Core Insights - The company is transitioning from "military simulation" to "military intelligence" through the development of the new XSim[®] military intelligence system, which integrates "simulation + AI" technology to enhance China's defense capabilities [1][7] - The company has introduced the XSimVerse[®] military large model, designed as a specialized model for military applications, supporting five key areas: military decision-making, virtual training, digital testing, training equipment, and intelligent equipment [2][3] Business Development - The five application areas for the military intelligence solutions include: - Intelligent Decision-Making: Utilizing military large models and AI tools to enhance decision-making processes [3] - Virtual Training: Combining military large models and simulation technology for comprehensive training systems [3] - Digital Testing: Integrating digital parallel testing environments with military large models for weapon testing [3] - Training Equipment: Providing realistic training gear using AI and XR technologies [3] - Intelligent Equipment: Developing a collaborative architecture for unmanned systems to enhance battlefield decision-making [3] Financial Performance - For the first three quarters of 2025, the company reported revenue of 157 million yuan, a year-on-year increase of 2.55%, while operating costs decreased by 40.02% to 143 million yuan [4] - The significant reduction in costs is attributed to the absence of project cost transfers that affected the previous year's figures [4] Diversification Efforts - The company has launched a new online game, "Armored Red Storm," which integrates military simulation technology, aiming to expand its presence in the serious gaming and esports market [6][7] - This move is expected to enhance the company's market influence in tactical competitive gaming and strengthen its technological capabilities [6][7]

Company Overview - Beijing Huaru Technology Co., Ltd. is focused on military simulation and AI integration, transitioning from "military simulation" to "military intelligence" with its core brand XSim® [2][3] Military Intelligence System - The new generation XSim® military intelligence system is based on over ten years of product accumulation in the military simulation industry, aiming to support China's defense technology in entering the "intelligent victory era" [3] Key Applications of XSimVerse® Military Model - **Intelligent Decision-Making**: Utilizes military models and AI tools to enhance decision-making processes across various military applications [5] - **Virtual Training**: Combines military models and simulation technology to create a closed-loop training system that simulates real combat experiences [6] - **Digital Testing**: Integrates digital parallel testing environments with military models to enhance the authenticity and complexity of weapon testing [7] - **Training Equipment**: Develops realistic combat training equipment using AI, simulation, and other technologies to improve training effectiveness [7] - **Intelligent Equipment**: Constructs a collaborative architecture for unmanned systems to optimize battlefield decision-making and enhance autonomous combat capabilities [7] Financial Performance - For the first three quarters of 2025, the company reported revenue of CNY 157 million, a 2.55% increase compared to the same period last year [8] - The net profit attributable to shareholders, excluding non-recurring gains and losses, was CNY -146 million, reflecting a 46.84% improvement year-on-year [8] Cost Management - The company's operating costs for the first three quarters of 2025 were CNY 143 million, a significant decrease of 40.02% compared to the previous year, primarily due to the absence of costs related to terminated projects [8] Gaming Business Development - The company’s wholly-owned subsidiary, Beijing Xiaoru Cultural Technology Co., Ltd., launched the online game "Armored Red Blade," which officially went live on October 31, 2025, enhancing the company's presence in the serious gaming and esports sectors [8]

Group 1: Company Overview - Beijing Huaru Technology Co., Ltd. is transitioning from "military simulation" to "military intelligence" with its core brand XSim® [2][3] - The new generation XSim® military intelligence system is based on over a decade of product accumulation in the military simulation industry [2][3] Group 2: Military Intelligence System - XSimVerse® military model integrates military vertical knowledge and simulation technology, supporting five application areas: military decision-making, virtual training, digital testing, training equipment, and intelligent equipment [3][4][5][6][7][9] - The military intelligence business aims to create a full-chain solution for military applications [4][5][6][7][9] Group 3: Application Areas - **Intelligent Decision-Making**: Enhances decision-making efficiency through an AI-driven OODA (Observe-Orient-Decide-Act) system [4] - **Virtual Training**: Provides realistic training experiences through a closed-loop training system combining military models and simulation technology [5] - **Digital Testing**: Integrates digital parallel testing with military models to enhance the authenticity and complexity of weapon testing [6] - **Training Equipment**: Develops realistic combat training equipment using AI and simulation technologies [7][8] - **Intelligent Equipment**: Constructs a collaborative architecture for unmanned systems to optimize battlefield decision-making [9] Group 4: Market and Orders - The company’s primary clients are military and defense industry enterprises, with a new contract order of 376 million yuan signed by December 31, 2024 [9][10] - The company can obtain orders through channels other than the military procurement network during procurement restrictions [9] Group 5: Competitive Landscape - Leading foreign companies in military intelligence include Palantir, which provides detailed battlefield information and optimizes decision-making processes, and Anduril, which integrates data from various sensors for enhanced situational awareness [13]

Group 1: Company Overview - Beijing Huaru Technology Co., Ltd. is transitioning from "military simulation" to "military intelligence" with its new generation XSim® military intelligent system, leveraging over a decade of experience in military simulation and recent advancements in "simulation + AI" [2][3] - The XSimVerse® military large model integrates military-specific knowledge and simulation technology, supporting five key application areas: military intelligent decision-making, virtual training, digital testing, training equipment, and intelligent equipment [6][7] Group 2: Application Areas - **Intelligent Decision-Making**: Utilizes military large models and AI tools to enhance decision-making processes across various military applications [7] - **Virtual Training**: Combines military large models and simulation technology to create a closed-loop training system that simulates real combat scenarios [7] - **Digital Testing**: Integrates digital parallel testing environments with military large models to improve the authenticity and complexity of weapon testing [7] - **Training Equipment**: Develops realistic training equipment using AI and simulation technologies to enhance combat readiness [8] - **Intelligent Equipment**: Constructs a collaborative architecture for unmanned systems to optimize battlefield decision-making and enhance operational capabilities [8] Group 3: Financial Performance - The company's projected revenue for 2024 is approximately ¥249.35 million, with Q1 2025 revenue reported at ¥37.94 million, reflecting a 2.15% increase year-over-year [8] - As of the end of 2024, the company's contract liabilities amounted to ¥97.78 million, a 4.23% increase from the beginning of the year, indicating strong project payment performance [8] Group 4: Profit Margin Insights - The decline in gross margin for 2024 is attributed to intensified price competition during bidding processes and rising labor costs [9] - The increase in hardware product revenue, which has a lower gross margin compared to software and technical services, contributed to the overall decrease in gross margin [9] Group 5: Competitive Advantages - The transition from military simulation to military intelligence is supported by a robust feedback loop where simulation systems generate training data that continuously improves military large models [9]