Core Viewpoint - CaiXun Co., Ltd. plans to issue convertible bonds to raise up to 1.46 billion yuan for projects related to AI computing centers, Rich AIBox platform upgrades, and enterprise-level AI applications [1][3]. Financial Performance - From 2021 to 2024, CaiXun's operating revenue is projected to grow from 887 million yuan to 1.652 billion yuan, while the net profit attributable to the parent company is expected to increase from 130 million yuan to 218 million yuan [1][3]. - In the first half of 2025, the company anticipates continued double-digit growth in revenue and profit, with AI and computing business revenue around 177 million yuan, accounting for nearly 20% of total annual revenue [1][3]. Fund Utilization - The raised funds will focus on three main areas: - Building an AI computing center with a large-scale cluster to meet the growing demand for intelligent computing services in large model training and inference [2][4]. - Upgrading the Rich AIBox platform to enhance the capacity of AI middle platform and ecosystem [2][4]. - Developing enterprise-level AI applications, including knowledge bases, intelligent Q&A, smart customer service, smart marketing, office AI, and AI voice agents [2][4]. Strategic Positioning - CaiXun has established a comprehensive AI ecosystem with a full-stack layout, focusing on enterprise-level AI solutions that integrate knowledge storage and retrieval, AI governance, and multi-agent collaboration [2][4]. - The company's AI applications, such as voice agents, knowledge bases, digital human customer service, AI marketing assistants, and AI email, have been widely implemented in industries like telecommunications, energy, and transportation [2][4].

Core Viewpoint - The company, CaiXun Co., Ltd. (300634), has announced a plan to issue convertible bonds to raise funds for various AI-related projects, reflecting its strategic focus on capital operations and growth in the AI sector [1][2]. Group 1: Fundraising and Financial Performance - CaiXun plans to raise funds through the issuance of convertible bonds, which will be used for the construction of an intelligent computing center, the development of the Rich AIBox platform, and enterprise-level AI applications [1][2]. - Since 2021, CaiXun has seen its total revenue and net profit nearly double, with total revenue projected to grow from 887 million to 1.652 billion from 2021 to 2024, and net profit increasing from 130 million to 218 million [1]. - In the first half of 2025, the company expects to continue achieving double-digit growth in revenue and profit, with AI and computing business revenue around 177 million, accounting for nearly 20% of total revenue [1]. Group 2: Strategic Focus and Project Details - The intelligent computing center project aims to deploy computing servers, network devices, and storage equipment to meet the growing demand for intelligent computing services in large model training and inference [2]. - The Rich AIBox platform will enhance the capacity of the AI middle platform and ecosystem, focusing on the development of intelligent agent platforms and data governance tools [2][3]. - The enterprise-level AI application development project will include applications such as intelligent knowledge bases, smart customer service, and AI voice agents, with a significant focus on AI voice technology [3]. Group 3: Alignment with National Policies and Market Position - The fundraising direction aligns with national policies promoting AI industry development and responds to the strategic emphasis on advanced computing infrastructure in the "14th Five-Year Plan" [3]. - CaiXun has made investments in two robotics companies, indicating its commitment to the embodied intelligence sector [3]. - The company has established a comprehensive AI ecosystem, focusing on enterprise-level AI solutions, and has successfully implemented various AI applications across industries such as telecommunications and energy [4].

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].

Financial Performance - In 2024, the company achieved operating revenue of 165,217.08 million CNY, a year-on-year increase of 10.41% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 21,827.05 million CNY, up 16.81% from the previous year [1] - The overall gross profit margin for 2024 was 39.15%, an increase of 0.48 percentage points compared to the previous year [2] Product Development - The company launched Rich AIBox 2.0, an AI application development platform that integrates multiple advanced large models, including DeepSeek-V3 and DeepSeek-R1 [2] - Rich AIBox 2.0 aims to provide a one-stop intelligent agent construction solution, facilitating efficient AI application value transformation [2] Profitability Challenges - The net profit for 2024 was 23,013.91 million CNY, a decrease of 9,449.12 million CNY compared to the previous year, primarily due to fluctuations in the stock price of an investment made in 2023 [3] Future Growth Drivers - Future growth is expected to benefit from the rapid development of AI in China, with a focus on AI, intelligent computing, and the establishment of a complete AI ecosystem [4] - The company is developing digital employees for customer service, marketing, and internal office scenarios, anticipating significant growth in this area [4] Industry Context - In 2024, China's software and information technology service industry reported a total software business revenue of 137,276 billion CNY, a year-on-year growth of 10.00% [5] - The company's performance is favorable compared to the industry, with a higher growth rate in both operating revenue and net profit [5] Industry Outlook - The AI industry is undergoing rapid transformation, with intelligent agents and intelligent computing driving core growth [5] - The demand for computing power is expected to surge, prompting the company to focus on building AI-native cloud computing solutions [6]