Product Overview - PBData is a self-developed database cloud platform by Tianji Technology, featuring high bandwidth and low latency through Infiniband interconnection, combining high-performance X86 servers with flash-based distributed storage [1] - The market for distributed storage was approximately 13 billion in the previous year [2] Market Trends - The trend towards domestic replacement in cloud computing is expected to intensify, with X86 gradually replacing traditional small machines since 2005 [3] - The degree of X86's replacement of small machines has been significant since 2014, with external policy pressures likely accelerating this trend [3] Product Demand and Profitability - The priority order for new products based on market demand is: PriData, Phegdata, PBDATA; however, the company's development priority is PBDATA, Phegdata, PriData [3] - Profit margins are closely linked to sales volume, with R&D costs currently being expensed, making specific forecasts challenging [3] Key Industries and Clients - The largest sectors for PBDATA are telecommunications and finance, which are seen as promising markets due to their high recognition of new technologies [4] - In the first half of 2015, PBDATA achieved sales of 12 units, with a total of 10 clients currently testing the database cloud platform [8] Competitive Positioning - Tianji Technology has a competitive edge due to its long-term technical accumulation and resource advantages, especially in comparison to larger companies like Huawei and Oracle [5] - The pricing for the database cloud platform is approximately 20-30 million per node, which is about 40% cheaper than Oracle but more expensive than Huawei [8] Strategic Directions - The company is actively promoting the localization of infrastructure and assisting the financial industry in its transformation, with a focus on developing new products and solutions [7] - Tianji Technology is collaborating with domestic manufacturers for database testing, indicating a commitment to local partnerships [8] Financial Performance - The company maintains an annual growth rate of approximately 15-20%, although actual performance may vary [8] - The subsidiary, Pingmin Software, primarily operates on a service fee basis due to its focus on open-source products, and has begun receiving orders this year [9]

Group 1: Company Overview - The company is Shanghai Tianji Technology Co., Ltd., with stock code 300245 and abbreviation Tianji Technology [1]. Group 2: Investor Relations Activity - The investor relations activity was a specific object investigation held on August 18, 2014, from 14:00 to 16:30 [2]. - Participants included representatives from various financial institutions such as Dongfang Securities, Guolian An Fund, and others [2]. - The main focus of the activity was to understand the company's operational status and its database cloud platform products [2]. Group 3: Meeting Details - The meeting took place at 778 Dongfang Road, Shanghai [2]. - Key company representatives included Chairman Lu Wenxiong, Secretary of the Board Lu Tingjie, and Financial Manager Li Siqi [2].

Group 1: Company Strategy and Market Position - The company aims to expand into innovative business areas, leveraging open-source technologies to enhance its offerings [1] - The database cloud platform is a starting point for the company's new strategy, focusing on high performance and reliability [1][2] - The company plans to introduce more infrastructure products based on its accumulated experience and technology [2] Group 2: Market Trends and Competition - The server market is trending towards three main areas: non-structured databases (20%), OACP/OAEP (50%), and virtual pools (20%) [2] - The company anticipates that 7 to 8 provincial operators will purchase its database cloud platform products this year [2] - The company’s database cloud platform is currently priced higher than Huawei's, but it offers superior stability, speed, and performance [2][3] Group 3: Customer Engagement and Testing - Approximately 50 customers are in line for testing the database cloud platform, with 7 tests already completed [3] - The primary testing focus for customers includes analysis scenarios, starting from peripheral systems before moving to core systems [2][3] - The financial and telecommunications sectors show significant interest in the database cloud platform, particularly among small and medium-sized banks [3] Group 4: Future Developments and Risks - New products are expected to be launched following the establishment of a subsidiary in Hangzhou [3] - The company recognizes customer acceptance and the urgency of transitioning away from IOE as potential risks in new business development [3][4] - The company is committed to a future shift towards X86 architecture, which is becoming increasingly stable [4]

Group 1: Database Cloud Platform Performance - The database cloud platform confirmed revenue from approximately 10 units last year, amounting to around 17-18 million RMB [1] - In Q1 2015, 3 units of the database cloud platform were confirmed [6] - As of now, about 10 units have been delivered this year, with additional projects expected in May [1] Group 2: Market and Sales Insights - The total number of units won in contracts with Zhejiang Telecom and Zhejiang Mobile is 9, with 2 units for Zhejiang Telecom and 7 for Zhejiang Mobile [1] - The external storage server market was approximately 130 billion RMB in 2014, while the X86 server market in China was about 390 billion RMB [4] - The company aims to increase market share through the development of distributors for sales [3] Group 3: Product Development and Strategy - The company plans to launch a distributed storage product in the second half of the year [6] - The database cloud platform's software is entirely self-developed [5] - The company is exploring the possibility of capitalizing on product R&D from the early stages [1] Group 4: Financial and Business Growth - Traditional business is expected to maintain stable growth, while new business segments are being developed to create new profit points [6] - The company has implemented an employee stock incentive plan to motivate core personnel [5] - The company is actively seeking suitable acquisition targets to enhance its growth strategy [6] Group 5: Competitive Landscape - The company perceives minimal impact from competitors like Inspur, as their products target different market segments [4] - The "Go IOE" policy is expected to have a positive long-term impact on the company's procurement tendencies [6] - The company believes that the recent contract wins will have significant demonstration effects for future market expansion [6]

Sales and Market Development - The company has secured contracts for 12 all-in-one machines from Zhejiang Mobile and 1 from Zhejiang Local Tax, with additional projects in progress [1] - Overall development of all-in-one machines is good, but still below initial expectations due to client processes, with no new revenue confirmed in Q3 [2] - The potential market for external storage is approximately $13 billion, and for X86, it is around $39 billion. The company aims for all-in-one machine sales to reach $500-600 million in the next 2-3 years [3] Competition and Advantages - Main competitors in the all-in-one machine market are Huawei and Oracle [3] - The company's all-in-one machines offer better performance and flexibility compared to Huawei, and are priced at about one-third to one-fourth of Oracle's similar products [4] - The target gross margin for all-in-one machines is expected to stabilize at 40% once sales volume increases [4] Product Features and Customer Acceptance - All-in-one machines are designed to replace low-end small machines and storage devices, utilizing X86 technology [4] - The acceptance of all-in-one machines among customers is gradually increasing, with higher acceptance in coastal regions compared to inland areas [7] - The core of the all-in-one machine is primarily software modules, which present a significant barrier to replication [7] Financial and Operational Insights - The company anticipates a cash flow improvement in Q4, as this period typically sees a peak in collections [2] - Traditional business maintenance services have seen a stable growth of 30%-40% in equipment volume, although unit prices have declined [8] - The all-in-one machines are produced on an order basis, ensuring tailored solutions for clients [7] Future Strategies - The company plans to enhance market penetration by developing distribution channels and collaborating with manufacturers [7] - Future product development will focus on domestic infrastructure and industry applications in the financial sector, with a new subsidiary already launching multiple product lines [5]

Group 1: Investor Relations Activity - The activity involved specific object research [2] - Participants included researchers from various investment firms [2] - The meeting took place on November 11, 2015, from 14:00 to 15:30 [2] Group 2: Company Overview - The main purpose was to understand the company's operational status [3] - The meeting was hosted at Shanghai Guilin Road, 406, 12th Floor [2] - Company representatives included the board secretary and a securities affairs representative [2]