What defines an excellent business model? Some might point to the ability to generate consistent cash flow, exceptionally high gross and net profit margins that seem effortless, an unbreachable economic moat, or monopolistic competitive barriers. Ultimately, however, it boils down to using a standardized product to meet diverse needs, and crucially, operating independently of reliance on specific "people." For instance, taste preferences are highly varied; consumers won't buy a less palatable liquor just because it's cheaper. Conversely, a premium sauce-aroma baijiu, even with a known distributor profit of 1,000 yuan per bottle, can maintain a sales expense ratio of just 3% while satisfying taste and occasion demands, generating 100 billion yuan in net profit annually, regardless of changes in the executive team. Similarly, when most investors believed Steve Jobs's unexpected departure would plunge Apple into an abyss, the capital market scripted a narrative of latent potential. For an investor, the best opportunities often arise when a good company faces short-term, solvable problems, creating a golden buying opportunity at a sentiment-driven price low.

If such a business model and personnel changes were to occur simultaneously in today's hottest sector, AI, what others might see as a setback could be the start of vibrant growth and competition. On April 7th, BAIRONG-W (06608), a player in the AI Agent space, issued an announcement regarding personnel changes. For a company that reinvests 70% of its profits into significant AI investments, recent news frequency and content might seem turbulent. But returning to the initial question: Does this company have a strong business model? Does it have a standardized product meeting diverse needs? Will personnel changes alter its development path or industry position? The answers may differ.

A value investor's ideal scenario is widespread media coverage of short-term "scares" concerning a fundamentally sound company. In a zero-sum market, the chips for buying the dip come directly from others, especially for a firm like BAIRONG-W with a steady annual revenue base of 3 billion yuan. So, where does this stable 3 billion yuan base originate? Essentially, it stems from using standardized products to address varied needs across AI applications. What is this standardized product? Simply put, it's a factory capable of mass-producing Agents, or "silicon-based employees." And what are the diverse needs? They are the scattered downstream clients and scenarios in the AI landscape, all seeking ways to use AI for revenue growth and efficiency gains.

This factory for silicon-based employees is the Results Cloud, with its assembly line called the Baigong AgentOS. Previously, if a company wanted an AI customer service agent, AI salesperson, or AI analyst, it had to hire algorithm engineers, purchase GPUs, and fine-tune models—a process taking months with uncertain outcomes. Now, companies like BAIRONG-W have compressed this to two weeks: clients input their business data, scripts, and process guidelines, and the factory produces functional silicon-based employees. Payment is based on results, with renewals contingent on performance.

What can these silicon-based employees do? Consider two common examples. First, VoiceAgent, which handles AI-powered inbound and outbound calls. Everyone has received calls from typical AI voice robots that sound scripted, falter with dialects or interruptions. BAIRONG-W's VoiceAgent, accounting for 60% of its revenue, is different because it understands natural language, handles interruptions, asks follow-up questions, and mimics human tone. This is because it relies on intent understanding, not just keyword matching. It doesn't get flustered by complaints and can retrieve answers from a knowledge base for complex queries. Consequently, a major Chinese securities firm rated BAIRONG-W 27 out of 27 points during selection, double the score of the runner-up—a testament to human-like experience, not just technical specs.

Second, consider Baizhi and Baijian, AI experts capable of writing in-depth reports and conducting research. For SMEs expanding overseas, needing to check local laws, calculate taxes, or review contracts, hiring a lawyer costs 2,000 yuan per hour with a two-day wait. Baijian acts as an always-available "legal + tax" intern, with competence rivaling newly certified professionals. Ask it "How many shareholders are needed to register a subsidiary in Thailand?" and it provides an answer with legal citations in seconds. This capability comes from training on vast legal texts and precedents, specifically understanding complex jargon like "force majeure" or "additional deductions," which would confuse ordinary AI.

At its peak, BAIRONG-W had created over 200,000 such silicon-based employees, deployed across banking, insurance, retail, and internet companies. Clients are reluctant to switch because changing providers means retraining, re-integrating, and re-adapting. BAIRONG-W's client retention rate is 98%—a near-mythical figure in B2B. Essentially, while companies often change service providers annually, retaining 98% of clients indicates either indispensability, like WeChat, or superior utility that makes switching unattractive. BAIRONG-W clearly falls into the latter category.

How does BAIRONG-W monetize? Not through software sales or annual fees, but via Results-as-a-Service (RaaS). There are three models: The simplest is task-based payment, like for making 1,000 marketing calls. An advanced model involves replacing human roles, such as客服 seats, with a share of the saved salaries going to BAIRONG-W. The highest tier ties payment directly to business outcomes—BAIRONG-W receives a share of the profit growth generated by its Agents. This third model fully aligns BAIRONG-W with its clients; if the client doesn't profit, neither does BAIRONG-W. It's akin to a landlord-tenant relationship where harvests are shared, and poor yields affect both. Adopting this model requires absolute confidence in the silicon-based employees.

Now, back to the capital market's primary concern: Will executive changes impact this ecosystem? Will the Results Cloud and Baigong AgentOS halt production if someone leaves? Will the 200,000+ deployed silicon-based employees stop working due to an executive's departure? Will the 98% retention rate drop because of a name change on an announcement? Will VoiceAgent cease operations? The answer is no. The system was designed from the outset not to depend on any specific individual. In a strong business model, core assets reside in the system, not in people. BAIRONG-W's assets are the assembly line producing silicon-based employees in two weeks, the proven track record of over 200,000 deployments, and the inertia of 98% client retention. These are driven by data, algorithms, and computing power, evolving daily, independent of human will. Crucially, for an AI company, data, algorithms, and compute require no attendance.

Therefore, when the market reacts with concern to a personnel announcement, those who understand the fundamentals recall Warren Buffett's adage to "be fearful when others are greedy, and greedy when others are fearful." They think of Li Ka-shing buying bank stocks during the 2008 crisis when collapse seemed imminent, or those who increased positions in Tesla during its 2019 short-selling nadir and saw tenfold returns. Moreover, BAIRONG-W maintains a stable 3 billion yuan annual revenue base within the AI sector. When its stock price adjusts, selling indicates speculation; buying signifies investment. For a company with a solid revenue foundation, not every adjustment presents a buying opportunity. Short-term factors like high investment in new markets, personnel announcements, or panic-driven sell-offs create stepping stones laid by others for discerning investors.