Company News On June 22, the “Xixi Theory” Data Intelligence Summit Forum was held in Hangzhou. We participated in the conference online. The forum was hosted by Daily Interactive, with the theme of “Digital Intelligence and Digital Governance”. It was jointly guided by the Zhejiang Internet Information Office, the Zhejiang Provincial Department of Economy and Information Technology, and the Zhejiang Provincial Market Supervision Administration. The aim was to build a platform for in-depth exchange and sharing of the data intelligence industry to further promote the healthy and flourishing development of the data intelligence industry. Commentary From digital industrialization to the continuous implementation of data intelligence applications, the development of the data intelligence industry is accelerating. From the perspective of industrial development and evolution, the data intelligence industry is developing rapidly. Fang Yi, Chairman and CEO of Daily Interactive, pointed out in his keynote speech that the key to the data intelligence industry is “numbers, digital intelligence, and digital governance”, where numbers refer to digital industrialization and industrial digitalization; digital intelligence guides finding key data and transforming it into knowledge that can be applied rationally and make decisions; and digital governance combines data with specific scenarios and management elements to drive the development of enterprises and society. We believe that the data intelligence industry is still in the early stages of rapid development in China. With the continuous expansion and deepening of application scenarios, the data intelligence industry market has broad room for development. Furthermore, at the same time as data intelligence is developing rapidly, data security is also receiving more and more attention. We judge that in the future, as data application scenarios become more diverse, the importance of data security will become more and more prominent. “One Hospital, One Plate” was released, and the layout of the daily interactive data intelligence industry was upgraded. At the forum, the West Lake Data Intelligence Research Institute was announced interactively on every day to explore various application fields in the data intelligence industry to help the company lay out cutting-edge fields of data intelligence ahead of time. At the same time, the company released the data center product “Digital Platform”, which is aimed at helping customers build data centers. It is committed to achieving the four major goals of building analytical organizations, good data governance, ensuring data quality, and service business innovation. We believe that “digital disk” can help customers build a data center that is easy to operate, quick to respond, professional and convenient, and saves resources. Daily interaction is expected to be based on the “digital disk” product to accelerate the expansion of customers in the vertical field. Vertical industry application scenarios continue to expand, and the market for data intelligence is broad. At the same time as the technology in the data intelligence industry continues to improve, the application scenarios of data intelligence are also constantly expanding. The forum discussed the implementation of data intelligence in various fields such as digital media, digital marketing, digital finance, smart cities, and smart healthcare. We believe that the application of data intelligence in the above fields shows that data intelligence has a broad range of application scenarios. We are optimistic about the data intelligence service capabilities of daily interactions based on massive amounts of first-hand and external cooperative data. The company's data intelligence business, such as public management and intelligent risk control, is in a period of rapid growth. In the medium to long term, we are optimistic that the company will continue to expand data intelligence application scenarios. The valuation suggests that we keep our original profit forecast and outperforming industry ratings unchanged. The current stock price corresponds to 50 times the price-earnings ratio in 2021. Considering the upgrading of the intelligent layout of the company's data, the continuous expansion of vertical industry application scenarios, the increase in performance visibility, and the increase in the industry valuation center, the target price was raised by 23.0% to 45.0 yuan based on the segmented valuation method, corresponding to 60 times the price-earnings ratio in 2021, with a potential for 19.8% upward space. Risk The macroeconomic downturn has put pressure on growth services. Data service expansion growth falls short of expectations, data resource security risks, loss of core talent, transaction impact caused by the lifting of the ban on restricted shares, related transaction risks, and high customer concentration risks.