Core Insights - The article discusses the launch of the "Agentic platform" named "Smart Factory" by TaxFriend Co., Ltd. (603171.SH), aimed at the financial and tax industry, highlighting the company's AIBM strategy and future plans [1][9] - TaxFriend has established a dual-driven business structure focusing on government (G-end) digital governance and enterprise (B-end) smart financial and tax services since its inception in 1999 [1][9] Business Structure - The G-end business serves as a stable revenue source, with TaxFriend being a core supplier for the national Golden Tax Project, contributing to system construction phases three and four [1][6] - The B-end business, particularly SaaS services for small and micro enterprises and tax service institutions, is the current growth engine, driven by increasing demand for efficiency and compliance management [1][6] AIBM Strategy Implementation - The AIBM strategy aims to address challenges in the highly specialized financial and tax sector, where general models struggle with knowledge gaps and logical reasoning [2][6] - TaxFriend has developed a specialized financial and tax domain model called "Xiyou" and has achieved preliminary results in building an AIBM digital ecosystem over the past six months [2] Smart Factory Platform - The "Smart Factory" platform is designed to tackle common pain points in the financial and tax service industry, such as low human efficiency, high operational costs, and inconsistent service quality [3][5] - The platform consists of a product matrix including "Cockpit + Smart Accounting + Smart Compliance Advisor," aiming to create a new human-machine collaborative work model [5] Performance Metrics - Pilot data for "Smart Accounting" showed that operational efficiency reached ten times that of traditional accounting, with an accuracy rate exceeding 90% and a 60% reduction in labor costs [5][8] - The company aims to assist 50,000 tax service institutions in improving efficiency and to establish AI financial departments for millions of small and micro enterprises [5] Market Expansion and Policy Alignment - TaxFriend is expanding its Agent services to government and public welfare sectors, aligning with current policies promoting refined financial and tax regulation and the acceleration of AI applications [6][11] - The market for financial and tax AIBM ecosystem services is projected to reach 390.73 billion yuan by 2028, indicating significant growth potential [11] Technological Foundation - The company has built a technical foundation comprising a "general model adaptation tool + financial and tax industry big data knowledge base + multi-agent reasoning model" [7] - The operational ecosystem supports tax service institutions through models like "tool empowerment + operational empowerment + joint management," with an average renewal rate increase of 15% for managed institutions [7] Business Model Transformation - The launch of "Smart Factory" signifies not only a technological update but also a transformation in the business model, shifting customer payment from "paying for tools" to "paying for results or digital labor" [8] - This shift is expected to enhance customer willingness to pay and increase average transaction value, as evidenced by the rapid growth of the product during its trial phase [8]

Core Insights - The launch of the "Smart Tax Agent - Intelligent Workshop" marks the introduction of the first Agentic platform in the tax and finance industry, aimed at revitalizing the trillion-yuan market with intelligent solutions [1] Group 1: New Service Model - The "Intelligent Workshop" platform provides a disruptive solution to common industry challenges such as low efficiency, high costs, and quality control issues [2] - The product matrix includes "Cockpit + Intelligent Accounting + Intelligent Compliance Advisor," reducing error rates to below 10% and enhancing human-machine collaboration [2] - The goal is to help 50,000 tax service institutions achieve a hundredfold increase in efficiency, while also establishing AI financial departments for millions of SMEs [2] Group 2: Market Engagement - The "Intelligent Accounting" product has demonstrated operational efficiency ten times that of traditional accounting, with over 90% accuracy and a 60% reduction in labor costs [2] - The platform is expected to significantly increase customer willingness to pay and average transaction value, shifting the focus from tool payments to results and digital labor payments [2] Group 3: Expansion into Public Sector - The company has extended its intelligent agent services to the public sector, addressing growing demands for personal tax optimization, social security planning, and pension calculations [3] - The "Yiqi Win" platform reported 11.8 million active enterprise users by June 2025, a 10.28% increase from the beginning of the year, with 7.78 million paying users, reflecting a 10.04% growth [3] Group 4: AIBM Strategy Implementation - The company is addressing core issues in existing general models, such as lack of tax knowledge and slow adaptation to specific domains, by leveraging over 20 years of industry experience [4] - The AIBM strategy has led to the establishment of a robust technical foundation, including a general model adaptation tool and a tax industry big data knowledge base [4] - The company has seen over 100% year-on-year growth in new customers and revenue from compliance products in the first half of 2025 [4] Group 5: Market Potential - The compliance tax optimization market is projected to reach a scale of 390.73 billion yuan by 2028, with a compound annual growth rate of 74.9% [5] Group 6: Commercialization of AI Products - By the first half of 2025, the company has successfully commercialized multiple scenarios of intelligent employees, with AI product sales accounting for 26.59% of its intelligent tax business [6] - This transition marks a significant step from being a traditional tax software service provider to becoming a leader in AI-driven intelligent services [6]

Core Insights - The company reported a revenue of 922 million yuan for H1 2025, representing a year-on-year growth of 13.25%, while the net profit attributable to shareholders decreased by 19.52% to 71 million yuan [1] - The B-end business has shown significant market expansion, with the number of registered enterprises in China reaching 61.226 million, a 5.1% increase from the end of 2023, and the digital economy's core industry value added is expected to account for 10% of GDP by 2025 [1] - The domestic financial and tax AIBM ecosystem service industry market size is projected to reach 390.73 billion yuan by 2028, with a compound annual growth rate of 74.9% [1] B-end Business Performance - The company has a leading position in the domestic financial and tax AIBM ecosystem service platform, benefiting from favorable policies and market conditions, with 11.8 million active enterprise users, a 10.28% increase from the beginning of the year [1] - The number of paid enterprise users reached 7.78 million, reflecting a growth of 10.04% [1] - The smart financial and tax business generated a revenue of 621.1263 million yuan, an increase of 11.95% year-on-year [1] G-end Business Development - The company is deeply involved in the "Golden Tax Phase IV" construction, enhancing its technological moat through the promotion of digital invoices and the gradual launch of new electronic tax bureaus [2] - The digital government business achieved a revenue of 300.0946 million yuan, a year-on-year growth of 16.60% [2] - The company is building an AI platform named "Xiyou" to support the transformation into a smart model service provider for the industry, leveraging over 20 billion financial and tax data [2] Future Outlook - The company is expected to achieve revenues of 2.311 billion yuan, 2.801 billion yuan, and 3.462 billion yuan from 2025 to 2027, with net profits projected at 277 million yuan, 427 million yuan, and 561 million yuan respectively [3] - Earnings per share (EPS) are forecasted to be 0.68 yuan, 1.05 yuan, and 1.38 yuan, with price-to-earnings (PE) ratios of 86.7X, 56.3X, and 42.9X [3]

Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company has shown stable revenue growth, with both B-end and G-end businesses progressing effectively. The introduction of AI technology is expected to help build a competitive moat in vertical industries [4][9] - The B-end business is experiencing significant market expansion, supported by favorable policies and a growing number of registered enterprises in China. The domestic financial and tax AIBM ecosystem service market is projected to reach 390.73 billion by 2028, with a compound annual growth rate of 74.9% [2] - The G-end business is deeply involved in the "Golden Tax Phase IV" construction, enhancing digital tax products that help enterprises reduce costs and improve efficiency. The company is actively developing a large model for tax services, leveraging over 20 billion financial and tax data to create a competitive advantage [3] Financial Summary - For the fiscal year 2023, the company reported revenue of 1,829 million, with a year-on-year growth rate of 7.7%. The net profit attributable to the parent company was 83 million, reflecting a decline of 42.1% year-on-year [1] - Revenue is projected to grow to 2,311 million in 2025, with a year-on-year growth rate of 18.8%, and net profit is expected to reach 277 million, marking a significant increase of 146.4% [1][9] - The company's return on equity (ROE) is forecasted to improve from 3.4% in 2023 to 10.3% in 2025, indicating enhanced profitability [1]

Group 1 - Tax Friend Co., Ltd. executed a block trade of 109,000 shares on August 27, with a transaction value of 5.8729 million yuan, accounting for 0.98% of the total transaction volume for the day [1] - The transaction price was 53.88 yuan, representing an 8.83% discount compared to the market closing price of 59.1 yuan [1] - The block trade involved multiple brokerage firms, with notable buy-side participation from Guotai Junan Securities and Guolian Minsheng Securities [2]

Group 1 - The State Council released opinions on the implementation of the "Artificial Intelligence +" initiative, aiming for over 70% application penetration of new intelligent terminals and intelligent agents by 2027, and over 90% by 2030 [1] - The initiative includes building national AI application pilot bases, promoting the intelligent transformation of software and information service companies, and developing AI application service providers [1] - The focus is on creating a smart product ecosystem, with significant development in smart connected vehicles, AI smartphones and computers, smart robots, smart homes, and wearable devices [1] Group 2 - Huatai Securities believes that generative AI is entering a new development stage dominated by AI agents, which are seen as "digital employees" capable of understanding, planning, and executing complex tasks [2] - The demand for energy and semiconductors is rapidly increasing as AI agents transition from experimental to large-scale deployment, making these resources strategic and bottleneck factors for AI development [2] - Northeast Securities highlights that edge AI is evolving terminal devices from "single-function" to "scene intelligence," creating a core technology foundation for the Internet of Everything [2] Group 3 - Companies involved in AI applications across various sectors include: - AI + Government: Taiji Co., South威 Software, Newpoint Software, Digital Government, and Tuoer Si [3] - AI + Justice: Jinqiao Information, Huayu Software, and Tongda Hai [3] - AI + Finance and Tax: Tax Friend Co., Zhongke Jiangnan, and Bosi Software [3] - AI + Enterprise Services: Kingsoft Office, Yonyou Network, Kingdee International, Inspur Digital Enterprise, Guangyun Technology, Zhiyuan Interconnection, and Fanwei Network [3] - AI + Programming: Jin Modern and Puyuan Information [3] Group 4 - Companies such as Kute Intelligent and Nanxing Co. are identified as active entities in the AI agent space [4]

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company's mid-year report for 2025 met expectations, with total revenue of 922 million yuan, reflecting a year-on-year growth of 13.25%. However, the net profit attributable to the parent company decreased by 19.52% to 71 million yuan due to increased marketing and R&D expenses [7] - The B-end user base showed significant growth, with the smart tax and finance business generating 621 million yuan in revenue, up 11.95% year-on-year. The number of paid users for tax SaaS products reached 7.78 million, a 10.04% increase from the beginning of the year [7] - The decline in net profit is attributed to increased investments in high-value product marketing and digital applications, with sales expenses rising by 28.38% and R&D expenses by 8.47% [7] - AI product commercialization has accelerated, becoming a core driver for B-end business. AI-driven products and services accounted for 26.59% of the sales revenue in the smart tax and finance business [7] - The company is increasing investments in the B-end sector to build long-term competitive advantages, with a focus on ecological operations and AI empowerment [7] - Contract liabilities stood at 752 million yuan, primarily from B-end prepayments of 625 million yuan [7] - Operating cash flow showed an increase in outflow, with a net cash outflow of 322 million yuan compared to 284 million yuan in the same period last year [7] - The G-end business experienced a recovery in revenue, achieving 300 million yuan, a year-on-year increase of 16.60% [7] - The report maintains profit forecasts for 2025-2027, expecting revenues of 2.38 billion, 2.98 billion, and 3.86 billion yuan, with net profits of 186 million, 284 million, and 413 million yuan respectively [7] Financial Data and Profit Forecast - Total revenue for 2025 is projected at 2,382 million yuan, with a year-on-year growth rate of 22.4% [6] - The net profit attributable to the parent company is expected to reach 186 million yuan in 2025, reflecting a significant increase of 65% compared to the previous year [6] - The company's gross margin is forecasted to be 56.8% in 2025, with a return on equity (ROE) of 7.2% [6]

Group 1 - The core point of the article is the establishment of a new company, Hangzhou Hongfa Information Technology Co., Ltd., which is fully owned by Taxfriend Co., Ltd. (603171) [1] - The new company will engage in various services including software development, data processing services, data processing and storage support services, and internet information services [1]

Core Viewpoint - Recently, Hangzhou Hongfa Information Technology Co., Ltd. was established, indicating growth in the software and data processing sector, with indirect full ownership by Taxfriend Co., Ltd. [1] Company Summary - Hangzhou Hongfa Information Technology Co., Ltd. was founded with Wu Zhongguang as the legal representative [1] - The company's business scope includes software development, data processing services, data processing and storage support services, and internet information services [1] - Taxfriend Co., Ltd. (stock code: 603171) holds indirect full ownership of Hangzhou Hongfa Information Technology Co., Ltd. [1]

Investment Rating - The report maintains a "Positive" investment rating for the computer industry, indicating an expectation of returns exceeding the market benchmark by more than 5% [5]. Core Insights - Domestic AI large models are achieving breakthroughs, and the performance of domestic AI chips and switching chips is continuously improving, suggesting sustained development in AI computing power and applications in China [3][7]. - Investor confidence in China's AI development is expected to continue rising, driven by advancements in domestic AI models and chips [3]. Summary by Sections Domestic AI Models and Chips - The report highlights the successful launch of DeepSeek V3.1, which utilizes UE8M0 FP8 technology, indicating a trend towards large-scale application of domestic chips [7]. - The continuous improvement in domestic AI chip design and manufacturing processes is expected to enhance market share for domestic computing power [7]. AI Applications - The report notes that domestic AI applications are likely to form a commercial closed loop, with significant partnerships such as Tesla collaborating with ByteDance's Volcano Engine for AI services in vehicles [7]. - The recognition of domestic models is anticipated to promote the practical application of AI agents [7]. AI Infrastructure and Switching Chips - The demand for switching chips is expected to grow significantly due to the increasing requirements for low latency and high bandwidth in AI training and inference processes [7]. - The report suggests that the domestic switching chip market will continue to develop alongside the trend of AI chip localization [7]. Investment Recommendations - The report recommends focusing on companies involved in AI computing power, such as Cambrian (688256, unrated), Haiguang Information (688041, Buy), and others [7]. - For AI applications, companies like Kingsoft Office (688111, Accumulate) and Tax Friend (603171, Buy) are highlighted as potential investment opportunities [7]. - In the switching chip sector, companies like Shengke Communication (688702, unrated) and ZTE Corporation (000063, unrated) are mentioned [7].