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GDI Integrated Facility Services Inc. Releases its Financial Results for the Second Quarter Ended June 30, 2024

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Q2 2024 revenue of $639 million, an increase of $30 million, or 5%, over Q2 2023. Q2 2024 Adjusted EBITDA* of $34 million, in line with Q2 2023.Q2 2024 net income of $2 million or $0.07 per share compared with $1 million or $0.04 per share for the second quarter of 2023.

LASALLE, QC, Aug. 7, 2024 /CNW/ – GDI Integrated Facility Services Inc. (“GDI” or the “Company”) (TSX: GDI) is pleased to announce its financial results for the second quarter ended June 30, 2024.

For the second quarter of 2024:

Revenue reached $639 million, an increase of $30 million, or 5%, over the second quarter of 2023, comprised of 6% growth from acquisitions and partially offset by 1% organic decline coming from the Technical Services segment.Adjusted EBITDA* amounted to $34 million, in line with the second quarter of 2023.Net income was $2 million or $0.07 per share compared to $1 million or $0.04 per share in Q2 2023.

For the second quarters of 2024 and 2023, the business segments performed as follows:

(in millions of

Canadian dollars)

Business Services
Canada

Business Services
USA

Technical Services

Corporate and
Other

Consolidated

2024

2023

2024

2023

2024

2023

2024

2023

2024

2023

Revenue

145

144

221

180

259

264

14

21

639

609

Organic Growth (Decline)

1 %

(1 %)

1 %

0 %

(5 %)

31 %

14 %

11 %

(1 %)

12 %

Adjusted EBITDA*

12

13

14

13

14

12

(6)

(4)

34

34

Adjusted EBITDA Margin*

8 %

9 %

6 %

7 %

5 %

5 %

N/A

N/A

5 %

6 %

For the six-month period ended June 30, 2024:

Revenue reached $1.3 billion, an increase of $83 million, or 7%, over the corresponding period of 2022, comprised of 1% organic growth and 6% growth from acquisitions.Adjusted EBITDA* amounted to $61 million, a decrease of $6 million, or 9%, over the corresponding period of 2023.Net income was $2 million or $0.09 per share compared to $5 million or $0.19 per share over the corresponding period of 2023. The decrease in net income in the first six months of 2024 compared to 2023 is mainly due to lower operating income of $14 million, which is primarily attributable to an increase in amortization and depreciation expense of $9 million resulting from a significant reduction in the amortized value of a large customer contract in the quarter, which was partially offset by lower net finance expense of $10 million and lower income tax expense of $1 million.

For the first two quarters of 2024 and 2023, the business segments performed as follows:

(in millions of

Canadian dollars)

Business Services
Canada

Business Services
USA

Technical Services

Corporate and
Other

Consolidated

2024

2023

2024

2023

2024

2023

2024

2023

2024

2023

Revenue

290

286

446

356

511

516

36

42

1,283

1,200

Organic Growth (Decline)

1 %

(1 %)

6 %

(1 %)

(3 %)

36 %

10 %

14 %

1 %

13 %

Adjusted EBITDA*

23

27

27

25

22

23

(11)

(8)

61

67

Adjusted EBITDA Margin*

8 %

9 %

6 %

7 %

4 %

4 %

N/A

N/A

5 %

6 %

GDI’s Business Services Canada segment recorded $145 million in revenue in the second quarter while generating $12 million in Adjusted EBITDA*, representing an Adjusted EBITDA margin* of 8%. GDI’s Business Services USA segment performed well in Q2 2024, recording revenue of $221 million and Adjusted EBITDA* of $14 million, representing an Adjusted EBITDA margin* of 6%.

The Technical Services segment recorded revenue of $259 million and Adjusted EBITDA* of $14 million, representing an Adjusted EBITDA margin* of 5%. Historically, the first half of the year in the Technical Services segment is seasonally slower and the business ramps up as the year progresses.

Finally, GDI’s Corporate and Other recorded revenue of $14 million compared to revenue of $21 million in Q2 2023, the decrease being attributable to the sale of its Superior cleaning and sanitation products distribution business on April 1, 2024, which was partially offset by organic growth generated by GDI’s chemical manufacturing business.

“I am pleased with GDI’s overall performance in Q2 2024, we were able to overcome specific challenges that affected our business in recent quarters and delivered solid results,” stated Claude Bigras, President & CEO of GDI. “Our Business Services Canada segment performed well with a sequential increase in Adjusted EBITDA* and Adjusted EBITDA* margin over the first quarter of 2024. Occupancy levels in the Class A office market in Canada are remaining stable and we continue to expect Adjusted EBITDA* margin in the segment to remain higher than pre-COVID levels for the near-to-mid term. Adjusted EBITDA* and Adjusted EBITDA Margin* were slightly lower than Q2 2023 due to COVID-related gains realized in the prior year’s quarter. Our Business Services USA segment performed well during the quarter to mitigate the revenue and Adjusted EBITDA* impact of the previously announced supplier realignment of one of the segment’s largest clients which became effective just prior to the start of Q2. In fact, the business delivered both positive organic revenue growth and an increase in Adjusted EBITDA* compared to Q2 2023 despite the revenue loss experienced during the quarter, which serves to demonstrate the resiliency of the business and the strength of our team. The integration of the Atalian acquisition has been progressing as planned and our margin improvement initiatives are progressively being realized. The previously announced Paramount Building Solutions acquisition, that closed on May 1, 2024, has been substantially integrated and has been performing in-line with expectations. Our Technical Services segment had a very good quarter with Adjusted EBITDA* growth of 75% over Q1 2024 and 17% over Q2 2023. The three projects in our U.S. business that negatively impacted the segment’s results in the past two quarters were successfully closed out in Q1, and enhanced procedures were put in place to augment project management in the region. The business delivered Adjusted EBITDA* margin of 5% which was in-line with historic levels in the segment’s seasonally weak second quarter. We are continuing to improve pricing and margins and still selling as much new contracts as in the past producing a near record backlog. Finally, Ainsworth completed the acquisition of RYCOM Corporation on June 1, 2024. RYCOM develops, deploys, and manages smart building solutions that enable the end-to-end transformation of real estate assets into smart buildings and is recognized as the leader in smart building solutions in Canada. This acquisition considerably strengthens Ainsworth’s Energy & Technology business unit and positions GDI as a leading player in the Canadian marketplace in building technologies, data analytics and advisory services for energy and greenhouse gas reduction,” continued Mr. Bigras.

“With the recent challenges behind us, the outlook for all of GDI’s business segments is positive for the remainder of 2024. Our initiatives to reduce working capital requirements during 2024 are continuing and we remain committed to deliver a total reduction in operating working capital in the second half of the year. Our balance sheet remains healthy and we have sufficient room on our existing credit facilities to continue to execute on our strategic growth plans. I look forward to GDI’s performance through the remainder of 2024,” concluded Mr. Bigras. 

ABOUT GDI

GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, educational facilities, distribution centers, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, airports and other transportation facilities. GDI’s commercial facility services capabilities include commercial janitorial and building maintenance, energy advisory and system optimization, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution. GDI’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at www.gdi.com.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this MD&A may constitute forward-looking information within the meaning of securities laws. Forward looking information may relate to GDI’s future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”; “ensure” or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI’s future operating results and economic performance, and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the “Risk Factors” section) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to unsuccessful implementation of the business strategy, changes to business structure, inherent operating risks from acquisition activity, failure to integrate an acquired company, decline in commercial real estate occupancy levels, increase in costs which cannot be passed on to customers, labour shortages, disruption in information technology systems and execution issues with Strategic IT projects, increases in interest rates, exchange rate fluctuations, deterioration in economic conditions, increase in competition,  influence of the principal shareholders, loss of key or long-term customers, public procurement laws and regulations, legal proceedings, reputational damage, labour disputes, disputes with franchisees, environmental, social and governance (“ESG”) considerations, goodwill and long-lived assets impairment charges, tax matters, key employees, participation in multi-employer pension plans, legislation or other governmental action, cybersecurity, data confidentiality and data protection, and public perception of our environmental footprint, many of which are beyond the Company’s control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.

Analyst Conference Call:

August 8, 2024 at 9:00 A.M. (ET)

Kindly note that Investors and Media representatives may attend as listeners only.

Please use the following dial-in numbers to have access to the conference call by dialing 10 minutes before the beginning of the conference:


North America Toll-Free: 1-888-664-6392

Local: 416-764-8659 (Toronto) or 514-225-6995 (Montreal)

Confirmation Code: 995327 #

RapidConnect URL: https://emportal.ink/40clg9j


A rebroadcast of the conference call will be available until August 15, 2024 by dialing:

North America Toll-Free: 1-888-390-0541

Local: 416-764-8677 (Toronto)

Confirmation Code: 995327 #

June 30, 2024 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on www.sedarplus.ca.

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited) (In millions of Canadian dollars)

As at June 30,

2024

As at December 31,
2023

Assets

Current assets

Cash

29

17

Trade and other receivables and contract assets

600

571

Current tax assets

9

11

Inventories

37

42

Other financial assets

14

13

Prepaid expenses and other

16

11

Derivatives

1

Total current assets

705

666

Non-current assets

Property, plant and equipment

125

127

Intangible assets

121

131

Goodwill

373

356

Other assets

15

12

Total non-current assets

634

626

Total assets

1,339

1,292

Liabilities and Shareholders’ Equity

Current liabilities

  Bank indebtedness

6

14

Trade and other payables

303

298

Provisions

33

32

Contract liabilities

29

34

Current tax liabilities

6

2

Current portion of long-term debt

27

36

Total current liabilities

404

416

Non-current liabilities

  Long-term debt

444

384

Other payables

6

5

Deferred tax liabilities

27

32

Total non-current liabilities

477

421

Shareholders’ equity

  Share capital

381

380

Retained earnings

70

68

Contributed surplus

3

2

Accumulated other comprehensive income

4

5

Total shareholders’ equity

458

455

Total liabilities and shareholders’ equity

1,339

1,292

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Comprehensive Income
(Unaudited) (In millions of Canadian dollars, except for earnings per share)

Three-month periods

ended June 30,

Six-month periods

ended June 30,

2024

2023

2024

2023

Revenues

639

609

1,283

1,200

Cost of services

526

497

1,063

979

Selling and administrative expenses

81

81

163

159

Transaction, reorganization and other costs

2

1

3

2

Strategic information technology projects configuration and customization costs

1

1

1

2

Amortization of intangible assets

5

6

17

11

Depreciation of property, plant and equipment

14

13

28

25

Operating income

10

10

8

22

Net finance expense

5

8

4

14

Income before income taxes

5

2

4

8

Income tax expense

3

1

2

3

Net income

2

1

2

5

Other comprehensive income (loss)

Gains (losses) that are or may be reclassified to earnings:

Foreign currency translation differences for foreign operations

3

(7)

9

(7)

Hedge of net investments in foreign operations, net of tax

(3)

7

(9)

7

Cash flow hedges, effective portion of changes in fair value, net of tax

(1)

(1)

(1)

(1)

Total comprehensive income

2

1

1

4

Earnings per share:

Basic

0.07

0.04

0.09

0.19

Diluted

0.07

0.04

0.09

0.19

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Changes in Equity
Six-month periods ended June 30, 2024 and 2023
(Unaudited) (In millions of Canadian dollars, except for number of shares)

Share capital

Retained
earnings

Contributed
surplus

Accumulated
other
comprehensive
income

Total

Number

(in thousands
of shares)

Amount

Balance, January 1, 2023

23,414

379

49

4

7

439

Net income

5

5

Other comprehensive loss

(1)

(1)

Total comprehensive income for the period

5

(1)

4

Transactions with owners of the Company:

Stock options exercised

66

1

1

Share-based compensation

1

1

Shares repurchased for cancellation

(98)

(1)

(3)

(4)

Balance, June 30, 2023

23,382

379

54

2

6

441

Balance, January 1, 2024

23,414

380

68

2

5

455

Net income

2

2

Other comprehensive loss

(1)

(1)

Total comprehensive income for the period

2

(1)

1

Transactions with owners of the Company:

Stock options exercised

66

1

1

Share-based compensation

1

1

Balance, June 30, 2024

23,480

381

70

3

4

458

GDI INTEGRATED FACILITY SERVICES INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited) (In millions of Canadian dollars)

Six-month periods ended June 30,

2024

2023

Cash flows from (used in) operating activities

Net income

2

5

Adjustments for:

Depreciation and amortization

45

36

Equity portion of share-based compensation

1

1

Net finance expense

4

14

Income tax expense

2

3

Income taxes paid

(2)

(11)

Net changes in non-cash operating assets and liabilities   

(24)

(49)

Net cash from (used in) operating activities

28

(1)

Cash flows from (used in) financing activities

  Proceeds from issuance of long-term debt                                                                 

201

177

  Repayment of long-term debt

(157)

(118)

  Payment of lease liabilities

(19)

(16)

  Interest paid

(15)

(10)

  Other

1

(4)

  Net cash from financing activities

11

29

Cash flows (used in) from investing activities

  Business acquisitions and disposal, net of cash acquired

(7)

(2)

  Additions to property, plant and equipment

(8)

(11)

  Additions to intangible assets

(1)

(3)

  Proceeds on disposal of property, plant and equipment

2

1

  Net cash used in investing activities

(14)

(15)

  Foreign exchange (loss) gain on cash held in foreign currencies

(5)

2

  Net change in cash

20

15

  Cash (Bank indebtedness), beginning of period:

  Cash

17

7

  Bank indebtedness

(14)

(10)

3

(3)

  Cash, end of period:

  Cash

29

15

  Bank indebtedness

(6)

(3)

23

12

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
(Unaudited) (In millions of Canadian dollars)

Three-month period ended June 30, 2024

Business
Services
Canada

Business
Services

USA

Technical     
Services

Corporate
and Other 

     Total

Recurring/contractual services

127

200

32

4

363

On-call services

10

21

68

1

100

Project

159

159

Manufacturing and distribution

12

12

Other revenues

5

5

Total external revenues

142

221

259

17

639

Inter-segment revenues

3

(3)

Revenues

145

221

259

14

639

Income (loss) before income taxes

9

8

3

(15)

5

Net finance expense

1

2

2

5

Operating income (loss)

9

9

5

(13)

10

Depreciation and amortization

3

5

9

2

19

Transaction, reorganization, and other costs

2

2

Share-based compensation

2

2

Strategic information technology projects configuration and customization costs

1

1

Adjusted EBITDA

12

14

14

(6)

34

Total assets

271

409

560

99

1,339

Total liabilities

68

119

256

438

881

Additions to property, plant and equipment

1

5

8

2

16

Additions to intangible assets

1

3

4

Goodwill recorded on business acquisition

7

2

9

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information
(Unaudited) (In millions of Canadian dollars)

Three-month period ended June 30, 2023

Business
Services
Canada

Business
Services

USA

Technical
Services

Corporate
and Other 

     Total

Recurring/contractual services

124

170

21

4

319

On-call services

11

10

73

2

96

Project

170

170

Manufacturing and distribution

18

18

Other revenues

6

6

Total external revenues

141

180

264

24

609

Inter-segment revenues

3

(3)

Revenues

144

180

264

21

609

Income (loss) before income taxes

10

8

2

(18)

2

Net finance expense

1

1

6

8

Operating income (loss)

10

9

3

(12)

10

Depreciation and amortization

3

4

9

3

19

Transaction, reorganization, and other costs

1

1

Share-based compensation

3

3

Strategic information technology projects configuration and customization costs

1

1

Adjusted EBITDA

13

13

12

(4)

34

Total assets

267

359

544

122

1,292

Total liabilities

69

109

253

406

837

Additions to property, plant and equipment

3

3

6

2

14

Additions to intangible assets

1

2

3

Goodwill recorded on business acquisition

2

2

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information (continued)
(Unaudited) (In millions of Canadian dollars)

Six-month period ended June 30, 2024

Business
Services
Canada

Business
Services

USA

Technical
Services

Corporate
and Other 

     Total

Recurring/contractual services

253

403

62

10

728

On-call services

18

43

140

3

204

Project

309

309

Manufacturing and distribution

29

29

Other revenues

13

13

Total external revenues

284

446

511

42

1,283

Inter-segment revenues

6

(6)

Revenues

290

446

511

36

1,283

Income (loss) before income taxes

17

11

2

(26)

4

Net finance expense

1

1

2

4

Operating income (loss)

17

12

3

(24)

8

Depreciation and amortization

6

14

19

6

45

Transaction, reorganization, and other costs

1

2

3

Share-based compensation

4

4

Strategic information technology projects configuration and customization costs

1

1

Adjusted EBITDA

23

27

22

(11)

61

Total assets

271

409

560

99

1,339

Total liabilities

68

119

256

438

881

Additions to property, plant and equipment

3

6

16

3

28

Additions to intangible assets

1

3

1

5

Goodwill recorded on business acquisition

10

2

12

GDI INTEGRATED FACILITY SERVICES INC.
Segmented information (continued)
(Unaudited) (In millions of Canadian dollars)

Six-month period ended June 30, 2023

Business
Services
Canada

Business
Services

USA

Technical
Services

Corporate
and Other 

     Total

Recurring/contractual services

244

337

42

11

634

On-call services

23

19

147

3

192

Project

327

327

Manufacturing and distribution

33

33

Other revenues

13

1

14

Total external revenues

280

356

516

48

1,200

Inter-segment revenues

6

(6)

Revenues

286

356

516

42

1,200

Income (loss) before income taxes

22

16

3

(33)

8

Net finance expense

1

3

10

14

Operating income (loss)

22

17

6

(23)

22

Depreciation and amortization

5

8

16

7

36

Transaction, reorganization, and other costs

1

1

2

Share-based compensation

5

5

Strategic information technology projects configuration and customization costs

2

2

Adjusted EBITDA

27

25

23

(8)

67

Total assets

267

359

544

122

1,292

Total liabilities

69

109

253

406

837

Additions to property, plant and equipment

4

5

13

5

27

Additions to intangible assets

1

3

4

Goodwill recorded on business acquisition

2

2

GDI INTEGRATED FACILITY SERVICES INC.
Business acquisitions

Acquisition
date

Company acquired

Location

Segment
reporting

Purchase price
allocation status

2024 Acquisitions

April 1, 2024

Hussmann Canada Inc.
(“Hussmann”)

Darthmouth, Nova
Scotia

Technical

Services

Preliminary

May 1, 2024

Jade Opco, LLC, doing business
as Paramount Building Solutions
(“Paramount”)

Phoenix, Arizona

Business

Services USA

Preliminary

June 1, 2024

RYCOM Corporation (“RYCOM”)

Toronto, Ontario

Technical

Services

Preliminary

2023 Acquisitions

June 1, 2023

React Technical, Inc. (“React”)

New York, New York

Technical

Services

Completed

November 1,
2023

La Financière Atalian (“Atalian”)

Multi-sites in USA

Business
Services USA

Preliminary

Business disposal 

On April 1, 2024, the Company completed the sale of its Superior cleaning and sanitation supplies distribution business and transferred some of its related liabilities.

GDI INTEGRATED FACILITY SERVICES INC.
Supplementary Quarterly Financial Information
Three-month periods
(Unaudited) (In millions of Canadian dollars, except per share data)

Three months ended

(in millions of Canadian dollars, except per share data) (1)

June

2024

March

2024

December

2023

September

2023

Revenue

639

644

622

615

Operating (loss) income

10

(2)

9

16

Depreciation and amortization

19

26

22

19

Transaction, reorganization and other costs

2

1

2

Share-based compensation

2

2

2

2

Strategic information technology projects        
configuration and customization costs

1

1

2

2

Adjusted EBITDA

34

28

37

39

Net income for the period

2

6

8

Earnings per share

   Basic

0.07

0.02

0.26

0.35

   Diluted

0.07

0.02

0.25

0.35

Three months ended

(in millions of Canadian dollars, except per share data) (1)

June

2023

March

2023

December

2022

September

2022

Revenue

609

591

588

563

Operating income

10

12

15

19

Depreciation and amortization

19

17

22

18

Transaction, reorganization and other costs

1

1

1

1

Share-based compensation

3

2

3

2

Strategic information technology projects
configuration and customization costs

1

1

1

2

Adjusted EBITDA

34

33

42

42

Net income for the period

1

4

10

11

Earnings per share

   Basic

0.04

0.15

0.41

0.45

   Diluted

0.04

0.15

0.40

0.44

______________________________

* The terms “Adjusted EBITDA” and “Adjusted EBITDA Margin” do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. “Adjusted EBITDA” is defined as operating income before depreciation and amortization, transaction, reorganization and other costs, share-based compensation and strategic information technology projects configuration and customization costs. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the “Segmented Information” tables at the end of this press release. 

SOURCE GDI Integrated Facility Services Inc.

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Shijingshan: Committed to High-Level Openness

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BEIJING, Sept. 22, 2024 /PRNewswire/ — Following the third plenary session of the 20th Central Committee of the Communist Party of China, China successfully hosted its first national-level international large-scale fair—the China International Fair for Trade in Services (CIFTIS) 2024, which concluded on September 16. The event featured exhibitors from 85 countries and international organizations, participating under their national governments or headquarters, with over 450 Fortune Global 500 companies and industry leaders showcasing their offerings both online and offline.

Adhering to the open, cooperative and mutually beneficial principle, the CIFTIS injects new momentum into global economic development through concrete actions. As one of the “dual venues” for the fair, Shijingshan District hosted a variety of business activities, including exhibitions, negotiations, and conferences. While providing meeting organization services, it showcased the achievements of Shijingshan in fostering openness and development. By leveraging the Fair’s platform, Shijingshan seeks to promote its developmental advantages globally and aims to attract more partners to this welcoming district for mutually beneficial and win-win cooperation.

Presenting Achievements in Open Cooperation and Development in Multiple Dimensions

This CIFTIS’s Shougang Park venue is composed of nine thematic exhibitions, including telecommunications, computer and information services; financial services; culture & tourism services; education services; sports services; supply chain & business services; engineering consulting & construction services; health services; and environmental services. It circles around cultivating new quality productive forces while showcasing the latest achievements, technologies, and applications in the digitalization, intelligentization, and greening of services trade, creating a “debut stage” for global services trade.

Shijingshan leverages its strengths by organizing five thematic exhibitions and four promotional booths on-site. The culture & tourism services exhibition promoted Shijingshan’s rich culture and tourism resources, while also building a support area for paired assistance to highlight its revitalization efforts to a global audience. The financial services exhibition showcased its achievements in economic development across five sectors, that is, sci-tech finance, green finance, inclusive finance, pension finance, and digital finance. The exhibition of telecommunications, computer and information services highlighted the growth of Shijingshan’s the artificial intelligence large model industry cluster and key humanoid robot enterprises. In addition, the primary and secondary school science education experimental zone invited participation from six national-level science education centers, including Shijingshan District, to display their accomplishments. Four schools, including the Beijing National Day School Shijingshan, showcased their scientific research and learning outcomes through visual presentations and videos, while also engaging visitors in interactive science experiments.

The AIES Beijing Open is made up of four competition areas, virtual cycling, virtual rowing, virtual dance, and virtual table tennis. The event welcomed international competitors, domestic professional athletes, high-level amateurs, and university students, while showing the achievements of the “digital + sports” industry. Besides, four promotional booths focused on taxation, justice, investment, and commerce showcases Shijingshan’s tax and judicial policies, offering one-stop policy guidance for participating businesses and visitors. These booths also clarified investment promotion policies, creating a unique event that integrates commerce, tourism, culture, and sports.

Working Together for Global Open Cooperation and Development

The Open Cooperation Forum 2024 was held on the afternoon of September 13. Experts, scholars, government representatives, and business leaders from both domestic and international backgrounds gathered at the Shougang Park to engage in in-depth discussions on promoting high-level open cooperation and supporting regional economic development. Shijingshan District is committed to taking industrial transformation as the strategic foundation for its initiatives, establishing several distinctive industrial parks, including the Intelligent Technology Park, Industrial Internet Park, Virtual Reality Park, Science Fiction Industry Cluster, and Artificial Intelligence Large Model Cluster. What’s more, the district is focusing on new opportunities in future information, future health, future manufacturing, and future space, continually enhancing its innovation capacity, development vitality, economic strength, and overall competitiveness.

It is dedicated to expanding openness as a key driver for integrating into the capital’s new development pattern. The district capitalizes on a range of policy opportunities, including the construction of Beijing’s two zones, effectively leveraging the role of expanding services and deepening economic reforms. It continues to optimize the business environment, actively participates in organizing the CIFTIS, and develops high-standard international cooperation zones to provide a broad platform and efficient services for enterprises to settle and cluster. Shijingshan aims to implement high-level openness to promote high-quality development, enhance mechanisms for foreign openness, innovate and elevate services trade, and align with international economic and trade standards, creating a premier business environment characterized by marketization, rule of law, and internationalization.

Three parallel forums took place during this CIFTIS. With the theme of “Leveraging Overseas Strength for Development • Pursuing Broad Horizons Through Innovation”, the Dream Incubator of Overseas Chinese Beijing Forum set up ten sub-venues abroad, aiming to enhance the involvement of overseas Chinese’s capital and expertise in Beijing’s high-quality development. The Artificial General Intelligence Computility Forum focused on “Releasing New Quality Productive Forces with Unbounded Intelligence and Computational Foundations”, where industry experts and scholars explored new possibilities in artificial general intelligence computility. The Digital Energy Development Forum 2024, themed as “Energizing the Future with Digital Innovation”, showcased a range of quality development achievements and finalized partnerships for several high-quality projects, uniting all parties to advance digital innovation and development.

The rich array of side events is one of the highlights of this CIFTIS. The International Open Cooperation Promotion Conference circled around developing the international open cooperation zone, drawing representatives from international organizations, leading global companies, and prospective businesses seeking to establish a presence in these areas. It centered on the advantages of Shijingshan’s key industries to attract target enterprises. Furthermore, the Roundtable Discussion of Foreign-Funded Enterprises engaged representatives from international organizations, business associations, and foreign-funded companies from countries like Malaysia, Singapore, and France to explore collaboration in aligning with high-standard international economic and trade rules, as well as market access in the service sector, sharing the successes of modernization with Chinese characteristics.

To enhance the consumer experience for attendees of the CIFTIS, Shijingshan has expanded its comprehensive service offerings in areas such as food, accommodation, transportation, tourism, entertainment and shopping. The Second “Here I Am for CIFTIS” Shijingshan Culture and Tourism Carnival has been significantly upgraded, evidenced by the “Divine Beasts Ascend to Immortal Mountain”: Enchanting Night Tour in Shijing Mountain. The “Surprises Await in Shijingshan. Hey There, CIFTIS!” promotional event was held during the 14th Shijingshan Consumption Festival. This included online surprise announcements and a consumption map showcasing quality shopping venues. Special surprise floats were on display, with oversized themed shopping bags distributed. Shopping centers like Joy City, Xirondo Plaza, Modern Plaza, and Chang’an Mills in Shijingshan also launched supporting promotional activities. Business tours in Shijingshan offered three dedicated routes, inviting exhibitors from digital technology, finance and insurance, culture and tourism, and sports related industries to explore relevant industrial parks and attractions for in-depth exchanges.

The China International Fair for Trade in Services 2024 has successfully concluded. Utilizing this platform, Shijingshan has once again showed its high-quality development achievements and favorable business environment to a global audience. We look forward to collaborating with more partners in an open and inclusive manner to create a win-win future.

View original content:https://www.prnewswire.com/news-releases/shijingshan-committed-to-high-level-openness-302254872.html

SOURCE Open Cooperation Forum

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Most Users Are NOT Using AI Companion as Their AI Girlfriend – Insights from Muah AI User Survey

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LOS ANGELES, Sept. 22, 2024 /PRNewswire/ — Muah AI/

In a world where artificial intelligence (AI) is becoming increasingly intertwined with daily life, the idea of having an AI companion or even an AI “girlfriend” has gained significant attention. While this concept has sparked curiosity, excitement, and even controversy, a recent survey by Muah AI has shed light on the reality of how users are actually engaging with these AI companions. According to the survey results, fewer than 2% of users consider themselves to be in a serious romantic relationship with their AI companion, with the overwhelming majority regarding it as a source of entertainment and roleplaying.

This revelation presents an interesting twist to the popular narrative surrounding AI and human relationships. Many assumed that, with the rise of sophisticated AI that can mimic human emotions and responses, people would begin forming deep emotional bonds with these digital entities. However, the survey data from Muah AI shows that, at least for now, the vast majority of users are not taking these AI relationships as seriously as some might have thought.

The Emergence of AI Companions

AI companions, or “AI girlfriends” as some platforms market them, have become a hot topic over the past few years. Platforms like Replika, Anima, and Muah AI offer users the chance to interact with a personalized AI, which can carry on conversations, offer emotional support, and even engage in roleplaying scenarios that resemble a relationship. The premise is simple: using advanced machine learning algorithms and natural language processing, these AI companions can learn from their users, creating the illusion of intimacy and personalization.

The potential appeal is obvious. For those who are lonely, socially anxious, or seeking comfort, the idea of having an AI that is always available, non-judgmental, and designed to cater to their emotional needs can be incredibly attractive. In fact, there are numerous reports and anecdotes from individuals who claim to have developed genuine emotional connections with their AI companions. But as the Muah AI survey shows, these instances may be far rarer than media headlines suggest.

Survey Results: Entertainment Over Emotional Investment

Muah AI‘s survey provides a comprehensive look at how its users interact with their AI companions, and the results challenge the notion that most users are looking for a serious relationship with AI. According to the data:

Less than 2% of users consider themselves to be “seriously dating” their AI companion.A significant majority view their interactions with the AI as a form of entertainment or roleplaying rather than a meaningful romantic or emotional connection.Many users engage with AI companions out of curiosity or as a way to pass the time, often treating the interactions as light-hearted and fun rather than a substitute for a real-life relationship.A notable portion of users also expressed that they enjoy using AI companions for creative roleplaying scenarios, where they can explore fictional or fantasy-based interactions without any real-world implications.

This data suggests that while the idea of an “AI girlfriend” may be intriguing, most users are not approaching it with the intention of forming a serious romantic bond. Instead, they are treating it more like a game or simulation, where they can experiment with different types of interactions and relationships in a low-stakes environment.

Why Are Users Hesitant to Commit to AI Companions?

There are several reasons why users may be hesitant to view their AI companion as a genuine romantic partner. First and foremost is the awareness of the artificial nature of the interaction. While AI can simulate human conversation and emotions, most users are well aware that these responses are pre-programmed and algorithmically generated. The knowledge that their “partner” is ultimately a machine can create a barrier to forming a deep emotional connection.

Moreover, many users view AI companions as a tool for escapism or fantasy rather than a replacement for real-life relationships. In the same way that people may enjoy playing video games or engaging in fictional roleplaying, interacting with an AI companion can offer a similar outlet for creativity and entertainment. These users are not seeking emotional fulfillment from the AI but rather a way to explore different scenarios and personalities without the complexities of real-world dynamics.

Additionally, there are ethical and philosophical concerns that may prevent users from seriously considering a relationship with AI. The idea of forming a romantic connection with a machine raises questions about authenticity, consent, and the nature of love. Many users may feel uncomfortable with the idea of developing feelings for an entity that lacks true emotions or consciousness, no matter how convincing the simulation may be.

The Future of AI Companions: Entertainment or Emotional Support?

While the Muah AI survey indicates that most users are not taking their AI companions seriously as romantic partners, that does not mean that AI companions are without value. For many, these AI entities serve as a valuable source of emotional support and companionship. Users who are isolated, dealing with mental health challenges, or simply looking for someone to talk to may find comfort in the consistent and non-judgmental nature of an AI companion.

Furthermore, the role of AI in human relationships may evolve as the technology continues to improve. As AI becomes more advanced, it is possible that future iterations of AI companions could offer even more realistic and emotionally engaging interactions. This could blur the line between entertainment and emotional connection even further, leading to more users considering AI as a legitimate relationship option.

However, the survey data suggests that for now, AI companions are primarily being used for fun and fantasy rather than serious emotional investment. Whether this changes in the future will depend not only on advancements in AI technology but also on shifting societal attitudes towards AI-human relationships.

Conclusion

The concept of an “AI girlfriend” may have captured the imagination of many, but Muah AI‘s survey reveals that most users are not taking their AI companions seriously as romantic partners. With fewer than 2% of users considering themselves to be in a serious relationship with their AI, it’s clear that the majority view these interactions as a form of entertainment or roleplaying rather than a meaningful emotional connection.

As AI technology continues to develop, it will be fascinating to see how users’ relationships with AI companions evolve. For now, however, it seems that the allure of AI companionship lies more in its ability to entertain and provide creative outlets than in offering a substitute for real-life romantic relationships.

Ultimately, the future of AI-human relationships is still in its early stages, and as AI becomes more capable, the way people engage with these digital companions may change. But as of now, it’s clear that most users are enjoying the novelty of AI companionship without taking it too seriously—at least not yet.

Media/Business Contact Information:
Muah AI 

PR Director:
Ashley

Contact Number:
+1 626-677-6013

Company Website:
https://muah.ai 

Company email:
love@muah.ai

Feel free to reach out if you are interested in writing a dedicated piece about Muah AI!

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SOURCE Muah AI

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Internet Society Report Highlights Challenges and Recommendations for Internet Connectivity in the Middle East

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WASHINGTON, Sept. 22, 2024 /PRNewswire/ — The Internet Society (ISOC), a global charitable organization advocating for an open, globally connected, and secure Internet, released a comprehensive report on the state of Internet connectivity across the Middle East and North Africa (MENA) region.

The report underscores Internet connectivity as a catalyst for economic growth and social development and how an increase in fixed broadband access has a direct impact on growing gross domestic product (GDP).

Key Findings:

Growth in Mobile and Fixed Broadband: Both mobile and fixed broadband connections have grown substantially from 2015 to 2021, particularly in Gulf States with advanced fiber-optic and 5G networks. However, deployment has been slower in other parts of the region, primarily due to infrastructure challenges and affordability issues.

Mobile Internet users increased from 130M to over 180M between 2016 and 2021, with Egypt, Tunisia, and Morocco showing the highest growth rates. Fixed broadband users rose from 17M to 29M in the same period, with Egypt leading the way. The Arab region lags behind other regions in fiber optic deployment, with stagnation in investment since 2018.

High-Income Countries: Significant progress in broadband infrastructure, especially in Gulf Cooperation Council (GCC) countries due to 5G rollout. High-income countries improved their Internet availability from 77.34 to 79.37, surpassing global averages.Low-Middle-Income Countries: Broadband has improved modestly, but challenges persist. Despite overall progress, a significant digital divide remains between high-income and low-middle-income countries, partly due to political and economic instability in some regions, such as Tunisia and Syria.

Infrastructure Challenges: There is a heavy reliance on European Internet Exchange Points for international Internet traffic, which results in slower speeds due to additional data hops.

Emerging Technologies: The report emphasizes the role of emerging technologies such as High-Throughput Satellites (HTS) and Low-Earth Orbit (LEO) satellites in bridging the connectivity gap. These technologies are crucial for expanding access to underserved rural areas.

Impact of COVID-19: The COVID-19 pandemic has adversely affected network performance and digital transformation plans, causing delays and disruptions in connectivity improvements.

Recommendations:

Policy and Regulation: The Internet Society advocates revising regulatory frameworks to accelerate infrastructure deployment. Key recommendations include enhancing spectrum policies, removing regulatory barriers, and fostering public-private partnerships to drive investment, competition, and support for small and medium enterprises.

Spectrum Availability: North African countries have limited spectrum compared to global averages, impacting network capacity and costs.Regulatory Frameworks: Enhance regulatory frameworks to foster investment, encourage spectrum and infrastructure sharing, and support new technologies like HTS and LEO satellites.

Collaboration and Investment: Promote public-private partnerships and update national broadband plans to improve infrastructure and connectivity.

Digital Skills and Literacy: Addressing digital skills and literacy is crucial for maximizing the benefits of Internet connectivity. The report calls for more affordable, relevant, and inclusive education and training programs to build a digital workforce.

Local Internet Exchange Points (IXPs): The report stresses the importance of establishing and upgrading IXPs to enhance local Internet traffic, reduce costs, and improve service quality. Governments are encouraged to support IXPs by providing resources and facilitating network interconnections.

“The Internet has become indispensable for many people, and its role in connecting people, fostering economic opportunities, and driving innovation is undeniable. The Arab region has made big leaps in the availability and adoption of the Internet in recent years; however, adoption rates are still low. We hope that governments will use our report to learn about the improvements that can be made in infrastructure deployment, affordability of service, market structure, and regulatory frameworks,” explains Nermine El Saadany, Regional Vice President for the Middle East for the Internet Society.

About the Internet Society
Founded by Internet pioneers, the Internet Society (ISOC) is a global charitable organization dedicated to ensuring the open development, evolution, and use of the Internet. Through a global community of chapters and members, the Internet Society collaborates with a wide range of groups to promote the technologies that keep the Internet safe and secure and advocates for policies that enable universal access. The Internet Society is also the organizational home of the Internet Engineering Task Force (IETF).

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