Core Insights - The conference emphasized the integration of data and AI in enhancing the security industry, highlighting the importance of these elements for high-quality industrial development [1][3][12] Group 1: AI and Security - The company presented its DAS strategy, asserting that security is foundational for industrial development in the digital economy, with AI and data integration reshaping the security industry's technology and service boundaries [3][6] - The "Heng Brain" model, developed by the company, has evolved from version 1.0 to 3.0, showcasing capabilities in data governance, vulnerability analysis, and threat tracing, thus creating a comprehensive intelligent protection system [5][6] - AI technology has demonstrated significant effectiveness, achieving a 300% increase in operational efficiency and over 90% data noise reduction in API security monitoring, with a case study showing a reduction in risk alerts from 3,675 to 1,110 [5] Group 2: Data Utilization - The transition from "cherry freedom" to "data freedom" is seen as essential for the digital economy, with the company focusing on platforms that ensure data security while maximizing its circulation value [7][9] - The company has improved processing efficiency by 30 times in data classification and grading, addressing industry pain points related to static results and high manual review thresholds [7] - The company has participated in various pilot projects for trusted data spaces across multiple cities, utilizing privacy computing and blockchain technologies to ensure secure data circulation in sectors like healthcare and finance [9] Group 3: Service Innovation - The company is innovating its service model by establishing a cloud-based MSS service system that emphasizes proactive defense and dynamic operations, aiming for a threat response time of under 5 minutes [10] - The integration of AI into security services has led to a 70% increase in process efficiency for penetration testing and a 90% reduction in the complexity of security operation processes [10] - The company has played a crucial role in securing major events through technological innovation, reinforcing its commitment to building a secure digital world [10]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has demonstrated significant improvements in operational quality and efficiency, with a clear performance inflection point driven by AI product innovations [2][4] - The core product lines, particularly in data security and managed security services (MSS), have shown robust growth, with new AI-driven products contributing to this expansion [3][4] - The financial forecasts for 2025-2027 have been adjusted upwards, reflecting a recovery in demand within the cybersecurity sector [5] Financial Performance Summary - In 2024, the company achieved revenue of 2.043 billion, a year-on-year decrease of 5.87%, while the net profit attributable to shareholders was a loss of 198 million, significantly narrowing from a loss of 360 million in 2023 [1] - For Q1 2025, the company reported revenue of 311 million, marking a year-on-year increase of 10.8%, with a net loss of 111 million, also a significant improvement from the 200 million loss in Q1 2024 [1] - The company’s expense ratios for sales, management, and R&D have decreased significantly, indicating effective cost control measures [2] Product and Market Development - The company’s AI strategy has led to substantial growth in key product areas, with data security new product contracts increasing over 40%, and MSS revenue growing by more than 25% year-on-year [3] - The introduction of new AI-driven products and platforms is expected to create new growth opportunities, enhancing the company's competitive position in the cybersecurity market [4]