Investment Rating - The report maintains an "Outperform" rating for the telecommunications industry [1] Core Insights - The report highlights the acceleration of domestic substitution in computing power technology, driven by breakthroughs in hardware and software ecosystems, particularly represented by Huawei [5][13] - The introduction of standardized data circulation contracts by the National Data Bureau is expected to enhance transaction efficiency by 30% [4][17] - The establishment of a 6G industry policy in Beijing aims to foster key technology development and standardization efforts [8][18] - The report emphasizes the significant market demand for domestic AI chips and the commercial viability of the HarmonyOS ecosystem [14][15] Summary by Sections Investment Strategy - Domestic substitution in computing power is entering an accelerated phase, with Huawei's Matrix 384 super node providing 300 PFLOP computing power, significantly outperforming competitors [5][13] - The shipment of Ascend 910 series AI chips has begun, with initial orders for the 910C chip expected to exceed 70,000 units, valued at approximately $2 billion [14] - National funding and local government support are paving the way for opportunities in domestic semiconductor and operating system development [15] Industry News - The National Data Bureau's new contract templates for data circulation are expected to standardize agreements and enhance transaction efficiency [4][17] - Beijing's 6G industry policy focuses on key technology breakthroughs and aims to establish a robust 6G ecosystem by 2030 [8][18] - The Civil Aviation Administration of China has formed a leadership group to promote general aviation and low-altitude economy development [20] - China Telecom has launched a full-scenario application for satellite direct connection, marking a significant step in integrated network applications [21] Market Performance Review - The telecommunications sector saw a 2.19% increase this week, outperforming major indices [9][22] - Key sectors such as optical modules and industrial internet showed strong growth, with increases of 5.04% and 2.57% respectively [22][25] - The report suggests focusing on investment opportunities within the domestic AI computing chain [22][27]

Group 1 - The China Telecom Theme Index (931235) has seen a strong increase of 2.32% as of July 15, 2025, with notable gains in constituent stocks such as New Yisheng (300502) up 20.00%, Zhongji Xuchuang (300308) up 12.82%, and Tianfu Communication (300394) up 9.50% [1] - The telecom ETF fund (560690) also rose by 2.37%, with the latest price reported at 1.43 yuan [1] - A significant event was the launch of the "Direct Connection Satellite Full-Scenario Application" conference by China Telecom on July 11, focusing on three main categories: mobile direct connection satellites, automotive direct connection satellites, and Tian Tong satellite industry applications [1] Group 2 - Huatai Securities reviewed the communication index for the first half of 2025, noting significant price volatility influenced by AI computing narratives, but a return to industry trend pricing logic in the second half of 2025 [2] - Three investment themes are highlighted for the second half of 2025: 1) AI computing, focusing on overseas and domestic computing-related investment opportunities; 2) New productive forces, with low-altitude industry standards expected to be established and commercial aviation scenarios accelerating; 3) Core assets, where leading companies with long-term competitiveness may see valuation improvements as market liquidity improves [2] - The telecom ETF fund closely tracks the China Telecom Theme Index, which includes 50 listed companies involved in telecom operations, value-added services, communication equipment, technology services, and data centers, reflecting the overall performance of telecom-themed listed companies [2] Group 3 - As of June 30, 2025, the top ten weighted stocks in the China Telecom Theme Index include China Unicom (600050), China Mobile (600941), China Telecom (601728), Yinzhijie (300085), China Satellite Communications (601698), Zhongji Xuchuang (300308), New Yisheng (300502), ZTE Corporation (000063), Unisplendour (000938), and Zhongtian Technology (600522), collectively accounting for 77.54% of the index [3]

Core Insights - Inner Mongolia is leveraging its abundant renewable energy resources and the "East Data West Computing" initiative to develop a comprehensive green computing industry chain, achieving a green electricity usage rate of 84.57% in its data centers [1][2] - By 2024, Inner Mongolia's cumulative installed capacity of renewable energy is expected to exceed 135 million kilowatts, surpassing that of coal-fired power, maintaining its leading position in multiple metrics such as total installed capacity and power generation [1][2] - The region is implementing policies to promote green computing, including the elimination of high-energy-consuming data centers and strict control over new data center energy consumption [2] Renewable Energy and Computing - Inner Mongolia's data centers are utilizing green electricity, with over 80% of their power sourced from renewable energy, significantly reducing electricity costs [1] - The region's computing power has reached 126,000 P, with intelligent computing accounting for 116,000 P, making it the largest in the country [2] - The use of advanced cooling technologies, such as the ultra-liquid cooling servers, has improved energy efficiency, reducing data center energy consumption [2] Artificial Intelligence and Innovation - Inner Mongolia is focusing on artificial intelligence innovation, training large models with parameters exceeding one trillion, and deploying AI applications across various sectors [3] - The integration of AI in agriculture, such as using the "Xingchen Model" for livestock counting, has significantly improved production efficiency [3] - The "green electricity + computing power + industry" model is accelerating the implementation of data storage and training scenarios, enhancing the region's economic development [3]

Core Viewpoint - A new AI technology from China, known as AI Flow, is gaining significant attention and praise on international social media platforms, indicating its potential to redefine the AI landscape globally [2][4][70]. Group 1: Technology Overview - AI Flow is a key technology at the intersection of AI and communication networks, enabling intelligent interactions and emergent intelligence through a layered network architecture [7][28]. - Developed by China Telecom's TeleAI team, led by Professor Xuelong Li, AI Flow aims to facilitate seamless AI applications across various devices and platforms [9][8]. - The technology has been recognized by global market research firms, with Omdia highlighting its potential to support resource-intensive applications like autonomous vehicles and drones without compromising on latency or performance [13][14]. Group 2: Technical Innovations - AI Flow incorporates three core technological directions: Device-Edge-Cloud Collaboration, Familial Models, and Connectivity- and Interaction-based Intelligence Emergence [30][68]. - The Device-Edge-Cloud Collaboration framework allows for distributed reasoning, enhancing the responsiveness of AI services by optimizing task allocation across different network layers [33][34]. - Familial Models enable flexible scaling and efficient collaboration among models of varying sizes, allowing for resource optimization and avoiding redundant computations [50][52]. Group 3: Addressing AI Challenges - AI Flow addresses the challenge of AI's dependency on cloud computing, which often leads to unacceptable latency in critical applications like autonomous driving and surgical robotics [20][24]. - The technology proposes a solution to the "last mile" dilemma of AI integration by allowing intelligence to flow freely between edge devices and cloud resources, thus enhancing real-time responsiveness [25][28]. - By focusing on connectivity and collaboration rather than solely on computational power, AI Flow presents a new paradigm for AI development, emphasizing the importance of network infrastructure [70][71].

Core Points - On July 4, employees from China Telecom's Weifang Zhucheng branch successfully handled a vehicle fire incident, demonstrating their commitment to public safety and responsibility [3][6] - The incident occurred during a high-temperature day, with temperatures reaching 38°C, highlighting the challenging conditions under which the employees acted [3] - The quick response of the employees prevented the fire from spreading, saving an estimated economic loss of over 200,000 yuan [3] Summary by Sections - **Incident Description** - Employees Wang Fei and Di Shan Hui were on a client visit when they noticed a truck on fire due to high temperatures [3] - They quickly borrowed a fire extinguisher and managed to control the fire within one minute, preventing further damage [3] - **Employee Actions and Recognition** - The employees' actions were praised by firefighters for their safety awareness and quick response [3] - Di Shan Hui emphasized that their actions were a small effort that any responsible person would undertake [6] - **Company Values and Future Commitment** - The employees expressed their dedication to customer service and public safety, aligning with the company's mission of serving the community [6] - They plan to continue integrating responsibility into their customer service efforts to contribute to a harmonious society [6]

日前，世界数字科学院(WDTA)在联合国日内瓦总部正式发布AI STR系列新标准《AI智能体运行安全测 试标准》，标准由蚂蚁集团、清华大学、中国电信（601728）牵头，联合普华永道、新加坡南洋理工大 学、美国圣路易斯华盛顿大学等二十余家国内外机构、企业及高校共同编制，为全球首个单智能体运行 安全测试标准。该标准针对智能体跨越"语言墙"所带来的"行为"风险，首次将输入输出、大模型、 RAG、记忆和工具五个关键链路与运行环境对应起来，构建了全链路风险分析框架；同时，细分了智 能体风险类型，完善并创新提出了模型检测、网络通信分析和工具模糊测试等测试方法，弥补了智能体 安全测试技术标准的空白。(支付宝技术官方公众号) ...

Investment Rating - The report maintains an "Outperform" rating for the industry [1]. Core Insights - The global satellite internet construction is accelerating, with Starlink leading the industry. By June 2025, Starlink has launched nearly 9,000 satellites, serving over 5 million users across more than 100 countries. The project is expected to generate over $8 billion in revenue in 2024 and potentially exceed $11 billion in 2025 [2][20]. - China's satellite internet is entering a rapid development phase, with plans for three satellite constellations. Recent leadership changes in satellite internet companies indicate a push for technological breakthroughs and business model innovations [2][3]. Summary by Sections 1. Global Satellite Internet Acceleration - By June 2025, Starlink has launched nearly 9,000 satellites, with a user base surpassing 5 million and revenue projections of over $8 billion in 2024 and $11 billion in 2025 [2][20]. - China's satellite internet has initiated the deployment of multiple satellite constellations, with significant advancements in satellite launches and leadership changes in key companies [2][3]. 2. Business Models: Direct-to-Cell and Laser Communication - The Direct-to-Cell (DTC) model is set for large-scale application, with China Telecom planning to promote satellite direct connection services extensively by 2024. By May 2025, over 30 direct connection models are expected to be released, with annual sales projected to exceed 16 million units [3]. - Laser communication technology is anticipated to become a standard in satellite internet, with significant advancements already demonstrated by private companies in China [3]. 3. Rocket Breakthroughs - China's private rocket companies are rapidly iterating technologies, with notable advancements in reusable rockets and liquid propulsion systems. For instance, Blue Arrow Aerospace's "Zhuque-3" rocket is designed to match SpaceX's Falcon 9 in payload capacity [4]. 4. Investment Recommendations - The commercial space sector in China is poised for rapid growth, with the satellite internet market expected to reach nearly 100 billion yuan in the next five years. The private rocket market is projected to exceed 30 billion yuan [4]. Key companies to watch include those in the private rocket supply chain and satellite internet communication payload suppliers [4].

Group 1 - The commercialization of humanoid robots is accelerating, with significant developments reported in the industry [1][2] - Chery and AiMOGA's collaboration on the Moja robot is set to launch in late September, targeting both dealers and individual consumers [1][2] - The recent procurement orders from China Mobile for humanoid robots worth 120 million yuan indicate a growing interest in deploying these robots in marketing scenarios [1][4] Group 2 - Chery has a long history in robotics, evolving from industrial robots to humanoid robots, with significant milestones including the launch of the CheryGPT language model [2][3] - The Moja robot, designed for automotive 4S stores, aims to enhance customer interaction by providing vehicle information and sales guidance [2][3] - The humanoid robots are designed with a focus on realism, featuring detailed human-like attributes [2] Group 3 - The humanoid robot market is divided into production robots for factories and service robots for customer interaction, with the latter requiring advanced emotional intelligence [3] - The effectiveness of humanoid robots in sales environments remains uncertain, as they may not yet possess the necessary skills to fully engage customers [3][5] - The recent large-scale orders for humanoid robots exceed industry expectations, suggesting a shift towards integrating these robots into specific marketing applications [5] Group 4 - The procurement project by China Mobile includes a total budget of 124.05 million yuan, with significant portions allocated for both full-size and small-size humanoid robots [4][5] - Other telecom companies, such as China Telecom, are also exploring humanoid robots for various applications, indicating a broader trend in the industry [5] Group 5 - The evolution of humanoid robots is expected to progress through three stages: developing leading technology, creating relevant content for specific industries, and ensuring a smooth user experience [6]

Core Insights - The rise of the "store broadcast" model is reshaping the consumption ecosystem through a combination of professional content and intelligent services [3][7] - Telecom operators are providing essential support for this transformation by enhancing infrastructure and services [6][7] Group 1: Store Broadcast Growth - The store broadcast model has seen significant growth, with its transaction volume accounting for over 58% of total sales [3] - During the 618 shopping festival, store broadcasts contributed 53% of GMV on Douyin, with 74% of high-revenue broadcasts coming from brand self-broadcasting [3] - Innovations such as 3D fitting technology and blockchain traceability have led to substantial sales increases, with some brands reporting sales growth of 310% during promotional periods [3] Group 2: Challenges Facing Store Broadcast - The store broadcast model faces challenges in technology, operations, and compliance, with technical infrastructure being a primary concern [4][5] - High operational costs are evident, as seen in a beauty brand's 180% increase in traffic procurement costs with only a 45% increase in users [4] - The loss of skilled hosts has led to a cycle of training and attrition for many small store broadcasts, impacting sales significantly [4] Group 3: Telecom Operators' Role - Telecom operators are addressing industry pain points through hardware upgrades and software empowerment, exemplified by the "5G live broadcast private network" solution [6] - Innovations in storage and distribution technology have improved content retention, with one retailer seeing long-tail sales increase from 12% to 35% after implementing new systems [6] - Compliance measures are being enhanced, with AI technology reducing violation rates by 87% for brands utilizing monitoring platforms [6]

Group 1 - Core stocks in the Shanghai market, including China Telecom, China Shenhua, Beijing-Shanghai High-Speed Railway, Postal Savings Bank, and Industrial and Commercial Bank, experienced significant selling pressure during the closing auction phase, reflecting cautious sentiment among investors [1] - China Telecom, as a leading company in the telecommunications sector, has recently made moves in the eSIM business, but the market remains watchful regarding its short-term performance [1] - China Shenhua, a key player in the coal industry, also faced selling pressure, indicating that its price movements directly impact related index performance [1] Group 2 - The total trading volume in the Shanghai and Shenzhen markets reached 17,368.99 billion yuan, indicating active overall trading despite the concentrated selling of core stocks [2] - The unusual fluctuations in core stocks during the closing auction phase may suggest adjustments in fund allocation strategies, often associated with institutional rebalancing, index fund redemptions, or block trades [2] - The price discovery function during the closing auction is crucial, as it reflects supply and demand dynamics, allowing the market to correct stock prices and provide preliminary expectations for the next day's performance [2]