Summary of the Conference Call for Zhuoyi Information Company Overview - **Company**: Zhuoyi Information - **Industry**: Technology, specifically focusing on software development tools and cloud services Key Financial Highlights - **Revenue Growth**: Revenue increased by 40.66% year-on-year in the first half of 2025, reaching 174 million yuan [2][3] - **Net Profit**: Net profit attributable to shareholders rose by 40.66% to 27.13 million yuan, while non-recurring net profit surged by 323.58% to 20.92 million yuan [2][3] - **Cash Flow**: Operating cash flow improved significantly by 68.5%, totaling 36.2 million yuan [2][3] - **Cloud Services**: Revenue from cloud services grew by 48.1% [2][3] Business Strategy and Developments - **M&A Strategy**: The company is actively pursuing an external merger and acquisition strategy, participating in projects like Dongfang Shuali, Zhaoxin, and Hengkong, which are expected to yield cash flow returns [2][5] - **Product Development**: Focus on refining products and ecosystem collaboration, with a commercial launch phase starting in August 2025 [9][10] - **AI and IDE Integration**: The company is implementing a dual-engine strategy combining AI and IDE to enhance development efficiency and reduce costs [8] Product Innovations - **Easydev Layer**: Launched to support Cangjie and Arkts languages, with plans to release Swan Developer by the end of the year to optimize native application development for the HarmonyOS ecosystem [2][6] - **Snap Developer**: Attracted over 20,000 registered users, with positive feedback on efficiency and memory usage compared to traditional tools [4][13] - **Denet Low-Code Platform**: Demonstrated 3-5 times efficiency in specific scenarios compared to traditional tools, with memory usage only one-third of competitors [4][14][15] Market Positioning - **Differentiation from Competitors**: Zhuoyi Information's EV ID product stands out due to its proprietary core and source code, extensive experience in the IDE field, and support for domestic CPU operating systems [8] - **Focus on Domestic Market**: The company emphasizes the importance of domestic innovation and security, aligning with national trends towards self-sufficiency [18][19] Challenges and Future Outlook - **Impact of Intel's Business Adjustment**: The reduction in orders from Intel, previously the largest client, is expected to have a limited impact due to the overall growth in the domestic semiconductor market [18] - **Long-term Strategy**: The company aims for sustainable growth without excessive spending on customer acquisition, focusing on product quality and user retention [19] Conclusion Zhuoyi Information is positioned for significant growth through strategic mergers, innovative product development, and a strong focus on the domestic market's needs. The company is confident in achieving its annual targets and delivering value to shareholders while navigating the challenges of the current market environment.