Core Viewpoint - The company is accelerating its strategic upgrade from "connectivity" to "connectivity + computing power," aiming to become a leader in network connectivity and intelligent computing power [2] Group 1 - The company is actively exploring new growth engines as part of its strategic transition [2]

Core Viewpoint - ZTE Corporation reported a revenue of 100.52 billion yuan for the first three quarters of 2025, with cash received from sales and services amounting to 106.25 billion yuan, highlighting a discrepancy between cash received (including tax) and revenue (excluding tax) due to differences in accounting methods [2]. Financial Performance - The company's operating revenue for the first three quarters of 2025 is 100.52 billion yuan [2]. - Cash received from sales and services is reported at 106.25 billion yuan [2]. - The difference in figures is attributed to the cash amount being inclusive of tax, while the revenue figure is exclusive of tax [2]. - The cash received is based on the cash basis of accounting, whereas the revenue is based on the accrual basis of accounting, leading to timing differences [2].

Core Viewpoint - ZTE Corporation holds a 0.2334% stake in Shenzhen Innovation Investment Group Co., Ltd. (referred to as "Shenzhen Innovation"), which has invested in Moore Threads. According to Moore Threads' prospectus for its initial public offering on the Sci-Tech Innovation Board, Shenzhen Innovation holds a 1.2246% stake in Moore Threads [1] Group 1 - ZTE Corporation's investment in Shenzhen Innovation is a strategic move to gain exposure to the gaming and graphics processing industry through Moore Threads [1] - Shenzhen Innovation's stake in Moore Threads indicates confidence in the company's growth potential in the semiconductor and AI sectors [1]

Group 1 - The company has launched a super node server that supports 64 GPUs in a single unit [1]

Group 1 - The company holds a 0.2334% stake in Shenzhen Innovation Investment Group Co., Ltd. (referred to as "Shenzhen Innovation") [1] - Shenzhen Innovation has an investment in Moore Threads, with a reported shareholding of 1.2246% in Moore Threads according to its IPO prospectus [1]

Group 1 - The company has launched a super node server that supports 64 GPUs per unit, indicating a significant advancement in its product offerings [1] - The new server supports both Scale-Up and Scale-Out expansion modes, showcasing its versatility and adaptability in various computing environments [1] - The server is designed to create large-scale intelligent computing clusters, capable of handling millions to hundreds of thousands of tasks efficiently and stably [1]

Core Viewpoint - The company is a significant strategic supplier for ZTE Corporation, which plays a crucial role in the future 6G infrastructure development. The company aims to enhance collaboration with ZTE through service optimization and technological synergy [1]. Group 1: Company Relationship with ZTE - ZTE is recognized as an important strategic customer for the company, which has been awarded the "Best Delivery Support Award" by ZTE again in 2025 [1]. - The company primarily supplies ZTE with PCB mainboards for 5G base stations and server products [1]. Group 2: Future Collaboration and Strategy - The company plans to strengthen its service system and enhance technological collaboration to address industry changes alongside ZTE [1]. - There is a focus on reinforcing technological accumulation and innovation capabilities in high-end communication and server PCB sectors to seize market opportunities [1].

Core Viewpoint - Hong Kong chip stocks experienced a significant afternoon rally, indicating positive market sentiment in the semiconductor sector [2] Company Performance - Hua Hong Semiconductor (01347.HK) rose by 5.78%, reaching HKD 78.75 [2] - Semiconductor Manufacturing International Corporation (00981.HK) increased by 2.32%, trading at HKD 74.95 [2] - ZTE Corporation (00763.HK) saw a gain of 1.91%, with shares priced at HKD 30.98 [2] - Shanghai Fudan Microelectronics Group (01385.HK) climbed by 1.27%, valued at HKD 41.44 [2]

Group 1 - Semiconductor stocks experienced a rally in the afternoon, with notable increases in shares of Huahong Semiconductor (+5.78%), SMIC (+2.32%), ZTE (+1.91%), and Shanghai Fudan (+1.27%) [1] - Alibaba has reportedly launched a secret project called "Qianwen," aimed at developing a personal AI assistant app to compete directly with ChatGPT, leveraging its Qwen model [1] - Morgan Stanley's latest report indicates that concerns over an AI bubble persist, but the AI-driven semiconductor upcycle is far from peaking, with projections for global semiconductor revenue growth of 18% in 2026 and 11% in 2027 [1]

Group 1 - Semiconductor stocks experienced a rally in the afternoon, with notable increases in shares of Huahong Semiconductor (+5.78% to HKD 78.75), SMIC (+2.32% to HKD 74.95), ZTE (+1.91% to HKD 30.98), and Shanghai Fudan (+1.27% to HKD 41.44) [1] - Alibaba has reportedly launched a secret project called "Qianwen," aimed at developing a personal AI assistant app to compete directly with ChatGPT, leveraging the Qwen model [1] - JPMorgan's latest research indicates that despite ongoing concerns about an AI bubble, the semiconductor upcycle driven by AI is far from peaking, with expectations for global semiconductor revenue to grow by 18% in 2026 and 11% in 2027 [1]