Core Insights - Alibaba is leveraging the Qwen large model foundation to comprehensively reshape its business and accelerate the construction of B-end ecological barriers through an open-source strategy and strong performance [2][42] - The company is committed to increasing capital expenditure to meet strong demand for computing power, with cloud revenue continuing to grow significantly, validating the closed-loop logic of "infrastructure investment - technology iteration - commercial monetization" [2][42] AI Model Development - Alibaba has been early in the AI model layout, with its flagship Qwen series iterating three major versions and multiple minor versions in just over two years, covering vertical scenarios such as text, mathematics, code, and multi-modal applications [3][43] - As the only major player adhering to an open-source strategy, Alibaba has accelerated model iterations since 2024, narrowing the capability gap with overseas models and is expected to surpass closed-source models in the B-end market [3][43] Model Capabilities and Updates - Alibaba's AI model layout has achieved "full size," "full modality," and "multi-scenario" coverage, with the first trillion-parameter multi-modal model M6 released in March 2021, and subsequent expansions in parameter size [4][43] - As of October 2025, the Qwen model series has iterated three major versions and multiple minor versions, covering model sizes from 0.5 billion to one trillion parameters [4][43] - The Qwen series has open-sourced a total of 357 models, with a significant acceleration in update frequency since 2024, including 71 models in the first half of 2024 and 120 in the second half [5][45] Competitive Positioning - Alibaba's model capabilities rank in the global first tier, with the gap to leading overseas firms reduced from over six months to approximately three months [12][51] - The Qwen3 235B model, released on July 22, 2025, is comparable to DeepSeek-V3.1 Terminus, while the Qwen2.5 Instruct-72B model was the first domestic model to exceed an overseas model in the open-source arena [12][51] Market Strategy and Ecosystem - The company has formed a complete layout for both B-end and C-end markets, with open-source serving as the foundation for business and product support [35][74] - As of the 2025 Yunqi Conference, the Tongyi series models have achieved 600 million downloads and served over 1 million customers, with the Mota community further enhancing the open-source ecosystem [35][74] Future Outlook - The focus will be on the official release of Qwen3-Next (equivalent to Qwen3.5) and optimizing vertical models based on it, with Qwen4 expected to be released in Q2 2026 [21][60] - The ongoing open-source strategy is anticipated to maintain the frequency of model updates, further enhancing capabilities while narrowing the time gap with leading overseas models [21][60]

Core Viewpoint - Unisplendour Corporation Limited (紫光股份) has submitted a prospectus to list on the Hong Kong Stock Exchange, marking its second attempt after a previous application lapsed in May 2025. The company is a leading provider of digital and AI solutions, with a market capitalization of approximately RMB 70.96 billion as of December 3, 2025 [2][16]. Business Overview - Established in 1999 and listed on the Shenzhen Stock Exchange, Unisplendour is recognized as one of the three companies in China providing comprehensive digital solutions. It offers a full-stack intelligent ICT infrastructure, software, and cloud services primarily for AI training and big data processing [3][18]. - The company's main business segments include (i) digital solutions and (ii) ICT product distribution. Digital solutions support clients' digital transformation and AI applications, while ICT product distribution involves selling a wide range of products sourced from well-known domestic and international brands [4][18]. Financial Performance - For the fiscal years ending December 31, 2022, 2023, and 2024, and the first half of 2025, Unisplendour reported revenues of RMB 73.75 billion, RMB 77.54 billion, RMB 79.02 billion, and RMB 47.42 billion, respectively. Corresponding net profits were RMB 3.74 billion, RMB 3.68 billion, RMB 1.98 billion, and RMB 1.28 billion [13][28]. - The revenue breakdown for 2024 indicates that digital solutions accounted for 70.5% of total revenue, while ICT product distribution contributed 29.3% [19][22]. Market Position - According to Frost & Sullivan, Unisplendour ranks third in China's digital infrastructure market with an 8.6% market share as of 2024. It holds the second position in the network market with a 12.8% share and is also second in the computing infrastructure market with an 8.2% share. In the storage infrastructure market, it ranks fifth with a 3.1% share [7][20]. Shareholder Structure - Prior to its listing in Hong Kong, the major shareholder of Unisplendour is Tibet Unisplendour Communication, which holds approximately 28% of the company. This entity is fully owned by Beijing Unisplendour Communication, which in turn is wholly owned by New Unisplendour Group [23][24]. Management Team - The board of directors consists of nine members, including two executive directors: Yu Yingtao (Chairman) and Wang Hongtao (President). There are three non-executive directors and four independent non-executive directors, ensuring a diverse governance structure [11][26].

Core Viewpoint - Shenzhen SDMC Technology Co., Ltd. (referred to as "SDMC Technology") has submitted a prospectus for an IPO on the Hong Kong Stock Exchange, marking its second attempt after a previous application lapsed in May 2025 [2]. Company Overview - SDMC Technology was established in 2003 and specializes in smart home solutions for enterprise clients, developing and selling digital video and network communication devices [5]. - The company was the eighth largest provider of smart home solutions globally and the third largest in China as of 2024, according to Frost & Sullivan [5]. - Initially focused on the development and sales of encryption chips, SDMC Technology expanded its business to include digital TV modules and sticks, and became a leading supplier of Android TV smart terminals by 2023 [5]. Business Model and Revenue Sources - The company offers a comprehensive smart home solution that integrates software platforms, hardware devices, and an open ecosystem, providing AI-driven services [6]. - Major revenue sources include hardware and software solutions, with specific platforms such as XMediaTV and XHome contributing to income [7]. Financial Performance - SDMC Technology's revenue for the years 2022, 2023, 2024, and the first half of 2025 was RMB 2.53 billion, RMB 2.37 billion, RMB 2.54 billion, and RMB 1.54 billion respectively, with corresponding net profits of RMB 250 million, RMB 191 million, RMB 137 million, and RMB 103 million [15][16]. - The sales of digital video equipment accounted for 70.3% of revenue in 2024, while network communication devices contributed 20.8% [8]. Shareholder Structure - Prior to the IPO, the major shareholder is Mr. Li Bo, holding approximately 36.61% of the shares, with other shareholders including various investment platforms [11]. Board of Directors - The board consists of seven members, including four executive directors and three independent non-executive directors, with Mr. Li Bo serving as the chairman and general manager [13][14].

Core Viewpoint - FTSE Russell announced changes to several indices, including the FTSE China 50 Index, FTSE China A50 Index, FTSE China A150 Index, FTSE China A200 Index, and FTSE China A400 Index, effective after the market close on December 19, 2025 [1]. Group 1: Index Adjustments - The FTSE China A50 Index will include Luoyang Molybdenum (603993) and Sungrow Power Supply (300274), while removing Jiangsu Bank (600919) and SF Holding (002352) [4][6]. - The FTSE China 50 Index will add China Hongqiao, CATL (300750), and Hengrui Medicine (600276), while excluding CITIC Securities (601066), Great Wall Motors (601633), and Li Auto [6][8]. - The FTSE China A150 Index will incorporate Ying Shi Innovation, Jiangsu Bank, Huadian New Energy, SF Holding, Jiangbolong, and Huayou Cobalt (603799), while removing Luoyang Molybdenum, Desay SV (002920), Changdian Technology (600584), Baoxin Software (600845), Shanghai Pharmaceuticals (601607), and Sungrow Power Supply [10][12]. - The FTSE China A200 Index will add Ying Shi Innovation, Huadian New Energy, Jiangbolong, and Huayou Cobalt, while excluding Desay SV, Changdian Technology, Baoxin Software, and Shanghai Pharmaceuticals [12]. - The FTSE China A400 Index will see a broader adjustment, adding Anji Technology (688019), Baiyin Nonferrous (601212), Yitang Co., and Bluefocus Communication Group (300058), while removing Chipbond Technology, Yipin Hong (300723), Guanghui Network (300383), and Huaxi Biological [13][14]. Group 2: Market Impact - The adjustments by FTSE Russell are expected to attract passive fund allocations to the newly included stocks and increase overseas interest in Chinese assets [17]. - In the first ten months of 2025, foreign capital inflow into the Chinese stock market reached $50.6 billion, significantly surpassing the total of $11.4 billion for the entire year of 2024, marking an increase of over three times [17]. - UBS forecasts that A-share market earnings growth will rise from 6% this year to 8% next year, driven by improved nominal GDP growth and a narrowing of PPI declines [17]. - JPMorgan upgraded its rating on Chinese stocks to "overweight," citing a higher likelihood of significant gains next year compared to potential downside risks [18]. - Morgan Stanley set a target for the CSI 300 Index at 4840 points by December 2026, indicating a stable outlook for Chinese stocks amid moderate earnings growth and higher valuation levels [18].

Core Viewpoint - FTSE Russell announced the quarterly review results for the FTSE China Index Series, effective from December 22, 2025, with changes in constituent stocks for various indices [1] Group 1: FTSE China A50 Index Changes - Two new constituents added: Luoyang Molybdenum (603993) and Sunshine Energy [1] - Two constituents removed: SF Express (002352) and Jiangsu Bank (600919) [1] Group 2: FTSE China 50 Index Changes - Three new constituents added: China Hongqiao, CATL (300750), and Hengrui Medicine (600276) [1] - Three constituents removed: CITIC Securities (601066), Great Wall Motors (601633), and Li Auto [1] Group 3: Future Review Schedule - The next quarterly review for the FTSE China Index will be announced in March [1]

Group 1 - FTSE Russell announced the quarterly review results for the FTSE China Index Series, effective from December 22, 2025 [1] - The FTSE China A50 Index added two constituents: Luoyang Molybdenum and Sunshine Energy, while removing SF Express and Jiangsu Bank [1] - The FTSE China 50 Index added three constituents: China Hongqiao, CATL, and Heng Rui Medicine, while removing CITIC Securities, Great Wall Motors, and Li Auto [1] - The next quarterly review for the FTSE China Index will be announced in March [1]

Core Viewpoint - Industrial software is a cornerstone of intelligent manufacturing, experiencing steady market growth driven by policy support and technological advancements, while integrating with new technologies like AI to promote the intelligent transformation and upgrading of the manufacturing sector [1] Policy Perspective - Intelligent manufacturing has been elevated to a national strategy, transitioning from pilot demonstrations during the "13th Five-Year Plan" to systematic planning in the "14th Five-Year Plan" [1] Market Perspective - The market size of China's industrial software is projected to reach 354.14 billion yuan in 2024, representing a year-on-year growth of 11.2%, although high-end sectors remain dominated by foreign companies, indicating a vast potential for domestic manufacturers to capture the replacement market [1] Technological Perspective - The deep integration of AI with industrial software is leading to intelligent generation and optimization in CAD/CAE applications, with industrial large models and intelligent agents being implemented in scenarios such as quality inspection and energy consumption management, while physical AI further enhances multi-industry simulation and decision-making upgrades [1] Future Trends - The future of industrial software will focus on key technology autonomy, the implementation of large models and intelligent agents in vertical fields, and the factorization of industrial data, supporting the achievement of China's manufacturing goals for 2035 [1]

Group 1 - A-shares opened slightly higher with the Shanghai Composite Index up 0.04%, Shenzhen Component Index up 0.02%, and ChiNext Index up 0.01% [1] - Sectors such as robotics and non-ferrous metals showed strong performance [1] Group 2 - CITIC Securities highlighted strong investment enthusiasm in energy storage, with planned investment projects in Inner Mongolia expected to double compared to this year [2] - The demand for energy storage is expected to continue growing due to high load growth and the ongoing development of renewable energy [2] - Battery materials, including cathodes, anodes, electrolytes, and separators, are anticipated to see sustained price increases, with a positive outlook for battery and integration segments [2] Group 3 - Tianfeng Securities noted strong bottom-line support for the cement industry, with over 85% of clinker lines in northern provinces currently offline due to winter production restrictions [3] - The cement industry is expected to see a significant reduction in production capacity, with a total of 5,250 million tons of new capacity being added and 8,359 million tons of capacity being exited by November [3] - The effects of production capacity governance in the cement sector are expected to become evident by 2026 [3] Group 4 - Huatai Securities projected a steady recovery in domestic demand, driven by ongoing consumption policies and structural growth opportunities in the consumer sector [4] - The report emphasized four key investment themes for 2026: the rise of domestic brands, technology-driven consumption, emotional consumption, and undervalued high-dividend blue-chip leaders [4] - New consumer segments such as trendy toys, beauty and personal care, and ready-to-drink beverages are expected to emerge as strong growth areas [4]

华泰证券2026年度展望：内需有望延续稳健复苏态势 聚焦四大投资主线 华泰证券表示，2025年，新旧消费延续分化表现，"人货场"的变革与科技进步，正推动消费行业的快速 迭代创新与结构性成长机会，潮玩IP、美妆个护、现制饮品等新消费赛道涌现一批优秀龙头。展望2026 年，华泰证券认为促消费政策持续发力有望激发供需潜力，内需有望延续稳健复苏态势，行业延续景气 分化，龙头凭借领先与创新优势，以及整合能力实现持续成长。立足行业变革， 在今天的券商晨会上，中信建投指出，负荷高增速、新能源持续发展确定储能需求将继续高增；天风证 券表示，短期来看，水泥行业底部盈利支撑较强；华泰证券发布2026年度展望：内需有望延续稳健复苏 态势，聚焦四大投资主线。 中信建投：负荷高增速、新能源持续发展确定储能需求将继续高增 中信建投指出，储能投资积极性极为旺盛，蒙东、蒙西明年规划投资项目均较今年翻倍以上增长，同时 容量补偿政策具备持续性。同时负荷高增速、新能源持续发展确定储能需求将继续高增。目前电池等确 定为紧张环节，同时各锂电材料具备持续涨价潜力，看好正极、负极、电解液、隔膜，铜铝箔，以及 6F、VC等添加剂，看好电池、集成环节。AID ...

Group 1 - The core performance of banks is expected to recover and grow in 2026, marking the first year of the 14th Five-Year Plan, with a focus on a "new momentum combination" for bank stocks [2] - The investment strategy for bank stocks will be discussed, including the outlook on fundamentals and the value of bank stock investments [2] - The investment perspective on the banking sector and stock selection strategies will be highlighted [2] Group 2 - The investment strategy for 2026 will focus on three main investment lines, targeting new opportunities in the Beijing Stock Exchange, particularly in technology growth, high-end manufacturing, and new materials [5] - The valuation levels of the Beijing Stock Exchange are expected to recover, with a decrease in discount rates, aligning with national strategic emerging industry development directions [5] - The Beijing Stock Exchange is home to a number of high-quality enterprises that are technically solid and leading in niche fields, providing investors with opportunities to capture long-term value [5] Group 3 - The potential for AI and intelligent control to ignite a new wave in the computer industry will be explored, along with the prospects for the "rare metals" cycle and the energy sector's transition to a zero-carbon era [7] - East Guangdong Securities will focus on the technological, resource, and energy transformations as the main investment lines for 2026 [7] Group 4 - The potential for innovative drugs to expand internationally and the expected turnaround in biotechnology will be examined, alongside the performance improvements in the medical device sector [9] - Structural opportunities in consumer healthcare and biological products will be discussed, aiming to reshape the investment logic in the pharmaceutical sector for 2026 [9]