Core Insights - The company, Runhe Software, held a targeted investor meeting on November 4, 2025, to discuss its business layout, innovation progress, and future plans with various institutional investors [1][2]. Business Layout - Runhe Software operates in two main segments: 1. Technical services, primarily project-based and time-based, covering financial technology, smart IoT, and smart energy information systems, with financial technology accounting for over 50% of total revenue. The company has established a strong presence with six major state-owned banks, twelve joint-stock banks, and over 280 small and medium-sized financial institutions [3]. 2. Innovative business focusing on open-source HarmonyOS, open-source Euler, and AI, which are seen as new growth engines. The company reported a stable revenue growth of 12.86% year-on-year for the first three quarters of 2025 [3]. Innovation Focus - The company has developed a one-stop solution for HarmonyOS applications, successfully implementing projects in the banking sector and other verticals such as cultural tourism and government services [4]. - In the AI sector, Runhe Software has established a "hardware + software" product matrix, including the IntelliCore AI computing unit and the AIRUNS intelligent hub, which manages the entire lifecycle of AI models [5]. Industry Leadership - Runhe Software's "Runzhi," "Runshi," and "Runxing" large model matrix has been recognized, with "Runzhi" being listed among the "Top 30 Chinese Large Models of 2025." The company has also launched the "Runwu AI Financial Testing Agent" to facilitate digital transformation in the financial sector [6]. Commercialization Efforts - The company has achieved significant commercial applications in open-source Euler, obtaining over 160 compatibility certificates and successfully deploying solutions in finance, energy, and safety sectors. Additionally, its AI robots have been introduced in Japan for customer service in 4S stores [7]. Personnel Strategy - Runhe Software is implementing a personnel strategy focused on "controlling scale and optimizing structure," limiting growth in traditional technical services while directing resources towards innovative business areas to enhance industry capabilities [8]. Future Plans - The company aims to continue focusing on innovative directions such as trusted computing and AI, leveraging its industry experience and advantages in domestic operating systems and AI technologies. It plans to increase R&D investment and pursue productization and platformization for high-quality development [9].

Company Overview - The company operates in two main business segments: technology services (project-based and man-month based) and innovative product-based services, focusing on financial technology, smart IoT, and smart energy information services [1][2]. - The innovative business segment aims to drive the next phase of growth, leveraging experience in domestic operating systems and AI technologies [2]. Financial Performance - In the first three quarters of 2025, the company's revenue grew by 12.86% year-on-year, with financial technology accounting for over 50% of total revenue [3]. Business Development - The company has established a comprehensive solution for HarmonyOS application development, signing contracts with multiple banks for projects including mobile banking apps [4]. - In the open-source HarmonyOS sector, the company has launched 13 proprietary commercial versions across various industries, including finance, energy, and healthcare [4][5]. AI Product Offerings - The company has developed an "AI Central" product matrix, including hardware and three core software platforms: AIRUNS, AgentRUNS, and AutoRUNS, aimed at providing enterprise-level AI solutions [7]. - The "润知" knowledge processing model has been recognized in the "2025 China Large Model TOP30" list, showcasing the company's advancements in AI [10]. Open Source Initiatives - As a leading vendor in the open-source Euler community, the company has obtained over 160 compatibility certificates and is actively promoting commercial applications in various sectors [11]. Robotics and Automation - The company has introduced service robots for 4S stores and AI tongue diagnosis robots, integrating multiple AI technologies to enhance customer service and healthcare diagnostics [12][13]. Future Workforce Strategy - The company plans to maintain a stable workforce while focusing on attracting key talent for innovative business areas, ensuring high-quality development without excessive personnel expansion [13].

Core Viewpoint - Runhe Software (300339) reported a revenue of 2.719 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 12.86%, and a net profit attributable to shareholders of 62.1493 million yuan, up 26.88% year-on-year [1] Group 1: Financial Performance - The company achieved a revenue of 2.719 billion yuan in the first three quarters of 2025, reflecting a 12.86% increase compared to the previous year [1] - The net profit attributable to shareholders reached 62.1493 million yuan, representing a year-on-year growth of 26.88% [1] Group 2: Business Development - Runhe Software is focusing on traditional core businesses while actively expanding into innovative sectors such as open-source Harmony, open-source Euler, and enterprise-level AI to drive new growth [1] - In financial technology, the company has integrated AI technologies deeply with its financial services, covering six major state-owned banks, twelve joint-stock banks, and over 280 small and medium-sized licensed financial institutions by mid-2025 [1] Group 3: Technological Advancements - In the smart IoT sector, the company has developed a "end-edge-cloud" domestic autonomous industrial IoT security digital foundation, leveraging AI full-stack technology and service capabilities for leading applications [1] - In the smart energy sector, Runhe Software plans to gradually implement new intelligent equipment-based smart distribution network solutions, comprehensive smart operation and maintenance solutions for substations, and new microgrid, virtual power plant, and electricity sales digital solutions [1]

Company Overview - Jiangsu Runhe Software Co., Ltd. focuses on integrating advanced technology with industry, enhancing core competitiveness through intelligent technology and innovative services [1] - The company has developed a full lifecycle software service system, leveraging domestic operating systems and AI core technologies [1] Financial Performance - In H1 2025, the company achieved a revenue of CNY 1.747 billion, a year-on-year increase of 10.55% [2] - The net profit attributable to shareholders, excluding non-recurring gains and losses, was CNY 52.17 million, up 47.33% year-on-year [2] - Revenue breakdown: - Financial technology: CNY 889 million, +6.06% YoY - Intelligent IoT: CNY 606 million, +23.85% YoY - Smart energy information: CNY 200 million, +4.65% YoY - Innovative business revenue reached approximately CNY 368 million, +8.96% YoY, accounting for 21.07% of total revenue [2] Innovation and Business Development - The company is focusing on domestic and intelligent solutions, particularly in open-source Hongmeng and Euler, and AI applications [3] - It has empowered various industries including finance, energy, healthcare, and education through its innovative solutions [3] - The AI-related business aims to enhance business processes and efficiency, with products like JettoAI testing platform and various intelligent assistants [6][9] Traditional Business Stability - Traditional sectors such as financial technology, smart energy, and intelligent IoT continue to show stable growth, with financial technology accounting for over 50% of total revenue [4][5] - The company serves a wide range of financial institutions, including 6 major state-owned banks and over 280 smaller banks and insurance companies [4] Competitive Advantages - Clear innovation strategy focusing on open-source Hongmeng, Euler, and AI as growth drivers [11] - Strong technical foundation with extensive experience in key operating system technologies [12] - Talent advantage with a rich pool of expertise in open-source and AI fields [12] - Established industry capabilities in finance and energy sectors [12] Future Growth Areas - The company plans to deepen its presence in existing industries while expanding into new areas through customized solutions [13] - It aims to provide end-to-end AI solutions across various sectors, enhancing clients' operational efficiency and intelligence [13]

Core Viewpoint - The company is experiencing significant growth in its non-GAAP net profit and maintaining a high level of prosperity in its smart IoT business, driven by initiatives in open-source HarmonyOS, open-source Euler, and enterprise-level AI [1]. Financial Performance - The company forecasts a target price of 76.80 yuan and maintains a "buy" rating, predicting EPS for 2025-2027 to be 0.24, 0.28, and 0.33 yuan respectively, with a PE of 320 times for 2025 based on comparable company valuations [2]. - In the first half of 2025, the company reported revenue of 1.747 billion yuan, a year-on-year increase of 10.55%, with a net profit attributable to shareholders of 60 million yuan, down 29.43%, and a non-GAAP net profit of 52 million yuan, up 47.33% [2]. - In the second quarter of 2025, revenue reached 914 million yuan, a year-on-year increase of 12.88%, with a net profit attributable to shareholders of 29 million yuan, down 51.60%, and a non-GAAP net profit of 25 million yuan, up 69.61% [2]. - The financial technology business generated revenue of 890 million yuan in the first half of 2025, up 6.06%, while the smart IoT business generated 606 million yuan, up 23.85% [2]. Business Development - The company is actively integrating AI technologies into its financial services, covering six major state-owned banks, 12 joint-stock banks, and over 280 licensed financial institutions by mid-2025 [3]. - In the smart IoT sector, the company is developing a domestic "end-edge-cloud" security digital foundation for industrial interconnectivity, leveraging AI technology for advanced applications [3]. - The company plans to implement new intelligent equipment-based solutions for smart distribution networks, substations, and new microgrids over the next three years [3]. - Innovative business segments achieved revenue of 368 million yuan in the first half of 2025, representing a year-on-year increase of 8.96% and accounting for 21.07% of total revenue [3]. AI Strategy - The company is focused on building a comprehensive AI technology stack, centered around a triad framework of "knowledge-perception-decision," which includes various AI-driven products such as multi-modal knowledge engines and decision-making agents [4]. - The company has developed an "AI hub" product matrix, including integrated hardware and three core software platforms, along with AI-driven testing service platforms and financial knowledge assistants [4].

Investment Rating - The report maintains a rating of "Accumulate" for the company with a target price of 76.80 CNY [5][12]. Core Insights - The company has shown significant growth in net profit excluding non-recurring items, with a strong performance in the smart IoT business, driven by open-source HarmonyOS, Euler, and enterprise-level AI [2][12]. - The financial forecast indicates a steady increase in revenue and net profit over the next few years, with projected revenues of 3,838 million CNY in 2025 and 5,072 million CNY in 2027, reflecting growth rates of 12.9% and 15.4% respectively [4][12]. - The company is actively integrating AI technologies into its financial services, expanding its reach to major state-owned banks and over 280 small and medium-sized banks [12]. Financial Summary - Revenue is projected to grow from 3,106 million CNY in 2023 to 5,072 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 15.4% [4][12]. - Net profit attributable to the parent company is expected to increase from 164 million CNY in 2023 to 266 million CNY in 2027, with a notable growth rate of 20.6% in 2027 [4][12]. - The earnings per share (EPS) is forecasted to rise from 0.21 CNY in 2023 to 0.33 CNY in 2027 [4][12]. Business Development - The company is focusing on building a comprehensive AI technology stack, including a product matrix centered around knowledge, perception, and decision-making [12]. - The smart IoT segment is expected to maintain high growth, with revenue from this sector projected to reach 6.06 billion CNY in 2025, reflecting a year-on-year growth of 23.85% [12]. - The company aims to implement innovative solutions in smart energy, including new intelligent equipment and smart distribution network solutions over the next three years [12].

Core Insights - The company reported a revenue of 1.747 billion yuan for the first half of 2025, marking a year-on-year growth of 10.55%, and a net profit of 52.17 million yuan, up 47.33% year-on-year [1] - The company is focusing on innovation in areas such as open-source HarmonyOS, open-source Euler, enterprise-level AI solutions, and StarFlash, with innovative business revenue reaching approximately 368 million yuan, accounting for 21.07% of total revenue [1] - The expansion of the Harmony ecosystem is accelerating, with over 10 million Harmony 5 terminals and a developer community of 8 million [1] Financial Performance - The company's main business segments showed steady growth, with financial technology revenue at 890 million yuan (up 6.06%), smart IoT revenue at 606 million yuan (up 23.85%), and smart energy information revenue at 200 million yuan (up 4.65%) [1] - Innovative business revenue grew by 8.96% year-on-year, contributing significantly to overall revenue growth [1] Industry Applications - In the electricity sector, the company is enhancing the IoT operating system ecosystem, improving data management and integration with grid operations [2] - In the oil and gas sector, the company is collaborating with key players to develop smart multiphase flow meters using open-source Harmony technology [2] - In healthcare, the company launched an AI-assisted traditional Chinese medicine solution, currently implemented in various hospitals and health centers [2] - The company introduced the HiHopeOS industrial version for mining and industrial applications, becoming the first certified partner in this ecosystem [2] Open-source Euler Developments - The company has made significant progress in the open-source Euler domain, launching the HopeOS V22 for big data and AI needs, and achieving compatibility with multiple domestic CPU architectures [4] - The HopeOS has been commercialized in various sectors, including finance, energy, and telecommunications, establishing stable market sales [5] AI and Technology Integration - The company is building a comprehensive AI ecosystem, offering end-to-end solutions across various industries, including finance, energy, and retail [6] - The AI product matrix includes various solutions aimed at enhancing industry capabilities, with successful deployments in sectors like electricity and education [6][7] - The company is committed to continuous innovation and commercialization of its technologies, focusing on AI, Harmony, and Euler to drive industry upgrades [7]

Core Insights - The company reported a revenue of 1.747 billion yuan for the first half of 2025, representing a year-on-year growth of 10.55%, and a net profit of 52.17 million yuan, up 47.33% year-on-year [1] - The company is focusing on innovation in areas such as open-source HarmonyOS, open-source Euler, enterprise-level AI solutions, and Star Flash, contributing to a revenue of approximately 368 million yuan from innovative businesses, which accounts for 21.07% of total revenue [1] Financial Performance - Revenue for the first half of 2025 reached 1.747 billion yuan, a 10.55% increase compared to the previous year [1] - The net profit attributable to the parent company was 52.17 million yuan, marking a 47.33% increase year-on-year [1] - Main business segments showed steady growth, with financial technology revenue at 890 million yuan (up 6.06%), smart IoT revenue at 606 million yuan (up 23.85%), and smart energy information revenue at 200 million yuan (up 4.65%) [1] Business Segments - The financial technology segment generated 890 million yuan, reflecting a growth of 6.06% [1] - The smart IoT segment achieved 606 million yuan in revenue, with a growth rate of 23.85% [1] - The smart energy information segment reported 200 million yuan, growing by 4.65% [1] - Innovative business revenue reached approximately 368 million yuan, growing by 8.96% [1] Innovation and Technology - The company is actively expanding its HarmonyOS ecosystem, with over 10 million HarmonyOS devices and 800,000 developers engaged [2] - The company has launched 13 versions of the HiHopeOS software based on open-source HarmonyOS, leading the community in terms of software releases [3] - In the open-source Euler domain, the company has developed solutions for big data and AI, including the HopeOS V22 versions [4] Industry Applications - The company is enhancing the electric power industry by developing a comprehensive IoT operating system and collaborating with key players in the oil and gas sector [2] - In the healthcare sector, the company introduced an AI-assisted traditional Chinese medicine diagnostic solution, which is being piloted in multiple hospitals [2] - The company has also launched an industrial version of HiHopeOS for the mining sector, becoming the first certified partner in this area [3] AI and Digital Transformation - The company is committed to an "All in AI" strategy, providing end-to-end AI solutions across various industries, including finance, energy, and retail [6] - The AI product matrix includes various solutions aimed at enhancing industry capabilities, such as JettoPro and AI assistants for the financial sector [7] - The company aims to leverage its technological advancements in AI, HarmonyOS, and Euler to drive innovation and commercial success across multiple sectors [7]