Core Viewpoint - The company reported a decline in revenue for 2024, primarily due to a slowdown in the telecommunications industry and cost-cutting measures from operator clients, leading to a strategic shift away from certain risk orders [2][3]. Revenue Summary - Total revenue for 2024 was 6.646 billion RMB, a decrease of 15.8% year-on-year, with traditional BSS business revenue falling to 4.046 billion RMB, down 18.9% [2]. - New business segments (OSS, vertical industries, and intelligent operations) generated 2.599 billion RMB, a decline of 10.3%, but their contribution to total revenue increased by 2.4 percentage points to 39.1% [2]. Profitability Analysis - Gross profit for 2024 was 2.484 billion RMB, down 16.5%, resulting in a gross margin of 37.4%, a slight decrease of 0.3 percentage points [2]. - Net profit stood at 516 million RMB, corresponding to a net profit margin of 7.8% [2]. Business Segment Performance - BSS revenue was 3.948 billion RMB, down 19.1%, accounting for 59.4% of total revenue, while OSS revenue was 818 million RMB, a slight decrease of 1.8%, making up 12.3% of total revenue [3]. - The company plans to replicate its domestic BSS and OSS experiences overseas and optimize its organizational structure to enhance efficiency and reduce costs [3]. Growth Opportunities in New Business - The AI large model delivery segment is expected to grow significantly, with projected revenue of 200 to 300 million RMB in 2025, following successful contracts with over 30 projects [4]. - The 5G private network segment is focusing on the energy sector, with a target of shipping over 7,500 new wireless base stations and more than 30 core networks in 2025 [4]. - The intelligent operations segment showed a slight increase in revenue to 1.106 billion RMB, with significant growth in orders from various industries [4]. Shareholder Returns - The company announced a total dividend of 0.412 HKD per share for the end of 2024, comprising a final dividend of 0.252 HKD and a special dividend of 0.16 HKD [5].

Investment Ratings - Semiconductor materials industry is rated as "Buy" due to recovery driven by AI and wafer fab expansions [2] - Low-altitude economy industry is rated as "Buy" with EHang achieving adjusted profitability and positive cash flow [3] - Lithium mining sector is rated as "Add" based on reset cost analysis indicating undervaluation [4] - Aerospace industry is rated as "Add" with growth potential in the chromium industry chain [7] - TMT sector, specifically AsiaInfo Technologies, is rated as "Buy" due to expected growth in AI model delivery business [8] - Traditional Chinese medicine sector, represented by Guoshengtang, is rated as "Buy" due to AI empowerment and market potential [9] Core Insights - The semiconductor materials market is experiencing a rebound, benefiting from AI industry growth and domestic high-end material localization [2] - EHang's revenue for 2024 is projected at 456 million yuan, a 288.5% increase, marking its first year of adjusted profitability [3] - Lithium mining companies are undervalued based on reset cost calculations, suggesting investment opportunities in companies like Ganfeng Lithium and Tianqi Lithium [4] - The commercial aerospace industry is expected to see demand growth, particularly in the chromium supply chain [7] - AsiaInfo Technologies is facing pressure in traditional operator business but has strong growth potential in AI model delivery [8] - Guoshengtang is well-positioned to benefit from aging population trends and supportive policies in traditional Chinese medicine [9] Summary by Sections Semiconductor Materials - The market is recovering due to AI, storage chip replenishment, and wafer fab expansions, with a focus on high-end materials localization [2] - Recommended companies include Yake Technology, Nanda Optoelectronics, and others [2] Low-altitude Economy - EHang's total revenue for 2024 is projected at 456 million yuan, with a significant year-on-year growth [3] - The industry is expected to see rapid progress in EVTOL certification and infrastructure development [3] Lithium Mining - Reset cost analysis indicates that many lithium mining companies are undervalued, suggesting potential investment opportunities [4] - Companies to watch include Ganfeng Lithium, Tianqi Lithium, and others [4] Aerospace Industry - The commercial aerospace sector is expected to grow, driven by demand in the chromium industry chain [7] - Recommended companies include major oil and gas firms and material companies benefiting from domestic substitution [7] TMT Sector - AsiaInfo Technologies is adjusting profit forecasts but is expected to see growth in AI model delivery [8] - The company is projected to achieve a net profit of 824 million yuan by 2027 [8] Traditional Chinese Medicine - Guoshengtang is expected to benefit from AI integration and market expansion in traditional Chinese medicine [9] - Projected adjusted net profits for 2024-2026 are 409 million, 548 million, and 691 million yuan respectively [9]