Event: the company released a semi-annual report for 2023, with an operating income of 102 million yuan, a decrease of 49.12% over the same period last year, and a net profit of-24.3993 million yuan, an increase of 46.78% over the same period last year.

The business structure is optimized and the business performance is improved. 1) the core segment of enterprise service business, intellectual property services and science and technology SaaS services, have turned losses into profits during the reporting period after two years of training. 2) the finance and tax service of low gross margin business shrank and optimized in an all-round way, the revenue of enterprise service business decreased but the gross profit margin increased, and the overall profitability of the company increased. During the reporting period, the business income of the company's business service business was 59.1864 million yuan, down 59.23% from the same period last year, with a gross profit of 29.5744 million yuan, an increase of 133.88% over the same period last year, and new orders worth 111.194 million yuan, an increase of 18% over the same period last year. The company's overall gross profit margin was 45%, an increase of 112% over the same period last year, of which the gross profit margin of the business service business was 50%, an increase of 134% over the same period last year. 3) in the first half of 2023, the company's revenue was 102 million yuan, down 49.12% from the same period last year, and the net profit was-24.4 million yuan, an increase of 46.78% over the same period last year. The company's enterprise service business revenue share and profitability exceed the enterprise accelerated service, and the company's strategic transformation has achieved initial results.

AI training has achieved revenue, model + math + training overall layout. 1) the company's newly expanded AIGC consulting and technical services business has achieved revenue, which mainly comes from the AIGC industrial camp products launched at the AIGC Summit in Dark Horse on May 27th. By the end of this reporting period, it has realized the payment of 192 registrations and the operating income of 394200 yuan. 2) the Black Horse Tianqike Chuangda model has started free public testing, which will end in the second half of the year and release performance, which will become a new performance growth point of the company in the future. 3) announced on August 12 that Beijing Heimazhihua Technology Co., Ltd., a wholly-owned subsidiary with its own capital of 100 million yuan, would be used as an AI productivity enabling center for the company to support the application of artificial intelligence in enterprise development, industrial upgrading and digital intelligence development of small and medium-sized enterprises. 4) the company serves more than 150000 small and medium-sized enterprises, and has reached strategic cooperation with major model manufacturers such as Dama, 360. coupled with the R & D strength of self-developed vertical models, the company occupies a unique niche in the domestic AI industry. At present, through the self-development of vertical model, AIGC industrial camp and the newly established AI productivity center, we have realized the omni-directional layout of AI industry with "model + computing power + training".

Maintain a "buy" rating. In the first half of 2023, the domestic economy was in the recovery stage, the delivery of stock orders in the reporting period of urban expansion business did not meet the recognized income standard, and the failure of enterprise accelerated services to return to the level of the same period was the main reason for the company's losses during the reporting period. It is expected that the company's traditional business will gradually resume in the second half of the year, the emerging AIGC consulting and technical services business and the Kochuangda model are expected to bring revenue, and the subsidiary AI Productivity Center will also contribute revenue from next year. We estimate that the company's operating income for 2023-2025 will be RMB 5.31max.

Risk hint: the emerging AI business is less than expected risk, macroeconomic risk, industry competition aggravating risk.