ATCDI(SH:603357)2025-06-04 01:50Summary of Design Institute Conference Call Company Overview - Design Institute is a state-owned listed company in Anhui Province, established in 1953 and listed on the Shanghai Stock Exchange in 2017. The main business includes infrastructure construction and maintenance, covering surveying, design, engineering management, and general contracting across the entire industry chain [3][4][6]. Industry Achievements - The company holds top-tier qualifications in engineering consulting, surveying, design, and urban planning, along with the highest level of qualifications in highway and waterway testing and supervision. It has received over 600 awards in the past decade, including recognition as a "Double Hundred Enterprise" by the State-owned Assets Supervision and Administration Commission in 2023 and as a benchmark enterprise in 2024 [2][4][5]. Digital Transformation and AI Strategy - The company is actively pursuing digital transformation, particularly after the emergence of ChatGPT, aiming to integrate AI technology to enhance business models, improve work efficiency, and elevate product quality. The AI strategy focuses on upgrading internal business models and industrializing AI capabilities [2][7][8]. - Plans include automating inspections through AI and robotics, training specialized large models, and developing intelligent entities for engineering, procurement, and construction (EPC) and project delivery [2][8]. Data Center and AI Capabilities - The establishment of a comprehensive transportation big data center is underway to facilitate data-driven planning. The company aims to gather and manage high-quality datasets for AI training, collaborating with the Hefei Artificial Intelligence Institute for research in AI, big data, and drone technology [4][12][9]. Project and Service Scope - The company's projects span across 30 administrative regions in Anhui and extend to Africa and Southeast Asia, with a focus on central, northwest, southwest, and southern China. It has accumulated significant experience in new infrastructure fields, particularly in highway industrialization and smart transportation [6][2]. Financial Performance - In Q1 2025, the company experienced a nearly 40% decline in revenue and a 30% drop in profit, attributed to high accounts receivable (approximately 2 billion), asset impairment, and project delays due to policy and local economic factors. The goal for Q2 is to mitigate these declines, although challenges remain [22]. Low-altitude Economy Development - The company is developing its low-altitude economy business, focusing on general airport design and planning consulting. As of now, total orders amount to approximately 70 million, with a significant concentration on general airport construction. Future development directions and application scenarios are still being explored [19][20]. Market Management and Future Outlook - The company has implemented various market management strategies, including maintaining high dividend levels and ensuring good performance in core business areas. Future plans will align with industry trends and will be disclosed to investors as they develop [23]. - The Anhui Province's 14th Five-Year Plan has accelerated related projects, with a noticeable improvement in order volume in Q2, indicating a positive trend [24].