Investment Rating - The report maintains an investment rating of "Outperform the Market" for the industry [2][3]. Core Insights - The report highlights that the operating service providers in the industry are facing challenges due to the decline of online growth benefits since 2022. However, leading companies like Ruoyuchen, Qingmu Technology, and Yiwan Yichuang have made progress in developing their own brands and integrating AI technology, which may present new growth opportunities [4][38]. - The report identifies two main transformation directions for operating service providers: 1) Developing proprietary brands by leveraging online operational capabilities to enter the upstream brand side, and 2) Upgrading through AI empowerment to enhance service capabilities and develop new business units [4][38]. Summary by Sections Industry Overview - The operating service provider industry has seen rapid growth from 2016 to 2022 due to the onlineization of brands. However, after reaching a peak in 2020, the industry has faced a downturn as online growth benefits have weakened and some brands have regained operational control [6][9]. Transformation Strategies - The report outlines two main strategies for transformation: 1) Continuing to enhance service capabilities while integrating new technologies like AI to create new service points. 2) Transitioning towards brand development, which requires new capabilities in product development, supply chain management, and marketing [9][38]. Focus Companies - **Ruoyuchen**: The company has successfully developed its own brands in the high-end home cleaning and health product sectors, with significant revenue growth. In 2024, its proprietary brand revenue reached 501 million yuan, a year-on-year increase of 90.28% [17][39]. - **Qingmu Technology**: The company has entered the women's intimate care and functional beverage markets through external brand acquisitions, achieving a 126.51% year-on-year increase in brand incubation and management business in 2024 [24][39]. - **Yiwan Yichuang**: The company is transitioning to an AI e-commerce service model, leveraging its extensive brand operation experience and partnerships with major e-commerce platforms to enhance its service offerings [5][39]. AI Integration - The report emphasizes the importance of AI technology in the e-commerce sector, highlighting its potential to optimize supply chain operations, content marketing, and customer service management. Companies like Yiwan Yichuang and Qingmu Technology are actively integrating AI tools to enhance operational efficiency and customer engagement [29][33][34].