Summary of Key Points from the Conference Call of Qimingxingchen (启明星辰) Company Overview - **Company**: Qimingxingchen (启明星辰) - **Period**: First half of 2025 Financial Performance - **Revenue**: Achieved between 1.115 billion to 1.175 billion RMB, a year-on-year decline due to external environment challenges and market demand adjustments [3] - **Net Profit**: Reported a net loss of between 103 million to 73 million RMB, with a non-recurring net profit loss of between 183 million to 153 million RMB [3] - **Gross Margin**: Increased by over 2 percentage points year-on-year due to strategic focus on high-quality projects and reduction of low-margin integrated projects [2][3] - **Operating Cash Flow**: Significant improvement with positive operating cash flow in Q2, marking the first time since listing that this was achieved in the second quarter [4][22] Strategic Focus and Innovations - **Partnership with China Mobile**: Deep resource integration and strategic collaboration to enhance cloud security and DICT business performance, aiming for improved operational efficiency [2][5] - **R&D Investment**: High-intensity investment in strategic innovation, particularly in AI security and data security, with AI coding improving overall R&D efficiency by over 30% [2][12] - **Product Development**: Launched several new products in AI application security, including a suite of large model application security products, which have already generated significant revenue [10][27] Market Trends and Opportunities - **AI Empowerment**: Future market opportunities are concentrated on AI-enabled customer solutions, focusing on large-scale B2B scenarios while also addressing B2C and B2H markets [3][15] - **Digital China Initiative**: Qimingxingchen plays a crucial role in enhancing network security capabilities in collaboration with China Mobile, addressing new technology challenges [8] - **Data Element Transformation**: Continuous growth in demand for data digitization and elementization, with significant progress in technology innovation and operational quality [17] Challenges and Responses - **External Market Conditions**: The company faces challenges from a downtrend in global cybersecurity spending and adjustments in market demand, as indicated by IDC's revised growth forecasts [3] - **Government Sector Budget Cuts**: The reduction in budgets for government and law enforcement sectors has impacted revenue, but the company is taking measures to strengthen internal sales management and expand collaboration with China Mobile [19][30] Future Outlook - **Market Recovery**: Despite current challenges, there is optimism for recovery in the cybersecurity sector, with expectations for improved performance in the second half of 2025 [24] - **Focus on High-Margin Products**: The strategy includes increasing the proportion of self-developed products and services to enhance overall profitability [21][20] - **Sector-Specific Growth**: Notable growth in the financial and healthcare sectors, with expectations for continued demand in these areas [18][30] Conclusion - **Overall Sentiment**: Qimingxingchen expresses confidence in its future market opportunities and aims to maintain a stable growth trajectory while enhancing its strategic partnerships and product offerings [13][31]

Core Viewpoint - The company, Jiechuang Intelligent (301248), has won a procurement project for police equipment from a provincial public security bureau, with a contract value of RMB 11.2362 million [1] Group 1: Project Details - The project involves the procurement of handheld electromagnetic net capture devices, which are intended for security and emergency response in key locations and situations [1] - The product utilizes electromagnetic launch technology, offering advantages such as non-contact capture and intelligent recognition [1] Group 2: Future Developments - The company is accelerating the innovation and research of multi-launch electromagnetic net capture devices, security robots, and security drones to expand applications in public security, firefighting, and emergency response [1] - The company aims to deepen AI empowerment in security, expand market share, and drive performance growth in the future [1]