Core Insights - HUAYU Software, with over 20 years in legal technology and educational informatization, is facing operational challenges despite claims of AI technology upgrades and business focus strategies, expecting a loss of nearly 100 million yuan in the first half of 2025 [1] Group 1: Business Performance - The core business of HUAYU Software, which provides digital solutions to government and courts, is heavily reliant on public sector budget cycles and procurement schedules, leading to a slowdown in new contract growth due to local fiscal pressures [2] - The company is experiencing liquidity issues as project acceptance delays hinder revenue recognition, resulting in a "grain in the warehouse" situation despite having existing orders [2] - New competitors in the legal technology sector are further diluting the company's market share, exacerbating the challenges faced [2] Group 2: Technological Challenges - HUAYU Software has introduced AI initiatives like the "Wandering Model" and intelligent judicial assistance tools to adapt to the industry's shift towards intelligence, but these innovations have not yet achieved a commercial closure [2] - The willingness of clients to pay for these technological advancements is constrained by rigid government budgets, and the user penetration rate of the legal knowledge platform "Yuan Dian Wen Da" has not met expectations [2] - The company's technology investment-output ratio is showing signs of imbalance as competitors capture niche markets with more precise vertical models [2] Group 3: Strategic and Governance Issues - The company is dealing with the aftermath of acquisitions that have become performance liabilities, leading to significant goodwill impairments and revealing integration challenges in the education sector [3] - The shift in government demand from "system construction" to "intelligent services" necessitates a transformation in HUAYU Software's business model towards a sustainable revenue structure based on "products + subscriptions" [3] - To restore market confidence, the company must stabilize its management team and establish a clear strategic roadmap to rebuild investor trust [3] Group 4: Industry Outlook - The current industry downturn may present an opportunity for reshuffling, and if HUAYU Software can effectively leverage technological upgrades to enhance customer value, it may regain vitality in the new cycle of government digitalization [3]

Performance Forecast - The company expects a net loss in the range of 83 million to 95 million yuan, compared to a loss of 162.58 million yuan in the same period last year [1] - The expected net loss after deducting non-recurring gains and losses is projected to be between 87 million and 99 million yuan, compared to a loss of 159.72 million yuan last year [1] - The anticipated operating revenue is between 620 million and 680 million yuan, compared to 665.91 million yuan in the previous year [1] Reasons for Performance Changes - The company has seen improvements in profitability due to ongoing management optimization, with the net loss narrowing by approximately 38% to 46% compared to the previous year [1] - The company plans to enhance project acceptance work in the second half of the year, supported by a solid order backlog and business expansion [1] - The company focuses on core business and advantages, emphasizing AI-enabled key scenarios and innovation in application and services [1] Contract and Technology Developments - The company expects to achieve new contract amounts of 680 million yuan, remaining flat year-on-year, with a 16% increase in the second quarter [2] - The total contracts on hand at the end of the period are projected to be 1.67 billion yuan, a year-on-year increase of approximately 9% [1] - The company has upgraded its technical capabilities, integrating the "Wanyu Wanxiang Model" with the DeepSeek-R1 model and launching the stable version of the "Wanshang+" intelligent agent development platform [1][2] Application Innovations - The company has released various models such as the trial large model and business intelligent agents, enhancing case assistance efficiency [2] - The internet legal knowledge service platform "Yuan Dian Wen Da" has improved user demand understanding efficiency and accuracy, introducing AI-generated element-style lawsuits to enhance the accessibility and convenience of legal services [2]

Group 1: Business Progress and Innovations - The "Hua Yu Wan Xiang" model has been iterated to version 3.0, enhancing reasoning capabilities and compliance, with new multimodal and coding abilities [2][6] - The company launched a series of intelligent applications, including "Yuan Dian Wen Da" for legal consultation and "Wan Xiang" series for data governance and judicial assistance [3][7] - In 2024, the company achieved significant progress in market expansion for its data products and services, with new contracts in legal technology showing year-on-year growth [3][9] Group 2: Financial Performance - The company's total revenue for 2024 was 1.629 billion yuan, a decrease of 7.99% year-on-year, attributed to insufficient initial order scale [8] - The gross profit margin increased by 10 percentage points due to improved operational efficiency [8] - In Q1 2025, revenue reached 271 million yuan, a year-on-year increase of 11.59%, with net loss narrowing by 47.79% compared to the previous year [8] Group 3: Market Strategy and Future Outlook - The company emphasizes value creation through core business focus, innovation, and enhanced investor relations to manage market value [4][5] - The legal technology, education informatization, and government-enterprise digitalization sectors align with national strategic directions, presenting significant growth opportunities [9][11] - The industry is moving towards data-driven, intelligent, and service-oriented development, with AI technologies like "large models" driving ongoing growth [11][12] Group 4: Customer Value and Product Development - The "Wan Xiang" model enhances legal work efficiency by automating data processing and document generation, benefiting legal professionals [13] - The "Yuan Dian Wen Da" application provides precise legal knowledge services, with ongoing user growth and commercial success [14] - The company aims to expand its applications to serve 10 million legal professionals effectively [14] Group 5: Risk Management - The company warns investors that predictions regarding industry trends and future performance do not guarantee outcomes, highlighting the uncertainty of new technology impacts [15]

北京和聚投资管理有限公司成立于2009年，发行并管理十余期私募产品，是中国基金业协会的首批特别 会员。和聚的投资团队来自于国内知名的证券研究机构和投资机构，从业经历都在十年以上，在业内具 有丰富的研究和投资经验。团队专注于中国证券市场的投资和研究，并保持主动管理、稳中求进的投资 风格，屡次获得"阳光私募金牛奖"等业内殊荣。和聚投资秉持规范经营和专业投资的理念，完整的公司 治理结构充分体现了激励充分、投资独立、专业分工、持续经营的原则，为公司的持续稳健发展打下了 坚实基础。2009 ●3月28日：和聚在北京注册成立●7月14日：首期产品--和聚1期成立 2010●和聚1期一季 度业绩私募排名冠军●和聚1期2010年业绩排名私募前十 2011●4月9日：和聚荣获第二届"金牛阳光私募 管理公司"奖●11月2日：和聚成为首批新股询价主承销商推荐的机构投资人2012 ●3月16日：和聚乔迁新 的办公场所 2013●1月3日：和聚成为中国基金业协会第一批特别会员●4月20日：和聚荣获第四届"金牛 阳光私募管理公司"奖核心优势 长期业绩 保持领先 经营稳健治理结构清晰，合规经营；独立的决策机 制，保障持有人利益优先的文化 ...

Financial Performance - In 2024, the company achieved a new contract amount of CNY 1.94 billion, a year-on-year increase of 14.4% [2] - The ending contract amount reached CNY 1.75 billion, up 10.3% year-on-year, marking the first increase in three years [2] - The company's total revenue for the year was CNY 799 million, a decline of 16.29% year-on-year due to insufficient initial orders and seasonal fluctuations [3] - The net loss, excluding non-recurring losses, was CNY 509 million, a reduction of 60.78% compared to the previous year [3] Business Development - The company strengthened its competitive edge in the digital court and digital campus markets in 2024 [4] - Focused investments were made in core applications such as digital court trials and educational information technology [4] - The "Wahyu Wanshang Model" was iterated to version 3.0 in 2024, enhancing its reasoning and compliance capabilities [5] Product Innovations - The "Wahyu Wanshang Model" provides eight capabilities including legal knowledge retrieval and document generation, aimed at improving legal work efficiency [8] - The "Yuan Dian Wen Da" application was launched in 2024, offering intelligent legal knowledge services [8] - The company has developed a series of intelligent applications that cater to various market segments, including government and enterprise clients [6] Strategic Partnerships - The company has deepened its strategic cooperation with China Mobile, signing agreements with multiple provincial branches [10] - Collaborative efforts have led to the development of the "Hai Suan Judicial Model," which has been successfully implemented [10] Future Outlook - The company plans to continue focusing on core business areas and leveraging AI to drive innovation and service improvements [10] - There is an emphasis on expanding external collaborations and integrating resources to enhance customer value [10] Risk Considerations - The company cautions investors that predictions regarding industry trends and future performance do not constitute guarantees [10]