Core Insights - The company reported a revenue of 379 million yuan for 2024, marking an 18.24% year-on-year increase, while the net profit attributable to shareholders decreased by 27.89% to 41.45 million yuan [1] - The company is diversifying its revenue streams, with significant growth in engineering simulation software and a notable increase in technical service revenue due to recent acquisitions [1][3] - The launch of the "Tian Gong·Kai Wu" physical AI platform is expected to revolutionize industrial applications by integrating modeling and simulation, enhancing efficiency and cost-effectiveness [2] Revenue and Profitability - For 2024, the company's engineering simulation software revenue reached 228 million yuan, up 21.72% year-on-year, with a gross margin of 96.39% [1] - Technical service revenue surged by 3150.08% to 10.82 million yuan, attributed to acquisitions made in 2023 and 2024 [1] Strategic Acquisitions - The company invested 88 million yuan to acquire a 55% stake in Mai Si Jie, a leader in electronic information equipment technology, enhancing its capabilities in atmospheric waveguide prediction [3] - Plans are underway to acquire a 51% stake in Li Kong Technology, which focuses on intelligent manufacturing solutions, further strengthening the company's position in the physical AI sector [3] Future Outlook - The company forecasts revenues of 535 million yuan, 758 million yuan, and 1.078 billion yuan for 2025 to 2027, with net profits projected at 96 million yuan, 125 million yuan, and 150 million yuan respectively [4] - The company maintains a positive outlook on its growth trajectory, supported by ongoing resource integration and the introduction of new platforms [4]

Core Viewpoint - Physical AI is the next generation of AI that can understand physical rules and generate vast training datasets, with potential applications in intelligent driving, robotics, and military sectors [1][2][8] Summary by Sections Definition of Physical AI - Physical AI is defined as the ability to understand and comply with various physical laws, enabling dynamic interaction and autonomous operation between virtual and real worlds [2] - It can accelerate CAE simulation, support digital twins, and synthesize physically compliant scene data for training models in humanoid robots, autonomous driving, and military applications [2] NVIDIA's End-to-End Physical AI Practice - NVIDIA's Omniverse serves as the next-generation "soft core," evolving into a comprehensive physical simulation platform by integrating the PhysX5 physics engine and the Cosmos simulation engine [3] - This platform provides end-to-end support for industrial applications, allowing developers to train models, create virtual environments, and deploy applications [3] - NVIDIA announced collaborations with General Motors for future autonomous vehicle fleets and released the open-source humanoid robot model Groot N1 [3] Military Simulation and Domestic Developments - Physical AI is accelerating the intelligentization of military simulations, with applications across the entire lifecycle of military operations [4] - Domestic company Suochen Technology has launched the "Tiangong·Kaiwu" physical AI platform, mirroring NVIDIA's approach and offering comprehensive solutions for various industries [5] Military AI Market Outlook - China's defense budget for 2025 is approximately 1,784.7 billion yuan, with a consistent annual growth rate of around 7.1% to 7.2% from 2022 to 2024 [6] - The military AI sector is expected to experience structural reversals as the country enhances its military informationization and AI capabilities [6] Investment Strategy - Investment opportunities are identified in companies with algorithm advantages and engineering experience in the simulation field, as well as those with core data resources and application experience in military AI [8]