Summary of Dingjie Digital's Conference Call Company Overview - **Company**: Dingjie Digital - **Period**: First half of 2025 Financial Performance - **Revenue Growth**: 4.08% year-on-year, with mainland China growth at 4.61% and non-mainland growth at 3.65% [2][3] - **Net Profit**: Increased by 6.09% year-on-year, with a net profit of 45.03 million [3][5] - **Gross Margin**: Improved to 58.32%, up by 0.88 percentage points due to business structure adjustments and financial control [5][21] - **Cash Flow**: Net cash outflow reduced by approximately 157 million, attributed to improved accounts receivable management and deferred tax payments [7] R&D and Human Resources - **R&D Investment**: Decreased by 9.94% to 162 million, with a reduction in R&D personnel by 191 due to increased efficiency from AI integration [6][17] - **Employee Count**: Total employees decreased by 6.26%, with a strategic reduction in mainland China [6][17][20] Regional Performance - **Mainland China**: Revenue of 476 million, driven by high-growth sectors like electronics and automotive parts [8] - **Southeast Asia**: Revenue growth of 60.87%, leveraging opportunities from Chinese enterprises expanding abroad [4][9] Product Development - **Product Revenue**: Balanced growth across various product lines, with R&D design revenue up 11.05%, digital management up 4.32%, and production control up 7.36% [10] - **AIoT Revenue**: Increased by 3.51%, with significant client engagement in AI-integrated solutions [11] Strategic Initiatives - **AI Integration**: Ongoing development of AI applications to enhance traditional industrial software, improving user experience and competitiveness [12][13] - **Southeast Asia Strategy**: Focus on local partnerships and tailored solutions to meet market demands, with plans for further resource investment [24][25] Market Trends and Outlook - **Manufacturing Sector**: Positive signals in consumer electronics and new energy vehicles, despite overall cautious investment due to supply chain uncertainties [14] - **AI Application Preferences**: Differences in AI adoption between mainland China and Taiwan, with a higher willingness to pay for value-added features in mainland enterprises [15][16] Conclusion Dingjie Digital has demonstrated resilience in a challenging environment, with strategic adjustments leading to revenue and profit growth. The integration of AI technologies and a focus on regional markets, particularly Southeast Asia, positions the company for continued success.