Core Insights - The article highlights that Zhongke Shuguang's DeepAI intelligent engine has successfully passed a joint evaluation by the China Academy of Information and Communications Technology, Tair Laboratory, and the Foundry Plan, becoming the first end-to-end AI acceleration suite to receive this certification in the industry [1] - The DeepAI engine's DAP (AI Application Platform) is recognized for its comprehensive functionality, business security, technological advancement, and operational stability, positioning it as a leader in the industry [1] Group 1: Product Features - The DAP platform adheres to the "out-of-the-box, secure and controllable" philosophy, integrating deeply with domestic GPU acceleration cards to provide a full-stack solution for large model application development [1] - Key capabilities of the DAP platform include dialogue services, RAG knowledge base, and Agent intelligence, along with enterprise-level features such as SSO, fine-grained permissions, and comprehensive auditing [1] Group 2: Market Applications - The DAP platform has been successfully deployed in various clients, including Bank of China, Beijing Aerospace General Hospital, Nanjing University of Aeronautics and Astronautics, and Shenzhen Discipline Inspection Commission, demonstrating the superior support capabilities of domestic AI computing hardware and software for complex large model tasks [3] - The platform addresses challenges in IT operations management by providing a cost-effective and efficient solution for knowledge management, particularly in industries like finance and healthcare where the quality of product requirement documents (PRD) is critical [2][3] Group 3: Future Developments - Following the certification from the China Academy of Information and Communications Technology, the company plans to continuously iterate on the DeepAI intelligent engine, focusing on enhancing product functionality in line with actual scene requirements and integrating deeply with client datasets and business processes [3] - The company aims to collaborate with more ecosystem partners to further enhance the competitive edge of domestic AI computing hardware and software [3]

Financial Data and Key Metrics Changes - The company reported total revenue of $420.4 million for the year, reflecting just over 6% growth compared to 2023 [5] - Q4 revenue excluding China grew at 10.5%, while overall revenue growth for the quarter was 1.9% [6][39] - Gross margin for the year was 42.2%, a 120 basis point improvement over the previous year, while Q4 gross margin was 40.6% [20][21] - Net income for the quarter declined 25.7% to $8.9 million, with an EPS of $0.32, which would have been $0.35 without foreign exchange impacts [42][43] Business Line Data and Key Metrics Changes - The dealership services business grew around 9% in Q4, but average units protected in some dealerships declined or were flat compared to the previous year [7][9] - OEM revenue in Q4 declined slightly due to package changes, but excluding this impact, OEM business grew approximately 16% [14] - The total window film product line grew 32.9% in Q4, primarily driven by automotive sales, which grew 31.7% [39] Market Data and Key Metrics Changes - The U.S. region grew 6.2% in Q4, with dealership services being a significant contributor [6][7] - The China region reported revenue of $9.2 million, down from $16.6 million in the same quarter last year, indicating a tough comparison [16] - The company completed distributor acquisitions in Japan, Thailand, and India, with expectations of accelerated revenue growth post-acquisition [18][19] Company Strategy and Development Direction - The company aims to deepen its presence in key global markets, focusing on direct operations rather than distribution relationships [20][29] - There is a strategic focus on expanding the services business, particularly in the new car dealership space, to drive future growth [30] - The company is also working on enhancing its product offerings, including the launch of colored films and windshield protection films [34][35] Management's Comments on Operating Environment and Future Outlook - Management described 2025 as a pivotal year with mixed and uncertain outlooks, citing macroeconomic challenges such as inflation and interest rates [26][28] - There is cautious optimism regarding the aftermarket sentiment, with management noting improved execution and clarity in operations [26][27] - The company is focused on optimizing its expense structure and has initiated a comprehensive review to ensure investments are made wisely [23][25] Other Important Information - The company completed five acquisitions during the year for a total purchase price of $12.5 million, and its credit facility balance was zero at year-end [44] - Cash flow provided by operations for the year was $47.8 million, an increase from $37.4 million in 2023 [44] Q&A Session Summary Question: Insights on the situation in China regarding sell-throughs - Management indicated that the sell-in and sell-through dynamics have improved, with inventory levels being managed more effectively [47][48] Question: Outlook on gross margin and operating expenses for Q1 - Management expects gross margins to remain around 42%, with some pressure from the strong dollar, and noted uncertainty regarding future quarterly metrics [51][52] Question: Thoughts on the launch of colored films and marketing strategies - Management expressed excitement about the launch of colored films, indicating that marketing these products would be easier due to their visibility [56]