Group 1: Company Performance and Market Perception - The company has been heavily reliant on Ruijie Networks for performance, but with its recent spin-off, other subsidiaries are expected to explore growth in areas such as optical communication products, AI applications, and the metaverse [1] - The market currently values the parent company at less than one-third of Ruijie Networks, indicating potential undervaluation [2] - The company is focused on strategic restructuring and business development to enhance shareholder returns and has implemented a market value management system to boost its valuation [2] Group 2: Revenue and Financial Goals - The company aims to align its performance with its core strategy of "ICT infrastructure and AI application solutions," targeting various application scenarios in network and optical communication infrastructure, as well as AI applications [3] - Recent revenue data and future outlook will be disclosed in accordance with regulatory requirements [4] Group 3: Research and Development Investments - In 2024, the company invested approximately 2.668 billion CNY in R&D, accounting for 15.92% of its annual revenue, and has filed 455 patents, including 320 invention patents [5] - The total number of patents held by the company reached 3,097, with 2,255 being valid [5] Group 4: Seasonal Financial Trends - The company's revenue and profit exhibit seasonal characteristics, with Q1 typically contributing a smaller proportion to the annual totals [6]

Core Viewpoint - The company has implemented a "Quality Improvement and Efficiency Enhancement" initiative for 2024 and 2025, focusing on optimizing operations, enhancing governance, and improving development quality to boost investor confidence and stabilize market expectations [1][9]. Group 1: Business Performance and Financials - In 2024, the company achieved operating revenue of approximately 996.59 million yuan, representing a year-on-year growth of 10.60% [2]. - The net profit attributable to shareholders was a loss of approximately 137.21 million yuan, a reduction in loss by 42.78% compared to the previous year [2]. - The company’s channel agents contributed over 9,000 business opportunities, resulting in sales of approximately 263 million yuan [1]. Group 2: Strategic Initiatives and Market Development - The company is focusing on core business areas and enhancing its competitive edge through strategic partnerships and targeted market activities, such as the "2024 Mountain Stone Network Ecological Partner Conference" [1]. - The company has launched over 20 new domestic innovation products, with revenue from domestic innovation business reaching approximately 242.67 million yuan, a year-on-year increase of 160.29% [3]. Group 3: Research and Development - The company has initiated the trial production of a dedicated security chip, with significant improvements in processing speed and power consumption compared to previous generations [4]. - The company is preparing for mass production of the chip, expected to be released in the second half of 2025 [4]. Group 4: Governance and Investor Relations - The company has revised its profit distribution policy to focus on cash dividends, aiming to enhance shareholder returns [9]. - The company emphasizes compliance with information disclosure regulations and maintains open communication with investors, planning to conduct at least eight investor meetings in 2025 [13][14]. Group 5: Internal Control and Compliance - The company is committed to improving its governance structure and internal control systems, conducting regular audits and risk assessments to ensure compliance and operational efficiency [14][15]. - Training programs for key personnel are being implemented to enhance compliance awareness and reduce risks [15][16].