Financial Performance - The company's revenue increased by 27.20% compared to the same period last year [1] - Net profit attributable to shareholders grew by 59.63% year-on-year [1] - The performance improvement is primarily due to the recognition of revenue from long-term energy management contracts signed last year [1] Business Model - The energy management service is a government-supported model that allows heating companies to upgrade their systems without upfront costs, minimizing risk while achieving energy savings [2] - The company utilizes a profit-sharing model for energy savings, which has shown good economic and energy-saving benefits during the reporting period [2] AI and Technology Integration - The AI algorithms can reduce heat consumption and carbon emissions by 10% to 30%, and electricity consumption by 30% to 50%, depending on various factors [3] - Key factors affecting these reductions include customer management practices, hardware performance, data accuracy, and the aging of existing equipment [3] AI Product Offerings - The company offers a comprehensive smart heating management platform that automates data collection and provides predictive algorithms for load forecasting and energy management [4] - The RUNA AI system integrates advanced natural language processing to enhance decision-making and customer service [4] - The STORM AI algorithm suite includes over 50 AI models tailored for the heating industry, focusing on load prediction and optimization [4] Digital Twin and Smart Hardware - The RUNA digital twin platform enables real-time monitoring and management of heating networks, enhancing operational efficiency [5] - Smart hardware products, such as high-efficiency magnetic levitation heat pump units, are designed for various heating scenarios and incorporate AI technology for optimized energy management [6] AI Capabilities - AI capabilities are integrated throughout the heating system's operational management, including precise load forecasting and intelligent scheduling to reduce energy consumption [6] - The system also features predictive maintenance capabilities to ensure stable operation and reduce maintenance costs [6] Strategic Focus - The company is currently focused on its core business and does not have plans for acquisitions at this time [6]

Group 1: Technology and Innovation - The company has made significant advancements in technology, particularly with the RUNA - STORM AI smart heating system, which integrates "big data + cloud computing + AI models + hydraulic simulation + digital twin" technology, achieving a reduction in heat consumption and carbon emissions by 10% - 30% and electricity consumption by 30% - 50% [1][2] - The self-developed 100kW magnetic levitation centrifugal compressor fills a gap in waste heat recovery and heating, characterized by low vibration, low noise, long lifespan, and easy maintenance, with a rated thermal efficiency of 6.5 [1] - The RUNA AI system, combined with the DeepSeek large model, enhances decision-making and service personalization in smart heating, transitioning the industry from "experience-driven" to "data-driven" [1] Group 2: Market Opportunities and Policies - Urban renewal and safety lifeline policies positively impact the company's performance, as intelligent heating system upgrades are a key focus of urban renewal, providing a broad market space [2] - The company's smart heating system meets safety requirements through real-time monitoring and predictive maintenance, creating new market opportunities [2] Group 3: AI Applications - The company has developed a unique collaborative intelligent algorithm group for the heating industry, optimizing energy allocation and reducing consumption through various algorithms [3] - AI applications enhance production scheduling, predictive maintenance, and decision-making by analyzing multi-source data and simulating the effects of network modifications [3] Group 4: Contract Energy Management - There is significant interest from heating companies in the Contract Energy Management (EMC) model, which alleviates upfront investment burdens and reduces financial risks associated with upgrading to smart heating technologies [4] Group 5: Accounts Receivable Stability - The stability of accounts receivable is attributed to a customer base primarily consisting of state-owned heating companies, which have strong financial health and payment capabilities, reducing collection risks [5][6] - The company emphasizes accounts receivable collection as a performance metric for business personnel, enhancing proactive collection efforts and shortening payment cycles [6]

Group 1: Business Development and Market Strategy - The company has established a strong foundation in Zaozhuang, successfully winning several significant heating projects last year, indicating a high probability of undertaking similar projects this year [1][2] - In Xinjiang, the company aims to closely monitor local project information to expand its market presence and enhance brand influence [2] - The company is actively participating in AI heating and smart heating renovation projects in Zaozhuang, leveraging its core technologies in automation, information technology, and artificial intelligence [3][5] Group 2: Product Development and Technological Advancements - The third-generation semiconductor research has made significant progress, including the development of 8-inch silicon carbide substrates and the assembly of dual-zone long crystal furnaces [2][17] - The 100kW magnetic levitation heat pump has achieved industry-leading energy efficiency, significantly reducing operational costs and applicable in various scenarios [2][10] - The company has developed a series of advanced intelligent algorithms for urban heating systems, enhancing operational efficiency and service quality [6][14] Group 3: Financial Performance and Market Outlook - The company's 2024 annual report exceeded market expectations, but the first quarter of 2025 showed lower revenue due to seasonal project limitations [2][4] - The company anticipates a recovery in market demand in Shandong, driven by government policies supporting urban renewal and energy-saving initiatives [5][14] - The company maintains a robust order reserve for 2025, indicating a stable production and operational outlook [18] Group 4: Corporate Governance and Investor Relations - The company emphasizes transparency in order information disclosure, adhering to regulations to ensure investors are well-informed [8] - The board is focused on enhancing company performance and shareholder value, despite recent stock price fluctuations [9][18] - The company has no current plans for restructuring and is committed to maintaining investor relations [18]