Event: Recently, Assistant Professor Xiaohong 3.0 was updated again, middle school corpus was launched, and scenes for teaching activity planning and reading notes were added. Furthermore, at the beginning of this month, Google released the large multi-modal model Gemini. Scenarios such as multi-modal technology acceleration and AI+ education are expected to benefit.

The company is determined to develop AI+ education business, and the AI teaching assistant product “Assistant Professor Xiao Hong” continues to iterate. As a teacher-side teaching assistant product developed by Century Tianhong based on a large language model, “Assistant Professor Xiao Hong” embeds the company's high-quality content resources through leading structured long text vector processing technology, and focuses on serving the teacher community. Through dialogue, it can improve teachers' work efficiency in organizing course preparation materials, writing lesson plans, inspiring teaching, and drafting working documents on a daily basis. Since the 1.0 version was launched in closed beta in April, Assistant Professor Xiaohong has continued to iterate on model capabilities and product features: the embedded technical solution was completed in May and the 2.0 version was launched to support professional lesson plan generation; in September, the 3.0 version was upgraded to a more powerful and intelligent model, and added industry-leading AI essay correction functions; the October mini-program version was released, adding article writing, text editing, PPT outlines, mind maps, teacher comments, and the Chinese-English translation of six major teaching scenarios; the 3.0 version was updated again in early December, English and numeric syllabus for grades 7 to 9 of middle school The biological corpus is completed and training is carried out. Teachers select specific grades, disciplines, and books, and enter the names of the courses they need to quickly generate complete lesson plans; product features have also been added for teaching activity planning and reading notes scenarios for the teacher community. In the future, as multi-modal technology matures, Assistant Professor Xiaohong is expected to provide teachers with more subject support and more practical functions.

The number of test teachers is gradually expanding, and we are optimistic about the future commercial and ecological value. (1) Assistant Professor Xiaohong's 3.0 version has invited about 3,000 first-line teachers for closed testing. The number of trial students has increased significantly. Most teachers highly praised the product's lesson plans and essay correction features. (2) Similar overseas products have received attention from leading AI companies: Recently, the AI platform Class Companion announced that it has received a seed funding round of 4 million US dollars, of which OpenAI is also participating in the investment. Class Companion is similar to Assistant Professor Xiaohong in terms of position and function. It is mainly used to assist teachers to correct written assignments, enable teachers to provide immediate personalized feedback to students, and support each student to learn at their own pace. Compared to human feedback, teachers using ClassCompanion saved an average of 12 hours a week. Six months after the product was launched, it was adopted by more than 5,000 schools across the US, and the number of monthly website visits also showed an increasing trend (similarweb data). As Xiaohong's teaching assistant model capabilities are further improved, the number of teachers is expected to expand further, and the company's membership fee system has now been developed. If it is officially launched in the future, it is expected that it will contribute to increased performance for the company; in addition, Assistant Professor Xiaohong is expected to seize the opportunity from the teacher side to prepare for the subsequent development of other AI education products.

Profit forecast and investment rating: We are optimistic about the development of the company's AI+ education business. We maintain the 23-25 year forecast of the company's revenue of 509/5.94/682 million yuan, and the net profit forecast of 0.44/0.53/61 million yuan, corresponding to the current stock price PS of 10/9/8 times, respectively, maintaining the “increase in holdings” rating.

Risk warning: business development falls short of expectations, development of AI technology and applications falls short of expectations