Company Overview - The company is a leading B2B comprehensive service provider for foreign trade, established in 1996, and launched the cross-border B2B trading platform, China Manufacturing Network, in 1998 [1] - The company has expanded its business scope to cover the entire foreign trade chain, cross-border business, and financial insurance since 2011, operating brands such as China Manufacturing Network, Doba, InQbrands, and New One Station Insurance Agency [1] - In 2023, the company launched the AI foreign trade assistant, AI Maike, forming a diversified AI matrix to empower various scenarios [1] - The founder, Shen Jinhua, holds 46.42% of the shares, ensuring stable ownership, while the core management team has extensive experience [1] - The company has achieved stable growth, with a revenue and net profit CAGR of 10.6% and 24.5% from 2019 to 2024 [1] Core Business (China Manufacturing Network) - The cross-border e-commerce industry is expected to reach a scale of 17.7 billion yuan in 2024, with a year-on-year growth of 4.8%, and exports accounting for nearly 80% [2] - The China Manufacturing Network ranks second to Alibaba International Station in terms of scale, with member numbers of 27,000 and over 200,000, respectively, and corresponding penetration rates of approximately 29% and 3.9% [2] - Membership fees constitute the basic income, with a dual approach of enhancing buyer experience and deepening supplier engagement, leading to simultaneous growth in business scale and pricing [2] Revenue and Membership - The revenue from China Manufacturing Network accounts for about 80% of the company's total revenue, with membership fees forming the basic income [3] - The platform's gold and diamond membership fees are 31,100 yuan and 59,800 yuan per year, respectively [3] - By the end of 2024, the number of registered paying members is expected to reach 27,415, a year-on-year increase of 11.5%, with an average ARPPU value of 52,100 yuan, up 3.54% year-on-year [3] AI Products - AI Maike has undergone multiple iterations, with version 4.0 set to release in November 2024, aimed at assisting suppliers in content generation, product release, and opportunity follow-up [4] - The company has developed a diversified AI matrix, including AI Maike, Mentarc, Sourcing AI, and Moli AI, to empower different scenarios, with increased R&D investment planned for Sourcing AI in 2025 [4] - The number of members purchasing AI Maike has exceeded 9,000, with a penetration rate of 32.8%, and AI business cash income has surpassed 45 million yuan, with an estimated annual value per customer of 5,000 yuan, which is expected to further increase the ARPPU value [4] Other Businesses - Doba serves as a cross-border distribution service platform, connecting Chinese suppliers with channels like Amazon and eBay, while InQbrands offers comprehensive services in the U.S. market [5] - The company holds one of the first internet insurance sales licenses, providing various insurance products, with stable performance and improved profit margins in these businesses [5] Investment Outlook - The company, through its main platform China Manufacturing Network, focuses on serving sellers in the industrial machinery category, with steady growth in membership numbers and ARPPU values [5] - The launch of AI Maike is expected to open new growth avenues, with projected revenues of 1.877 billion, 2.100 billion, and 2.330 billion yuan, and net profits of 547 million, 642 million, and 748 million yuan from 2025 to 2027 [5] - The current stock price corresponds to PE ratios of 30.9, 26.3, and 22.6 for 2025 to 2027, with an initial coverage rating of "Buy" [5]