Core Viewpoint - The Chinese blade server industry is experiencing a critical development phase driven by technological upgrades, deepening market applications, and supply chain localization, characterized by simultaneous expansion of market size and acceleration of domestic production processes [1] Industry Overview - Blade servers are a high-density server platform designed for specific application industries and high-density computing environments, allowing multiple "blade" modules to be inserted into a unified chassis, providing optimal space efficiency and energy efficiency for large data centers [4][6] - The evolution of the blade server industry in China has transitioned from early architectural exploration to market maturity, showcasing a trajectory from single functionality to multi-fusion [6] Market Size - The market size of the Chinese blade server industry is projected to reach approximately 15.07 billion yuan in 2024, reflecting a year-on-year growth of 2.8%, driven by strong demand from cloud computing and artificial intelligence [1][8] Key Enterprises - Unisplendour Corporation, through its subsidiary H3C, leads the blade server market, leveraging its unique position as the exclusive provider of HPE servers in China and its "plastic architecture" for resource pooling [10] - Inspur Information maintains a strong market share through continuous innovation in liquid cooling technology, while Huawei excels in AI computing scenarios with its self-developed Kunpeng chips [10] - Sugon focuses on high-performance computing and liquid cooling technology, establishing a competitive edge in the research and supercomputing sectors [10] Industry Development Trends 1. **Liquid Cooling Technology and AI Integration** - The industry is accelerating towards green and intelligent infrastructure, with liquid cooling technology expected to penetrate over 30% of the market by 2025, significantly improving energy efficiency [13] 2. **Market Concentration and Localization** - The competition is becoming increasingly oligopolistic, with domestic CPUs gaining traction in government and military sectors, while the supply chain is reducing reliance on imports [14] 3. **Edge Computing Expansion** - The blade server architecture is evolving towards a dual-mode of "centralized large clusters + distributed micro-clusters," adapting to the demands of edge computing driven by 5G and IoT applications [16]

Core Insights - The report emphasizes that the computer industry is driven by model iteration, application breakthroughs, and domestic computing power leadership, with a buy rating for the sector [2][4][17]. Industry Overview - The AI infrastructure sector is transitioning from "testing and trial" to "large-scale rollout in 2026" for domestic AI chip replacements, with a narrowing gap between domestic and international leading models [8][17][26]. - The AI application sector is categorized into three types of companies: those with recognized benchmark clients but in early stages, those with long-term trends but uncertain timelines, and those leveraging AI with reachable inflection points [8][17][19]. - The EDA and R&D software sector is seeing rapid improvement in domestic product capabilities, with mergers and acquisitions expected to accelerate due to policy support [8][17][21]. - In the intelligent driving and robotics sector, the report suggests focusing on competitive chip tracks, overseas expansion, and new autonomous driving opportunities, recommending global AMR leader Geek+ [8][18][21]. - The report notes that traditional trust and innovation directions are facing funding delays, while the release of HarmonyOS PC in 2025 is seen as a catalyst for business growth and technological upgrades [8][18][21]. - The energy information sector is expected to benefit from stable capital expenditures and market reforms, although policy implementation timelines need to be monitored [8][18][21]. Key Companies - In the AI infrastructure sector, recommended companies include Cambricon, Inspur, and Unisoc, with attention to Sugon [8][19]. - For AI applications, notable companies are Jingtaikong, Rainbowsoft, and Kingdee International, with additional focus on Hancloud and Guangyun Technology [8][19][21]. - In the intelligent driving and robotics sector, key players include Geek+, Black Sesame Intelligence, and Rui Ming Technology, with recommendations to monitor Desay SV and SOTER [8][19][21]. - In the EDA and R&D software sector, companies like GigaDevice, Gexin Electronics, and BGI are highlighted, with attention to Zhongkong Technology and Haocen Software [8][19][21]. - For trust and innovation, recommended companies include Kingsoft and Softcom, with additional focus on Taiji Co. and China Software International [8][19][21]. - In the energy information sector, notable companies are Guoneng Rixin and Longxin Group, with attention to State Grid Information and South Grid Digital [8][19][22].

Group 1 - The core point of the news is the significant rise in the stock price of domestic GPU company Moer Technology, which surpassed 800 yuan, leading to a market capitalization exceeding 400 billion yuan [1] - The artificial intelligence (AI) industry chain showed a mixed performance, with AI ETF (515070) holdings such as Jingjia Microelectronics rising over 3%, while other stocks like Xinyi Technology, Zhongke Xintu, and Xiechuang Data also performed well [1] - The National Space Administration has established a Commercial Space Administration and is promoting the launch of the first "Space Computing Power Experimental Satellite" within the year, aimed at alleviating energy consumption and heat dissipation bottlenecks of ground data centers, providing space-level computing power support for AI supercomputing [1] Group 2 - On December 8, the optical communication sector experienced a surge, with CPO, optical chips, and optical module indices each rising over 5% in a single day, driven by the increasing demand for high-speed data transmission for AI model training and inference [1] - Zhongyin Securities pointed out that the demand for AI computing power is extending from the ground to space, forming an "air-ground-space integrated" computing network with commercial space and optical communication, suggesting a three-year high prosperity cycle for optical modules, optical chips, and space computing infrastructure [1] - The AI ETF (515070) tracks the CS AI Theme Index (930713), selecting component stocks that provide technology, basic resources, and application end stocks for AI, focusing on the midstream and upstream of the AI industry chain, known as the "robot brain" creators and "ground" of the Internet of Everything [2]

Core Insights - The ETF market has seen a resurgence with five products achieving over 100% annual returns as of December 9, 2025, particularly in the technology sector, including communication equipment and artificial intelligence [1][10]. Performance Overview - The top-performing ETFs with over 100% returns include: - Guotai CSI All-Share Communication Equipment ETF: 122.27% return, 12.45 billion in size, 6.32 years since inception, maximum drawdown of -28.87% [2][11]. - Fuguo CSI Communication Equipment Theme ETF: 111.21% return, 1.04 billion in size, 1.45 years since inception, maximum drawdown of -23.98% [2][11]. - Southern Growth Enterprise Board AI ETF: 110.15% return, 2.57 billion in size, 0.63 years since inception, maximum drawdown of -14.55% [2][11]. - Huabao Growth Enterprise Board AI ETF: 104.57% return, 3.36 billion in size, 1.01 years since inception, maximum drawdown of -31.52% [2][11]. - Guotai Growth Enterprise Board AI ETF: 100.38% return, 0.55 billion in size, 0.71 years since inception, maximum drawdown of -18.13% [2][11]. Fund Management Insights - The Fuguo CSI Communication Equipment Theme ETF, managed by Su Huaqing, has shown strong growth with a total return of 149.10% since inception and an annualized return of 87.49% [5][14]. - The fund's current size is 1.04 billion, and its investment strategy focuses on AI computing infrastructure [6][14]. Portfolio Composition - As of Q3 2025, the fund's top holdings include: - Xinyi Technology: 159.66 million, 436,500 shares, increased by 476.31% [7][15]. - Zhongji Xuchuang: 158.12 million, 391,700 shares, increased by 473.81% [7][15]. - ZTE Corporation: 64.58 million, 1,415,088 shares, increased by 472.91% [7][15]. - Other significant holdings include Tianfu Communication, Unisplendour, and AVIC Optoelectronics, with substantial increases in shareholding [8][16]. Market Trends - The market has responded positively to policies such as the commencement of major projects and the "anti-involution" strategy, leading to a recovery in undervalued cyclical sectors [8][16]. - The technology growth sector, particularly TMT (Technology, Media, and Telecommunications), has significantly outperformed the market, with a focus on AI and new energy sectors [8][16].

Summary of Conference Call Notes Industry Overview - The conference call discusses the **domestic AI computing power industry** and the anticipated growth driven by the large-scale release of domestic chips, recovery in bidding, and the potential approval of the **H200 chip** [1][3][5]. Key Points and Arguments H200 Chip Approval - The approval of the H200 chip is expected to significantly benefit the **computing end** and **AIDC (AI Data Center)** sectors directly, while indirectly benefiting the **network end** and **domestic chip** sectors [1][5]. - If the H200 chip is approved for sale in China, it will greatly enhance the development of the domestic AI and computing power industry chain [3][7]. Market Demand and Growth - The demand for AIDC is projected to reach at least **6-7 GW** in the coming year, with a potential shortage of quality data center resources [5]. - The AIDC sector has seen a decline in stock prices since Q2 but is expected to recover due to increased demand for AIGC (AI Generated Content) in Q3 and Q4 [1][5]. Key Players and Beneficiaries - Major beneficiaries of the H200 chip approval include: - **Computing End**: Companies like **Inspur**, **Unisoc**, and **ZTE** are expected to benefit from increased demand for AI servers and power supplies [5][8]. - **AIDC Sector**: Companies such as **Huaneng New Network**, **Aofei Data**, and **David Technology** are highlighted as potential beneficiaries due to the anticipated recovery in demand [5]. - **Network Side**: Companies like **Ruijie Networks** and **ZTE** are noted for their significant market share and advancements in high-speed switching chips [6][10]. Technological Trends - The conference emphasizes the importance of **Scale-up technology** in driving demand for ultra-high-speed switching chips, particularly the **51.6T switching chip** [6][11]. - The shift towards **liquid cooling** technology is also highlighted, with companies like **Inveke** positioned to benefit from this trend [5][9]. Policy and Market Dynamics - The development of domestic chips is supported by strong government policies, which are expected to accelerate the growth of the domestic AI ecosystem [7]. - The approval of the H200 series is seen as a catalyst for upgrading domestic large models and narrowing the gap with international competitors [7]. Additional Important Insights - The conference notes that the **ITC sector** will benefit from the resolution of supply shortages in computing cards, leading to an acceleration in IDC bidding [9]. - The **light module and related components market** is expected to flourish as supply issues are resolved, with key players like **Hua Gong Technology** and **Xin Yi Sheng** poised to gain from increased domestic demand [12]. This summary encapsulates the critical insights from the conference call, focusing on the anticipated growth in the domestic AI computing power industry, the implications of the H200 chip approval, and the key players and technologies involved.

Core Viewpoint - The company, Unisplendour Corporation Limited, is set to become a "super invisible champion" in the digital infrastructure market as it applies for a listing on the Hong Kong Stock Exchange, aiming to establish an "A+H" listing structure [1] Group 1: Company Overview - Unisplendour is a leading ICT infrastructure and service provider in China, with a history dating back to 1988, and is ranked third in the Chinese digital infrastructure market with an 8.6% market share as of 2024 [1] - The company has been publicly listed on the Shenzhen Stock Exchange since 1999, with a market capitalization of 72.7 billion yuan as of December 8 [1] Group 2: Business Segments - The company operates primarily in two segments: digital infrastructure, which includes ICT infrastructure products and cloud services, and ICT product distribution [2] - Unisplendour is referred to as the "shovel seller" of the AI era, providing essential AI computing infrastructure and tools to various industries [2] Group 3: Financial Performance - From 2022 to 2024, Unisplendour's revenue showed steady growth, reaching 73.75 billion yuan in 2022, 77.54 billion yuan in 2023, and 79.02 billion yuan in 2024, with a significant increase to 47.43 billion yuan in the first half of 2025, representing a 25% year-on-year growth [2] - In contrast, net profit declined from 3.74 billion yuan in 2022 to 1.98 billion yuan in 2024, with a further drop to 1.28 billion yuan in the first half of 2025, marking a 25.53% decrease [3] Group 4: Strategic Positioning - The decline in profit is attributed to the company's strategic shift from high-margin traditional network equipment to becoming a comprehensive AI infrastructure provider, focusing on market share rather than short-term profits [3][4] - High R&D investments and increasing sales and financial expenses are seen as necessary costs for future growth, with R&D expenditures of 5.30 billion yuan in 2022, 5.64 billion yuan in 2023, and 5.10 billion yuan in 2024 [3] Group 5: Market Outlook - The digital economy is experiencing a "gold rush," with the digital solutions market in China expected to grow from 1 trillion yuan in 2020 to 1.9 trillion yuan by 2024, reflecting a compound annual growth rate of 18.1% [5] - The digital infrastructure market is projected to grow from 300 billion yuan in 2020 to 600 billion yuan by 2024, with a compound annual growth rate of 16.0% [5] Group 6: Competitive Advantages - Unisplendour possesses a full-stack ICT technology capability, covering the entire industry chain from "chip to cloud," enabling it to provide integrated solutions that meet the evolving needs of clients [6] - The company has made significant technological advancements, including the launch of an 800G intelligent computing switch and a new network architecture, positioning it well for the next generation of data centers [6] Group 7: Challenges and Considerations - The company faces challenges in balancing market share and profit margins, as its strategy to capture AI market share puts pressure on gross margins [7] - Sustained high R&D and capital expenditures are necessary to maintain technological leadership, posing long-term tests for the company's cash flow and capital structure [7]

Core Viewpoint - The industrial router industry is experiencing fluctuations in market size, with a growth to 5.2 billion in 2023, but a projected decline to 4.4 billion in 2024 due to various factors including slowed internet traffic growth and investment reductions in key sectors [1][11]. Industry Overview - Industrial routers are designed for harsh industrial environments, providing high reliability and strong anti-interference capabilities, essential for applications in industrial automation, smart grids, and intelligent transportation [3][11]. - The industry is characterized by a need for routers that can operate under extreme conditions, supporting various industrial communication protocols to ensure stable network performance [3][11]. Market Size and Trends - The industrial router market size has shown a decline since 2020, with a notable increase in 2023, but a forecasted decrease in 2024, influenced by budget adjustments and investment slowdowns in sectors like finance, government, and energy [1][11]. - The smart transportation sector is projected to grow significantly, with the market size expected to reach 246.7 billion by 2024, driving demand for industrial routers [8]. Competitive Landscape - Major players in the industry include Huawei and ZTE, leveraging their technological advantages and localized service capabilities to expand their market share in key industrial sectors [11]. - Smaller specialized companies are focusing on niche markets, developing products tailored to specific industry needs, thus complementing the offerings of larger firms [11]. Industry Development Trends - The integration of 5G and WiFi6 technologies is expected to enhance the performance of industrial routers, meeting the growing demand for high-speed and stable network connections in industrial applications [13]. - There is an increasing emphasis on security features in industrial routers, with advancements in end-to-end encryption and AI-driven threat detection becoming critical competitive factors [14]. - Customization and personalized service offerings are on the rise, as companies aim to meet diverse user needs and enhance customer satisfaction and loyalty [15].

Group 1 - The core point of the news is that Unisplendour Corporation (紫光股份) has submitted a prospectus to the Hong Kong Stock Exchange for an "A+H" listing, following a previous application that lapsed in May 2023 [1] - The company was established in 1999 and listed on the Shenzhen Stock Exchange in the same year [1] - Unisplendour plans to increase its stake in H3C Technologies from 51% to 87.98% by investing in acquisitions in September 2024 and November 2025, which has led to a significant rise in its debt ratio from 54.11% to 81.87% [1] Group 2 - The company has faced a "revenue growth without profit growth" dilemma, with a continuous decline in profitability [1] - Revenue figures for Unisplendour from 2022 to 2024 are projected to be 73.752 billion yuan, 77.538 billion yuan, and 79.024 billion yuan, respectively, while net profits are expected to drop from 3.742 billion yuan to 1.982 billion yuan, indicating a 47% decline in net profit over two years despite a 7% revenue increase [1] - In the first three quarters of 2025, Unisplendour reported revenue of 77.322 billion yuan, a year-on-year increase of 31.41%, but a net profit of 1.404 billion yuan, reflecting an 11.24% decline compared to the previous year [1] Group 3 - The decline in net profit is primarily attributed to a decrease in gross margin, which fell from 19.8% in 2022 to 18.5% in 2023, and is projected to further decrease to 16.0% in 2024 [2] - The company indicated that the lower gross margin is due to an increase in sales contribution from its intelligent computing and storage business, which has a lower margin compared to its intelligent connection and security business [2]

Core Viewpoint - The company is fully committed to liquid cooling technology, offering various technical routes such as cold plate, immersion, and spray cooling solutions, aiming to create advanced and high-performance full-stack liquid cooling solutions [1] Group 1: Technology and Product Offerings - The company has launched a series of liquid cooling cabinet products aimed at AI computing and other fields [1] - The company possesses comprehensive self-research and integration capabilities across the entire supply chain, including cold plates, quick connectors, CDU, cabinets, and monitoring systems [1] Group 2: Market Experience and Competitive Advantage - The company has experience in delivering liquid cooling infrastructure for large internet companies, showcasing its capability in large-scale project execution [1] - The company integrates full-stack technical capabilities with extensive engineering experience in large-scale delivery, forming an efficient, reliable, and replicable system-level capability, which constitutes its core competitiveness [1]

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].