投关活动丨初灵股份2024年度业绩说明会

On 2025/5/8, Chuling Corporation held its annual online performance briefing. Mr. Hong Aijin, Chairman of the Board; Mr. Xu Ping, Secretary to the Board; Mr. Fang Jianzhong, Independent Director; and Mr. Xu Liangdong, Chief Financial Officer, answered investor questions.

The company focuses on the enterprise (industry) digital intelligence application market, dedicated to building a "cloud-edge-end" collaborative enterprise intelligent computing network ecosystem to comprehensively enhance enterprises' intelligence, digitalization, and networking capabilities. We implement a strategic layout of "3 technology + 3 market + 3 scenarios," creating three core enterprise intelligent computing capabilities: smart connectivity, data perception, and AI applications. Our market strategy targets three key areas: enterprise, international, and industry sectors. We concentrate on three primary application scenarios—smart interconnection, data processing, and AI applications—to drive digital intelligence transformation for enterprises and industries.

The following questions from investors were addressed during the performance briefing:

Hello, as an executive, how do you view the future prospects of the industry? Thank you.

Hello. As emerging technologies such as AI, 5G, IoT, and big data accelerate, enterprise network environments are becoming increasingly complex. The widespread adoption of remote work and cloud applications, along with the influx of massive device connectivity, has driven unprecedented demand for network bandwidth, stability, and flexibility. The industry is rapidly transitioning toward intelligent, virtualized, and high-performance network architectures to keep pace with digital business growth. Digital intelligence will be essential for enterprises to break through growth bottlenecks and build core competitiveness. Despite challenges like technology integration and data security, the cost reduction, efficiency gains, and innovation opportunities it delivers far outweigh the investment. The future outlook for enterprise digital transformation remains highly promising. Thank you for your interest in our company.

Hello, could you please share the key drivers of future earnings growth for your company? Thank you.

Hello. The company will continue to follow its overarching strategy of solidifying our position in the carrier market while aggressively expanding into enterprise and international markets. We will sharpen our business focus, strengthen cost and expense controls, and consolidate our Technical Committee's capabilities. Our primary shift is toward AI + Integrated Computing Network product innovation, building a new generation of intelligent computing capabilities for the enterprise sector. Additionally, we remain open to strategic acquisitions to drive new profit growth. Thank you for your continued interest in the company.

Hello, executive. Could you please share the company's profitability performance for this reporting period? Thank you.

Company 2024's annual revenue declined primarily due to a higher number of projects not yet finalized for acceptance this year, resulting in unconfirmed revenue. Gross profit decreased accordingly with the drop in revenue. Additionally, investments in R&D and other areas in 2024 were not significantly reduced, leading to a modest loss in 2024. However, the company's order backlog remains promising, and unfinished projects from this year will be completed in subsequent years. Meanwhile, by focusing on core business activities and tightening cost controls, profitability is expected to improve in 2025. For instance, Company 2025 reported a slight overall profit in the first quarter. Thank you for your continued interest in our company.

What caused the company's annual report loss? What are the business plans for 2025?

Hello, 24. Due to economic conditions, product demand and sales of connected products declined. Additionally, delays in customer funding for certain industry projects postponed project acceptance timelines, contributing to significantly lower year-end acceptances and revenue for 2024, alongside goodwill impairment charges, resulting in an annual loss. In 2025, we will adhere to our strategic direction of "solidifying the carrier market while aggressively expanding into enterprise and international markets." We will focus on business priorities, strengthen cost and expense control, and consolidate our technical capabilities to fully transition toward AI-integrated computing network innovation, building a new intelligent computing capability for the enterprise sector. Our key initiatives include: ① Smart Enterprise Network (SEN) System; ② Enterprise Data Processing Platform (EDPP); ③ Enterprise Computing Power Scheduling/Enterprise Model as a Service (ECPS/EMAAS) with multi-modal model services and agents; ④ Fiber to the Office (FTTO) with full gigabit coverage across Wi-Fi6 regions. These efforts aim to accelerate digital and intelligent transformation for enterprises and industries. Thank you for your continued support.

What progress has the company made in AI?

Hello. In collaboration with telecom operators, our company has successfully launched the "Computing-Network Integrated Appliance" and commercial-grade "Compute Resource Scheduling Management" software. These solutions help customers build efficient, intelligent compute network infrastructure. By leveraging professional data from network operations, we enable self-optimizing networks and reduce reliance on manual expertise for maintenance. Thank you for your interest in our company.

Hello, could you please share an overview of this period's overall industry performance and how other key players in the sector are performing? Thank you.

Hello. Our company primarily serves telecommunications operators and their customers. This period, the telecom market saw modest growth, with emerging businesses such as cloud computing, big data, mobile IoT, and data centers contributing significant revenue increases. Other business lines remained flat or experienced slight declines. Performance across industry peers varies widely; many face sluggish growth or losses. Please refer to public announcements from listed companies in these sectors for details. Thank you for your interest in our company.

Who are the company's current clients?

Hello. For years, our company has specialized in the telecommunications industry, with our primary clients being China's four major operators. In 2025, we have remained committed to the strategic direction of "strengthening our position in the operator market while aggressively expanding into enterprise and international markets." We are integrating our three core edge computing capabilities—Smart Connectivity, Data Sensing, and AI Applications—and increasing investment to grow our enterprise business. Thank you for your interest in our company.