Core Viewpoint - The company, Shenzhen Sanda Industrial Co., Ltd., is actively engaging in various projects and initiatives to enhance its market position and address recent stock price fluctuations, while also planning a significant capital raise through a targeted stock issuance [2][3][4]. Group 1: Stock Performance and Market Activity - As of September 12, 2025, Shenzhen Sanda A's stock closed at 23.54 yuan, reflecting a 1.16% increase with a turnover rate of 3.19% and a trading volume of 347,200 shares, amounting to a total transaction value of 830 million yuan [1]. - On the same day, the main funds experienced a net outflow of 36.77 million yuan, accounting for 3.64% of the total transaction value [4]. Group 2: Corporate Announcements and Developments - The company confirmed its successful bid for the BEST equipment water cooling system project, indicating ongoing engagement in significant contracts [2]. - Shenzhen Sanda A has received approval from the China Securities Regulatory Commission for a targeted stock issuance, aiming to raise up to 2.5 billion yuan for various projects, including cloud operations and distributed storage research [3][4]. - The company is focusing on enhancing its core competitiveness and managing its market value through strategic operational improvements and high-quality development initiatives [2]. Group 3: Data Infrastructure and Innovation - The company is positioning itself as a pioneer in data factorization practices, actively developing data infrastructure and innovative products, with over 120 data innovation projects signed as of August 2025 [2]. - Shenzhen Sanda A has secured public data authorizations from 20 provinces and cities, creating multiple data products across various industries, including finance, healthcare, and transportation [2].

Core Viewpoint - The company is actively engaged in the development of data infrastructure and services, positioning itself as a pioneer in the data factorization practice, leveraging its "cloud-data integration" technology system and high-security computing infrastructure [1] Company Initiatives - The company has undertaken over 120 data innovation-related projects as of August 2025, providing data innovation services to a diverse range of clients [1] - It has achieved public data authorization from 20 provinces and cities, developing over ten data products across various industries including agriculture, finance, culture and tourism, transportation, justice, and healthcare [1] - The company’s self-developed data intelligence platform and one-stop data governance solutions have supported the digital transformation of major state-owned enterprises, enhancing their high-quality development with secure and user-friendly data infrastructure [1] Industry Engagement - The company has facilitated the first-level public data cascading connection in provinces and cities such as Hunan, Yunnan, Hebei, and Henan, promoting the collection, sharing, and utilization of local public data [1] - The newly incubated "China Electronic Cloud Trusted Data Space" has participated in the first batch of national data infrastructure pilot projects and several innovative development pilot projects for trusted data spaces [1]

Summary of Conference Call Records Company Overview - **Company**: 深桑达 (Shenzhen Sanda) - **Industry**: Advanced Manufacturing and Digital Information Services Key Points and Arguments Industry Challenges and Opportunities - **Increased Competition**: The advanced manufacturing sector is facing intensified competition, leading to pressure on gross margins [2][4] - **Growth in Digital Information Services**: Sales of existing products in the digital information services sector have doubled, and high-tech engineering services have increased through customer base expansion [2][4] Technological Innovations - **Breakthroughs in Technology**: Achievements in technology innovation include high-margin products for high-speed railway communication services, with plans to pursue national science and technology awards over the next nine years [2][5] Capital Operations and Talent Strategy - **Financing and Mergers**: The company has received approval for financing and mergers, conducted small equity buybacks, and invested in a digital twin team [2][6] - **Talent Management**: The company has shifted from large-scale recruitment to a focus on quality, reducing employee numbers from over 23,000 to under 20,000 while raising recruitment standards to graduates from top universities [2][6] Market Adaptation Strategies - **Domestic and International Market Focus**: The company is adjusting its business layout, focusing on energy, transportation, and commercial aerospace in the domestic market, while exploring capacity transfer opportunities in ASEAN, South America, the Middle East, Africa, and Central Asia [2][7] Future Development Strategy - **Strategic Directions**: Future strategies include services in manufacturing and digital information, with adjustments based on domestic and international market conditions [2][8] Revenue and Profitability Outlook - **2024 Performance**: Revenue is expected to grow significantly, but profit margins in engineering services are stable compared to the previous year, with net profits from large engineering companies around 800 million yuan [4][18] Digital Information Services Opportunities - **Market Entry and Growth**: The company entered the digital information services sector in 2019 and has identified opportunities in domestic innovation, industry digitization, and artificial intelligence [11][12] Artificial Intelligence Development Plans - **Platform Development**: The company is developing three platforms for application development, model training, and multi-modal data governance to support specialized data set development [12][33] Data Governance and Infrastructure - **Focus on Data Governance**: The company is prioritizing multi-modal data governance and trustworthy data spaces, with significant progress in pilot projects across major cities [13][32] Cloud Business Strategy - **Cloud Services**: The company is focusing on exclusive cloud services, emphasizing high security and reliability, with plans to significantly reduce losses by 2025 and achieve initial profitability by 2026 [17][18] Unique Competitive Advantages - **Targeted Clientele**: The company serves strategic sectors such as national defense and state-owned enterprises, emphasizing high reliability and security in its offerings [24][25] Financial Health and Shareholder Returns - **Shareholder Returns**: The company has a robust dividend policy, with a cumulative dividend payout ratio of 71% from 2022 to 2024, despite previous losses [46] Challenges in Financial Management - **Accounts Receivable Growth**: The company is addressing the increase in accounts receivable, with measures in place to ensure financial health and stability [47] Additional Important Content - **Governance and Disclosure**: The company has demonstrated strong governance and information disclosure practices, with no regulatory inquiries or warnings received [42][43] - **Management Team and Culture**: The management team is noted for its capability and forward-looking vision, contributing to a strong corporate culture [44] This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, market challenges, and growth opportunities in the advanced manufacturing and digital information services sectors.

Group 1: Financial Performance - In 2024, the company achieved significant revenue growth, with a stable development in high-tech industrial engineering services, although profit levels remained flat compared to 2023 due to increased competition and reduced project opportunities [2][3] - The company plans to issue up to 340 million shares, raising no more than 2.5 billion yuan, with the share price expected to be determined based on market conditions [21] Group 2: Business Strategy and Development - The company is focusing on "technology + service" dual-driven strategy in high-tech industrial engineering services, targeting emerging fields such as energy, transportation, and commercial aerospace [4] - In the digital and information services sector, the company is transitioning from solution-based services to product development and supporting services, with a focus on core clients in defense and state-owned enterprises [7] Group 3: Innovation and Technology - The company has made significant progress in self-developed products, with a notable increase in revenue from these products, and has received national recognition as a "little giant" enterprise [3] - China Electronics Cloud is positioning itself as a leading provider of dedicated cloud and AI solutions, focusing on three key areas: core platform development, professional data set construction, and computational infrastructure enhancement [5] Group 4: Market Trends and Opportunities - The company identifies three major trends in the market: ongoing domestic innovation replacement, the rise of dedicated cloud solutions, and the rapid development of AI technologies [10] - The company is actively participating in national pilot projects for data infrastructure, with a focus on sectors like pharmaceuticals and automotive, aiming to enhance data resource utilization [18] Group 5: Governance and Compliance - The company has established a robust governance structure, ensuring compliance and transparency in operations, with independent directors maintaining oversight on major decisions [20] - The company emphasizes shareholder returns, with a planned cash dividend of 1.2 yuan per 10 shares for 2024, reflecting a commitment to sustainable value creation [22]