Financial Performance - In the first three quarters of 2025, the company achieved operating revenue of 4.27 billion CNY, a year-on-year decrease of 2.22%, with a third-quarter revenue growth of 3.96% [2][3] - The net profit attributable to shareholders reached 311 million CNY, a year-on-year increase of 45.9%, with a gross profit margin improvement of 1.14 percentage points [2][3] Business Segment Analysis Digital Cost Business - Revenue for the first three quarters was 3.446 billion CNY, a year-on-year decrease of 4.95%, with third-quarter revenue of 1.16 billion CNY, remaining stable compared to last year [3] - New cloud contracts signed in the third quarter showed positive growth, with traditional pricing product renewal rates improving [3] Digital Construction Business - Revenue for the first three quarters was 529 million CNY, a year-on-year increase of 17.19%, with third-quarter revenue of 217 million CNY, growing by 33.09% [4] - Gross margin reached 54.28%, reflecting successful strategic adjustments and a focus on high-value applications [4] Digital Design Business - Revenue for the first three quarters was 48 million CNY, a year-on-year increase of 2.52%, with third-quarter revenue of 17.2 million CNY, growing by 51.33% [5] - The focus is on product optimization and enhancing usability for clients [5] Overseas Business - Revenue for the first three quarters was 177 million CNY, a year-on-year increase of 10.21%, with strong growth in the European market [6] - The company established a new Hong Kong office to support international business development [6] AI Strategy and Progress - The company initiated an "All in AI" strategy in 2023, launching an AI model and platform for the construction industry [6] - New contracts directly generated by AI exceeded 70 million CNY in the first three quarters, with expectations to reach 100 to 150 million CNY by year-end [6][13] Financial Metrics Profit and Loss Statement - Operating costs decreased by 10.27% year-on-year, while sales expenses increased by 4.66% due to enhanced marketing efforts [7] - Management expenses decreased by 11.37%, and credit impairment losses dropped by 51.91% [7] Balance Sheet Changes - Cash and cash equivalents decreased by 1.351 billion CNY, primarily due to structural deposit purchases and dividend distributions [7] - Accounts receivable increased by 229 million CNY, reflecting seasonal cash collection patterns [7] Cash Flow Statement - Net cash outflow from operating activities increased by 3 million CNY year-on-year, while cash outflow from investment activities decreased by 3 million CNY [9] Strategic Outlook - The company is developing a new three-year strategic plan focusing on core business, resource efficiency, international market expansion, and AI transformation [7] - The upcoming "New List" policy is expected to drive growth in the cost business, with over 60% of provinces planning to implement it [12]

Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company reported a main business revenue of 2.784 billion yuan in the first half of 2025, a year-on-year decrease of 5.2%, while the net profit attributable to shareholders increased by 23.7% to 237 million yuan [1][5] - Profitability improved due to effective cost and expense management, with an overall gross margin of 87.8%, up 1.1 percentage points year-on-year [1] - The digital cost business generated revenue of 2.286 billion yuan, down 7.1% year-on-year, but the decline in new cloud contracts has narrowed significantly in Q2 [1] - The digital construction business achieved revenue of 312 million yuan, growing 8.2% year-on-year, with a notable 19.5% growth in Q2 [2] - The company is fully embracing AI, with over 40 million yuan in contracts directly attributed to AI, and has developed over 80 AI products [2] Financial Forecasts - Expected revenues for 2025-2027 are 6.252 billion yuan, 6.447 billion yuan, and 6.671 billion yuan respectively, with net profits projected at 480 million yuan, 577 million yuan, and 660 million yuan [2][3] - The company anticipates a significant recovery in profitability, with net profit growth rates of 91.5% in 2025 and 20.2% in 2026 [3][10]