Group 1: Industry Insights - The National Bureau of Statistics emphasizes the importance of enabling artificial intelligence development through data element empowerment as a key focus of market-oriented reform in the data element sector [1] - By July 2025, a comprehensive market structure is expected to form, led by one national exchange and over 50 regional and industry-level institutions, with the data trading market projected to grow to 211.54 billion yuan by 2024 [1] - The market size is anticipated to reach 284.09 billion yuan by 2025 and potentially exceed 715.9 billion yuan by 2030, with a compound annual growth rate of 20.3% during this period [1] - The construction of an open, shared, and secure national integrated data market is expected to accelerate data circulation and unlock the value of data elements, benefiting the entire industry chain [1] Group 2: Company Developments - Yihualu is recognized as a pioneer in the data element industry with a central enterprise background, actively participating in the development of national standards and industry norms [2] - The company provides a full-process service for data element assetization to government and enterprise clients, covering data asset evaluation, registration, authorized operation, and regional data element market construction [2] - Yihualu has established a complete business chain that includes data registration, asset evaluation, and circulation operation, creating a "public data operation platform product system" to attract industry users and technology service providers [2] - Shanghai Steel Union possesses a significant amount of exclusive bulk commodity data [3]

Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, while showing slight growth in Q1 2025, indicating ongoing challenges during its transformation period [1][2]. Group 1: Financial Performance - In 2024, the company's revenue was 465 million, a year-on-year decrease of 39.24%, and the net profit attributable to shareholders was a loss of 2.865 billion, down 51.59% year-on-year [1]. - For Q1 2025, the company achieved revenue of 204 million, reflecting a year-on-year growth of 5.22%, while the net profit attributable to shareholders was a loss of 120 million, which is a 35.51% increase in loss compared to the previous year, aligning with market expectations [1]. Group 2: Business Challenges - The decline in revenue and net profit is attributed to several factors: the long construction period for smart transportation projects, rapid growth in data element business from a small base, and adjustments in existing government and enterprise digitalization projects leading to reduced settlement amounts [2]. - The company has paused new investments in data lake projects, and as previous contracts are settled, some projects are experiencing reduced settlements [2]. - Poor performance from affiliated companies has led to impairment provisions and investment losses accounting for approximately 78% of the current period's losses [2]. Group 3: Strategic Initiatives - The company is focusing on deepening its data element business by creating a "public data operation platform product system" to provide a compliant and secure circulation platform for data providers, users, and service providers [3]. - It is involved in various projects, including financing solutions for government procurement suppliers and establishing data asset evaluation systems for local governments, indicating a commitment to enhancing data asset management [3]. - The company is also returning to its core smart transportation business, with ongoing projects in multiple regions and plans to expand both domestically and internationally, particularly along the "Belt and Road" initiative [4]. Group 4: Earnings Forecast and Investment Outlook - Due to the impact of asset impairment provisions and the revenue rhythm of new businesses during the transformation period, the company's EPS forecasts for 2025-2026 have been adjusted from 0.09/0.23 to -0.13/0.22, with a projected EPS of 0.55 for 2027 [4]. - The company is expected to leverage its relationship with China Electronics Technology Group to enhance data asset services and expand its customer base, maintaining a "buy" rating [4].