Core Insights - Tencent identifies a significant imbalance between hardware and software investments in the robotics industry, creating an opportunity for its entry into embodied intelligence [1][3] - Tencent is pursuing a differentiated strategy in the embodied intelligence sector, opting not to manufacture robotic hardware but to provide a full-stack solution that includes models, development tools, and underlying computing power [2][3] Group 1: Industry Trends - The embodied intelligence sector has attracted nearly 20 billion yuan in investments over the past six months, while the hardware segment faces intense competition [2] - Major events such as the Spring Festival Gala featuring humanoid robots have sparked renewed interest and investment in the embodied intelligence field [3] Group 2: Tencent's Strategy - Tencent's Robotics X lab, established in 2018, has been a pioneer in the robotics industry, continuously developing prototype products over the past seven years [3] - The company has launched the Tairos platform, which offers modular multi-modal perception, planning, and action models, effectively serving as the "brain" for robots [4] Group 3: Technological Challenges - The development of embodied intelligence is a complex system engineering challenge that requires substantial investment in foundational models, data collection, and deployment processes [3][6] - The current leading VLA (Vision-Language-Action) models require extensive training data, with single interaction trajectories potentially reaching hundreds of megabytes, impacting model iteration efficiency and competitive scalability [4][5] Group 4: Collaboration and Solutions - Tencent Cloud has partnered with Lingchu Intelligent to enhance VLA model training efficiency by over 50% and reduce storage costs by 70% through advanced computing and storage solutions [5][6] - The collaboration aims to address the industry's data scarcity challenge, with the need for high-quality "real machine data" and "human data" being critical for breakthroughs [6] Group 5: Engineering and Optimization - Transitioning embodied intelligence from the lab to real-world applications presents significant IT engineering challenges, such as the need for rapid response times in industrial settings [7] - Tencent has leveraged its real-time audio and video technology to reduce end-to-end latency in robotic operations to under 100 milliseconds, enhancing operational fluidity [7]

Group 1 - The Tencent Charity Foundation has initiated its first batch of donations amounting to 10 million HKD for emergency relief efforts in Tai Po, Hong Kong [1] - The funds will be allocated for urgent needs such as emergency rescue, transitional housing, supply of living materials, and emotional support for affected residents [1] - The foundation will continue to monitor the disaster situation and collaborate with various parties based on the needs arising from the disaster [1]

Core Insights - Shift Up, the developer of "Sword Star," has announced a collaboration with Tencent to develop a new cross-platform game called Project Spirits, utilizing Unreal Engine 5 [1] - Project Spirits is set to be released on PC, consoles, and mobile platforms, and is inspired by "Eastern Fantasy" [1] - Level Infinite, a subsidiary of Tencent, aims to leverage Shift Up's success from previous titles to enhance the gaming experience for global players [1] Group 1 - Shift Up and Tencent's partnership will focus on the development and publishing of Project Spirits, previously known as Project Witches [1] - The game is categorized as a "subculture cross-platform work" and aims to reach a diverse audience [1] - Level Infinite has a track record of successful game releases, including "Goddess of Victory: Nikke" in 2022, which sets a precedent for this collaboration [1] Group 2 - "Sword Star" achieved significant success after its PC launch in June, breaking the record for the highest concurrent player count for a single-player game on Steam for Sony [2] - This strong performance indicates a growing interest in Shift Up's titles and may positively impact the anticipated success of Project Spirits [2]

Core Viewpoint - The Hong Kong technology sector is experiencing a strong rally, driven by multiple favorable factors including increased expectations for Federal Reserve interest rate cuts and improved market liquidity, alongside significant revenue growth in Alibaba's cloud business and a resurgence in AI focus [1]. Group 1: Market Performance - As of November 27, 2025, the CSI Hong Kong Stock Connect Technology Index (931573) has seen a strong increase, with notable gains in constituent stocks such as Huahong Semiconductor (up 5.36%), Kangfang Biotech (up 4.89%), and Li Auto (up 3.87%) [1]. - The Hong Kong Technology ETF (159751) has risen by 0.73%, marking its fourth consecutive increase, with the latest price reported at 1.1 HKD [1]. Group 2: Influencing Factors - The recent rally in the Hong Kong technology sector is attributed to the anticipated easing of monetary policy by the Federal Reserve, which is expected to enhance liquidity in the market [1]. - The combination of the Federal Reserve's halt on balance sheet reduction and the relaxation of SLR regulations is expected to limit liquidity pressure in the medium term [1]. Group 3: Index Composition - The CSI Hong Kong Stock Connect Technology Index comprises 50 large-cap technology companies with high R&D investment and revenue growth, reflecting the overall performance of leading technology stocks within the Hong Kong Stock Connect [1]. - As of October 31, 2025, the top ten weighted stocks in the index include Alibaba-W, Tencent Holdings, and SMIC, collectively accounting for 66.81% of the index [2].

Summary of Conference Call on AI Infrastructure and Related Industries Industry Overview AI Data Center (AIDC) - China's AIDC market experienced a significant surge in the second half of 2025, driven by rapid AI adoption and advancements in domestic chip technology [1][7] - ByteDance's token usage increased dramatically from 4 trillion in February to 30 trillion in September 2025 [1][7] - AIDC investments are primarily led by cloud vendors, telecom operators, and third-party firms, with construction costs ranging from RMB 17,000 to 23,000 per kW [1][8][9] - Major players like ByteDance, Tencent, and Huawei are actively pursuing new data center projects, including a notable 800MW park for ByteDance [1][10] Liquid Cooling - Liquid cooling technology in China has low adoption rates, remaining below 10% in 2025, compared to over 3,000 units deployed overseas [2][14] - The market for liquid cooling is projected to grow at a 64% CAGR from 2025 to 2030, with penetration expected to rise from 10% in 2025 to 45% by 2030 [2] - Cold plate systems dominate the liquid cooling market with a 90% share, while immersion cooling faces high costs and lacks standardization [2][15] - Domestic competition is intense, leading to significant price gaps; CDU pricing ranges from US$10 to 230 per kW [2][16] Optical Fiber - China accounts for approximately 50% of global fiber demand, with projections of 260 million fiber-km domestically and 568 million globally by 2025 [3][19] - The optical cable market is expected to grow at a 5% CAGR, with a shift towards high-end products like G654E fiber and hollow-core fiber [3][20] - Profitability in the optical fiber market is concentrated upstream, with preforms contributing 70% of profits, fiber 20%, and cables only 10% [3][22] - Intense domestic competition has led to price reductions, making it challenging for smaller players to survive [3][21] Key Insights AIDC Developments - The AIDC market is rebounding due to broader AI applications across various sectors, including manufacturing and healthcare [7] - Domestic chips are being commercially deployed, although they still lag behind NVIDIA's technology [7] - The construction of training clusters in western China is part of the "Eastern Data, Western Computing" strategy [8] Liquid Cooling Market Dynamics - The domestic AI market is in an early stage of rapid growth, with server memory prices tripling [13] - Liquid cooling systems are becoming critical components of the data center value chain, with export opportunities emerging [11][18] - Future growth in liquid cooling will depend on cost reductions and advancements in microchannel technology [2][18] Optical Fiber Market Trends - The demand for fiber optic communication is projected to reach nearly 170 million fiber-kilometers in 2025 [19] - Export opportunities are concentrated in Southeast Asia, while Europe and North America present challenges due to trade barriers [20] - Emerging technologies like hollow-core fiber and multi-core fiber are expected to enhance competitiveness in the market [21] Conclusion - The AIDC, liquid cooling, and optical fiber industries are poised for significant growth driven by technological advancements and increasing demand for AI applications. However, challenges such as intense competition and reliance on imported components may impact profitability and market dynamics in the near future.

Summary of Key Points Core Viewpoint - A total of 40 companies conducted share buybacks on November 26, 2025, with Tencent Holdings (00700) leading in both the number of shares repurchased and the total amount spent on buybacks. Group 1: Buyback Details - Tencent Holdings (00700) repurchased 1.022 million shares for a total of 636 million yuan, representing 0.848% of its total share capital for the year [1][2] - Xiaomi Group-W (01810) repurchased 7.5 million shares for 301 million yuan, accounting for 0.230% of its total share capital [2] - China Petroleum & Chemical Corporation (00386) repurchased 11 million shares for 48.64 million yuan, which is 0.160% of its total share capital [2] - China Merchants Industry Holdings (01919) repurchased 3 million shares for 39.93 million yuan, representing 1.812% of its total share capital [2] - Kuaishou-W (01024) repurchased 400,000 shares for 27.49 million yuan, accounting for 0.128% of its total share capital [2] Group 2: Other Notable Buybacks - Vitasoy International (00345) repurchased 3.962 million shares for 26.62 million yuan, which is 0.951% of its total share capital [2] - China Feihe (06186) repurchased 2.3 million shares for 9.49 million yuan, representing 2.019% of its total share capital [2] - Guosheng Tang (02273) repurchased 227,300 shares for 6.79 million yuan, accounting for 3.983% of its total share capital [2] - Weigao Group (01066) repurchased 160,000 shares for 901,200 yuan, which is 4.440% of its total share capital [3] - Kangchen Pharmaceutical (01681) repurchased 131,000 shares for 1.96 million yuan, representing 13.300% of its total share capital [3]

Core Insights - A total of 30 companies conducted share buybacks on November 26, 2025, with Tencent Holdings (00700) leading in both the number of shares repurchased and the total amount spent [1][2] Group 1: Buyback Details - Tencent Holdings repurchased 1.022 million shares for a total of 636 million [2] - Xiaomi Group-W (01810) repurchased 7.5 million shares for 301 million, representing 0.230% of its total share capital [2] - Midea Group (00300) repurchased 126,630 shares for approximately 99.995 million [2] - SF Holding (06936) repurchased 128,030 shares for about 50.16 million [2] - China Petroleum & Chemical Corporation (00386) repurchased 11 million shares for 48.64 million, which is 0.160% of its total share capital [2] Group 2: Other Notable Buybacks - Kuaishou-W (01024) repurchased 400,000 shares for 27.49 million, accounting for 0.128% of its total share capital [2] - Vitasoy International (00345) repurchased 3.962 million shares for 26.62 million, representing 0.951% of its total share capital [2] - Mengniu Dairy (02319) repurchased 200,000 shares for 2.95 million, which is 0.696% of its total share capital [2] - Other companies such as NetDragon (00777), China Feihe (06186), and others also participated in the buyback activities, with varying amounts and percentages of total share capital [2]

Core Insights - The top three companies by Hong Kong Stock Connect shareholding ratios are China Telecom (72.63%), Power Assets Holdings (70.19%), and GCL-Poly Energy Holdings (69.17%) [1] - The companies with the largest increase in shareholding amounts over the last five trading days are Universal Gold Group (+12.088 billion), Alibaba Group Holding Limited (+6.346 billion), and Tencent Holdings (+3.004 billion) [1][2] - The companies with the largest decrease in shareholding amounts over the last five trading days are SMIC (-1.278 billion), Ganfeng Lithium (-0.558 billion), and Innovent Biologics (-0.518 billion) [2] Hong Kong Stock Connect Shareholding Ratios - China Telecom (00728): 10.081 billion shares, 72.63% [1] - Power Assets Holdings (01635): 0.375 billion shares, 70.19% [1] - GCL-Poly Energy Holdings (01330): 0.280 billion shares, 69.17% [1] - Other notable companies include: - Hengtian International Investment (01341): 74.74 billion shares, 68.90% [1] - China Shenhua Energy (01088): 2.276 billion shares, 67.38% [1] Recent Increases in Shareholding - Universal Gold Group (03939): +12.088 billion, +37.96584 million shares [2] - Alibaba Group Holding Limited (09988): +6.346 billion, +4.09920 million shares [2] - Tencent Holdings (00700): +3.004 billion, +0.48492 million shares [2] - Other companies with significant increases include: - Yinhua Fund (02800): +2.182 billion, +8.36760 million shares [2] - Kuaishou Technology (01024): +1.750 billion, +2.54847 million shares [2] Recent Decreases in Shareholding - SMIC (00981): -1.278 billion, -1.85636 million shares [2] - Ganfeng Lithium (01772): -0.558 billion, -1.13178 million shares [2] - Innovent Biologics (01801): -0.518 billion, -0.54621 million shares [2] - Other companies with notable decreases include: - WuXi Biologics (02269): -0.513 billion, -1.60715 million shares [2] - New China Life Insurance (01336): -0.435 billion, -0.92361 million shares [2]

Short Selling Ratios - Geely Automobile-R (80175), Kuaishou-WR (81024), and JD Health-R (86618) have the highest short selling ratios at 100.00% each [1][2] - China Ping An-R (82318) has a short selling ratio of 89.61%, while SenseTime-WR (80020) and China Resources Beer-R (80291) follow with 89.27% and 75.13% respectively [2] Short Selling Amounts - Alibaba-SW (09988) leads in short selling amount with 3.768 billion, followed by Meituan-W (03690) at 2.272 billion and Xiaomi Group-W (01810) at 1.584 billion [3] - Tencent Holdings (00700) and AIA Group (01299) also feature in the top five with short selling amounts of 1.242 billion and 0.582 billion respectively [3] Short Selling Deviation Values - China Ping An-R (82318) has the highest deviation value at 64.42%, indicating significant divergence from its historical short selling average [4] - Geely Automobile-R (80175) and Kuaishou-WR (81024) follow with deviation values of 56.33% and 40.21% respectively [4] - Baidu Group-SWR (89888) also shows a notable deviation value of 36.29% [4]

Key Points - On November 24, Alibaba-W (09988), Tencent Holdings (00700), and Kuaishou-W (01024) ranked the top three in net inflow of southbound funds, with net inflows of 4.06 billion, 1.168 billion, and 817 million respectively [1] - In terms of net outflow, SMIC (00981), CNOOC (00883), and Hua Hong Semiconductor (01347) led the market with net outflows of -1.033 billion, -380 million, and -336 million respectively [1] - In terms of net inflow ratio, Tuhu-W (09690), Yuexiu Transport Infrastructure (01052), and China Resources Beverage (02460) topped the market with ratios of 65.44%, 57.38%, and 53.66% respectively [1] - Conversely, China International Marine Containers (02039), Zhongzhou Securities (01375), and Zoomlion Heavy Industry (01157) had the highest net outflow ratios at -58.23%, -44.11%, and -43.10% respectively [1] Top 10 Net Inflow Stocks - Alibaba-W (09988) had a net inflow of 4.06 billion, representing a 13.22% increase, closing at 154.500 (+4.67%) [2] - Tencent Holdings (00700) saw a net inflow of 1.168 billion, with an 8.38% increase, closing at 624.500 (+2.38%) [2] - Kuaishou-W (01024) recorded a net inflow of 817 million, with a 17.96% increase, closing at 68.550 (+7.11%) [2] - Other notable stocks include Southern Hang Seng Technology (03033) with a net inflow of 634 million and a 6.56% increase, and Xiaomi Group-W (01810) with a net inflow of 484 million and a 5.33% increase [2] Top 10 Net Outflow Stocks - SMIC (00981) experienced the largest net outflow of -1.033 billion, with a -10.62% decrease, closing at 68.050 (-1.09%) [2] - CNOOC (00883) had a net outflow of -380 million, representing a -16.00% decrease, closing at 21.220 (-1.49%) [2] - Hua Hong Semiconductor (01347) saw a net outflow of -336 million, with a -6.02% decrease, closing at 69.650 (-4.91%) [2] - Other significant outflows included Innovent Biologics (01801) with -303 million and a -19.38% decrease, and Zijin Mining (02899) with -215 million and a -9.18% decrease [2] Top 10 Net Inflow Ratios - Tuhu-W (09690) led with a net inflow ratio of 65.44%, with a net inflow of 13.1377 million, closing at 17.130 (+1.90%) [3] - Yuexiu Transport Infrastructure (01052) followed with a net inflow ratio of 57.38%, with a net inflow of 2.1533 million, closing at 4.420 (+1.84%) [3] - China Resources Beverage (02460) had a net inflow ratio of 53.66%, with a net inflow of 1.74498 million, closing at 10.370 (-0.29%) [3]