Summary of Dingjie Intelligent's Conference Call Company Overview - Dingjie Intelligent focuses on the digital transformation of the manufacturing industry, starting from ERP and expanding into PLM, MES, AIoT, and other intelligent manufacturing solutions, transitioning into a comprehensive solution provider through the Athena platform [2][9] Financial Performance - As of the first three quarters of 2024, Dingjie Intelligent reported revenue of approximately 1.57 billion yuan, with the following breakdown: - Digital management (ERP): 54% - AIoT business: 26% - Production control: 14% - R&D design: approximately 5% [2][7] Growth Drivers - The Athena platform is a new growth point, enabling data-driven transformation and supporting AI product incubation [2][9] - Significant investment in AI applications, with R&D expenditure accounting for about 18% of revenue in the first half of 2024 [2][10] Market Dynamics - The Chinese industrial software market reached 282.4 billion yuan in 2023, growing by 17%, and is expected to reach 320 billion yuan in 2024, with a growth rate of 13% [2][14] - The penetration rate of industrial software remains low, indicating a strong demand for domestic alternatives [2][14] Strategic Focus - Dingjie Intelligent emphasizes a self-research and standardization strategy, continuously iterating products and expanding application spaces [6][10] - The company is actively targeting key industries such as equipment manufacturing, automotive parts, and semiconductors, with a notable 58% year-on-year growth in overseas business revenue in the first three quarters of 2024 [5][18] Competitive Position - Dingjie Intelligent holds a leading market position in Taiwan, with over 80% coverage, contributing nearly half of its revenue and major profits [17] - The company has a significant presence in the mainland market, focusing on existing customers and enhancing value through PaaS [17][16] AI and Technology Integration - AI technology is becoming a new growth point, with successful commercialization of various AI applications based on the Athena platform [10][19] - The company has developed a range of AI applications, including general-purpose and industry-specific solutions, enhancing operational efficiency and decision-making processes [23][26] Future Outlook - The industrial software sector is expected to see long-term growth, supported by government policies aimed at upgrading industrial software and operating systems by 2027 [5][11][14] - Dingjie Intelligent's strategic initiatives and technological advancements position it well to capitalize on the growing demand for digital transformation in the manufacturing sector [2][10][12]

Group 1 - The core theme of the event was "AI Elevation: Steering the Intelligent Future," focusing on the integration of AI trends and practical applications in enterprises [1] - The new book titled "Intelligent Productivity: From Digital Transformation to Intelligent Rebirth" was launched, emphasizing deep reflections and practical experiences regarding the future of intelligence [1] - The chairman of the company, Ye Zizhen, stated that the value of AI lies not in replacing humans but in liberating them from repetitive tasks, aiming to create an "AI+" era rather than a "+AI" era [1] Group 2 - The company introduced the "SUPA" model, which innovatively describes the data application process, suggesting that data should perceive, understand, plan, and execute like humans [3] - Ye Zizhen presented a framework for AI development consisting of "one model, two cores, and three types of intelligent agents," which integrates the physical and digital worlds [3] - The "Athena platform" was highlighted as a practical embodiment of the company's vision, providing a "digital operating space" for enterprises to simulate operations based on data changes [4] Group 3 - The core value of AI agents was emphasized, including autonomous decision-making, dynamic adaptation, continuous learning, and multi-modal collaboration capabilities [5] - The company launched key products such as the intelligent data suite and enterprise intelligent agent generation suite to promote AI applications in enterprises [5] - Ye Zizhen expressed a vision for a "portable digital twin" for every individual, which would grow with training and provide tailored services to enterprises by integrating personal knowledge with enterprise data [5]

Core Insights - The company, Dingjie Shuzhi, reported a total revenue of 2.331 billion yuan for 2024, marking a year-on-year growth of 4.62%, and a net profit attributable to shareholders of 156 million yuan, up 3.59% [1] - The company has undergone a brand transformation from "Dingjie Software" to "Dingjie Shuzhi," adjusting its business strategy to focus on data and intelligent technology for innovative productivity [1] Revenue Breakdown - In 2024, the company achieved revenue of 1.177 billion yuan in mainland China and 1.154 billion yuan in non-mainland regions, with a growth rate of 7.53% in the latter [2] - The company holds a 14.8% market share in the manufacturing ERP sector in mainland China, ranking first among local vendors [2] Business Segments - The company covers four major categories of industrial software: R&D design, digital management, production control, and AIoT, providing comprehensive services [3] - The R&D design segment generated 152 million yuan in revenue for 2024, growing by 23.33%, while the AIoT segment achieved 631 million yuan, up 22.04% [3] Technological Advancements - The Athena platform integrates AI, big data, and knowledge graph technologies, offering a PaaS solution with low-code and multi-end collaboration capabilities [4] - The company is collaborating with leading cloud service providers to enhance its AI capabilities, integrating various advanced AI models into its offerings [4] Market Potential - The global AI Agent market is projected to grow from $5.29 billion in 2024 to $216.8 billion by 2035, with a compound annual growth rate of 40.15% [5] - The company is launching an AI Agent development platform and enhancing its AI applications to meet diverse deployment needs [5] Financial Projections - Revenue forecasts for the company are 2.589 billion yuan in 2025, 2.903 billion yuan in 2026, and 3.309 billion yuan in 2027, with net profits of 201 million yuan, 249 million yuan, and 294 million yuan respectively [6]

Investment Rating - The investment rating for the company is maintained at Buy-A with a target price of 44.50 CNY, reflecting a dynamic price-to-earnings ratio of 60 times for 2025 [5][9]. Core Insights - The company has achieved steady growth in revenue and net profit despite undergoing a brand transformation and strategic adjustment, shifting from "Dingjie Software" to "Dingjie Smart" [2][9]. - In 2024, the company reported total revenue of 2.331 billion CNY, a year-on-year increase of 4.62%, and a net profit of 156 million CNY, up 3.59% year-on-year [1][9]. - The company is positioned as a leader in the industrial software sector, particularly in the manufacturing ERP market, holding a 14.8% market share among domestic vendors [2][9]. Revenue and Profitability - The company’s revenue for Q1 2025 was 423 million CNY, reflecting a 4.33% year-on-year growth, while the net profit was -8.33 million CNY, showing a 14.04% increase year-on-year [1]. - The projected revenues for 2025, 2026, and 2027 are 2.589 billion CNY, 2.903 billion CNY, and 3.309 billion CNY respectively, with net profits expected to be 201 million CNY, 249 million CNY, and 294 million CNY [9][11]. Business Segments - The company has diversified its offerings across four major categories of industrial software: R&D design, digital management, production control, and AIoT, with significant revenue growth in each segment [3][4]. - The R&D design segment generated 152 million CNY in revenue in 2024, a 23.33% increase, while the AIoT segment achieved 631 million CNY, growing by 22.04% [3]. Technological Advancements - The Athena platform and AI Agent products are pivotal in expanding the company's growth potential, integrating advanced technologies such as AI, big data, and knowledge graphs [4][8]. - The global AI Agent market is projected to grow from 5.29 billion USD in 2024 to 216.8 billion USD by 2035, with a compound annual growth rate of 40.15% [8]. Market Position - The company has a strong presence in the Taiwan region, serving 77% of publicly listed enterprises, and has accumulated extensive international experience by servicing approximately 800 clients in Southeast Asia [2][9]. - In the Chinese mainland, the company ranks first among domestic vendors in the PLM market and holds a top-three position in MES products across various high-tech industries [2].