Geling Shentong's revenue in the fourth quarter increased year-on-year, and the software and hardware integration strategy is expected to become a new driving force
DATE:  Feb 28 2025

On the evening of February 27, Geling Deep Pupil (688207. SH) released its 2024 annual performance report, and in 2024, the company achieved an operating income of 120.455 million yuan and a net profit attributable to the parent company of -206.9 million yuan.

It is worth noting that although Geling Shentong's full-year revenue in 2024 has decreased year-on-year, according to calculations, the company's revenue in the fourth quarter has increased by nearly 60% year-on-year.

Geling Shentong said that during the reporting period, the company's product delivery was delayed due to the completion of the localization adaptation and testing of products in the field of smart finance, resulting in a significant decrease in operating income in the first three quarters compared with the same period last year. Deliveries of related products began in the fourth quarter and achieved year-over-year growth in operating income in the fourth quarter.

In 2024, Geling Shentong will further deepen its main business and make new progress in multiple business areas - smart financial products will successfully complete the localization adaptation and testing work and achieve product delivery; The rail transit operation and maintenance business has been applied in Beijing Railway Bureau and subway stations in many cities and generated orders; Smart campus sports products are widely used in Beijing, Hebei and other junior high school and high school campus sports examination rooms. The promotion of various businesses has effectively enhanced the company's market advantage and brand influence.

On the basis of building a solid foundation for its main business, Geling Shentong actively deploys in the hardware field, implements the strategic transformation of "software and hardware integration" of artificial intelligence, and takes a key step in the field of intelligent hardware by holding Guoke Emdoor.

CAS Emdoor has strong comprehensive hardware design and R&D capabilities, and has the ability to customize and develop computing motherboards or complete machines with localized chips as the core according to customer needs, and can achieve stable mass production; Geling Shentong has strong R&D and deployment capabilities in artificial intelligence technology, and has experience in successfully deploying artificial intelligence algorithm models on a variety of different computing platforms. The two parties can integrate artificial intelligence technology and computing terminal technology to develop a new generation of intelligent hardware equipment and related services, opening up new growth expectations.

The recent popularity of DeepSeek has boosted the company's software and hardware integration business. Recently, Geling Shentong said on the investor interactive platform that at the same time, the company has launched a nationally produced hyper-converged large model all-in-one machine, which supports a single running DeepSeek-R1 full-blooded version, integrates domestic models and hardware, and can carry out multi-modal processing of video + picture + text. The all-in-one machine not only has the advantages of privatized deployment, high performance, and out-of-the-box use, but also has outstanding performance in intelligent applications, which can help the transformation and upgrading of public safety, energy, education and other industries.

At present, the rapid penetration of AI applications in the country catalyzed by DeepSeek, and the large-scale growth of demand for AI software and hardware in various industries and fields, the software and hardware integration strategy of Geling Shentong is expected to provide new momentum for the company's future development in the context of high prosperity.

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