Core Insights - The company reported a quarter-on-quarter improvement in operational quality, with new orders, revenue, net profit, and gross margin all showing sequential growth in Q2 [1][2] - The company achieved a year-on-year increase of 42% in new orders for the first half of the year, driven by rapid growth in digital government and enterprise digitalization businesses [2][3] - The "ALL IN AI" strategy has been fully implemented, with AI product revenue accounting for 30% of total revenue [3][4] Financial Performance - For the first half of the year, the company achieved operating revenue of 558 million yuan, a year-on-year increase of 1.63%, and a net profit attributable to shareholders of -208 million yuan, a year-on-year decrease of 63.16% [1] - In Q2 alone, the company reported operating revenue of 342 million yuan, a year-on-year decrease of 3.43%, and a net profit attributable to shareholders of -82 million yuan, a year-on-year increase of 12.52% [1][2] - The company’s cash flow from operating activities for the first half was -309 million yuan, a year-on-year improvement of 27.31% [1] Business Segments - The digital government and enterprise digitalization business generated revenue of 126 million yuan in the first half, a significant year-on-year increase of 86.62% [2] - Traditional core businesses, such as electronic data forensics and public safety big data, saw revenues of 206 million yuan and 200 million yuan, respectively, with year-on-year declines of 11.56% and 2.15% [2] - New orders in public safety big data and enterprise digitalization both saw year-on-year growth exceeding 100% [2] AI Strategy - The company launched 17 new AI-enabled products in the first half, with the "Tianqing" public safety large model reaching a parameter scale of 100 billion and supporting 128K long context [3] - AI applications have been deployed across various sectors, including public safety, law enforcement, and cryptocurrency security, with significant operational improvements reported [3] - The company has accelerated its entry into the cryptocurrency sector with the launch of its first cryptocurrency security product, DrCoins [3] Investment Outlook - The company maintains a "strong buy" investment rating, with the "ALL IN AI" strategy showing initial success and a solid foundation for annual performance due to high growth in new orders [4] - Future focus will be on order conversion and the recovery of profitability, with projected net profits for 2025-2027 estimated at 30 million, 113 million, and 184 million yuan, respectively [4]