Core Viewpoint - Jianyin International has downgraded ZTE Corporation's (00763) earnings forecasts for 2025-2027 by 23%, 7%, and 7% respectively due to conservative sales in the operator business and profit margin pressure from product structure changes, while maintaining an "outperform" rating with a target price reduction from HKD 40 to HKD 38 [1] Group 1: Financial Projections - The valuation benchmark for ZTE has been updated to 2026, reflecting the anticipated gradual effectiveness of its transformation into a provider of network, cloud, and computing infrastructure starting in 2026 [1] - The three major domestic telecom operators are expected to reduce their capital expenditure budget by 9% year-on-year in 2025, with actual spending likely to contract further [1] - ZTE's operator network sales are projected to decline by 12% year-on-year in 2025, followed by a growth of 5% in 2026 [1] Group 2: Market Expansion - ZTE has established a significant presence in emerging markets such as Southeast Asia, Latin America, and Africa, benefiting from 4G upgrades and initial 5G deployments in these regions [1] Group 3: Government and Corporate Business (G&C) - The demand for computing from domestic internet companies is expected to remain strong for the remainder of this year and into 2026 [1] - G&C business revenue is projected to grow by 134% year-on-year in 2025, followed by a 14% increase in 2026 [1] - Improvement in gross margin is anticipated as the scale expands and the usage rate of self-developed chips increases [1]

Core Viewpoint - Jianyin International has downgraded ZTE Corporation's (00763) earnings forecasts for 2025-2027 by 23%, 7%, and 7% respectively due to conservative sales in the operator business and profit margin pressure from product structure changes, while maintaining an "outperform" rating with a revised H-share target price of HKD 38 from HKD 40 [1] Group 1: Financial Projections - The updated earnings forecasts reflect a significant reduction in expected performance, particularly in the operator network sales, which are projected to decline by 12% in 2025, followed by a 5% growth in 2026 [1] - The capital expenditure budget for the three major domestic telecom operators is expected to decrease by 9% year-on-year in 2025, with actual spending likely to contract further [1] Group 2: Market Position and Strategy - ZTE is in a critical transition phase towards becoming a provider of network, cloud, and computing infrastructure, with expected benefits starting to materialize from 2026 [1] - The company has established a significant presence in emerging markets such as Southeast Asia, Latin America, and Africa, which are anticipated to benefit from 4G upgrades and initial 5G deployments [1] Group 3: Government and Corporate Business (G&C) - The demand for computing from domestic internet companies is expected to remain strong through the remainder of this year and into 2026, with G&C business revenue projected to grow by 134% year-on-year in 2025 and by 14% in 2026 [1] - Improvement in gross margins is anticipated as the scale of operations increases and the usage rate of self-developed chips rises [1]

Core Viewpoint - The performance of Shenzhen-listed companies in the first three quarters of 2025 shows steady growth in both revenue and net profit, driven by technological innovation and strong contributions from leading companies [1][2]. Group 1: Overall Performance - A total of 2879 Shenzhen-listed companies reported a combined revenue of 15.72 trillion yuan, a year-on-year increase of 4.31%, and a net profit of 903.02 billion yuan, up 9.69% [1]. - Among the reporting companies, 2169 achieved profitability, representing 75.34% of the total, with 207 companies experiencing growth rates exceeding 100% [2]. Group 2: Sector Performance - The main board and ChiNext board reported revenues of 12.47 trillion yuan and 3.25 trillion yuan, respectively, with net profits of 658.36 billion yuan and 244.66 billion yuan [2]. - The electronics sector saw a revenue of 1.59 trillion yuan, growing by 15.03%, and a net profit of 791.22 billion yuan, increasing by 32.12% [3]. - The power equipment sector achieved revenues of 1.32 trillion yuan, up 10%, and net profits of 946.09 billion yuan, a rise of 29.53% [4]. Group 3: Financial Sector Highlights - The non-bank financial sector reported revenues of 213.58 billion yuan, a year-on-year increase of 10.67%, and net profits of 608.54 billion yuan, up 49.03% [5]. - The brokerage sector performed particularly well, with revenues of 1174.83 billion yuan, a growth of 30.05%, and net profits of 509.14 billion yuan, increasing by 77.15% [6]. Group 4: Innovation and Shareholder Returns - Research and development expenses for Shenzhen-listed companies totaled 518.01 billion yuan, reflecting a year-on-year increase of 6.20%, with a research intensity of 3.29% [7]. - In the first ten months of the year, 507 companies announced cash dividend plans totaling 129.11 billion yuan, doubling from the previous year [7].

Core Insights - The cooperation between Shenzhen (Nanshan) and South Africa has accelerated significantly, completing a formal agreement in just over six months, marking a new phase in trade and investment collaboration [1][6] - The signing of a memorandum of understanding between the South African Department of Trade, Industry and Competition and the Global Service Center signifies a structured approach to enhance cooperation in various sectors [1][9] Group 1: Historical Context and Development - Since the establishment of diplomatic relations in 1998, China and South Africa have developed a comprehensive partnership, with significant milestones including the signing of a partnership declaration in 2000 and a comprehensive strategic partnership in 2010 [3] - By 2014, bilateral trade reached $60.3 billion, highlighting the economic complementarity and potential for cooperation between the two nations [3] Group 2: Local Cooperation and Economic Impact - Local cooperation has been a vital component of the national relationship, with Shenzhen being recognized as a model for high-quality urban development [5] - Nanshan, as a core area for technological innovation and economic development in Shenzhen, has seen substantial investments from companies like Huawei and Mindray Medical, further solidifying the foundation for cooperation with South Africa [5][8] Group 3: Industry Complementarity and Market Potential - The urgency for collaboration is driven by the complementary industrial structures of both regions, with Nanshan's advanced technology sector aligning well with South Africa's rich natural resources and strategic position in Africa [6] - South Africa's economy, with a GDP of $410 billion and a population of 63 million, presents significant market potential, especially as a gateway to the African Continental Free Trade Area [6] Group 4: Global Service Center and Strategic Initiatives - The Global Service Center, established as the first office outside South Africa, aims to facilitate Chinese enterprises' entry into the African market, showcasing its role as a strategic bridge [8][9] - The center has already engaged in multiple rounds of discussions to match South African market needs with local enterprises, demonstrating its proactive approach to fostering bilateral trade [9] Group 5: Future Prospects and International Engagement - The upcoming APEC meeting in Shenzhen is expected to enhance the city's role in international cooperation, with the partnership between Nanshan and South Africa providing valuable experience for higher-level exchanges [11] - The collaboration is poised to create new opportunities for regional economic cooperation and global innovation, reflecting a robust and dynamic partnership [11]

Core Insights - The 6G technology is rapidly advancing even before the public fully understands 5G, with key features like "perception and communication integration" being highlighted [2][3] - The 6G Development Conference is scheduled for November 13-14, 2025, in Beijing, focusing on building a collaborative ecosystem for 6G technology innovation [2][5] Group 1: 6G Development in Beijing - Beijing has established a mature development framework for 6G, characterized by "policy guidance + technological breakthroughs + ecological collaboration" [3] - The city has initiated a top-level design for 6G, forming a collaborative system that includes a central group, a laboratory, and multiple research and industrial bases [3] - Beijing is leading nationally in policy support, having released the "6G Technology Innovation and Industry Cultivation Action Plan (2024-2030)" ahead of other regions [3][4] Group 2: Technological Advancements and Applications - The 6G technology in Beijing has achieved significant breakthroughs, with initiatives like the "6G SPACES" ecosystem community being launched to support testing and innovation [4] - The upcoming conference will feature discussions on the integration of 6G with AI and other advanced technologies, aiming to explore new application scenarios [5][7] - Key technical reports on 6G scenarios such as "intelligent integration" and "immersive communication" will be released during the conference [5] Group 3: Global Context and Future Directions - The standardization of 6G is at a critical stage globally, with new technical challenges arising from the introduction of complex functionalities [6] - Beijing aims to become a core technology source and a hub for high-value enterprises in the global 6G industry, focusing on application ecosystems and core technologies [7] - The city is inviting global stakeholders to collaborate and share opportunities in the development of 6G technology [7]

Core Insights - The 6G technology is rapidly advancing even before the public fully understands 5G, with key features such as "perception and communication integration" being highlighted [2][3] - The 6G Development Conference is scheduled for November 13-14, 2025, in Beijing, focusing on building a collaborative ecosystem for 6G technology innovation [2][5] Group 1: 6G Technology Development - The key characteristic of 6G technology is its ability to not only transmit information but also sense and relay environmental data, enabling new services [2] - Touch communication will allow users to experience real-time tactile information, enhancing virtual interactions [2] - Beijing has established a mature development framework for 6G, combining policy guidance, technological breakthroughs, and ecosystem collaboration [3] Group 2: Policy and Infrastructure - Beijing's government has initiated a top-level design for 6G, creating a collaborative system that includes a central group, a laboratory, and multiple research and industrial bases [3] - The city plans to release a comprehensive action plan for 6G technology innovation and industry cultivation by September 2024, along with specific policies to incentivize participation in standard-setting [3][4] Group 3: Conference Highlights - The upcoming 6G Development Conference will serve as a key platform for global consensus in the 6G field, featuring discussions on the integration of 6G and AI [5] - Multiple significant outcomes, including technical reports on key scenarios like "intelligent integration" and "immersive communication," will be released during the conference [5] Group 4: Global Context and Challenges - The standardization of 6G is at a critical stage, with new complex functionalities presenting unprecedented technical challenges that require global collaboration [6] - Beijing aims to position itself as a core technology hub for the global 6G industry, focusing on application ecosystems, core technologies, and industrial layout [7]

Core Viewpoint - ZTE Corporation reported the latest number of shareholders as of October 31, 2025, indicating a total of 521,313 shareholders, with a majority being A-shareholders [2] Summary by Category Shareholder Information - Total number of shareholders: 521,313 [2] - A-shareholders: 521,027 [2] - H-shareholders: 286, which includes 285 registered shareholders and one representative from the Hong Kong Central Clearing and Settlement System [2]

Core Insights - The 6G Development Conference is scheduled to take place in Beijing Economic-Technological Development Area on November 13-14, 2025, showcasing the region's commitment to advancing 6G technology [1][2] - The Beijing Economic-Technological Development Area has established a preliminary 6G industrial ecosystem, focusing on key areas such as chip devices, base station equipment, new terminals, and satellite communication equipment [1][2] Summary by Categories Policy and Support - In July, the Beijing Economic-Technological Development Area released the first municipal-level 6G industrial policy in the country, aimed at accelerating innovation in 6G technology and industry [1] - The policy includes the creation of a "6G patent pool" to cultivate essential standard patents and promotes the opening of application scenarios [1] Infrastructure and Innovation - The area has set up platforms for 6G external testing, network verification, and security testing, establishing comprehensive industrial service capabilities [1] - Financial support of up to 30 million yuan per year for a maximum of three years is available for recognized operational platforms [1] Ecosystem Development - The development area is creating a 6G SPACES new quality ecological community, focusing on breakthroughs in key technology fields such as communication intelligence and integrated sensing [2] - The strategy includes a "challenge and reward" mechanism and aims to create benchmark cases in smart manufacturing, logistics, and emergency rescue through collaboration with industries like commercial aerospace and autonomous driving [2]

Core Insights - As of November 4, a total of 596 stocks in the Shanghai and Shenzhen markets have experienced a net outflow of main funds for five consecutive days or more [1] - The stock with the longest continuous net outflow is *ST Yuancheng, with 21 days, followed by Meige Intelligent with 18 days [1] - The largest total net outflow amount is from ZTE Corporation, with a cumulative outflow of 7.822 billion yuan over six days, followed by SMIC with 6.867 billion yuan over seven days [1] Summary by Category Continuous Net Outflow Stocks - The stocks with the longest continuous net outflow include: - *ST Yuancheng: 21 days - Meige Intelligent: 18 days - CITIC Securities: 8 days [1] Largest Net Outflow Amounts - The stocks with the largest net outflow amounts are: - ZTE Corporation: 7.822 billion yuan over 6 days - SMIC: 6.867 billion yuan over 7 days - CITIC Securities: 5.086 billion yuan over 8 days [1] Net Outflow Proportions - The stock with the highest proportion of net outflow relative to trading volume is Guoxing Optoelectronics, which has seen a 2.99% decline over the past 6 days [1]

Core Points - ZTE Corporation's stock price decreased by 2.01% on November 4, trading at 41.93 CNY per share with a total transaction volume of 3.764 billion CNY and a market capitalization of 200.574 billion CNY [1] - The company experienced a net outflow of 415 million CNY in principal funds, with significant buying and selling activity from large orders [1] - Year-to-date, ZTE's stock has increased by 5.40%, but it has seen a decline of 15.10% over the last five trading days [1] Financial Performance - For the period from January to September 2025, ZTE reported a revenue of 100.52 billion CNY, representing a year-on-year growth of 11.63%, while the net profit attributable to shareholders decreased by 32.69% to 5.322 billion CNY [2] - The company has distributed a total of 17.137 billion CNY in dividends since its A-share listing, with 8.114 billion CNY distributed in the last three years [3] Shareholder Information - As of October 20, 2025, ZTE had 420,800 shareholders, an increase of 3.17% from the previous period, with an average of 9,578 circulating shares per shareholder, a decrease of 3.08% [2] - Major shareholders include Hong Kong Central Clearing Limited and various ETFs, all of which have seen a reduction in their holdings [3]