Core Viewpoint - The company is undergoing a strategic transformation, showing initial success in high-value business drivers, with revenue growth and a notable increase in operating efficiency despite a decline in net profit [1][3][7]. Financial Performance - In 2024, the company achieved revenue of 1.945 billion, a year-on-year increase of 6.38%, and a net profit of 113 million, a year-on-year decrease of 35.01% [2][3]. - For Q1 2025, the company reported revenue of 449 million, a year-on-year increase of 23.72%, and a net profit of 25 million, a year-on-year decrease of 24.50% [2][3]. Business Segments Intelligent Financial Taxation - The intelligent financial taxation segment generated revenue of 1.177 billion in 2024, with a year-on-year growth of 8.46% and a net profit margin of 21.19% [4]. - The user base for the company's platforms saw significant growth, with active users increasing by 30.5% to 10.7 million and paid users growing by 24.5% to 707,000 [4]. Digital Government - In the digital government sector, the company narrowed its losses to 136 million, with revenue of 763 million, a year-on-year increase of 3.37% [5]. - Data value services revenue grew by 42.75%, reaching 266.59 million, driven by a focus on tax-related applications and services [5]. Strategic Focus - The company aims to accelerate its business model transformation by focusing on AI, ecological operations, and data value development [6][7]. - Plans include promoting Agent applications and expanding data service products in the digital government sector, as well as scaling up compliance tax products in the intelligent financial taxation sector [6]. Investment Outlook - The company is expected to see significant revenue growth from 2025 to 2027, with projected revenues of 2.337 billion, 2.837 billion, and 3.475 billion, representing year-on-year growth rates of 20.12%, 21.39%, and 22.51% respectively [7]. - Net profit forecasts for the same period are 178 million, 280 million, and 421 million, with growth rates of 58.14%, 57.23%, and 50.31% respectively [7].

Core Viewpoint - Taxfriend Software Group Co., Ltd. reported significant revenue growth in Q1 2025, driven by its high-value transformation strategy and the accelerated promotion of compliance tax optimization products [1][2] Group 1: Financial Performance - The company achieved an operating income of 449 million yuan, representing a year-on-year increase of 23.72% [1] - The net profit attributable to shareholders was 24.74 million yuan during the same period [1] Group 2: High-Value Transformation - Taxfriend's transformation focuses on creating an AIBM digital ecosystem in the smart tax and finance sector, leveraging Agentic AI technology to enhance compliance and financial management services [1] - The company aims to capture the trillion-yuan compliance tax optimization market through a joint operation and business management model [1] Group 3: Product Development and Market Strategy - The rapid growth in user adoption of basic compliance products like Risk Control Warning Agent and Compliance Assessment Agent contributed significantly to revenue growth [2] - Advanced compliance products such as Tax Optimization Planning Agent and Consulting Copilot are also experiencing increased user volume [2] - The "Xiyou" intelligent agent is designed to cover various application scenarios across different levels of tax authorities and government agencies, facilitating a shift towards high-value data services in digital governance [2] Group 4: Future Outlook - Despite increased short-term investments, the company anticipates that its high-value tax and finance services will continue to contribute to revenue and improve profitability [2] - The company is committed to building an Agent application factory that covers the entire tax and finance value chain, while also enhancing digital governance services driven by data [2]