Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - In the first half of 2025, the company achieved revenue of 922 million yuan, a year-on-year increase of 13.25%. However, the net profit attributable to shareholders decreased by 19.52% to 71 million yuan, and the net profit after deducting non-recurring gains and losses fell by 25.09% to 62 million yuan [2][5]. - In Q2 2025, the company reported revenue of 474 million yuan, a growth of 4.84% year-on-year, while the net profit attributable to shareholders was 46 million yuan, down 16.58% year-on-year [2][5]. - The company’s operating cash flow showed a net outflow of 322 million yuan in the first half of 2025 [5]. Revenue Performance - The company’s revenue growth accelerated in the first half of the year, with B-end business revenue reaching 621 million yuan, up 11.95% year-on-year, while G-end business revenue was 300 million yuan, growing by 16.60% [11]. - The AI-driven product and service revenue accounted for 26.59% of B-end sales collections, indicating a significant contribution from AI initiatives [11]. Profitability Analysis - The company’s profit performance declined, potentially due to project delivery cycles and increased investment in AI. The sales, management, and R&D expenses for the first half of 2025 were 155 million, 117 million, and 225 million yuan, respectively, reflecting year-on-year increases of 28.38%, 17.80%, and 8.47% [11]. - The gross margin and net margin for the first half of 2025 were 59.06% and 7.71%, respectively, with Q2 figures at 57.3% and 9.94% [11]. Future Outlook - The company is positioned as a leader in financial and tax information technology, leveraging AI to enhance B-end business growth. Revenue projections for 2025 to 2027 are 2.21 billion, 2.54 billion, and 2.92 billion yuan, with growth rates of 14%, 15%, and 15% respectively [11]. - The expected net profit for the same period is projected to be 180 million, 290 million, and 390 million yuan, with growth rates of 64%, 57%, and 35% respectively [11].

Core Insights - Taxfriend Co., Ltd. successfully launched the "Smart Tax Agent" platform, marking a significant advancement in the financial and tax industry, injecting new vitality into the trillion-dollar market [1][4] Group 1: Product Launch and Strategic Development - The launch event showcased the "Smart Tax Agent" platform, highlighting the progress of Taxfriend's AIBM strategy and its future development paths [1][4] - The company aims to address the core issues of existing general models in the tax sector, such as lack of domain knowledge and weak reasoning capabilities, by developing a specialized model tailored for the financial and tax industry [2][3] Group 2: Technological Advancements and Value Creation - Taxfriend has established a robust technical foundation consisting of a general model adaptation tool, a financial and tax big data knowledge base, and a multi-agent reasoning model [3] - The company reported over 100% year-on-year growth in new customer numbers and revenue from compliance products in the first half of 2025, demonstrating significant value creation through AI digital employees and smart compliance advisors [3] Group 3: Operational Efficiency and Market Impact - The "Smart Tax Agent" platform has proven to enhance operational efficiency, with pilot projects showing a tenfold increase in operational efficiency and a 60% reduction in labor costs compared to traditional accounting methods [6][7] - The platform aims to assist 50,000 tax service institutions in achieving a hundredfold increase in human efficiency, thereby supporting millions of small and medium-sized enterprises in establishing AI-driven financial departments [7] Group 4: Expansion into Public Sector and Social Services - Taxfriend is extending its smart agent services to the public sector, addressing the growing demand for personal tax optimization and social security planning [9] - The company is committed to leveraging its 20 years of accumulated tax data and expertise to enhance public service offerings, including intelligent tax management and public tax planning services [9]

Company Overview - Taxfriend Software Group Co., Ltd. is located in Hangzhou, Zhejiang Province, established on December 22, 1999, and listed on June 30, 2021. The company specializes in the research, sales, and technical services of financial and tax information technology products [1] - The main business revenue composition includes: Intelligent Financial and Taxation Business 67.39%, Digital Government Business 32.56%, and Others 0.06% [1] Stock Performance - On September 2, Taxfriend's stock price fell by 1.14%, closing at 55.66 CNY per share, with a trading volume of 249 million CNY and a turnover rate of 1.11%. The total market capitalization is 22.617 billion CNY [1] - The stock has experienced a continuous decline for four consecutive days, with a cumulative drop of 5.82% during this period [1] Fund Holdings - From the perspective of the top ten heavy stocks in funds, one fund under Xinyuan Fund holds Taxfriend shares. Xinyuan Xinxin Income A (001601) held 29,500 shares in the second quarter, accounting for 3.16% of the fund's net value, ranking as the tenth heavy stock [2] - The estimated floating loss today is approximately 18,900 CNY, with a total floating loss of 101,500 CNY during the four-day decline [2] Fund Manager Information - The fund manager of Xinyuan Xinxin Income A (001601) is Chen Li and Zhang Hanyi. As of the report, Chen Li has a cumulative tenure of 12 years and 22 days, with a total fund asset size of 702 million CNY and the best fund return of 220.76% during his tenure [3] - Zhang Hanyi has a cumulative tenure of 8 years and 256 days, with a total fund asset size of 219 million CNY and the best fund return of 152.49% during his tenure [3]

Core Insights - The rapid development of the digital economy has led to increased demand for intelligent financial and tax management among small and micro enterprises, as well as for compliance and business empowerment [2] - TaxFriend Co., Ltd. launched the first Agentic platform in the financial and tax industry, named "Smart Workshop," which has shown initial optimization effects on financial and tax service models [2] - The platform's smart accounting function has achieved operational efficiency ten times that of traditional accounting, with an accuracy rate exceeding 90%, and has helped reduce labor costs by 60% [2] - TaxFriend's revenue from its intelligent financial and tax business reached 620 million yuan, a year-on-year increase of 11.95%, while its digital government business generated 300 million yuan, growing by 16.60% [4] Company Overview - TaxFriend Co., Ltd. was established in 1999 and is one of the earliest companies engaged in financial and tax information technology in China [3] - The company has participated in key tax infrastructure projects, including the national individual income tax reform and the smart electronic tax bureau [3] - TaxFriend operates a dual-brand strategy with its subsidiary "Yiqiying," focusing on B-end financial and tax SaaS services [3] Market Potential - The compliance tax optimization market is projected to have a market potential of over 100 billion yuan, with the domestic financial and tax AIBM ecosystem service industry expected to reach a market size of 390.73 billion yuan by 2028, with a compound annual growth rate of 74.9% [4] - The new generation of business owners is becoming younger, and small enterprises are showing increased compliance awareness, particularly in rapidly developing sectors such as e-commerce and new industries [4]

Core Viewpoint - The recent issuance of the "Artificial Intelligence+" action plan by the State Council serves as a strong policy catalyst for the AI application sector in A-shares, yet the stock prices of AI application companies experienced a decline after an initial rise, while AI hardware companies saw their stock prices increase significantly [1] Group 1: AI Application Sector Performance - AI education leader Jafa Education (300559.SZ) reported a revenue of 273 million yuan for the first half of 2025, a year-on-year increase of 5.03%, but its net profit decreased by 4.60% to 40.78 million yuan, indicating that AI business has not yet formed a significant revenue contribution [2][3] - Kunlun Wanwei (300418.SZ) achieved a revenue of 3.733 billion yuan, a 49.23% year-on-year increase, but reported a net loss of 859 million yuan, with operating costs rising by 106.21% to approximately 1.125 billion yuan, leading to a situation of increasing revenue but decreasing profit [3][4] - Zhongke Jincai (002657.SZ) reported a revenue of 345 million yuan, a 14.36% increase, but a net loss of 84.95 million yuan, with cumulative losses over the past four years amounting to approximately 510 million yuan [8][10] - Chinese Online (300364.SZ) achieved a revenue of 556 million yuan, a 20.40% increase, but reported a net loss of 226 million yuan, with sales expenses rising significantly, indicating a struggle to convert revenue growth into profit [9][10] Group 2: AI Agent Sector Performance - Guotou Intelligent (300188.SZ) reported AI-related product revenue of approximately 167 million yuan, accounting for 30% of total revenue, indicating that AI has become a significant income source for the company [11] - Nengke Technology (603859.SH) achieved AI-related revenue of approximately 211 million yuan, a year-on-year increase of 145.60%, with this segment contributing significantly to overall growth [11] - Tax Friend Co., Ltd. (603171.SH) reported AI-driven revenue of approximately 165 million yuan, representing 26.59% of its smart tax business sales, demonstrating that AI applications are translating into actual revenue [12]

Core Insights - Taxfriend Co., Ltd. successfully launched the "Smart Tax Core Agent New Era" platform, marking a significant advancement in the financial and tax industry with the introduction of the Agentic platform product [1] - The AIBM strategy and the implementation of domain-specific large models have shown remarkable results, addressing the core issues of existing general models in the financial and tax sector [3][4] - The launch of the "Smart Workshop" aims to revolutionize the financial and tax service model, providing solutions to common industry challenges such as low efficiency and high costs [6] AIBM Strategy and Model Implementation - The AIBM strategy has established a smart ecosystem, integrating a general model adaptation tool, a financial and tax big data knowledge base, and a multi-agent reasoning model [4] - The introduction of AI digital employees has significantly improved operational efficiency, with new customer acquisition and revenue growth exceeding 100% year-on-year in the first half of 2025 [4] Product and Service Innovations - The "Smart Workshop" product matrix, including the cockpit, smart accounting, and smart compliance advisor, aims to enhance operational efficiency and reduce human error rates to below 10% [6] - Pilot programs have demonstrated that smart accounting can achieve tenfold efficiency compared to traditional accounting, with over 90% accuracy and a 60% reduction in labor costs [8] Market Trends and Opportunities - The financial and tax industry is undergoing a transformation from scale competition to value competition, driven by policy support, market changes, and technological advancements [10][11] - 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% [12] Future Outlook - Taxfriend Co., Ltd. aims to lead the smart financial and tax service era by leveraging technology innovation and ecosystem collaboration, establishing a new paradigm for financial and tax services in China [13]

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]