Core Insights - The launch of the "Smart Tax Agent - Intelligent Workshop" marks the introduction of the first Agentic platform in the tax and finance industry, aimed at revitalizing the trillion-yuan market with intelligent solutions [1] Group 1: New Service Model - The "Intelligent Workshop" platform provides a disruptive solution to common industry challenges such as low efficiency, high costs, and quality control issues [2] - The product matrix includes "Cockpit + Intelligent Accounting + Intelligent Compliance Advisor," reducing error rates to below 10% and enhancing human-machine collaboration [2] - The goal is to help 50,000 tax service institutions achieve a hundredfold increase in efficiency, while also establishing AI financial departments for millions of SMEs [2] Group 2: Market Engagement - The "Intelligent Accounting" product has demonstrated operational efficiency ten times that of traditional accounting, with over 90% accuracy and a 60% reduction in labor costs [2] - The platform is expected to significantly increase customer willingness to pay and average transaction value, shifting the focus from tool payments to results and digital labor payments [2] Group 3: Expansion into Public Sector - The company has extended its intelligent agent services to the public sector, addressing growing demands for personal tax optimization, social security planning, and pension calculations [3] - The "Yiqi Win" platform reported 11.8 million active enterprise users by June 2025, a 10.28% increase from the beginning of the year, with 7.78 million paying users, reflecting a 10.04% growth [3] Group 4: AIBM Strategy Implementation - The company is addressing core issues in existing general models, such as lack of tax knowledge and slow adaptation to specific domains, by leveraging over 20 years of industry experience [4] - The AIBM strategy has led to the establishment of a robust technical foundation, including a general model adaptation tool and a tax industry big data knowledge base [4] - The company has seen over 100% year-on-year growth in new customers and revenue from compliance products in the first half of 2025 [4] Group 5: Market Potential - The compliance tax optimization market is projected to reach a scale of 390.73 billion yuan by 2028, with a compound annual growth rate of 74.9% [5] Group 6: Commercialization of AI Products - By the first half of 2025, the company has successfully commercialized multiple scenarios of intelligent employees, with AI product sales accounting for 26.59% of its intelligent tax business [6] - This transition marks a significant step from being a traditional tax software service provider to becoming a leader in AI-driven intelligent services [6]

Core Viewpoint - TaxFriend Co., Ltd. is positioned as a leading provider of financial and tax information services in China, expected to benefit significantly from the deepening reforms in the financial and tax system, achieving growth through both government (G-end) and business (B-end) sectors, while the integration of AI with financial and tax services is anticipated to open up long-term growth opportunities [1] Financial Performance - In the first half of 2025, the company's intelligent financial and tax business generated revenue of 621 million yuan, reflecting a year-on-year growth of 11.95% [1] - The platform had 11.8 million active enterprise users, an increase of 10.28% from the beginning of the year, with 7.78 million paying enterprise users, up by 10.04% [1] AI Integration and Product Development - The company has achieved commercialization validation and sales across multiple scenarios through its AI-driven products and services, with the revenue from these offerings (including intelligent accounting and compliance consulting) accounting for 26.59% of the total sales revenue in the intelligent financial and tax business, an increase from approximately 20% reported in 2024 [1] - The "Xiyou" financial and tax domain model is being utilized to enhance the three-tier value system of financial and tax services, focusing on practical tax services, compliance tax advantages, and operational empowerment [1] Market Expansion - TaxFriend has entered the non-tax client market by being selected for the Ministry of Human Resources and Social Security's data governance service project, achieving breakthroughs in the digital government market related to comprehensive tax management and refined oil analysis and monitoring [1] - The company has established project collaborations in various regions, including Yunnan, Xinjiang, Guangxi, Zhejiang, and Shanghai [1]

Core Viewpoint - Taxfriend Co., Ltd. is positioned as a leading player in the financial and tax informationization sector, with a focus on AI product integration and rapid growth in data value services, leading to a "buy" rating from analysts [1][2]. Financial Performance - In the first half of 2025, the company achieved an operating revenue of 922 million yuan, representing a year-on-year growth of 13.25%. However, the net profit attributable to shareholders decreased by 19.52% to 71.01 million yuan [3]. - The updated profit forecasts for 2025-2027 are 212 million, 332 million, and 498 million yuan respectively, with corresponding EPS of 0.52, 0.82, and 1.22 yuan per share [2]. Business Segments - The B-end smart tax business generated 621 million yuan in revenue, up 11.95% year-on-year, with active enterprise users reaching 11.8 million, a growth of 10.28% from the beginning of the year. Paid enterprise users increased by 10.04% to 7.78 million [4]. - The G-end digital government business reported revenue of 300 million yuan, a 16.60% increase, with data value services contributing 91.02 million yuan, up 17% [5]. AI Integration and Future Prospects - AI-driven products and services accounted for 26.59% of the sales revenue in the smart tax business, an increase from approximately 20% in the 2024 annual report, indicating a growing trend in AI integration [4]. - The company is leveraging its "Xiyou" financial and tax domain model to enhance service capabilities across three value tiers: practical tax services, compliance tax optimization, and operational empowerment, suggesting promising future growth [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is a leading provider of financial and tax information services in China, expected to benefit from the deepening reforms in the financial and tax system, achieving growth through both G-end and B-end dual drivers. The integration of AI in financial and tax services is anticipated to open up long-term growth opportunities [5] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 922 million yuan, a year-on-year increase of 13.25%, and a net profit attributable to shareholders of 71.01 million yuan, a year-on-year decrease of 19.52% [6] - The company's smart financial and tax business generated operating revenue of 621 million yuan in the first half of 2025, reflecting a year-on-year growth of 11.95%. The number of active enterprise users on the platform reached 11.8 million, a growth of 10.28% from the beginning of the year [7] - The G-end business showed signs of recovery, with digital government services generating operating revenue of 300 million yuan, a year-on-year increase of 16.60% [8] Earnings Forecast - The revised profit forecasts for 2025-2027 are 212 million, 332 million, and 498 million yuan respectively, with corresponding EPS of 0.52, 0.82, and 1.22 yuan per share. The current stock price corresponds to P/E ratios of 104.0, 66.4, and 44.3 times for the respective years [5][9] Revenue Breakdown - The revenue from data value services and products reached 91.02 million yuan, a year-on-year increase of 17%. The company has established five main product lines in the tax customer market, achieving rapid promotion [8]