As foundation models approach the limits of available IT data for training, mining operational data is emerging as a vital frontier for real-world artificial intelligence applications.
While high-profile sectors like autonomous driving and robotics often dominate headlines, Shenqi Digital, a data intelligence subsidiary of Digital China Holdings, is focused on transforming enterprise workflows. Last quarter, the company introduced its next-generation software platform, Yanyun Infinity, at a launch event held at Peking University. Concurrently, it announced the formation of a joint laboratory with the university to support ongoing development of the platform.
According to Shenqi Digital, Yanyun Infinity is designed to enhance enterprise decision-making by building AI agents that draw on data and knowledge to help companies make optimal decisions quickly. This accelerates workflow optimization across various business scenarios.
Digital China refers to this model as “AI for process.”
Guo Wei, chairman of Digital China Holdings, sees this as a fundamental application of AI. He believes using AI to improve everyday business processes—by connecting company data with real needs—can lead to constant improvements and help drive digital transformation.
“From placing an order to completing delivery, enterprises go through a series of data-driven decisions,” said Zhang Wei, general manager of Shenqi Digital’s technology R&D center. “There’s significant potential to improve both the efficiency and accuracy of traditional workflows.”
Citing institutional data, 36Kr reported that China’s industrial value-add reached roughly RMB 40 trillion (USD 5.6 trillion) in 2023. Yet only 8% of multimodal foundation models have been deployed in real-world applications, indicating untapped potential.
Unlike consumer-facing applications, industrial AI demands high levels of precision. In this domain, quality, scale, and precisely labeled data are scarce yet crucial for training robust foundation models.
That’s where Shenqi Digital claims a unique advantage. Originally spun out of a joint initiative between Digital China and Peking University, the company developed Yanyun DaaS, a data infrastructure technology that now underpins its platform.
“This technology is the backbone of our big data infrastructure,” said Sun Yang, president of Shenqi Digital. “Only by aggregating and collecting data can we advance toward governance and application.”
In a roundtable with media outlets including 36Kr, Zhang and Sun discussed Shenqi Digital’s development strategies.
The following transcript has been edited and consolidated for brevity and clarity.
36Kr: Can you give an example of how Yanyun Infinity enhances workflows in a specific industry?
Zhang Wei (ZW): A typical use case is in the steel industry. One company struggled with raw material scheduling inefficiencies. By integrating real-time data from blast furnace gas emissions with production orders, we built a dynamic optimization model. The result: across 15 furnaces, the company saved approximately RMB 92 million (USD 12.9 million) annually in energy costs.
36Kr: Many companies are adopting DeepSeek. Is it a substitute for Yanyun?
ZW: DeepSeek is foundational. It’s a strong complement to Yanyun Infinity. It enables lower compute costs while delivering powerful model functions.
36Kr: How does Shenqi Digital define its role in data intelligence?
Sun Yang (SY): We aim to be a leading end-to-end provider of data intelligence solutions, enabling traditional industries to undergo digital and intelligent transformation through full-stack technical capabilities.
By “end-to-end,” we mean supporting the entire lifecycle: from consulting and planning to product delivery, system integration, and ongoing operations. This also means we offer more than just tools or platforms, instead delivering comprehensive, industry-specific solutions tailored to each use case.
A metaphor we like to use is a high-end hair salon: we have a team of excellent stylists who use the best tools and latest techniques to deliver what each customer wants. In essence, we’re not just providing products or platforms, but the complete experience.
Additionally, our operations are built for scale, much like a standardized franchise. Our solutions can be replicated across industries and geographies, helping enterprises improve quality, reduce costs, and enhance efficiency through data-driven intelligence.
36Kr: Why did Shenqi Digital choose to focus on data intelligence?
SY: It stems from a deep alignment between our technical roots and industrial experience. Shenqi Digital was born out of a collaboration between Digital China and Peking University. One of our core innovations, Yanyun DaaS, won China’s highest award for technological invention in 2018. The award was personally presented by President Xi Jinping to our project lead, academician Mei Hong.
The technology helps dismantle data silos and unify fragmented systems, giving us the confidence to commit fully to big data as our strategic foundation. We’ve since expanded from infrastructure to decision-making tools. With Yanyun Infinity, we now offer a comprehensive product suite that spans the full data lifecycle.
Over time, we’ve also cultivated strong industry and market relationships, which are critical to scaling data intelligence across verticals.
36Kr: What are Shenqi Digital’s competitive advantages?
SY: Our strengths fall into three categories: technology, service, and ecosystem.
On the technology front, we’ve received national recognition, helped formulate more than 20 national standards, and hold over 100 patents. Our solutions have been shaped and stress-tested in the field.
In terms of service, we operate more than 2,600 integration centers in over 1,800 cities across China, including smaller, under-resourced markets. This allows us to provide on-the-ground support wherever and whenever it’s needed.
Our ecosystem advantage is equally strong. Digital China Group, our parent, includes three listed entities with deep software and hardware capabilities. We also maintain long-term partnerships with top academic institutions like Peking University to stay at the forefront of R&D.
Together, these capabilities allow us to tackle complex projects quickly, delivering customized, scenario-based solutions at scale.
36Kr: What’s your vision for future collaboration between industry and academia?
SY: Collaboration is embedded in our DNA. It accelerates both technological advancement and real-world validation.
Working with academic institutions allows us to test and refine our ideas in practical settings. We’re now expanding our model beyond Peking University to include partnerships with Peng Cheng Laboratory, Hong Kong University of Science and Technology, Beijing Jiaotong University, and Harbin Institute of Technology. Each collaboration is structured to suit the strengths and goals of both parties.
36Kr: Which industries will Shenqi Digital prioritize going forward?
SY: Our technology is cross-sector by design. Every industry needs better data governance and intelligence.
That said, we’ve already built momentum in areas like supply chain, finance, water management, transportation, and hospitality. For instance, we currently serve 80% of China’s high-end hotel market.
We’ll continue to deepen our reach in these sectors while expanding into new ones. Through our wider ecosystem, we’re connecting with major players in consumer goods, automotive, electronics, and beauty.
We’re also actively exploring opportunities in industrial manufacturing and energy, thanks to resources and connections provided by our partners.
36Kr: Is Shenqi Digital planning to expand overseas?
SY: Yes. Our outbound approach is what we call “accompaniment-style” globalization. Many of our domestic clients are expanding overseas and want us to replicate their digital systems in new markets.
As we support them, we’re also building local service networks abroad and exploring “reverse expansion,” helping international companies establish operations in China.
We already have a strong presence in Hong Kong and Macau, with longstanding relationships in academia and finance. Our Hong Kong-based delivery teams understand the region’s language, legal frameworks, and standards, putting us in a strong position to expand into Southeast Asia and beyond.
36Kr: What are Shenqi Digital’s priorities over the next three to five years?
SY: First, advancing our product and technology pipeline. With Yanyun Infinity as the foundation, we’re developing AI applications tailored to vertical industries and assembling hybrid teams of engineers and industry experts to lead innovation.
Second, expanding our service and sales network. We’re upgrading local service hubs to meet rising demand, including deployments in fourth- and fifth-tier cities.
Third, ecosystem development. Our guiding principle is built on altruism, openness, and win-win collaboration. We’re strengthening our academic partnerships and broadening our partner ecosystem to co-develop AI solutions that create new value in traditional industries.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Song Wanxin for 36Kr.