Industry Overview - The legal services industry has transitioned from a "labor-intensive" model to a "technology-driven" one, forming a complete chain structure from "basic support-core services-terminal demand-ecosystem cooperation" [1][33] - The market size is projected to reach 300 billion yuan in 2024 and 320 billion yuan in 2025, with a compound annual growth rate (CAGR) of 14.3% [1][34] - Top law firms dominate the high-end market, with red circle firms accounting for 17.1% of revenue, and the top 50 firms handling over 70% of cases valued at over 100 million yuan [1][37] Company and Regional Distribution - There are over 210,000 legal service firms in China, with 68.77% being private enterprises, and a trend towards scaling up [2][39] - The distribution of firms is uneven, with Guangdong, Shandong, Jiangsu, Shanghai, and Henan having the highest number of firms, while Beijing, Shanghai, and Shenzhen account for 57% of total revenue [2][45] Competitive Landscape and Business Changes - The competition in the industry has shifted from "scale expansion" to "value competition," with specialization becoming a trend [3][49] - The implementation of the new Company Law has driven compliance upgrades, with the data compliance market expected to exceed 20 billion yuan by 2025 [3][54] Incremental Customer Insights - In recent court cases, defendants account for 57% of the parties involved, with the wholesale and retail, construction, and manufacturing sectors being the most frequently involved [4][58] - The total scale of execution cases exceeds 5 trillion yuan, with over 40% being final cases, and the accommodation and catering industry having the highest application volume [5][68] - Intellectual property disputes have seen explosive growth, with an average claim amount of 2.87 million yuan, which is 15 times that of ordinary civil cases [6][54] Growth Direction Insights - Establishing specialized barriers in segmented markets and binding high-growth industries is essential for creating new sales capabilities [7][54] - The use of "legal health checks" can facilitate bulk signing, while AI can reduce service costs and enhance response speed [8][54] - Companies are leveraging policy dividends and other golden segments to build a robust industry foundation and increase customer unit prices [9][54] Conclusion - Law firms need to balance "hard power" and "soft power," with "technology empowerment + professional depth" becoming a dual driving model for future competitive advantage [9][54]

R&D Focus and Strategy - The company will prioritize R&D investments in AI technology for judicial and legal applications, enhancing AI capabilities and legal knowledge systems [1] - Key areas of focus include improving legal AI models, data governance, and developing voice and video engines for various applications [1] Product Development and Market Feedback - The "Hairei" legal AI model has been successfully implemented in cities like Nanjing, Chengdu, and Zhuhai, providing capabilities such as intelligent analysis and document generation [2] - The company aims to expand its application software development, particularly in AI and big data, despite a temporary downturn in 2024 due to market conditions [3][4] International Expansion - The establishment of "Tongda Hai (Hong Kong) Technology Co., Ltd." marks the company's entry into overseas markets, with a focus on the Egyptian "Smart Judicial City" project, which has a contract value of $100.11 million [6] - The company plans to leverage the success of the Egyptian project to expand into surrounding markets and enhance its international presence [6][9] Integration of AI in Existing Services - AI technology is deeply integrated into the company's services, with applications in legal assistance and intelligent case analysis, targeting courts and law enforcement agencies [5] - The company is committed to maintaining stable R&D investments to enhance its core competitiveness [7] Competitive Strategy - The company will increase AI R&D investments and pursue international strategies to serve a broader user base, focusing on various legal sectors [12] - Differentiation from competitors will be achieved through enhanced AI capabilities and strategic international collaborations [12][9]

Core Viewpoint - The company is a leading provider of products and solutions in the judicial industry, focusing on the integration of artificial intelligence and legal technology to enhance its service offerings and expand into new markets [7][18]. Company Overview - The company is a top-tier supplier in the judicial industry, providing services to courts and other sectors such as banking and postal services [7]. - The company is actively pursuing an "AI+" strategy to enhance its core business in court information technology while expanding into related fields [7][18]. Business Developments - The company has made significant advancements in its key products, including the "Horizon" legal model, which offers various intelligent assistance features for judicial processes [9][10]. - The company has developed a smart trial management platform that integrates data visualization and monitoring capabilities to improve case handling efficiency [11]. - The company has launched a multi-dimensional dispute mediation platform that provides diverse services, including remote mediation and legal consultation [13]. Financial Performance - The company reported a revenue of 438.5647 million yuan, a decrease of 20.08% year-on-year, and a net profit attributable to shareholders of -50.3265 million yuan, down 192.34% compared to the previous year [14]. - The company's equity attributable to shareholders decreased by 6.10% year-on-year, totaling 1.3557961 billion yuan [14]. Key Financial Indicators - The company has undergone a change in accounting policies, which has resulted in the need to restate previous financial data [21]. - The company completed a capital increase, raising its registered capital to 96.6 million yuan [26]. Strategic Initiatives - The company has established a wholly-owned subsidiary in Hong Kong to expand its business coverage and explore overseas opportunities [23]. - The company has invested in Shanghai Runzhi Information Technology Co., Ltd. to enhance its capabilities in the public security sector [28]. - The company is actively involved in projects such as the "Smart Judicial City" in Egypt, with a contract value of 1.0011 million USD [23][28]. Talent and Technology Development - The company is focusing on enhancing its AI capabilities and legal knowledge systems to support judicial processes [15][16]. - The company is committed to integrating AI technology into judicial services, providing comprehensive support for judges throughout the case handling process [17].

Financial Performance - In 2024, the company achieved a new contract amount of CNY 1.94 billion, a year-on-year increase of 14.4% [2] - The ending contract amount reached CNY 1.75 billion, up 10.3% year-on-year, marking the first increase in three years [2] - The company's total revenue for the year was CNY 799 million, a decline of 16.29% year-on-year due to insufficient initial orders and seasonal fluctuations [3] - The net loss, excluding non-recurring losses, was CNY 509 million, a reduction of 60.78% compared to the previous year [3] Business Development - The company strengthened its competitive edge in the digital court and digital campus markets in 2024 [4] - Focused investments were made in core applications such as digital court trials and educational information technology [4] - The "Wahyu Wanshang Model" was iterated to version 3.0 in 2024, enhancing its reasoning and compliance capabilities [5] Product Innovations - The "Wahyu Wanshang Model" provides eight capabilities including legal knowledge retrieval and document generation, aimed at improving legal work efficiency [8] - The "Yuan Dian Wen Da" application was launched in 2024, offering intelligent legal knowledge services [8] - The company has developed a series of intelligent applications that cater to various market segments, including government and enterprise clients [6] Strategic Partnerships - The company has deepened its strategic cooperation with China Mobile, signing agreements with multiple provincial branches [10] - Collaborative efforts have led to the development of the "Hai Suan Judicial Model," which has been successfully implemented [10] Future Outlook - The company plans to continue focusing on core business areas and leveraging AI to drive innovation and service improvements [10] - There is an emphasis on expanding external collaborations and integrating resources to enhance customer value [10] Risk Considerations - The company cautions investors that predictions regarding industry trends and future performance do not constitute guarantees [10]