Core Viewpoint - The company CaiXun Co., Ltd. plans to raise up to 1.46 billion yuan through the issuance of convertible bonds, with all funds directed towards AI-related projects [1][2]. Group 1: Fundraising and Investment Plans - The 1.46 billion yuan raised will be allocated to three major projects aimed at building a comprehensive AI ecosystem, including "computing power infrastructure, platform middleware, and industry applications" [2]. - The fundraising amount is approximately 42.7% of the company's total assets as of Q3 2025 [3]. - The construction of the AI computing center is the primary focus of the fundraising, accounting for over 70% of the total amount, with an investment of 1.035 billion yuan planned [7]. Group 2: AI Computing Center - The AI computing center project aims to deploy computing servers, networks, and storage devices, creating a cluster with a total computing power of approximately 12,000 P (petaflops) over a two-year construction period [7]. - This initiative aligns with the national strategy for "moderately advanced construction of new infrastructure" to meet the surging demand for intelligent computing power in large model training and inference [7]. - The industry is characterized as a capital-intensive "arms race" for computing centers, with major telecom operators and leading internet companies investing heavily [8][9]. Group 3: Competitive Landscape and Challenges - CaiXun's revenue of 1.341 billion yuan ranks it 39th in the industry, indicating a lack of competitive scale compared to larger players [10]. - The commercialization cycle for computing centers may take 5 to 7 years, and declining rental prices for computing power in East China could further extend the investment recovery period [10]. - There is a noted supply-demand mismatch in the industry, with some computing centers in the western regions experiencing GPU utilization rates below 15%, leading to inefficiencies [11]. Group 4: AI Application Development - The company plans to invest 131 million yuan in upgrading the Rich AIBox platform, which serves as an "incubator" for intelligent agents, with a three-year development cycle [13]. - An additional investment of 294 million yuan is earmarked for developing enterprise-level AI applications, focusing on vertical industry implementations, also with a three-year timeline [13]. - The Rich AIBox platform is positioned as a one-stop solution for enterprise AI applications, supporting low-code development and integrating multimodal interaction and industry knowledge graphs [13]. Group 5: Future Prospects and Strategic Focus - The company recognizes the shift towards generative AI and views intelligent agents as key to overcoming challenges in deploying large models [14]. - CaiXun has successfully launched several applications, including customer service and voice agents, across various industries such as telecommunications, finance, and energy [15]. - The competitive landscape for enterprise AI applications is described as a "red ocean," with major cloud providers and numerous startups dominating the market [15].

Core Insights - The traditional era of simply buying traffic for GMV is over, leading to increased pressure on advertisers to achieve better results with shrinking budgets [1] - The AI marketing market is rapidly expanding, projected to exceed 85 billion yuan by 2025, with a year-on-year growth of 127% [1] - Major tech companies are pivoting towards AI to reshape marketing strategies as traditional methods become less effective [1] Group 1: AI Marketing Growth - The AI marketing sector has doubled in a short period, with 79% of marketing technology investments directed towards AI [1][2] - Companies like Baidu are innovating by changing how users interact with the internet, moving from static ads to more dynamic, service-oriented approaches [2][3] Group 2: Impact on Small and Medium Enterprises - AI marketing tools are particularly beneficial for small businesses, allowing them to automate customer interactions and reduce marketing barriers [3][4] - Baidu's "merchant intelligent agent" can handle initial client inquiries, significantly improving engagement rates compared to traditional customer service [3][5] Group 3: Transformation in Marketing Strategies - The shift towards AI represents a fundamental change in marketing logic, evolving from passive advertising to proactive customer engagement [2][6] - Baidu's strategy emphasizes simplicity in ad placement, catering to small business owners who may lack technical expertise [4][6] Group 4: Competitive Landscape - Other players in the market, such as ByteDance and Alibaba, are also leveraging AI to enhance their marketing capabilities, each with unique strategies [7] - The competitive environment is intensifying, with traditional leaders potentially being replaced by those who effectively utilize AI [7]

Financial Performance - In the first three quarters of 2025, the company achieved a revenue of CNY 1.341 billion, a year-on-year increase of 10.81% [3] - The net profit attributable to shareholders was CNY 196 million, a year-on-year increase of 0.61%, while the non-recurring net profit was CNY 168 million, a year-on-year decrease of 9.38% [5] - In Q3 2025, the revenue was CNY 422 million, a year-on-year decrease of 1.76%, and the net profit attributable to shareholders was CNY 6.098 million, a year-on-year decrease of 20.99% [3] Product Lines - The company has three main product lines: 1. **Collaborative Office Products**: Focused on digital employees, with email products being the preferred choice for 500 companies in China. The email product is now compatible with HarmonyOS and has been pre-installed on HarmonyOS devices [3] 2. **Smart Channel Products**: Aimed at data-driven operations, providing platforms for customer acquisition and intelligent operations. The Rich AIBox platform supports the development of AI marketing assistants and intelligent customer service applications [4] 3. **Intelligent Computing Services**: This segment has seen rapid growth, assisting clients in building intelligent driving computing centers and providing computing power services [4] AI Voice and Intelligent Computing - The AI voice business is expected to grow significantly, with a projected market size of trillions globally and hundreds of billions domestically over the next five years [5] - The company has established applications in AI voice, including a smart messaging platform in collaboration with China Mobile, enhancing customer interaction efficiency [7] - The intelligent computing services are expected to see substantial growth, focusing on large-scale projects in the next two to three years [5] Strategic Investments - The company has made strategic investments in quantum computing, holding a 0.9524% stake in Zhongke Kuyuan Technology, which is developing atomic quantum computers [8][9] - The investment aims to accelerate the development of quantum computing technology and its industrial application [9] Future Outlook - The company is positioned as a vertical solution provider in the AI field, focusing on high-value AI upgrades for B-end clients and exploring C-end AI applications [8] - The overall financial health remains robust, with significant investments in technology and a strong competitive position in the market [10]

Core Insights - Recent policies in the AI agent sector have clarified industry development directions and regulations, creating a favorable environment for the company's related business [1] - The company has proactively entered the AI agent field since 2023, leveraging its self-developed Rich AIBox platform, which integrates multimodal interaction and industry knowledge graphs for enterprise-level AI applications [1] - The platform supports low-code rapid development and incorporates key capabilities such as knowledge storage and retrieval, AI governance, and multi-agent collaboration, resulting in four core product lines: enterprise knowledge base, intelligent customer service, intelligent marketing, and AI BI [1] - The company has successfully launched multiple AI applications, including customer service agents, voice agents, enterprise brains, digital employees, and intelligent emails, achieving business implementation with leading clients across telecommunications, energy, finance, transportation, and government sectors [1] - These advancements establish a solid foundation for the company to seize policy opportunities and expand its market presence [1] - The company plans to align with policy directions, deepen the integration of AI agent technology with various industry scenarios, and continuously enrich its application ecosystem to assist more enterprises in achieving intelligent transformation and upgrades [1]

Core Insights - The 2025 China International Big Data Industry Expo opened in Guiyang, focusing on themes such as digital economy innovation, data resource utilization, and data security [1] Group 1: AI Development and Applications - The current development of AI aligns with previous expectations, with large models significantly reducing burdens for B2B users [1] - There has been a notable increase in the application of large models in various B2B scenarios over the past six months, with many enterprises exploring these applications and achieving significant progress [1] - The company has developed a comprehensive AI service system, including AI application development platforms and industry solutions, integrating AI technology into daily operations for enterprises and individuals [1] Group 2: Recommendations for AI Digital Transformation - Companies should understand the capabilities and limitations of the AI models they use to avoid application deviations [2] - A top-level planning for AI transformation is essential, which should clarify application scenarios and governance work [2] - Continuous operation and optimization of AI applications are necessary, as they are not a one-time setup but require ongoing improvement through data iteration [2] - Companies must ensure that the costs associated with AI models align with the expected outcomes to prevent resource wastage [2]

Summary of CaiXun Co., Ltd. Conference Call Company Overview - CaiXun Co., Ltd. has demonstrated robust revenue growth, with revenue doubling since 2021. In the first half of 2024, revenue increased by 17% year-on-year, reaching 920 million yuan. The net profit ranks within the top 10% of the industry, with a low debt ratio and ample cash flow to support future acquisitions and AI business initiatives [2][3]. Core Business Insights AI Strategy and Product Development - The company is actively advancing its AI strategy, achieving significant progress in computing power business after the acquisition team was established. It has developed self-researched AI platforms and products, upgrading three main product lines: collaborative office, smart channels, and intelligent computing services and data intelligence [2][5]. - The collaborative office product line, centered around digital employees, launched China's first AI email compatible with the HarmonyOS, generating 250 million yuan in revenue in the first half of the year, a 2% increase year-on-year [2][5]. - The smart channel product line serves major clients like China Mobile, covering over 1 billion users, and generated 350 million yuan in revenue, a 14.8% increase year-on-year [2][5]. - The intelligent computing services and data intelligence product line saw a 50% year-on-year revenue growth to 280 million yuan, driven by the introduction of a top-tier intelligent computing team and the Rich AI Cloud solution [2][7]. Financial Performance - In the first half of 2025, CaiXun achieved a revenue of 920 million yuan, a 17.7% increase year-on-year, with a net profit of 135 million yuan, up 14.7%. However, the non-recurring net profit decreased by 12.8% [3]. - The company maintains a low debt ratio of 15% and has over 1 billion yuan in cash to support future acquisitions and AI computing business development [3]. Future Outlook - CaiXun plans to continue its high growth trajectory, aiming for a 15% revenue growth and a 16% increase in non-recurring profit for the second half of 2025. The company is optimistic about the growth of computing power orders and the development of the HarmonyOS [4][24]. - The company is also exploring potential acquisition targets, with a focus on maintaining a strong position in the AI and computing sectors [4][13]. Industry Dynamics - CaiXun is expanding its applications within the HarmonyOS ecosystem, having pre-installed HarmonyOS in offline stores and planning to pre-install it on PCs [4][10]. - The company is actively seeking to enhance its intelligent customer service and marketing capabilities through partnerships, particularly with Deep Thick, leveraging TikTok's large model for customer service and marketing applications [9][21]. Key Challenges and Strategies - In response to increased IT spending pressures in government and enterprise sectors, CaiXun is focusing on expanding downstream customer development and exploring new business opportunities within controllable areas [22]. - The company is optimistic about its C-end projects, including the AI email project and the AI music product "TuGeLe," anticipating significant growth as the market matures [23]. Conclusion - CaiXun Co., Ltd. is positioned for continued growth in the AI and computing sectors, supported by strong financials, innovative product development, and strategic partnerships. The company is well-prepared to navigate industry challenges and capitalize on emerging opportunities in the market [6][24].