"Integrated Software-Hardware" Strategy Drives Core Value Enhancement, iSoftStone Included in SZSE 50 Index Sample

Recently, according to an announcement released by the CNI Index Network, the core index sample stocks of the Shenzhen Stock Exchange are about to undergo adjustments based on index compilation rules. This semi-annual adjustment will involve key indices such as the Shenzhen Component Index, the ChiNext Index, the SZSE 100 Index, the SZSE 50 Index, and the Shenzhen Main Board 50 Index. Among them, iSoftStone (301236.SZ) has been included in the SZSE 50 Index, effective after market close on June 17, 2024. Previously, iSoftStone was selected for Shenzhen Component Index, ChiNext Index, ChiNext 50, CSI 500, SZSE High-Quality Disclosure, and SZSE Responsibility indices, among others.

Notably, as a broad-based investment target positioned for innovative growth, the SZSE 50 Index focuses primarily on strategic emerging industries such as new-generation information technology, biotechnology, and new energy. It directly reflects trends in stock prices of leading companies with large market capitalization, strong industry representation, and good corporate governance in the SZSE.

Industry observers noted that this adjustment of the SZSE 50 Index sample better represents its distinctive characteristics of "innovation-driven and high growth", emphasizing the industry structure advantages of emerging industries. This adjustment not only represents the performance of large market capitalization securities in SZSE 50 but also enhances the index's investment value and attractiveness. iSoftStone's inclusion in the SZSE 50 Index sample among 2,853 listed companies in SZSE underscores its technological attributes and sustainable growth capabilities, sending a positive signal to the market.

Following the wave of AI development, promoting the "Integrated Software-Hardware" Strategy
Under the AIGC tide, rapid development of large-scale model technology brings revolutionary changes to the entire industry. As Bill Gates once mentioned, the importance of the AI revolution is comparable to the birth of mobile phones and the internet, marking one of the two revolutionary technological advancements in his lifetime.

As a leading innovator in digital technology products and services in China, iSoftStone has always placed a high value on technological innovation, closely following the wave of AI development, and actively monitoring technological advancements in the AI field while continuing to invest accordingly. Based on profound exploration of next-generation AI technology and long-term service to key industry clients, iSoftStone is comprehensively upgrading its AI strategy, accelerating the construction of a trinity innovative business ecosystem that integrates "computing power, algorithms, and applications". This will provide clients with full-stack comprehensive services ranging from hardware computing foundations and model algorithm bases to AI platform applications.

Currently, the demand for AI computing power is experiencing exponential growth due to the development of universal large-scale models, highlighting the undeniable scarcity of leading AI hardware technologies. Under the new AI strategic framework, iSoftStone successfully acquired Tongfang Computer and Tongfang International. Particularly with the addition of Tongfang Computer, iSoftStone effectively supplements its hardware capabilities including servers and PCs, while synergizing its proprietary ISSEOS, ISSEDB, SwanLinkOS, digital twin and simulation platforms, thereby establishing a full-stack integrated software-hardware capability from the ground up and maximizing computational power.

Previously, iSoftStone has deeply cooperated and accumulated with Kunpeng and Ascend Computing, where iSoftStone Computing (Tongfang Computer) is an important partner in the Kunpeng and Ascend fields. Strategically, leveraging Kunpeng and Ascend server hardware production capabilities, iSoftStone will accelerate the "integrated software-hardware" strategy to comprehensively solidify market competitiveness.

Empowering industry Data-AI transformation, resonating positive factors for future growth

While actively embracing the Kunpeng and Ascend ecosystem and enhancing full-stack integrated software-hardware service capabilities, iSoftStone is committed to providing customers with comprehensive, user-friendly, and efficient solutions. Through active exploration of large-scale model applications in vertical industries, iSoftStone accelerates industry data-AI transformation to achieve mutual growth with customers.

In recent years, iSoftStone has independently developed capabilities in AI and data intelligence, including the Tianxuan MaaS platform, AISE software engineering, industry large-scale models and data governance, data middle office, data assets, etc., focusing on strategic emerging industries such as fintech, intelligent terminals, smart automobiles, digital energy, FMCG , new health care , smart education, intelligent manufacturing, and green computing power.

In May of this year, during the Kunpeng and Ascend Developer Conference 2024, iSoftStone held the "Full Stack Software-Hardware, Accelerating Intelligent Empowerment" sub-forum. At the conference, the company launched the flagship product "Ascend AI Workstation", the first workstation built using Ascend NPU, dedicated to creating a high-density computational AI workstation with wide applicability. Especially for scenarios requiring large-scale data processing and complex analysis, this AI workstation provides powerful computational support to help users complete tasks more efficiently.

iSoftStone stated that in the future, while maintaining traditional software and digital technology service businesses, it will continue to focus on intelligence, innovation , greenness, and internationalization, and build full-stack digital capabilities around software and services, hardware, and system operations to support sustainable development.

Overall, driven by policy support and market demand, the development prospects of digital technology service enterprises represented by iSoftStone will become increasingly promising. As applications are implemented in different industry scenarios in the future, it will open up incremental markets for iSoftStone. Moreover, being included in the SZSE 50 Index sample further adds to these positive factors. Based on these factors, the sustainable growth potential of iSoftStone is expected to further manifest in the future.