Key takeaway

The company released its 2025 annual report, showing steady performance growth. The company promotes AI productization around Rich AIBox, with AI and computing power related revenue reaching RMB391mn, achieving large-scale delivery in multiple industries. Intelligent computing service and data intelligence revenue reached RMB513mn. The self-developed integrated cloud solution can significantly reduce customer costs. It plans to issue convertible bonds to raise funds for building an intelligent computing center and expanding 10,000- card level computing power. The company proposes to acquire Jizhi Intelligence. The target possesses AI Agent technology and leading customer resources, and the valuation corresponding to its performance commitments is relatively low. This acquisition will help the company refine its AI presence and transform into a full-stack AI solution provider. The company's revenue for 2026- 2028 is expected to be RMB2.15bn/RMB2.513bn/RMB2.906bn, up 17.48%/16.90%/15.64% YoY. The net profit attributable to shareholders of the parent company is expected to be RMB325mn/RMB371mn/RMB427mn, up 11.73%/14.15%/15.09% YoY. The corresponding PE is 36/32/28 times. We maintain "Buy" rating on the company.

Event

The company released its 2025 annual report. In 2025, the company achieved an operating revenue of RMB1.83bn, up 10.62% YoY; the net profit attributable to shareholders of the parent company was RMB291mn, up 26.29% YoY. The net profit attributable to shareholders of the parent company after deducting non-recurring profit and loss was RMB250mn, up 14.40%。

Quick Take

Accelerate the productization of AI applications around the Rich AIBox platform. The company achieved AI and computing power related revenue of RMB391mn in 2025, realizing large-scale delivery to large and medium-sized government and enterprise customers such as operators, energy, and aviation. On the platform side, it released the enterprise-level AI agent platform Rich AIBox 2.0. It focuses on breaking through multiagent collaboration optimization and cross-modal cognitive alignment. It integrates model access management, private domain knowledge management, plug-in access and development, and agent construction, with a builtin data flywheel to achieve continuous iteration. On the AI application side, the "AI intelligent data query platform" was launched and put into commercial use. The information technology application innovation email was upgraded with AI, and the HarmonyOS ecological cooperation was deepened. On the smart channel side, relying on Rich AIBox, it built modules such as AI intelligent outbound call, RICHINFO AI intelligent integration message platform, and intelligent operation support. It is deeply involved in the end-to-end intelligent operations of operator and energy platforms serving hundreds of millions of users.

Intelligent computing services and data intelligence product lines become an important engine for growth. The company achieved revenue of RMB513mn from intelligent computing services and data intelligence in 2025, up 31.10% YoY, implementing the company's "All-in AI" strategy. The company's selfdeveloped Rich AICloud provides an integrated AI-native cloud computing solution of "network architecture Rich Net - cluster management Rich Moss - training and inference platform Rich Boost". It adapts to mainstream domestic computing power at home and abroad and helps customers save over 25% of network equipment costs. The company plans to issue convertible bonds to raise no more than RMB1.46bn. Among them, RMB1.035bn will be invested in the construction of intelligent computing centers to expand the 10,000 - card level intelligent computing capacity. This forms a key guarantee for large-scale order delivery and computing power supply.

Acquisition of Jizhi Intelligence to bolster enterprise service AI strategic footprint. The company recently issued an announcement to acquire 100% equity of Jizhi Intelligence in cash. The overall transfer price is RMB364mn. After the completion of this transaction, Jizhi Intelligence will become a wholly-owned subsidiary of the company. The equity transfer agreement sets a performance commitment of cumulative net profit of no less than RMB84mn from 2026 to 2028. This corresponds to a dynamic price-to-earnings ratio of 13 times, which is far lower than the current average PE of the software industry (Computer SWS Index). As a leading domestic AI Agent technology service provider, Jizhi Intelligence has mature technical solutions, rich industry know-how, and high-quality top customer resources in the fields of AI voice interaction and intelligent marketing. It has established stable cooperative relationships with core top customers such as Ant Financial, Baidu, Alibaba, China Mobile, and JD.com. With its technical barriers and commercialization capabilities, the company is expected to rapidly lay out and enrich its product matrix, expand business boundaries, and seize market growth opportunities. Meanwhile, it will broaden its customer base through resource integration and deepen its presence in multiple industries such as finance, automobiles, education, IT, and the Internet. Through this merger and acquisition, it will drive its transformation and upgrading from an enterprise digital service provider to a full-stack AI solution provider.

Investment recommendation:The company released its 2025 annual report with steady earnings growth. The company promotes AI productization around Rich AIBox, with AI and computing power related revenue reaching RMB391mn, achieving large-scale delivery in multiple industries. The revenue of intelligent computing services and data intelligence was RMB513mn, up 31.10% YoY. The self-developed integrated cloud solution can significantly reduce customer costs. It plans to issue convertible bonds to raise funds for the construction of intelligent computing centers and expand the 10,000-card level computing power. The company plans to acquire Jizhi Intelligence. The target possesses AI Agent technology and top-tier customer resources. The valuation corresponding to the performance commitment is relatively low. This will help the company improve its AI presence and transform into a full-stack AI solution provider. The company's revenue for 2026-2028 is expected to be RMB2.15bn/RMB2.513bn/RMB2.906bn, up 17.48%/16.90%/15.64% YoY. The net profit attributable to shareholders of the parent company is expected to be RMB325mn/RMB371mn/RMB427mn, up 11.73%/14.15%/15.09% YoY. The corresponding PE is 36/32/28 times. We maintain "Buy" rating on the company.

Risks

(1) Market competition risk: As new enterprises enter the domestic software market, the company will face more intense competitive pressure. If the company cannot continuously maintain its advantages in technological level, cost control, and market expansion, its profitability and market share will be greatly affected; (2) Technology R&D risk: The company has continuously increased R&D investment in recent years. If the company makes mistakes in grasping the direction of technological development and developing new products, it may lead to a decline in the company's competitiveness and operating performance; (3) Risk of large balance of accounts receivable and contract assets: By the end of 2025, the company's net accounts receivable and contract assets totaled RMB814mn, accounting for 23.13% of total assets at the end of the period. If the accounts receivable and contract assets cannot be recovered, it will have a significant adverse impact on the company's asset quality and financial condition.