Ladies and gentlemen, good afternoon, everyone. Welcome to the full-year performance conference of Weishijiajie Continental Co., Ltd. in 2024. This conference will be held live via Zoom Meeting. You can choose the language via Zoom. First of all, please allow me to introduce the management staff here today. They are Mr. Li Jialin, the Chairman and Executive President. Welcome.
Since the beginning of the world, the average growth rate of the group's turnover is 24%, while the OEI is more than 10%. As of December 31, 2024, the group's turnover has reached 8.9 billion Hong Kong dollars, which is 21% more than the original 10.5 billion Hong Kong dollars, which is 14% more than the original 10.5 billion Hong Kong dollars.
foreign foreign
In 2024,
Group's AI business revenue is about HK$3.78 billion, which is 42% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia, which is 74% more than the market performance in Southeast Asia,
In 2024, the domestic brand turnover in Southeast Asia reached 6.8 billion Hong Kong dollars, a 14% increase. The era of AI has arrived. The group will actively seize the opportunity to create more returns for investors. Thank you for your appreciation. Next, let's welcome the Group's Chief Technology Director, Mr. Lou Jiang, to introduce the AI and cloud services of the company to you. Please.
Good afternoon, everyone. I would like to introduce to you the progress we have made in terms of free services and free products in the past 24 years, and our main plans and layout in the past 25 years. In the new era of AI, in terms of free resources, in addition to deepening our existing cloud services and services, we are also actively embracing the new era of AI to expand the capabilities of AI in our free products and services.
Now, in the field of cloud services, we are one of the top 5 in the third-party cloud management service market. In the field of free R&D, we have only two R&D centers in China. In total, there are more than 100 R&D colleagues in the field of cloud computing and AI. We also hope to bring our R&D products
I think
China.
Mr. Wang Weixin, Executive Director and Chief Financial Director of the Group, welcomes you. Mr. Lou Xiang, Chief Technical Director of the Group, welcomes you. Mr. Chen Haizhou, Executive Director, welcomes you. And Mr. Li Yue, Executive Director, welcomes you. Next, let's have a look at the company's short film.
Daji is a technology platform that focuses on the solution of the ICT industry, leading in the Asia-Pacific region. It is the main way for technology products to enter the Chinese and Southeast Asian markets. The service network covers nine countries in China, Thailand, Singapore, Indonesia, the Philippines, Malaysia, Cambodia, Burma and Laos.
There are more than 1,000 technical engineers providing the ability to develop and provide technical services to our clients and partners. In the field of artificial intelligence, this is a comprehensive artificial intelligence ecological cooperation blueprint that we have built over the years. It covers from the bottom-level computing resources to the middle, from AI development, AI training, to AI reasoning, including modeling.
We have many partners in the field of AI systems and AI industry.
In the field of free AI product development, we started early in the field of computing management. In 2020, we launched a free product development in the field of AI computing. So far, by the end of 2024, we are fortunate to have received more than 30 of the 40 AI computing centers in the country. Among them, there are nine national computing centers. We have received seven in the country.
In this area, we help these computing centers to provide the operation of computing on top of computing resources. In addition, we help some big models, especially since last year. We have helped Huawei to realize this kind of Korean-style big model landing in some big model centers in cities.
This year, we are fortunate to have DeepSake. Now we are considering, including talking with some of the computing centers in our hands, to promote and implement DeepSake operation management capabilities in more than 30 computing centers in our hands.
in China.
and more domestic markets and companies also have similar demands. So our plan this year is to launch the large-model ETG of our Weishijiajie brand, which is the deep-seed Xuntui EDT written in it. Now the software is more mature. We are now working with our partners to carry out some underlying research and development and integration. Our plan is to launch the large-model ETG of our Weishijiajie brand in a few months, which will be integrated into the underlying...
including some of the common large-scale models within DeepSeeker, as well as our large-scale cloud management system, which is relatively mature and has already landed in the computing center. According to our market estimates, it should be within 2025, it should be able to achieve an additional revenue of one hundred million to three hundred million yuan. This is a plan in the field of our free brand and free product.
In the field of data management, our free product services have some important cases to report. This is the first batch of public computing platforms in Shanghai, connecting multiple computing centers. In this project, we have connected several computing centers in Shanghai, Jinan, Xi'an and Shanghai. There are about five or six computing centers in total.
It's like a network, a network of computing centers. It was launched in 2023. In 2024, we expanded and deepened it further. This year, we will further expand the network of computing centers to connect more computing centers and more computing resources.
As I mentioned earlier, we have been cooperating with Huawei for 24 years. We are also Huawei's software supplier. We helped Huawei to land in Dongguan and Guangzhou Huadu, two big model service centers in the city. We helped Huawei to realize the entire model restoration, including asset marketing, model visuals, intelligent body management, and performance monitoring capabilities of the entire model.
Then in 2025, we will integrate DeepSeek into our system and promote DeepSeek services to our existing 30-plus computing centers.
We will also launch a product for overseas market management in 2025.
We also see that the cloud service in China has deepened. In addition to some of the top clients, some small and medium-sized enterprises are now sinking. So we will launch some cloud platforms for small and medium-sized enterprises. This is a new plan for our self-developed products in the second half of this year. In cooperation with large cloud manufacturers, I would like to briefly report on the progress.
Alien is currently the largest domestic consumer service provider. We have been working with Alien for 7 years. On an average of 7 years, our annual revenue is 60%. It is the highest revenue among all Alien partners.
In cooperation with Huawei Cloud, we should be the most comprehensive identity. We have four identities. In addition to the main distributor of Huawei, we also shoulder the responsibility of providing solutions, training partners for learning and services, as well as technical service partners. Among all the service providers in Huawei Cloud, we are ranked top three in the industry.
In cooperation with Amazon and AWS, we are the competitive service promoter of AWS. We have won the AWS Best Pricing Partner Award for two consecutive years.
In the field of AI, we are also actively automating our own products. The automated digital office system is a SaaS software that we are selling in China's mobile domain. Earlier this year, we integrated it with DeepSake, which made it the assistant of the smart knowledge bank of this digital office system.
and AI support, and so on. At present, there are more than 5,800 companies in the smart digital office system.
In the field of cloud computing, we have a full cooperation with some mainstream public service providers, private service providers, and SaaS software providers. We can provide a full service of cloud service transfer, cloud service consultation, migration, cloud native transformation, and targeted service.
In this area, we will also use our multi-cloud management platform to integrate these multi-cloud manufacturers' products to better provide our service. This multi-cloud management platform is a free product development that we started in 2016. After so many years of iteration, we are constantly deepening and optimizing its capabilities. Our product is currently mainly in the domestic market. It should be considered that the advantage is relatively large in the area of state-owned enterprises.
the national computer network. The national computer network should be one of the largest multi-cloud environments in China. It has more than 100,000 cloud resources in 27 network provinces and three data centers across the country. Since we got this project in 2022, we have been working on it for three phases. From the integration of the minimum resources, optimization of operations, to automated and automated, we are now combining some large models. These large models include Ali, Unicode, and DeepSight.
and Baidu to automate cloud management. This is what we have been doing for the past 24 years.
In addition to state-owned telecommunications, we are also fortunate to have customers from central enterprises such as Dongfeng Group, Zongxing Group, and Zongce Group. In 2025, our plan is like this. First of all, we will rely on the advantages of our central state-owned enterprises. We will continue to expand and promote the ability of our central state-owned enterprises to manage their shares. We hope to get more customers. Moreover, we also see more companies, especially our partners, including Huawei,
In cooperation with WM-2, we are now the exclusive partner of WM-2 in China and Southeast Asia. Last year, we also actively helped WM-2 to realize a change in the domestic service subscription model from one-time purchase to service subscription. Last year's service revenue in WM-2 has grown significantly and exceeded our expectations.
I would like to introduce to you some of our key cases from last year. For example, in our cooperation with Alibaba, we were fortunate to receive a sample product of a new Chinese-style tea-drinking brand, BaWang ChaJi. BaWang ChaJi is facing a very difficult time.
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The reason why we are able to work with Alibaba to get the Bawang tea machine is because of the advantages and characteristics of Alibaba. We have the exclusive service of Alibaba, and we have the exclusive ability to manage the cloud platform. We have the ability to analyze the database, and we have the application and observation system.
We also have our own VipBus industry platform. These are the advantages and characteristics that we give to other companies.
In cooperation with AWS, we were fortunate to help the Hong Kong Exchange to move the Hong Kong Exchange's trading system from the original environment to AWS. In this transition, we will face a big difficulty.
to realize the high stability and security requirements of the entire transaction system, and to realize the transition from zero to ten. This, I think, is a transition that has helped Hong Kong's transaction system to successfully cross-border.
In cooperation with Huawei Yun, last year, we were fortunate enough to receive a project signed by Ke Da Xunfei. Ke Da Xunfei is a well-known smart voice and artificial intelligence company in China, including the entire Asia-Pacific region. The whole project involved more than a hundred applications, hundreds of resources, a short database and middleware. It involves multiple applications, complex resources, various features and difficulties. We also helped him
We will continue to work with Huawei, Alibaba, Vmware, Eclipse, etc. in the field of cloud computing and AI.
For example, we will consider the depth and breadth of cloud computing, and we will expand the system to implement deep-seq. We will implement the large-model deployment and management services of deep-seq on the cloud. We will consider the environment of domestic credentials, and we will expand the conversion of the database in the credentials. We will also enrich our Vplus industry nameplate. This is our plan in the cloud. In the field of artificial intelligence, we will actively increase the degree of research and development in the field of artificial intelligence.
to increase 50% of our investment in the field of AI in our own products. Through this investment, our plan, as mentioned earlier, this year, we will launch the large-model unit machine of our Weishi furniture brand to help us expand our revenue of 1 to 3 billion plus 2 to 5 years in large-model and unit machines. Okay, this is our introduction to you today. Thank you.
Thank you very much for your introduction, Mr. Lou. Now it's time for Q&A. We welcome all the investors and analysts here to ask questions. Before you ask a question, please tell us your name and the name of your organization. Let's welcome the online questions. At the same time, we also welcome online investors of ZoomMeeting to ask questions online.
Okay, before the meeting started, I collected a few questions from our investors. Let me ask the first question. It's about DeepSea. The appearance of DeepSea really brought us a lot of surprises. The company has also been exploring digitalization and AI for a long time. What kind of transformation or development will the company expect in the future in terms of AI? Please let the manager answer.
Okay, let me answer this. Indeed, DeepSake has brought us a lot of surprises. We also see that this year, DeepSake has brought a big change to our customers. A few years ago, we saw a lot of projects where customers were buying computing tools, but they were just making some attempts, especially when the government was doing something. The companies did not do much. But I feel that after DeepSake became popular this year, many of our customers are actually buying some AI tools.
to use DeepSake and to try to combine DeepSake with their own applications and their own scenarios to see how to improve their internal work efficiency and better serve their customers. Now there are more and more projects like this in China. When we look at this scenario, the first thing is that we will put our previous projects in the computing center,
of
and training more free technical service teams to optimize and optimize large models and develop AI. We hope to help more customers to automate.
I would like to add something. Recently, our software company in Nanjing is hiring IA service staff. Because some companies don't want to deploy their data on the cloud because of confidentiality issues.
I hope that the big local models, but they are slow and not professional. We have received a lot of such orders recently. We are too busy to recruit people. Okay, let's move on to the second question.
Question in Chinese
The 70% growth rate is not unusual. It is very difficult to grow so much every year. There are two special factors. One is that last year in Malaysia, in Singapore, there were many international organizations that were setting up AI computing centers.
In the past, we only had 49% of local investment in the Philippines.
Philippines.
But in fact, in Southeast Asia, we have also grown very well. For example, in Thailand, we used to be in third place, but now we are in first place.
We have been in the second place for four or five years. In the past, we were in the first place by 30%. Now we are in the 80th place. We are also growing in Southeast Asia. Because the cloud is a kind of
Cloud is a way of data mechanization. In fact, there is a strict difference. For example, it is very difficult for a customer to buy a machine to borrow the cloud or to use it himself. But anyway, what the cloud machine uses is the same as the traditional past. It's still the server, the processor, these things. Anyway, no matter if it's borrowing the cloud or building the cloud network, each product is similar.
We really don't have any strict statistics. But in terms of private companies, such as VMware, they had a lot of agents in the past. Last year in Southeast Asia, including China, we all became their exclusive agents. This has also increased a lot. Okay, let's see if there is a next question.
Let's move on to the next question, which is about the PaiXi situation. The company's performance is good and has a lot of cash. Will you consider increasing PaiXi? I don't think we will increase PaiXi. PaiXi is basically stable at around 30, 35.
We are a high-growth company.
It has grown five times, from one billion to five billion. We are a company with high growth. We need funds in the process of development. Because we have almost never raised funds in the market. I personally think that in the future, this industry is an industry of growth. We need money to grow. We will achieve a balance between growth and savings.
After years of discussion, I think we have about 35 companies. We are definitely not a high-end company. Okay, due to time constraints, let's see if there are any last questions on the spot. Let's also see if there are any questions online. Okay, so our last question is to ask our management team to give us a brief introduction of our development plans and goals for 2025.
We are really lucky. It is not that we are excellent. For example, if you are in the real estate industry, we may also be miserable. What we are lucky about is that in the field of ICT, information and communication, the industry is large and is constantly growing. If we think about it carefully,
The so-called progress in recent years is a process of constantly deepening information, digitalization, and smartization. It just so happens that we are growing in this industry. The only thing is that we are growing a little bit faster than the industry. For example, in China, in 2008, because the price of China was acquired by us, at that time, it was only the sixth in China in this industry.
At that time, the first place was also Shenzhou Digital, with more than 4 billion yuan. The second and third places had more than 3 billion yuan, and the third and fifth places had about 1.5 billion yuan. At that time, we only had more than 7 billion yuan.
The fifth place is one time less. Today, we have surpassed Shenzhou Digital. Shenzhou Digital seems to be in a bad mood. It seems that every year they are studying the US market price. Originally, we should learn from them. Our colleagues feel that Shenzhou Digital is studying us a little more. In Southeast Asia, we are actually one of the biggest companies in this industry.
It is not stable. It is a long-term thing. It needs a stable force. It might be the same as China. People in China think there are a lot of problems. But China's growth is the best in the world. It might have a stable leadership force. In recent years, Southeast Asia has grown more than
China has surpassed almost all competitors. In the next three years, I think we should have an average of 20% growth.
In China, I think the worst situation was last year. It has already passed. In China, we were tormented by two factors last year. One factor is that we have a VC, which sells CPUs and hard drives. Its main customers are those who install machines for DIY. Now it is almost gone. The market is declining.
Now it's down to, for example, hard drives. There are almost only monitoring clients left. For example, Haikang TV. This is also unlikely to decline. In the past, 7 or 8 years ago, 80% of our domestic software companies and hardware companies were foreign technology companies, like Dell, HP.
China and the U.S. have been cooperating with each other on Microsoft. In the past few years, China and the U.S. have been cooperating on a variety of things. China has been doing a lot of things for its own network and information security.
Last year, the turnover of foreign companies fell to around 20%.
We think there is not much room for it to go down, because businesses, individual users, and unknown companies like Weishi are very sensitive to information security and privacy.
So, there is not much need to keep information confidential. So, we think that there is not much room for foreign brands to decline.
The reason why foreign brands have fallen so much is that we have maintained our growth. Mainly because many new products are growing very fast. For example, we are Haiguang. At the moment, Haiguang covers six major customers, and the rest is covered by us in the long-term market. Last year, it grew a lot.
We are also the largest distributor of office software in China. We are probably second or fifth in the list. In terms of network security software in China, we are probably second or fifth in the list. In terms of China's state-owned enterprises, we are quite early in the list. For example, Qiananxian.
Big companies, for example, like in Singapore, Inglewood Macau is bigger than us. But after four or five years, they replaced the CEO. Then once a new CEO comes to American companies, like Trump, they will get rid of Biden's team. Many of their companies will go bankrupt.
In my impression, we are the most professional and stable team in this industry. There are a lot of things, especially long-term things, that we are willing to cooperate with our company. For example, about the transformation, Huipu is exploring a part of the transformation from the offline to the online. In fact, they are cooperating exclusively with us. You may ask why.
the first year of its independence, we were its agent. You can see that when it was first launched, it was divided into two parts. One was made by itself by 20%, and the other was made by a company called Jiadian by 80%. Jiadian was a Shanghai-based independent company. We started with its first year of independence,
China has only 10 million, and then it grew to more than 100 million. We really need to accompany China. We don't need a big company to accompany us. For example, Huawei leads us forward, but there are also many small companies that we accompany and grow.
So, we have gained a lot in the meantime. So, overall, the decline in foreign countries has increased, and we are still growing. In fact, if foreign countries do not decline, I think we should enter a turning point in China. Because of the growth period, I think, at least from a profit point of view, there should be a growth of 15 to 20 in the next three years.
Okay, thank you for your answer. Next, we have a new question from our online audience. Please answer it. The online audience asks, why is the overall interest rate of 2024 falling slightly? Is it because the interest rate in Southeast Asia is lower? Also, do you have any future acquisition plans?
First, there must be acquisition plans. For example, if the entire Southeast Asian market is covered by Vietnam, there will be investments or acquisitions in this area.
There are two reasons for the decline of Maoli. In the past, Shenzhoushu cooperated with a lot of foreign brands. After the decline of Maoli, they were not willing to accept the overall decline of silver and silver oil.
In terms of products, everyone is doing their best. For example, Huawei gives a lot of profit, but we sometimes go to the market at a lower price. In order to fight for the market share of new products, we have to think internally. This is one aspect.
But the growth is almost the same, and it will slowly stabilize. Southeast Asia has grown by more than 70% year on year, but not as much as Maoli. There is a big growth in Southeast Asia,
The benefit of that is that you don't have to spend a single cent, because that is a supply and demand. It is the client who puts all the money in our account in advance, waiting for payment.
The advantage is that you don't have to spend a lot of money. But the disadvantage is that manufacturers feel that they don't have much credit in the middle. This thing doesn't need to be promoted. There is only a little bit of profit. Therefore, the total profit has increased, but it seems that the profit has decreased. It should be these two factors. But the decline in profit is not a trend. It's just a structural problem.
I believe that in the next three years, we will see the growth of China. In fact, the overall毛利率 in Southeast Asia has not fallen, because of this product.
Okay, thank you for your questions, and thank you for the wonderful answers from the management team. Finally, we would like to welcome our investors again to join the annual performance conference of WSJC 2024. Today's conference is officially over. Thank you again for your participation and your long-term attention and support to the company. I hope our company's performance will be better and better next year, and I look forward to seeing you again next time. Thank you.