Core Insights - The article highlights the ongoing efforts of the company to explore and promote new quality enterprises in China through investor service activities, focusing on sectors such as robotics, low-altitude economy, new energy vehicles, and intelligent manufacturing [2][3]. Group 1: Investor Service Activities - Since 2025, the company has organized nearly 10 investor service events across major cities in China, aiming to enhance investor understanding of innovative enterprises [2]. - The activities combine on-site visits to industries with educational services, creating a bridge between investors and the forefront of technological innovation [2][3]. - The initiative emphasizes the importance of direct engagement with companies to gain authentic insights into their operations and innovations [4]. Group 2: Industry and Economic Impact - The capital market is positioned not only as an economic indicator but also as a facilitator of industrial transformation, with public funds playing a crucial role in this dynamic [3]. - The company aims to build an ecosystem involving new quality enterprises, public funds, and investors, fostering a multi-perspective understanding of the industry [3]. - The cultivation of new productive forces requires a synergy of technology, capital, and application scenarios, with the company facilitating the flow of social capital into strategic emerging industries [3]. Group 3: Investor Education and Engagement - Investor education is deemed essential for informed decision-making, with the company focusing on deepening investor knowledge through direct interactions with industry players [4][5]. - The ongoing activities allow investors to experience the charm of the real economy and understand the innovative achievements of companies in the context of national modernization efforts [5]. - The company plans to continue inviting investors to engage with more core enterprises involved in innovation and industrial upgrades, thereby identifying investment opportunities in new productive forces [5].

Investment Rating - The report downgrades the investment rating to "Outperform" [2][9] Core Views - The company is experiencing performance pressure due to strategic adjustments, with revenue declining as it focuses on high-value clients and reduces low-margin businesses [7] - The gross margin is expected to recover to normal levels in Q1 2025 after a temporary reduction in 2024 [7] - The company has launched multiple AI projects and partnerships, indicating a focus on innovation and market adaptation [7] Financial Data Summary - Total revenue for 2024 is projected at 398 million, with a significant decline of 36.7% year-on-year, and a net loss of 696 million [6] - For Q1 2025, revenue is expected to be 37 million, down 31.6% year-on-year, with a net loss of 124 million [7] - The company anticipates a gradual recovery in revenue, projecting 544 million for 2025 and 742 million for 2026, with a net loss of 455 million and 360 million respectively [6][7] Business Strategy and Adjustments - The company is strategically adjusting its business model, reducing its focus on low-margin sectors while enhancing its AI capabilities [7][8] - The proportion of revenue from smart governance has decreased from 54% to 36%, while the share from innovative AI and other sectors has increased from 10% to 37% [7] - The report highlights the successful launch of various AI models and projects, including partnerships with Huawei for integrated solutions [7][9] Market Comparison - The report compares the company with peers in the AI sector, noting its broad range of services and technological capabilities [8][13] - The average price-to-sales ratio for comparable companies is noted, with the company being valued at a PS of 14x, indicating potential growth [9][10]