Based on integrated media operations, it focuses on C-side investment content services. The company focuses on the online investor content service market, providing investment decision solutions to individual investors through various software and data services. In terms of the business model, the company makes full use of traditional media and new media platforms such as MCN channels to form diversified brand communication networks and accumulate public domain traffic; then, based on products, it transforms public domain traffic into private users through refined operations, leading to its own apps, and continuously improving monthly activity and user stickiness.

We are deeply involved in MCN operations, give full play to the advantages of integrated media traffic, and have accumulated over 45 million fans in the public domain.

Through deep integration of new media tools such as live streaming and short videos, the company uses AI technology to build a fan network, and actively explores e-commerce models to effectively achieve efficient traffic conversion. At the customer acquisition level, the company takes refined traffic operation as the core strategy. Through analysis of user behavior data, the company constructs detailed potential user profiles, thoroughly understands user needs and preferences, and uses advanced algorithms to ensure that content accurately reaches users at different levels, and achieves efficient customer conversion and stable retention. Through collaboration with multiple platforms such as Douyin, Xiaohongshu, and video accounts, the company continues to expand its brand exposure and solidify its fan base. By the 2024 interim report, the company had 488 MCN accounts operating on different internet platforms, and the number of accumulated fans reached about 45.6 million.

After many years of operation, the flagship and Escaptor series products have built a base of high-paying customers. In 2023 and before, the company's core product matrix included two major series: Jiufang Smart Investment Ultimate Edition and Jiufang Smart Investment Dragonfly Edition.

The flagship edition of Jiufang Smart Investment mainly provides paying customers with data services, including market data processing, index analysis tools, etc., to serve the wealthy class; the Jiufang Smart Investment Edition provides financial information software services to paying customers, including financial market consulting, data analysis, and investment decision support, which is specially tailored for customers with more investment experience and complex needs. After years of operation, the flagship and Scaptor series products have built a large base of high-customer unit paying users. From 2021 to 2023, the company's total number of paying users was 0.1017/0.0682/0.0728 million, respectively. The average customer unit price reached 0.0195/0.0292/0.0322 million yuan, bringing the company 1.984/1.992/2.348 billion yuan in order revenue.

In 24, the company transformed its product matrix and launched small-cap products and hardware products to meet the diverse needs of customers. Since 2024, the company has gradually promoted product transformation, optimized the existing software product system to meet the diverse and even customized needs of customers, and diversified revenue sources, mainly including: 1) integrating the Jiufang Smart Investment flagship and the Scarecrow series; 2) Enriching the small-value product line and continuing to launch 20 lightweight products. By the mid-term report of 2024, the number of users of small-value products reached about 0.347 million, and added about 0.3 million registered app users; 3) Launched the first stock learning machine hardware product aimed at creating an exclusive learning platform for investors to help them create an exclusive learning platform and help investors Investors construct investment logic and systems to fill gaps in the market for professional stock learning products.

Empower products with professional investment and research to provide customized services to investors. The company established Jiufang Research Institute, which specializes in investment research. As of June 30, 2024, Jiufang Research Institute has 151 experienced professionals covering research, investment and other financial fields. The company actively implements the “research+investment and research” two-wheel drive strategy, uses artificial intelligence to improve the efficiency and quality of investment and research, and consolidate its core investment and research capabilities. In addition, the company is also actively transforming into the field of “buyer investment”, focusing on the practical application and transformation of investment and research content, and enhancing the customer's investment experience through courses, strategy meetings, etc.

Launched the digital human “Jiu Ge” based on a self-developed model to enable intelligent investment with AI. In August 2023, the company launched “JiuGe”, an intelligent investment digital investor jointly developed by HUAWEI CLOUD and iFLYTEK. It provides eight core services, including market analysis and strategy generation, based on a self-developed Jiuzhang securities market model, which can provide customers with 7*24 hours of capital market consulting services. In the first half of 2024, “Jiuge” served about 0.257 million customers, with a cumulative total of 15.83 million services. Furthermore, the company uses AI to empower applications, stock learning machines, compliance and other fields to comprehensively enhance investment intelligence. 1) AI empowers apps, covering stock diagnosis, stock selection, information, investment and customer service to enhance intelligent interaction; 2) AI empowers learning machines to create intelligent applications around different scenarios to comprehensively improve learning efficiency; 3) AI empowers compliance and builds an intelligent compliance management solution 3.0, greatly improving compliance management efficiency.

Profit forecasting and investment advice. We believe that the company empowers stock investment services with an emerging financial media operating model, targets high customer unit price groups, has an excellent business model, and has a first-mover advantage in the market. Recently, along with the recovery of the capital market, active securities trading, and an increase in demand for C-side stock investment services, it is expected to provide a strong impetus for the company's business performance. We expect the company's total revenue for 2024-2026 to be 2.28/3.828/4.605 billion yuan, up 16.0%/67.9%/20.3% year on year; net profit to mother will be 0.195/0.551/0.985 billion yuan, respectively, up 2.0%/182.9%/79.0% year on year; EPS will be 0.43/1.23/2.20 yuan respectively. Compared to comparable companies, the company still has a lot of room for valuation increase. The company was given a dynamic PE of 28-30 times in 2025. Based on the exchange rate of HK$1 = RMB 0.94, the reasonable stock price range was HK$36.58-39.19. For the first time, it was covered, giving it a “superior to the market” rating.

Risk warning. Regulatory policies have changed, the industry market environment has fluctuated, and AI applications have fallen short of expectations.