Analysis of R&D Investment and Patent Technology Conversion Efficiency of IntSig Information

Based on publicly disclosed information, IntSig Information (stock code: 688615) has an R&D expenditure ratio close to 30%, and its patent technology conversion efficiency is outstanding. The detailed analysis is as follows:

Data shows that IntSig’s R&D expenditure increased from 222 million yuan in 2020 to 390 million yuan in 2024, with a compound annual growth rate (CAGR) of 15.1%. Although the R&D expenditure ratio decreased from 38.24% in 2020 to 27.15% in 2024, this decline is mainly due to faster revenue growth (CAGR of 25.4%), reflecting economies of scale [1].

• As of December 2024, the company has obtained
  128 invention patent authorizations
  (88 in China, 40 overseas) [2]
• By June 2019, it had applied for 273 invention patents, with a patent authorization conversion rate of approximately 38%
• The leaders of the core technology team have a considerable number of personal invention patents: Long Teng (51), Ding Kai (8), Guo Fengjun (11), Chen Qingshan (27) [3]

IntSig has established an efficient patent technology conversion system:

• Technology R&D → Productization
  : Core technologies such as OCR and deep learning algorithms are quickly applied to products like CamScanner, Business Card Reader, and Qixinbao
• Product → Revenue Conversion
  : The high-margin subscription model ensures that technology investment can be effectively converted into cash flow; the net cash flow from operating activities in the first three quarters of 2025 was 371 million yuan, a year-on-year increase of 27.84% [1]
• Domestic → International Expansion
  : Approximately one-third of revenue comes from international markets (2024 overseas revenue was 466 million yuan, accounting for 32.37%) [1]

1. High R&D Output Ratio
   : A 27% R&D expenditure ratio creates core products accounting for 68.47% of revenue, with high technology commercialization efficiency
2. Stable Technical Barriers
   : 128 invention patents cover core technology fields such as text recognition, image processing, and natural language processing
3. High International Recognition
   : 40 international invention patents and 16 international competition championships prove the global competitiveness of its technology
4. Mature Commercial Closed Loop
   : The subscription model ensures continuous returns from technology investment; 2024 net profit attributable to the parent company was 401 million yuan, a year-on-year increase of 23.9% [1]

• Continuous decline in R&D expenditure ratio may affect long-term technological leadership
• High cost of overseas intellectual property layout [4]
• AI technology iterates rapidly; continuous high-intensity R&D investment is required

Overall, IntSig performs excellently in patent technology conversion, establishing an efficient path from technology R&D to commercialization, reflecting a virtuous cycle model where ‘certain commercialization’ feeds back into ‘continuous technological iteration’.

[1] Gelonghui - ‘IntSig Information was awarded the Annual Excellent AI Application Enterprise, Steady Growth under High Gross Profit Margin Model’ (https://www.gelonghui.com/p/3464776)

[2] Shanghai IntSig Information Technology Co., Ltd. 2024 Annual Report Summary (http://static.cninfo.com.cn/finalpage/2025-04-16/1223103967.PDF)

[3] China International Capital Corporation Limited on the Listing Sponsorship Letter for the Initial Public Offering of Shanghai IntSig Information Technology Co., Ltd. (http://file.finance.sina.com.cn/211.154.219.97:9494/MRGG/CNSESH_STOCK/2023/2023-7/2023-07-28/9376143.PDF)

[4] Hurun Report - Interview on ‘IP Fuels the New Era of AI’ (https://res.hurun.cn/file/20210304/20210304134414713.pdf)