Summary of Yonyou Network Conference Call Company Overview - **Company**: Yonyou Network - **Industry**: Enterprise Software and AI Solutions Key Points Revenue Growth and Business Strategy - Yonyou Network expects revenue growth to accelerate in 2026, focusing on AI integration and subscription models, with a significant improvement in cash flow and a target for annual profit to turn positive [2][5] - The company identifies AI, domestic data localization, and overseas markets as primary growth drivers, with resources and business efforts concentrated in these areas [2][5] Product Development and Market Position - The maturity of Yonyou's VIP product has increased, leading to a reduction in delivery difficulties for large clients, with core product revenue share rising [2][6] - The VIP product has replaced over 160 large enterprises' SAP or Oracle systems, enhancing global capabilities and achieving rapid growth in overseas markets [2][6] AI Application and Orders - In 2025, Yonyou's AI orders exceeded 700 million yuan, accounting for over 10% of total orders, with expectations for further increases in 2026 [2][7] - The introduction of AI applications has improved customer acceptance of public cloud services, with the VIP Super Edition contract amount surpassing 400 million yuan [2][7] Domestic Replacement Opportunities - Yonyou sees ongoing domestic replacement opportunities over the next two years, requiring higher standards from domestic manufacturers, with demonstrated capabilities in large enterprise replacements [2][8] - The new YS product has become a major growth driver for mid-sized clients, reversing the declining revenue trend in this segment [2][8] AI Technology Development - Yonyou's AI technology is creating new business opportunities and driving clients to upgrade outdated systems to adapt to the new generation of BIP products [2][9] - The company has launched AI Agent applications, which have rapidly gained market recognition, although challenges remain in data integration and dynamic decision-making [2][10][11] Ontology Technology and Its Impact - Yonyou utilizes ontology technology to bridge structured and unstructured data, enhancing the capabilities of large models to perform reasoning and actions, thus eliminating inaccuracies [2][13] - This technology allows for a transition from auxiliary decision-making to fully autonomous decision-making, significantly improving business efficiency and accuracy [2][14] Case Studies and Results - A notable case involved a provincial energy group that achieved a 95% accuracy rate in testing Yonyou's solutions, leading to a partnership due to superior performance compared to competitors [2][15] - Yonyou's AI system has effectively managed complex financial and business issues, optimizing procurement strategies and reducing costs by 3% to 5% for clients [2][17] Productization and Market Reach - Following successful implementations, Yonyou has productized solutions into an "Enterprise Management Analysis Assistant," which has become a market hit, serving thousands of clients across various business sizes [2][19] - The company has developed various intelligent agents for multinational financial groups, ensuring data accuracy through supervised intelligence [2][20] Competitive Advantages - Yonyou's deep understanding of enterprise management and financial systems allows for precise pre-training of financial indicators, providing a competitive edge in the intelligent agent market [2][21] - The integration of large models with business systems enhances decision execution efficiency, supported by a wealth of proprietary data resources [2][21] Financial Performance - In the first three quarters of 2025, Yonyou reported AI orders exceeding 700 million yuan, with expectations for total annual orders to surpass 1 billion yuan, indicating strong growth in AI-related revenue [2][22]