're uniquely qualified for that. And it's not just a qualification, it's that we -- there aren't many, if you were to look around, there -- there are AI companies in the construction industry that provide 1 or 2 features rather than a real full complete platform.

所以我認為我們有獨特的資格。這不僅僅是一個資格，而是我們——如果你環顧四周，你會發現，建築行業的人工智能公司並不多，它們提供一到兩個功能，而不是一個真正完整的平台。

So we're able to go in, provide 20 different solutions immediately. We don't have to wait 6 to 9 months to customize, but we can be up and running within 4 to 6 weeks. And everything you realize as you spend more time in Saudi is that they want to move fast. They don't want to wait. The capital is not an issue. The issues are you able to deliver and execute. And we think we are. And construction is just 1 industry of where we potentially may work with them.

因此我們能夠立即介入並提供 20 種不同的解決方案。我們不必等待 6 到 9 個月的時間來定制，但我們可以在 4 到 6 週內啟動並運行。當你在沙特待的時間越長，你就會意識到他們想要快速行動。他們不想等待。資本不是問題。這些問題是你能夠交付和執行的。我們認為我們是。建築業只是我們可能與他們合作的行業之一。

They are building 1 of the largest sea ports in the world. They're building 1 of the largest airports in the world. So -- and these are all areas that we have uniquely developed a platform to handle. And we just don't see other competitors doing the same thing. I mean they tell us the same thing. So I think many of the counterparts, when we talk to them are surprised that there is even something out there like this.

他們正在建設世界上最大的海港之一。他們正在建設世界上最大的機場之一。因此，這些都是我們專門開發的平台來處理的所有領域。我們只是沒有看到其他競爭對手做同樣的事情。我的意思是他們告訴我們同樣的事情。所以我認為，當我們與許多同行交談時，他們都會驚訝於竟然有這樣的東西。

So we are just going through the process. I think when we first started having conversations with them was back in late spring. And so things are moving along pretty fast where we can -- right now, when we talk about construction, but there are 3 to 4 other verticals within that we think we can bring to a project like Neom over the course by the end of this year.

所以我們只是在經歷這個過程。我想我們第一次開始與他們交談是在春末。因此，事情進展得相當快，我們可以——現在，當我們談論建設時，但我們認為我們可以在本課程結束時將其他 3 到 4 個垂直領域引入像 Neom 這樣的項目年。

That concludes our question-and-answer session. I'd like to turn the conference back over to Mr. Fay Tian for closing remarks.

我們的問答環節到此結束。我想請田飛先生致閉幕詞。

Thank you, Nick. Thank you, everyone, for participating in Remark Holdings Second Quarter Fiscal 2023 Financial Results Conference Call. A replay will be available in approximately 4 hours through the same link issued in our August 2 press release. Have a good afternoon.

謝謝你，尼克。感謝大家參加 Remark Holdings 2023 財年第二季度財務業績電話會議。重播將在大約 4 小時後通過我們 8 月 2 日新聞稿中發布的相同鏈接進行。祝你下午好。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。