Core Viewpoint - Kingdee has established the "Enterprise Management AI Ecological Alliance" to address the challenges of AI application for small and medium-sized enterprises (SMEs), emphasizing that AI is essential for enterprise management and a key focus for the company's future development [1][4]. Group 1: AI and Large Clients - The strategy of targeting large clients is crucial for Kingdee, as one large client is significantly more valuable than multiple small clients, given the instability and low payment capacity of SMEs [2]. - Kingdee has historically aimed to serve larger enterprises and government services rather than being labeled as a provider for SMEs [3]. - The company is poised to benefit from market and technological advantages, particularly due to policies mandating state-owned enterprises to complete domestic replacements by 2027, which could release a significant portion of the high-end ERP market [4][6]. Group 2: AI Product Development - Kingdee has launched several AI enterprise service products aimed at large clients, including the "China's first financial large model" and upgrades to its AI platform [9][10]. - Despite these efforts, Kingdee's revenue from large enterprises remains low compared to SMEs, with large enterprise cloud service revenue reported at approximately RMB 1.304 billion in 2024, while revenue from SMEs was significantly higher at RMB 21.53 billion [10][11]. Group 3: Challenges in Large Client Acquisition - Kingdee's reliance on SMEs persists, with their revenue contribution from SMEs being 259% higher than that from large enterprises, indicating a need for improvement in attracting larger clients [11]. - The primary challenge in acquiring large clients lies in Kingdee's limited customization capabilities and system functionality, which are critical for meeting the complex needs of large enterprises [12][15]. - To succeed, Kingdee must enhance its product's foundational capabilities, focusing on customization and personalized service for large enterprises, rather than solely on AI concepts [15][16]. Group 4: Future Directions - Kingdee aims to aggressively target the large enterprise market, viewing it as essential for becoming a leading PaaS provider by 2026 and a world-class SaaS provider by 2030 [14]. - The company has invested heavily in R&D, with expenses reaching RMB 1.514 billion in 2024, yet it has faced continuous losses, primarily due to the inability to penetrate the large client market effectively [17].