Summary of Beisen Holdings Conference Call Company Overview - Beisen Holdings specializes in human resource software, providing an integrated solution that covers the entire employee lifecycle from onboarding to offboarding, consisting of six modules and 35 products, making it the only company in China to achieve this level [2][3][6] Key Points and Arguments Industry and Market Position - Beisen has over 20 years of experience in human resources, with a strong foundation in capability, assessment, and development technologies, which, when combined with AI, create a new competitive advantage [2][3][5] - The company serves over 6,000 clients, primarily medium to large enterprises, and has a stable business relationship with high customization needs [3][4] Financial Performance - As of FY 2025, Beisen's Annual Recurring Revenue (ARR) reached 908 million yuan, with AI-related products contributing over 6 million yuan, showing a compound annual growth rate of over 20% over the past four years [2][13] - Total revenue for Beisen reached 945 million yuan, with product revenue increasing from less than 63% at the end of 2022 to 76% [14] - The overall gross margin exceeds 66%, with product gross margin surpassing 81% [14] AI Integration and Product Development - Beisen has integrated AI into over 50 scenarios, launching 10 related products, including the AI Interviewer, which has been positively received by clients [5][19] - The AI Interviewer can conduct 11 physical assessments, three gamified evaluations, and seven basic ability assessments, and can understand 23 dialects, making it suitable for large-scale recruitment [8][9] - The company has invested over 1 billion yuan since late 2014 to develop a platform that supports zero-code, low-code, and full-code development, enhancing customization capabilities [2][3] Competitive Advantages - Beisen's unique advantages include a single version of software for all users, allowing for concentrated development efforts and frequent updates [6][7] - The AI Interviewer is noted for its accuracy and cost-effectiveness, significantly reducing the time and cost associated with traditional interviews [9][26] Future Trends and Strategic Goals - The human resources industry is expected to see a trend towards the integration of AI across the entire industry chain, leading to high-performance, commercially viable products [12] - Beisen aims to continue expanding its AI product offerings and expects significant revenue contributions from new agents in the future [22] Challenges and Market Dynamics - The company acknowledges the competitive landscape in the AI market, emphasizing the importance of continuous feedback and product iteration to maintain an edge [21][24] - Beisen's approach to sales does not rely on special incentives for AI Agent growth, indicating a focus on traditional business performance [28] Additional Important Insights - Beisen's cash flow turned positive in the previous fiscal year, and the company anticipates profitability this year after a loss of 29 million yuan last year [4][14] - The company has a strong retention rate of 95% and a revenue retention rate of 114%, indicating robust client loyalty [13][14] - Beisen's AI products not only enhance value for existing clients but also attract new customers, with 73% of new clients being existing customers [23]

Investment Rating - The report maintains a "Hold" rating for the industry [4] Core Insights - The upcoming release of GPT5 is expected to challenge the new heights of multimodal AI, with the potential to integrate various functionalities such as reasoning, multimodal capabilities, and programming, aiming for L5 level multimodal AI [1][9] - Global tech giants are aggressively investing in multimodal AI, which is seen as a pioneer in AI monetization, with companies like Tencent, Alibaba, and ByteDance making significant advancements in this area [1][18][21] Summary by Sections 1. GPT5 and Multimodal AI - GPT5 is anticipated to elevate multimodal AI to a new standard, with most current models still at L3 level, indicating a significant gap to L4 and L5 levels [1][12] - The General-Level framework has been established to evaluate multimodal models, categorizing them into five levels based on their capabilities [9][12] 2. Key Companies in Multimodal AI - **Meitu**: Launched RoboNeo, an AI agent that integrates image editing, video generation, and web design, showcasing strong aesthetic capabilities [2][29] - **Kuaishou**: The Keling 2.0 model has achieved an impressive annual recurring revenue (ARR) of $100 million by Q1 2025, indicating strong monetization potential [2][34] - **Wondershare**: The Tianmu 2.0 model, supported by Huawei Cloud, enhances audio and video creation capabilities, aiming to democratize content creation [2][37] - **Hehe Information**: Expanded its capabilities in AI authentication and introduced a cross-platform cloud resource management terminal [2][42] - **Foxit Software**: Developed an intelligent document solution that transforms unstructured documents into structured data, enhancing efficiency in legal applications [2][48] 3. Investment Recommendations - The report suggests focusing on companies related to multimodal AI, such as Meitu, Kuaishou, Wondershare, Hehe Information, and Foxit Software, as they demonstrate strong monetization capabilities [3][59]