Core Insights - Honghe Technology (002955.SZ) has reported a decline in net profit for 2024 due to tightened procurement budgets and increased competition in the domestic education market [3] - The company is focusing on cost reduction while continuing to invest in AI technology applications, overseas software products, and the development of new growth products [3] - Adjustments to the domestic education team and strategic initiatives are expected to lead to a recovery in performance in 2025 [3] Financial Performance - The company's annual revenue and gross profit in the domestic business have decreased [3] - In Q1 2025, domestic education revenue is projected to see significant growth compared to 2024 [3] - Gross margin and net profit are expected to decline in Q1 2025 due to the impact of the overseas market, particularly in North America [3] Market Developments - The North American market for interactive flat panel products has seen a decrease in market size, while major orders in Europe have not yet begun delivery [3] - Honghe Technology is expanding its product offerings in the U.S. market, focusing on new hardware products such as LED and commercial displays, as well as AI technology applications [3] - Significant revenue breakthroughs were achieved in the LED and commercial display business in Q1 2025, along with a successful high-value software sale in the U.S. market [3] - The company anticipates an increase in the revenue share from new products and businesses by the end of the year [3]