Core Viewpoint - The company reported a slight revenue growth in H1 2025, with a total revenue of 1.045 billion yuan, representing a year-on-year increase of 4.08%, while the net profit attributable to shareholders reached 45 million yuan, up 6.09% year-on-year [1] Revenue Analysis - Revenue growth was driven by slight increases in Taiwan and mainland China, with Southeast Asia and AI applications showing significant growth. H1 and Q2 revenue growth rates were 4% and 4%, respectively, aligning with expectations [2] - In H1 2025, revenue from mainland China and overseas reached 476 million yuan and 569 million yuan, respectively, with year-on-year growth of 4.61% and 3.65%. Notably, local revenue in Southeast Asia surged by 61% [2] - By product line, revenue for R&D design, enterprise management, production control, and AIoT in H1 2025 was 57 million yuan, 571 million yuan, 138 million yuan, and 274 million yuan, reflecting year-on-year growth of 11.1%, 4.3%, 7.4%, and 3.5%, respectively. AI application products experienced a remarkable year-on-year growth of 126% due to enhanced product matrix and customer penetration [2] Profit Analysis - The company managed to optimize expenses significantly, which helped mitigate the impact of credit impairment losses, resulting in stable profit margins. The year-on-year growth rates for net profit attributable to shareholders were 6% for H1 and 2% for Q2 [3] - The gross margin for Q2 2025 was 57.39%, showing a decline of 1.5 percentage points year-on-year and 2.3 percentage points quarter-on-quarter, while the overall gross margin for H1 was 58.32%, reflecting an increase of 0.88 percentage points year-on-year [3] - In Q2 2025, the sales, management, and R&D expense ratios were 25.09%, 9.49%, and 6.51%, respectively, with year-on-year decreases of 0.87 percentage points, 0.07 percentage points, and 2.67 percentage points, attributed to ongoing personnel control measures [3] AI Integration and Future Outlook - The company is fully embracing AI transformation, transitioning from "+AI" to "AI+". Since rebranding in 2024, the company has launched multiple AI software infrastructure suites, enhancing the integration of AI across its business [4] - The commercial aspect includes leveraging AI to increase product value, with AI-integrated PLM products boosting average transaction prices by approximately 30%. The AI business revenue grew by 126% year-on-year in H1 2025 [4] - The company is increasing its R&D investment in AI, planning to raise 838 million yuan for digital ecosystem empowerment projects, indicating strong potential for AI business growth [4] - Future profit projections for 2025-2027 estimate net profits of 197 million yuan, 242 million yuan, and 295 million yuan, with corresponding growth rates of 26%, 23%, and 22%, and PE ratios of 67.8x, 55.1x, and 45.2x [4]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4][6]. Core Insights - The company has demonstrated steady revenue growth, achieving an operating income of 1.045 billion yuan in the first half of 2025, a year-on-year increase of 4.08%. The net profit attributable to shareholders reached 45.03 million yuan, up 6.09% year-on-year [1][4]. - The AI business has seen significant growth, with revenue increasing by 125.91% year-on-year, reflecting successful implementation and customer acquisition strategies [3]. - The company is focusing on integrating AI technology into its products, enhancing operational efficiency and customer value [2][3]. Summary by Sections Financial Performance - In the first half of 2025, the company reported a total revenue of 1.045 billion yuan, with a gross margin of 58.32%, an increase of approximately 0.88 percentage points year-on-year. The net cash flow from operating activities improved significantly, reaching -45.52 million yuan [1][4]. Business Segments - The R&D design segment generated 57 million yuan, growing by 11.05% year-on-year. The digital management segment achieved 571 million yuan, up 4.32%. The production control segment reported 138 million yuan, a 7.36% increase. The AIoT segment earned 274 million yuan, growing by 3.51% [2]. AI Business Development - The company launched an AI-powered PLM product, which has been adopted by nearly 100 clients, contributing to a significant increase in average transaction value. The multi-agent collaboration platform has been successfully implemented in various industries, establishing benchmark cases [3]. Profit Forecast and Valuation - The revenue forecasts for 2025-2027 have been adjusted to 2.536 billion, 2.794 billion, and 3.048 billion yuan, respectively. The net profit forecasts are set at 188.84 million, 236.92 million, and 274.51 million yuan, with corresponding EPS of 0.70, 0.87, and 1.01 yuan per share [4][7].

Core Viewpoint - The report from Haitong International highlights the launch of the "SUPA" model and a new paradigm by Dingjie Smart, indicating a positive long-term growth outlook for the company with a target price of 68.56 yuan, maintaining an "outperform" rating [1] Group 1: AI and Digital Transformation - AI is recognized as a crucial driver of new productivity, with digital transformation being essential for the survival and development of enterprises [1] - The value of AI lies in its ability to transcend human limitations, enhancing productivity by addressing labor shortages, capability gaps, and creating value in previously unsolvable areas [1] Group 2: Future Business Strategy - The company's future vision includes "one model," "two cores," and "three types of intelligent agents," aimed at helping businesses innovate productivity through data and intelligent technologies [1] - The AI strategy for enterprises involves three levels of advancement: cost reduction and efficiency improvement, business expansion for new growth, and paradigm reconstruction for boundary-breaking growth [1] Group 3: Competitive Edge and Application - Future competitiveness of enterprises will depend on the density of AI applications, which are expected to accelerate exponentially [1] - The application landscape includes general products and industry-specific suites, such as ChatFile for unstructured knowledge queries, design generation for 2D/3D CAD, and "Nana" for personal and executive assistance [1] - Industry cloud solutions are also highlighted, including supply chain integration through parts cloud, a closed-loop focus on pre-sale to post-sale in equipment manufacturing cloud, and the restructuring of financial reporting processes through the "Smart Consolidation Report" [1]

Core Insights - Dingjie Smart has seen a stock price increase of 91.99% year-to-date, with a recent price of 49.61 CNY per share as of September 10 [1] - The company operates in the software development sector, focusing on digital transformation and industrial internet solutions for manufacturing and small businesses [1][2] Financial Performance - For the first half of 2025, Dingjie Smart reported a revenue of 1.045 billion CNY, representing a year-on-year growth of 4.08%, and a net profit attributable to shareholders of 45.03 million CNY, up 6.09% [2] - The company has distributed a total of 311 million CNY in dividends since its A-share listing, with 65.59 million CNY paid out in the last three years [3] Shareholder Information - As of August 20, 2025, the number of shareholders decreased by 12.90% to 54,000, while the average number of tradable shares per shareholder increased by 14.81% to 4,988 shares [2] - Notable changes in institutional holdings include a decrease in shares held by major shareholders such as招商优势企业混合A and富国新兴产业股票A/B, while new shareholders like中欧互联网混合A and财通资管数字经济混合发起式A have entered the top ten [3]

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 68.56 CNY [6][12] Core Views - The company has achieved steady revenue growth in H1 2025, driven by its digital transformation and the potential of its Athena digital native platform, alongside expanding AI applications and overseas business opportunities [2][12] - The company is expected to maintain growth momentum, with projected revenues of 26.58 billion CNY, 30.25 billion CNY, and 33.73 billion CNY for 2025, 2026, and 2027 respectively, reflecting a strong demand for AI infrastructure and industry-specific solutions [12][13] Financial Summary - Total revenue for 2023 is projected at 2,228 million CNY, with a year-on-year growth of 11.7%. The net profit attributable to the parent company is expected to be 150 million CNY, reflecting a growth of 12.3% [4][13] - The company’s revenue is expected to grow to 2,658 million CNY in 2025, representing a 14.0% increase from 2024 [4][14] - The earnings per share (EPS) is projected to increase from 0.55 CNY in 2023 to 0.72 CNY in 2025 [4][13] Business Performance - In H1 2025, the company reported a revenue of 10.45 million CNY, a year-on-year increase of 4.08%, and a net profit of 0.45 million CNY, up 6.09% [12][13] - The AI business revenue saw a significant increase of 125.91% year-on-year, indicating strong growth in this segment [12][13] - The company has successfully expanded its international operations, particularly in Southeast Asia, serving approximately 800 enterprise clients and achieving a revenue growth of 60.87% in this region [12][13]

Investment Rating - The report maintains a "Buy-A" rating for Dingjie Smart (300378.SZ) [1][6] Core Insights - The company achieved a revenue of 1.045 billion yuan in the first half of 2025, representing a year-on-year growth of 4.08%. The net profit attributable to shareholders was 45 million yuan, up 6.09% year-on-year [4] - The company is focusing on high-growth sectors such as electronics and automotive components, while also accelerating AI integration across its product lines, leading to a significant increase in AI-related revenue, which grew by 125.91% year-on-year [5][6] Financial Performance Summary - In the first half of 2025, the company reported a gross margin of 58.32%, an increase of 0.88 percentage points compared to the same period last year. The net profit margin reached 4.22%, up 0.23 percentage points year-on-year [4] - The company’s revenue from the mainland China region was 476 million yuan, a year-on-year increase of 4.61%, while revenue from non-mainland China was 569 million yuan, growing by 3.65% [4] - The company’s earnings per share (EPS) for 2025-2027 are projected to be 0.75, 0.94, and 1.16 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 67.0, 53.8, and 43.4 [6][7] AI Integration and Market Expansion - The company has integrated AI into four major industrial software product segments, enhancing its offerings in product lifecycle management (PLM), digital management, production control, and AIoT solutions [5] - The company is actively pursuing opportunities in Southeast Asia, resulting in a 60.87% year-on-year revenue growth in that market [4][5]

Core Viewpoint - Dingjie Smart has achieved a remarkable gross margin of 100% on its self-developed smart software products for ten consecutive years, raising questions about the sustainability and accounting practices behind this figure [2][4][5]. Financial Performance - In the first half of 2025, Dingjie Smart reported revenue of 1.045 billion yuan, a year-on-year increase of 4.08%, and a net profit attributable to shareholders of 45.03 million yuan, up 6.09% [2]. - The revenue from self-developed smart software products reached 294 million yuan, maintaining a gross margin of 100% [2]. Accounting Practices - The company attributes the 100% gross margin to its accounting treatment, where research and development expenses are capitalized, resulting in zero cost at the delivery stage [5][11]. - The terminology for "self-developed software" has changed to "self-researched smart software products" in the 2024 annual report, indicating a shift in how the company presents its products [5][6]. Industry Context - The software industry typically sees gross margins ranging from 60% to 80%, making Dingjie Smart's 100% gross margin an outlier that raises skepticism among analysts [12]. - The company’s main operating cost is labor, accounting for over 50% of operating costs, yet this is not reflected in the gross margin for self-developed software, as these costs are categorized under management and research expenses [12][13]. Future Outlook - Despite achieving a gross margin of 58.32% in the software service sector, the company is experiencing negative cash flow, attributed to seasonal impacts on revenue and collections [13].

IPO Summary - Two companies are scheduled for IPO review next week (September 8-12), with a total fundraising target of 600 million yuan [1] - The companies include Weite Environment and Yatu High-tech, both based in Guangdong [2] Weite Environment - Weite Environment is attempting its IPO for the second time after being rejected in 2022, reducing its fundraising target from 304 million yuan to 169 million yuan [3] - The company plans to use the funds for projects including a regional operation center and a technology research center, with total project investments amounting to 303.54 million yuan [4][11] - Recent financial performance shows a net profit of 53.05 million yuan for the last year, with a net asset return rate of 15.52% [9] Yatu High-tech - Yatu High-tech specializes in high-performance industrial coatings, with a fundraising target of 431 million yuan for its IPO [12] - The company reported a net profit of 148.61 million yuan last year, with a net asset return rate of 23.89% [13] Refinance Summary - Three companies are set for refinancing review next week, with a total fundraising target of 2.574 billion yuan [6] - The companies include Tianzhun Technology, Gu Zhong Technology, and Dingjie Smart [15] Tianzhun Technology - Tianzhun Technology focuses on high-end visual equipment for industries such as electronics and new energy vehicles, with a fundraising target of 886 million yuan [16] - The company reported a net profit of 12.45 million yuan for the last year [17] Gu Zhong Technology - Gu Zhong Technology provides integrated circuit packaging services, with a fundraising target of 850 million yuan [18] - The company reported a net profit of 31.33 million yuan for the last year [20] Dingjie Smart - Dingjie Smart offers software and technology services, with a fundraising target of 837.66 million yuan [22] - The company reported a net profit of 15.84 million yuan for the last year [23]

Core Viewpoint - The company, Dingjie Intelligent Co., Ltd., is responding to the Shenzhen Stock Exchange's inquiry regarding its second round of review for issuing convertible bonds to unspecified objects, focusing on the necessity, rationality, technical feasibility, and market demand of its fundraising projects [1] Fundraising Project Construction Plan - The fundraising project, named "Dingjie Intelligent Ecological Empowerment Platform Project," includes two main components: the "Dingjie Intelligent R&D Training Base" and "Platform Project R&D" [2] - The current office space per employee is 13.86 square meters, below the industry average, while the planned space post-project is 30.80 square meters, with an industry average of 20.67 square meters [2] - The project aims to enhance office efficiency and support future development while minimizing idle risks, aligning with the company's main business requirements [2] R&D Project Details - The new platform will feature eight core R&D modules, enhancing functionality compared to the existing industrial internet platform [3] - Key functionalities include a decision-making core, low-code development capabilities, and a one-stop office hub [3] - Target customers include medium to large enterprises and small to medium enterprises, with revenue generated through various models such as platform buyouts, subscriptions, and service income [3] Technical and Market Analysis - The company possesses advantages in industrial software applications, cloud platform development, and talent, indicating high technical feasibility and low risk of R&D failure [3] - The market demand for industrial management software is increasing, driven by trends towards cloud and intelligent solutions, providing a broad space for the project [3] R&D Expenses and Supplementary Flow Ratio - The R&D expenses for the fundraising project meet capitalization requirements and align with industry accounting policies [4] - The proportion of funds used for supplementary working capital is 20.83%, which is below the 30% threshold set by regulations [4] - Overall, the fundraising project is deemed necessary, rational, technically feasible, and in line with market demand, potentially enhancing the company's core competitiveness and supporting its digital transformation strategy [4]

Company Overview - Dingjie Smart Co., Ltd. was established in December 2001 and transformed into a joint-stock company in May 2011, with its shares listed on the Shenzhen Stock Exchange in January 2014 at an issuance price of 20.77 RMB per share [1] - The company specializes in providing information technology and digital solutions for manufacturing, circulation, and small and micro enterprises, with a focus on intelligent manufacturing, industrial internet, and new retail [1][2] - As of December 31, 2023, the company has issued a total of 26,930.84 million shares, with a registered capital of 26,930.84 million RMB [1] Business Development - The company has expanded its business from management software sales and implementation to intelligent manufacturing and cloud research and applications [1] - Dingjie Smart aims to enhance operational efficiency and broaden business opportunities by evolving its service offerings from accounting applications to management applications [1] Financial Reporting - The financial statements are prepared based on actual transactions and events, adhering to the accounting standards set by the Ministry of Finance and the China Securities Regulatory Commission [2] - The company evaluates its ability to continue as a going concern and has not identified any significant doubts regarding its ongoing viability [2] Accounting Policies - The company employs specific accounting policies and estimates based on its operational characteristics, including inventory valuation, accounts receivable credit loss provisions, and revenue recognition [2][3] - Financial statements reflect the company's financial position, operating results, and cash flows accurately and completely [2] Consolidation Scope - The company consolidates financial statements based on control, including all subsidiaries under its control [5] - The number of subsidiaries included in the consolidated financial statements increased by one in 2023 compared to 2022, reflecting ongoing growth and expansion [1][2]