Core Viewpoint - The resurgence of artificial intelligence (AI) and its integration with the Internet of Things (IoT) is driving industrial intelligence, with a focus on the potential of Teslin Smart Technology Co., Ltd. as a candidate for the "first public AIoT stock" in China [1][2]. Company Overview - Teslin was founded in 2015 and is a key player in China's public AIoT sector, aiming to drive industrial upgrades and spatial intelligence for sustainable development [2]. - The core business revolves around the TacOS operating system, which provides a comprehensive AIoT solution by integrating software, hardware, and related services [2]. Financial Performance - Teslin's revenue trajectory shows significant growth, with revenue increasing from 738 million yuan in 2022 to 1.843 billion yuan in 2024, reflecting a compound annual growth rate (CAGR) of 58% [3]. - In the first half of 2025, revenue growth accelerated further, with a year-on-year increase of 77% [3]. - The AI industry digitalization business saw a remarkable revenue increase of 191% in the first half of 2025, contributing over 90% of total revenue [3]. Market Position and Strategy - Teslin is among the top five public AIoT operating system providers in China, based on projected revenue for 2024 [2]. - The company has over 900 clients and its products are deployed in 172 cities globally, indicating a strong market presence [3][8]. - The strategic focus has shifted towards AI digitalization, while revenues from urban intelligence and smart living have contracted [3]. Profitability and Investment - Despite revenue growth, profitability has fluctuated, with gross margin dropping from 31% in 2023 to 15.3% in 2024, before slightly recovering to 22.7% in the first half of 2025 [4][5]. - The company recorded net losses of 2.387 billion yuan, 803 million yuan, 2.1 billion yuan, and 574 million yuan over the past four years [5]. - Research and development (R&D) expenditures exceeded 1 billion yuan from 2022 to 2024, with a consistent annual investment of around 300 million yuan [5]. Industry Trends - The AIoT market is projected to grow from 408 billion yuan in 2023 to 744 billion yuan by 2028, with a CAGR of 12.8%, making it one of the fastest-growing segments in the digital economy [7][8]. - The growth is driven by policy support and the deep integration of AI and IoT, creating new application scenarios and value [8]. Competitive Landscape - The AIoT sector is characterized by complex competition, with telecom operators, cloud service providers, and vertical solution providers vying for market share [8]. - Teslin differentiates itself as a public operating system provider, leveraging its TacOS to connect diverse devices for centralized management [8][9]. Future Opportunities - The company aims to capitalize on the trend of re-evaluating data value in the physical world and is well-positioned to build an ecosystem with strong backing from notable investors like JD Technology and SenseTime [11]. - Recognition as a "small giant" enterprise by the government enhances its credibility and market position [11].