Investment Rating - The report maintains a "Positive" investment rating for the military industry [2] Core Insights - The report emphasizes the timely achievement of the centenary goal of building a strong military, highlighting the modernization of national defense and military capabilities [13] - It identifies three dimensions—defense budget, military trade, and military-civilian integration—as key areas for growth in the military industry, indicating that the sector still has significant growth potential [20] - The report outlines a new "three-step" strategy for national defense and military modernization, aiming for substantial advancements by 2035 and a world-class military by the mid-21st century [17] Summary by Sections Section 1: National Defense and Military Goals - The Fourth Plenary Session of the 20th Central Committee emphasizes achieving the centenary goal of building a strong military and advancing military modernization [13] - The session outlines a strategic framework for military development, focusing on political, reform, technological, and talent-driven advancements [13] Section 2: Defense Budget and Military Trade - China's defense budget for 2025 is projected at 1.7847 trillion yuan, with a growth rate of 7.2%, which is higher than the GDP growth target [23] - The report notes that China's defense spending as a percentage of GDP has room to grow, with a current ratio lower than that of major Western countries [23][25] - China's military trade share in the global market is approximately 6%, with potential for significant growth if it reaches 10%-20% [28] Section 3: Military-Civilian Integration - The report highlights the commercial aviation sector's potential for growth, estimating that the domestic commercial aircraft market could be 2.5 times the current military aircraft market [33] - It discusses the expected growth in the commercial aerospace sector, driven by advancements in satellite technology and the establishment of large satellite constellations [39] Section 4: Space Industry Development - The Fourth Plenary Session calls for accelerated construction of a strong aerospace nation, with significant investments in commercial space initiatives [39] - The report details plans for multiple large-scale satellite constellations, with significant deployment milestones set for 2025, 2027, and 2030 [52][48] Section 5: Investment Strategy for the Military Industry - The report suggests a focus on companies that enhance product capabilities, market penetration, and customer pricing as key investment targets [71] - It emphasizes the importance of selecting stocks based on their potential for growth in the context of military modernization and technological advancements [71]

Group 1 - The user base of generative AI in China is rapidly increasing, expected to reach 515 million by June 2025, doubling in six months with a penetration rate of 36.5% [1] - The usage of Doubao large model tokens surged from 120 billion in May 2024 to over 30 trillion by September 2025, marking a 253-fold increase [1] - The policy support for computing power and data is advancing, with over 50 standards to be revised or established by 2027 to enhance the computing power standard system [1] Group 2 - The domestic AI ecosystem is continuously improving, with the AI industry chain accelerating, indicating a potential spiral growth in large models, computing power, and applications [2] - As of October 22, 2025, the CSI Artificial Intelligence Theme Index accounted for 6.3% of the total A-share trading volume, showing a recovery in trading density [2] - The CSI Artificial Intelligence Theme Index (930713) rose by 2.63% on October 24, 2025, with significant gains in constituent stocks such as Huida Technology (up 10.00%) and Beijing Junzheng (up 7.11%) [2] Group 3 - The AI Artificial Intelligence ETF has the lowest management fee of 0.15% and a custody fee of 0.05% among comparable funds [3] - As of October 23, 2025, the AI Artificial Intelligence ETF had a tracking error of 0.009% over the past three months, the highest tracking accuracy among comparable funds [3] - The CSI Artificial Intelligence Theme Index includes 50 listed companies that provide essential resources, technology, and application support for AI, with the top ten stocks accounting for 61.36% of the index [3] Group 4 - The top ten weighted stocks in the CSI Artificial Intelligence Theme Index include companies like Xinyi Sheng (6.52%), Zhongji Xuchuang (6.71%), and Hanwujing (6.45%), reflecting their significant influence on the index [5] - The AI Artificial Intelligence ETF is connected to various fund classes, enhancing its accessibility to investors [5]

Core Insights - The technology sector, particularly the domestic AI industry chain, is experiencing significant growth, with the Sci-Tech Innovation Artificial Intelligence ETF (589520) seeing a jump of over 2.8% in intraday trading, currently up by 2.66% [1] - Key stocks driving this growth include Lanke Technology, which rose over 5%, and other companies like Hengxuan Technology and Hongsoft Technology, which increased by more than 4% [1] Policy and Market Trends - A recent major conference has highlighted the importance of high-quality development and the acceleration of self-reliance in technology, which is expected to be a central theme in upcoming policies [2] - The urgency for domestic computing power replacement is increasing due to U.S. restrictions on advanced chip exports to China, with expectations for continued breakthroughs in domestic computing capabilities [3] Investment Highlights - The Sci-Tech Innovation Artificial Intelligence ETF (589520) and its linked funds are positioned to benefit from several key factors: 1. Policy support is igniting AI growth, with the sector expected to lead the current market rally [4] 2. The focus on domestic alternatives and self-control in technology is becoming increasingly important amid rising tech tensions [4] 3. The ETF offers high elasticity with a 20% price fluctuation limit, allowing for efficient investment during market surges [4] Top Holdings - As of September 30, 2025, the top ten holdings of the Sci-Tech Innovation Artificial Intelligence Index account for over 71.90% of the total weight, with the semiconductor sector being the largest, comprising 52.6% [5]

Group 1 - The semiconductor sector in Hong Kong is experiencing a strong performance, with notable gains in stock prices [1] - Shanghai Fudan has seen an increase of over 8%, while SMIC has risen by more than 5% [1] - Other companies in the sector, such as Huahong Semiconductor and Hongguang Semiconductor, are also witnessing upward trends [1]

Core Viewpoint - The semiconductor stocks have shown a positive trend, with significant increases in share prices for several companies as of October 20. Group 1: Company Performance - Shanghai Fudan (01385.HK) increased by 7.41%, reaching HKD 41.6 [2] - SMIC (00981.HK) rose by 4.2%, trading at HKD 72 [2] - Hua Hong Semiconductor (01347.HK) saw a gain of 3.56%, with shares priced at HKD 78.5 [2]

Group 1 - Shanghai Fudan (01385.HK) increased by 5.09% [1] - China Electric Power Technology (00085.HK) rose by 2.56% [1] - InnoCare Pharma (02577.HK) saw a gain of 2.78% [1]

Group 1 - The collaboration between OpenAI and Broadcom aims to develop a custom AI chip and network system architecture with a scale of 10 gigawatts, set to begin deployment in the second half of 2026 and complete by the end of 2029 [4] - The domestic AI chip market is showing significant strength and potential, with notable achievements in performance and commercialization [4] Group 2 - Huawei's Ascend chip roadmap includes the launch of the 950PR and 950DT chips in 2026, followed by the 960 in 2027 and the 970 in 2028, with significant upgrades in specifications aimed at competing with Nvidia's Blackwell [5] - Baidu's Kunlun chip has secured a high market share in AI inference device procurement for China Mobile, demonstrating strong performance in various sectors [5] - Alibaba's T-head PPU chip has surpassed Nvidia's A800 in memory and bandwidth, winning a major contract with China Unicom [5] Group 3 - Guoxin Technology has been surveyed 23 times this year, focusing on its AI chip business, including AIMCU and AI cloud security chips based on RISC-V CPU technology [6] - Chipone has been surveyed 19 times, offering a range of custom chip solutions for AI applications across various devices, with nearly 200 million AI chips shipped globally [6] - Fudan Microelectronics has been surveyed 16 times, developing a product line of chips with computing power ranging from 4 TOPS to 128 TOPS, with a focus on high-reliability markets [6] Group 4 - As of October 14, 13 AI chip concept stocks have seen a more than 13% increase in average daily trading volume compared to the previous month, with Hengshuo Technology leading with a 116.61% increase [7] - Among these stocks, 8 have recorded net financing purchases exceeding 10 million yuan, with Beijing Junzheng leading at 207 million yuan in net purchases [7]

Core Points - The board of Shanghai Fudan (01385.HK) will hold a meeting on October 28, 2025, to consider and approve the unaudited third-quarter results for the nine months ending September 30, 2025, along with addressing any other matters [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因倚賴該等內容而引致之任何損失承擔任何責任。 於本公告日期，本公司之執行董事為張衛先生及沈磊先生； 非執行董事為閆娜女士、 莊啟飛先生、張睿女士及宋加勒先生；獨立非執行董事為石艶玲女士、王美娟女士及胡 雪先生。 * 僅供識別 1 (股 份 編 號: 1385) 董事會會議通告 上海 復 旦 微 電 子 集 團 股 份 有 限 公 司(「 本 公 司 」)董 事 會（「 董 事 會 」）謹 此 公 告 ， 董 事 會 將 於 2025 年 10 月 28 日 舉 行 會 議 ， 藉 以 考 慮 及 批 准 本 公 司 及 其 附 屬 公 司 截 至 2025 年 9 月 30 日 止 九 個 月 之 第 三 季度未經審核業績公告，以及 處理任何其他事項。 承董事會命 上 海 復 旦 微 電 子 集 團 股 份 有 限 公 司 董事長 張衛先生 中國，上海，2025 年 10 月 14 日 上海復旦微電子集團股份有限公司 Shanghai Fudan M ...

Core Viewpoint - The Hang Seng Technology Index has experienced a significant decline, with notable drops in several semiconductor companies, indicating a bearish trend in the technology sector [2] Company Performance - Hua Hong Semiconductor saw a decline of over 12% [2] - Shanghai Fudan dropped more than 8% [2] - SMIC (Semiconductor Manufacturing International Corporation) fell by over 7% [2]