The improvement of artificial intelligence in the real economy is reflected in all aspects. For example, in terms of intelligent production in the manufacturing industry, AI can act on various aspects including automatic sorting, quality inspection, equipment operation, and production process optimization, and can bring huge improvements in every step. The role of “intelligent interconnection” on the industrial Internet has been continuously proven, but actual implementation requires not only carriers but also ecology. Artificial intelligence capabilities are needed as the core, capable of sensing users, digitizing users' natural communication, and using software and services to achieve devices connected to the cloud. As a platform dedicated to industrial Internet exploration, the company is based on industrial e-commerce and supported by Internet big data. It is committed to the deep integration of new technologies such as the Internet, the Internet of Things, big data, cloud computing, and artificial intelligence with traditional industries, and strives to continuously promote the value mission of reducing costs and increasing efficiency in traditional industries. The company sees AI technology as an important means of optimizing productivity and innovating business models. Over the past few years, the company has carried out extensive research and applications in the field of AI, especially in the fields of intelligent recommendation, sales forecasting, purchase forecasting, and machine vision for e-commerce platforms.

The field of smart recommendations. In order to better meet the needs of users in different industries, the company uses deep learning algorithms to provide users with personalized recommendation services based on data such as users' historical click records, purchase records, preferences, and tags. At the level of sales forecasting and purchasing forecasting, the company has a large amount of industry information data, capacity distribution data, transaction data, customer data, production data, and logistics data, which provides more dimensional analytical advantages for the company's model training. The company can forecast market demand and supply for the next 1-3 months, and forecast platform users' trading predictions based on historical transaction data. In terms of digital cloud factory/cloud warehouse security identification, the company implemented the “Three Year 100 Cloud Factories” plan in 2021, mainly to provide more supply chain services and digital technology services to the factory side. Also, the company has an industrial metaverse project called Yuanqi. Meta-enterprises can provide a large amount of simulated video data for the development of machine vision technology. Connected to ChatGPT, in terms of ChatGPT, as an important new artificial intelligence technology, its algorithms have opened up new ideas for the development of industrial digitalization and economic digitization. Currently, the company is fully connected to ChatGPT, and all employees can use this function in the internal management platform.

High growth continued in the first quarter. The company disclosed its performance forecast for the first quarter. 2023Q1 achieved net profit of 264-266 million yuan to the mother, an increase of 70.03%-71.45% over the previous year, and achieved net profit of 261-264 million yuan after deducting the mother, an increase of 80.02%-82.09% over the previous year. The company's overall business has maintained steady growth. Many e-commerce businesses have thoroughly implemented the “platform, technology, data” strategy, and continued to vigorously implement active and efficient upstream and downstream strategies and increase platform transaction volume. At the same time, the company implemented a policy of fine management, and net profit increased.

Profit forecasts and investment recommendations. In the future, the company will thoroughly implement the company's “platform, technology, and data” industry Internet development strategy, implement the “one in two wings” business strategy, rapidly promote the transaction scale and platform influence of many e-commerce businesses, actively enhance the comprehensive information service capabilities of the League of Nations Resources Network, vigorously strengthen the digital technology service capabilities of Guolian Cloud, and strive to improve the core competitiveness of the company's industrial Internet platform, which is expected to achieve rapid year-on-year growth in operating income and profit. We expect the company's net profit to the mother for 2022-2024 to be 1,113, 1,719, and 2,646 billion yuan respectively. The corresponding EPS will be 2.23, 3.45, and 5.31 yuan respectively, giving the company 25-30 times the dynamic PE in 2023. The reasonable value range corresponding to 6 months will be 86.25-103.50 yuan, maintaining the “superior market” rating.

Risk warning. The declining macroeconomic cycle, stricter policy supervision, sharp fluctuations in commodity prices, etc., the growth rate of commodity trading business has declined markedly, and the acceptance of business models has declined, making financing difficult.