In-Depth Analysis of Changes in Yonyou Network's R&D Expense Ratio and Its Impact on AI Transformation Strategy

Now I will provide you with a systematic and comprehensive analysis report based on the collected data and search results.

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Based on an analysis of public financial data and market information, the decline of Yonyou Network’s R&D expense ratio from a historical high (approximately 75%) to the current level (23%) is a process of

. This change is mainly driven by the recovery in revenue scale and improvement in R&D efficiency, and will not have a substantive negative impact on the AI transformation strategy[0][1].

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From a time dimension, Yonyou Network’s R&D expense ratio has gone through three main stages:

Stage	Time Frame	R&D Expense Ratio	Core Features
Cloud Transformation Investment Phase	2020-2021	68%-75%	Large-scale technology investment to build a new generation of cloud products
Product Maturity Phase	2022-2023	25%-38%	YonBIP launched, product matrix gradually improved
AI Transformation Phase	2024-2027	18%-23%	YonGPT released, AI capabilities deeply integrated

Key data indicates:

• Absolute R&D investment remains stable
  : 2024 R&D expenses reached RMB 2.122 billion, a year-on-year increase of 0.76%, exceeding RMB 2 billion for two consecutive years[0]
• The main reason for the decline in expense ratio is revenue fluctuations
  : 2024 operating revenue was RMB 9.153 billion, a year-on-year decrease of 6%, leading to a passive increase in the expense ratio to 23.2%[1]
• 2025 revenue has stabilized and recovered
  : Revenue in the first three quarters was RMB 5.585 billion, with consecutive positive growth in Q2 and Q3. Full-year revenue is expected to grow by 9% to RMB 9.963 billion[1]

Notably, the

of R&D investment remains at a high level of 52%, indicating that R&D achievements are effectively being converted into intangible assets[0]. The company has 7,337 R&D personnel, accounting for 34.47% of the total workforce, with over 92% holding bachelor’s degrees or above, reflecting continuous optimization of the talent structure[0].

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Yonyou Network has built a complete AI product system:

Product/Technology	Launch Time	Core Capabilities
YonGPT 1.0	2023	Enterprise-level large language model, covering over 100 scenarios
YonGPT 2.0	2024	Enhanced reasoning capabilities, multi-modal support
BIP Enterprise AI	2025	Intelligent agent cluster, AI-native integrated architecture
Ontology-Driven Agent	Early 2026	Logic-deterministic execution, new foundation for enterprise intelligence[2]

The “Ontology-Driven Agent” released in January 2026 represents a major breakthrough for Yonyou in the field of enterprise AI. This technology shifts the core of AI from “probabilistic generation” to “logical execution”, with business certainty at its core, and systematically constructs a new foundation for enterprise intelligence for the first time[2].

AI transformation has generated significant commercial value:

Indicator	2024	First Three Quarters of 2025	Year-on-Year Growth
AI-related Contract Value	RMB 500 million	RMB 730 million	+46%
BIP Core Product Revenue	RMB 1.85 billion	RMB 2.15 billion	+15.8%
ARR	RMB 2.39 billion	RMB 2.78 billion	+16.3%
Cumulative Paying Customers	873,000	1,011,000	+15.8%
AI Contracted Customers	N/A	100+	Newly Added[1][3]

In the first three quarters of 2025, AI contract value exceeded RMB 730 million, core product BIP revenue grew by 15.8%, and cloud service business revenue accounted for 77.0% of total revenue[1][3].

In 2025, Yonyou Network defined its new development strategy:

[3]. This strategic positioning indicates that AI has become the core driver of the company’s development, rather than a cost center.

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1. Stable absolute R&D investment
   : R&D expenses remained at the level of RMB 2.1-2.2 billion in 2024-2025, with no significant cuts[0][1]
2. Increased priority of AI transformation investment
   : In 2025, R&D focus shifted to AI, with the launch of heavyweight products such as BIP 5 and Ontology-Driven Agent[2][3]
3. Recovery in revenue scale drives the decline in expense ratio
   : With the improved competitiveness of BIP products and the accelerated implementation of AI business, 2025 revenue has resumed growth[1]

Assessment Dimension	Score	Explanation
R&D Investment Stability	85/100	Absolute value remains stable, capitalization rate of 52%
AI Product Competitiveness	80/100	YonGPT + Ontology-Driven Agent leads the industry
Revenue Recovery Expectation	75/100	Consecutive positive growth in Q2 and Q3, ARR increased by 16.3%
Talent Reserve	70/100	7,337 R&D personnel, 12.3% holding master’s or doctoral degrees

Although the overall impact is limited, the following potential risks require attention:

1. Revenue falling short of expectations
   : If the growth of cloud services and AI business slows down, the expense ratio may passively rise
2. Talent loss risk
   : Optimization of R&D personnel may affect technological innovation capabilities
3. Technological iteration pressure
   : The rapid evolution of AI technology requires continuous high-intensity R&D investment

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According to forecasts from institutions such as Guosen Securities:

Indicator	2024	2025E	2026E	2027E
Operating Revenue (RMB 100 million)	91.53	99.63	109.03	121.69
Net Profit (RMB 100 million)	-20.61	-5.54	2.56	10.51
R&D Expense Ratio (%)	23.2	21.93	20.25	18.32
ROE (%)	-25	-7	3	13

It is expected that the company will turn profitable in 2026, and the R&D expense ratio will further drop to below 20% as revenue grows[1].

1. Continuous growth of AI contracts
   : The 2025 AI contract target is expected to exceed RMB 1 billion
2. Overseas business expansion
   : Overseas revenue in the first three quarters grew by over 40% year-on-year[3]
3. Hong Kong IPO expectation
   : The company is pursuing a Hong Kong IPO, which is expected to enhance its financing capabilities[3]
4. Policy dividends
   : The State Council’s “AI +” initiative promotes enterprise digital and intelligent transformation[3]

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The decline of Yonyou Network’s R&D expense ratio from 75% to 23% is a normal manifestation of the cloud transformation entering the maturity phase, reflecting:

1. Improved product maturity
   : YonBIP/YonGPT product matrix has been fully constructed
2. Optimized revenue structure
   : Cloud service revenue accounts for 77%, smooth transition to subscription model
3. Improved R&D efficiency
   : 52% capitalization rate, enhanced achievement conversion efficiency

: Absolute R&D investment remains stable, commercialization of AI transformation achievements is accelerating, and strategic priority has been strengthened instead. The Ontology-Driven Agent technology released by the company in early 2026 further consolidates its leading position in the enterprise AI field.

From an investment perspective, Yonyou Network is at a critical juncture transitioning from the “strategic investment phase” to the “harvest phase”. The decline in R&D expense ratio should not be regarded as a negative signal, but rather interpreted as a positive sign of strategic optimization.

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[0] Yonyou Network Technology Co., Ltd. 2024 Annual Report (http://stockn.xueqiu.com/SH600588/20250328977322.pdf)

[1] Guosen Securities - Investment Value Analysis Report on Yonyou Network (600588.SH) (https://pdf.dfcfw.com/pdf/H3_AP202504171657891641_1.pdf)

[2] Sina Finance - Yonyou Releases BIP “Ontology-Driven Agent” (https://finance.sina.com.cn/stock/t/2026-01-05/doc-inhffwpp2116480.shtml)

[3] Guancha.cn - Yonyou Network Pursues Hong Kong IPO (https://user.guancha.cn/main/content?id=1574568&s=fwzwyzzwzbt)

[4] Jinling AI - Yonyou Network Company Profile and Financial Data [0]