The integration of AI applications across various fields globally is deepening, becoming a key force in driving industrial upgrades and innovation.

Recently, Jingtai Technology announced the formal signing of a strategic cooperation agreement with Sinar Mas Group's financial conglomerate (SMMA), and both parties will carry out comprehensive cooperation in multiple industrial sectors to jointly promote the future innovation of AI and automation industries in the Asia-Pacific region, creating new revenue explosion points for both companies.

This is not only a reflection of the deepening global integration of AI technology applications, but also an important step for Jingtai Technology's layout in the global AI field. As investors, further exploration can be conducted from two insightful perspectives or questions.

(1) Why choose Sinar Mas Group?

(2) How big are the opportunities in the Indonesian and Southeast Asian markets?

Empowered by deep supply chain advantages, providing a solid market resource backing.

Sinar Mas Group was founded by Indonesian overseas Chinese Mr. Huang Yicong in 1938 and currently owns hundreds of legal entities, making it one of the largest multinational enterprises in Indonesia, with investments spanning Asia, North America, Europe, and Australia, as well as a vast industrial layout in China.

Specifically, the operations of Golden Light Group cover a wide range of industries, including medical care, mining, renewable energy, logistics, consumer goods, chemicals, and financial services, holding important market shares and a dominant position in these fields. For instance, in the medical care sector, Eka Hospital, a subsidiary of Golden Light Group, is one of the fastest-growing chain hospital brands in Indonesia, having provided medical services to over 4 million patients, and has obtained certification from the Joint Commission International (JCI), meeting internationally leading medical standards, with operations also in Shanghai.

According to publicly available data, Golden Light Group's asset scale has reached approximately $20 billion (over 140 billion yuan), and it has been recognized by Forbes magazine as Indonesia's largest conglomerate, highlighting its strong familial power and conglomerate influence.

In addition, Golden Light Group has a broad layout in the energy and new energy sectors, such as its subsidiary DSSA engaging in the energy and infrastructure business, possessing extensive mining assets and coal operations, and in August 2023, it participated in investing to build Indonesia's first solar panel and battery factory to support Indonesia's vigorous development of renewable energy and its enormous solar market. The collaboration with Jing Tai Technology emphasizes renewable energy, linking to the one billion yuan research and development service order signed in August this year between Jing Tai Technology and GCL Group in the new materials field, indicating that this cooperation with Golden Light Group may similarly utilize AI and Siasun Robot & Automation services in the development of materials, processes, etc., for Golden Light Group's energy industry, and through establishing a joint venture, it will be deeply bound and share business profits.

Therefore, the cooperation between Jing Tai Technology and Golden Light Group can leverage Golden Light Group's vast global market supply chain and physical industrial advantages while utilizing the advanced technology of Jing Tai Technology's AI and robotic development platform to achieve a strong alliance. This cooperation model is expected to create significant revenue explosion opportunities, realizing a synergy effect where 1 + 1 > 2, making the prospects very promising.

Seizing AI application opportunities, Southeast Asia remains a blue ocean market.

In recent years, Indonesia and the entire Southeast Asia region have experienced strong economic growth. Coupled with a large population dividend, significant geopolitical advantages, a favorable trade environment, and the rapid development of high-tech industries like AI, Indonesia and its radiating Southeast Asia have become a potential market that cannot be ignored for businesses looking to expand overseas.

Firstly, Indonesia is the world's fourth-largest country by population, with a huge economic scale and consumer market potential. Indonesia has a healthy population structure, where the labor force aged 15 to 64 makes up as high as 68% of the population, providing a significant population dividend advantage, making it an important factor in attracting foreign investment and promoting industrial development, and it somewhat mirrors China's economic rise.

Secondly, markets in Indonesia, such as those for renewable energy, materials, and chemicals, are in a rapid growth stage. The national energy policy of the Indonesian government clearly states that by 2025, renewable energy should account for at least 23% of the primary energy structure. Among them, the Indonesian government plans to increase the domestic solar power generation capacity from the current approximately 3 gigawatts to nearly 8 gigawatts before 2030. Achieving this goal means an additional solar power generation capacity of about 5 gigawatts is needed. Based on the current average price of solar systems in Indonesia, which is 20 million Indonesian rupiah per kilowatt of installed capacity, the value of these new projects could be between 5 billion and 8 billion dollars. Analysts at Ember Energy believe this value could exceed 9.4 billion dollars.

With the significant increase in solar power generation capacity, it is expected that Jingtao Technology will continue to receive government subsidies to promote the transition from coal to greener power resources. This policy support may further stimulate the procurement of solar panels, driving the development of the solar industry and bringing new growth opportunities from the value chain to the company.

Furthermore, as a key node in the belt and road initiative concept, cooperation between Indonesia and China is strengthening, providing new opportunities for Chinese companies to develop in Indonesia. Additionally, Indonesia's forex management system is relatively liberal, actively promoting trade liberalization and economic globalization, creating fertile ground for the development of B2B and B2C markets.

As the integration of AI and industry has become a focal point of global attention, particularly in the Southeast Asia region, considering the acceleration of digital transformation in the region and the significant increase in internet penetration rates, AI applications in Indonesia and the Southeast Asian market remain an underdeveloped blue ocean market.

According to Statista data, the market size of the AI industry in Southeast Asia is expected to grow from 32.64 billion dollars in 2022 to 580.8 billion dollars in 2030. Among them, Indonesia's generative AI market grew tenfold in 2023, ranking first in Southeast Asia. Leveraging the vast local ecosystem of the Golden Light Group, Jingtao Technology has the opportunity to quickly enter the Indonesian market and share in the benefits of this rapidly growing blue ocean.

In such a context, Jingtao Technology is taking a key step into the Southeast Asian market, and the importance of this strategic layout is self-evident.

On the one hand, as the only AI For Science listed company in Asia, Jingtao Technology's platform has been fully validated, possessing rich research and development achievements and endorsements from major clients, including 16 of the top 20 global pharmaceutical companies and influential research institutions and top institutes in the region and globally, such as A*STAR in Singapore, NCCS, and MIT. This will accelerate the innovation and application of its AI technology and platform across various vertical industries in Southeast Asia, and hasten the deployment of its mature business in Southeast Asia, seizing market opportunities in vertical AI applications.

On the other hand, choosing Golden Light Group, which has a wide business layout and political and business influence in Southeast Asia, as a partner, gives Jingtao Technology a better chance to accelerate the realization of commercial returns and provides certainty for scaled growth opportunities, ensuring a rapid favorable position in the blue ocean market of Southeast Asia. Moreover, compared to Jingtao Technology's AI drug research and development business, the new materials and new energy fields emphasized in this collaboration have shorter research and commercialization cycles, coupled with the supply chain advantages of Golden Light, meaning faster commercialization returns. The investment return cycle for the company will be significantly shortened, potentially providing a second and third growth curve for Jingtao and exceeding investor revenue expectations.

In addition, considering Jingtao Technology's close cooperation with the global major solar panel manufacturer, GCL-Poly Energy Holdings Limited, the company may continue to deepen its collaboration with GCL and Golden Light Group. Among them, Golden Light Group, as an important player in the Indonesian solar energy market, has the potential to capture a larger market share locally. The technical cooperation between Jingtao Technology and GCL, especially in the development of perovskite solar panels, provides the company with a unique competitive advantage.

Based on the previously mentioned market size of 9.4 billion USD, it can be conservatively estimated that Jingtai Technology and Jinguang Group are both expected to achieve revenue growth of over 0.1 billion USD in the future. The technological foundation of AI plus robots may allow for a quicker market penetration than competitors, achieving substantial commercial returns.

Conclusion

Although the AI industry has not yet fully entered its harvesting period, it has become widely acknowledged as the core of future technological development.

Jingtai Technology, with its deep accumulation in AI and autonomous robot experimentation, is gradually expanding from the drug development business to automation experiments and the research and development of advanced materials such as lithium batteries and solar panels, steadily advancing the application and commercialization of its AI technology.

Of course, Jingtai Technology's forward-looking business expansion and technological innovation have also won recognition and support from many major companies. In recent years, it has collaborated deeply with numerous leading companies in the domestic and international industry such as pfizer, eli lilly and co, merck, johnson & johnson, gcl, and this time Jinguang Group. This not only establishes the company's important position on the international stage but also lays a solid foundation for its future growth and profitability potential, continuously enhancing market and investor confidence.

As the collaboration deepens and the technological platform matures, Jingtai Technology, as the only listed AI for Science company in asia, as well as the first stock 18C on the Hong Kong stock market, is gradually revealing its commercialization potential and self-sustaining capability.

Nowadays, with the USA elections settled, a major uncertainty factor facing the market this year has been removed, and the capital markets in Hong Kong and the mainland have begun brewing a new wave of market trends. The market generally expects that china's assets have entered a new phase of long bull and slow bull. In this trend, Jingtai Technology deserves more attention from the market.