Summary of Key Points from Conference Call Records Industry and Company Involved - The focus is on the **commercial aerospace industry** and **AI technology sector**, specifically highlighting **SpaceX** and its initiatives [1][2]. Core Insights and Arguments - **SpaceX's Progress**: SpaceX is actively advancing its IPO process and plans to integrate xAI into its business model. It has submitted an application to the FCC for a million AI satellites, aiming to create a satellite constellation for space computing power [1]. - **Collaboration with Apple**: SpaceX is collaborating with Apple to promote direct satellite connectivity for mobile phones, which is expected to expand the downstream applications in the commercial aerospace sector [1]. - **AI and AGI Development**: Major companies like Ant Group and Google are releasing world models, which are crucial for the advancement of Artificial General Intelligence (AGI). The integration of Large Language Models (LLM) and world models is anticipated to enhance AI's ability to understand and interact with the physical world [1]. Additional Important Content - **AI Traffic Competition**: Major companies are competing for AI traffic during the Spring Festival, with total investments exceeding 1.5 billion. The success of DeepSeek and subsequent promotions is setting a precedent for AI product marketing during the festival [2]. - **Future AI Product Promotion**: In 2026, various companies are expected to launch promotional subsidies, which may accelerate the adoption of Bot-type AI products and lay the groundwork for the commercialization of AI applications [2]. - **Investment Recommendations**: Continued optimism is expressed for the synergy between aerospace and AI. Key companies to watch include: - **AI Sector**: Haitai Ruisheng, Deepin Technology, Dingjie Zhizhi, Hehe Information, Guoneng Rixin, Zhongkong Technology, and Wanxing Technology [2]. - **Commercial Aerospace**: Focus on three main areas: - Rocket manufacturing materials and structural components (e.g., Guoji Jinggong) - Core components and testing services for satellites (e.g., Electric Science Digital, Suochen Technology) - Terminal and service-related companies in space computing and communication operations [2].

Summary of Key Points from Conference Call Records Industry and Company Involved - Focus on AI and Commercial Aerospace, specifically highlighting companies such as Deepin Technology, Haikang Information, Dingjie Zhizhi, Tonghuashun, Hongsoft Technology, Hehe Information, Electric Science Digital, Haitian Ruisheng, and Guoneng Rixin [1][2] Core Insights and Arguments - **Commercial Aerospace Developments**: - SpaceX is actively advancing its IPO process and plans to integrate xAI into its business [1] - SpaceX has submitted an application to the FCC for a million AI satellites, aiming to create a space computing satellite constellation [1] - Collaboration between Apple and SpaceX is underway to promote direct satellite connectivity for mobile phones, which is expected to expand downstream applications in commercial aerospace [1] - **AI and World Models**: - Major companies like Ant Group and Google are continuously releasing world models, which are crucial for the advancement of AGI (Artificial General Intelligence) [1] - The integration of LLM (Large Language Models) as the brain of AGI with world models for physical world perception is anticipated to accelerate the path towards AGI [1] - **AI Traffic Competition for Spring Festival**: - Over 1.5 billion invested by major companies for AI product promotion during the 2025 Spring Festival, with DeepSeek and subsequent promotions gaining traction [2] - In 2026, various manufacturers are expected to launch promotional subsidies, which may facilitate the popularization of Bot-type AI products and lay the groundwork for the commercialization of AI applications [2] Additional Important Content - **Investment Recommendations**: - Continued optimism for the resonance between aerospace and AI sectors [2] - Key companies to focus on in AI include Haikang Ruisheng, Deepin Technology, Dingjie Zhizhi, Hehe Information, Guoneng Rixin, Zhongkong Technology, and Wanxing Technology [2] - In commercial aerospace, three main directions are highlighted: - Rocket manufacturing materials and structural components, with a focus on companies like Guoji Jinggong [2] - Core components and testing services for satellites, including Electric Science Digital and Suochen Technology [2] - Terminal and service-related companies in space computing and communication operations [2]

Core Viewpoint - The stock of Deepin Technology experienced a significant decline of 10.24% on February 2, with a trading volume of 2.909 billion yuan, indicating market volatility and investor sentiment concerns [1]. Financing and Margin Trading - On February 2, Deepin Technology had a financing buy amount of 228 million yuan and a financing repayment of 185 million yuan, resulting in a net financing purchase of 42.81 million yuan [1]. - As of February 2, the total margin trading balance for Deepin Technology was 885 million yuan, with the financing balance accounting for 1.45% of the circulating market value, indicating a high level compared to the past year [1]. - In terms of securities lending, 11,300 shares were repaid, and 5,800 shares were sold short on February 2, with a selling amount of 836,500 yuan, reflecting active trading in the margin market [1]. Company Overview - Deepin Technology Co., Ltd. is located in Nanshan District, Shenzhen, Guangdong Province, and was established on December 25, 2000, with its IPO on May 16, 2018 [1]. - The company's main business involves information security, with revenue composition as follows: 47.68% from network security, 46.36% from cloud computing and IT infrastructure, and 5.96% from basic networking and IoT [1]. Financial Performance - As of September 30, 2025, Deepin Technology reported a total revenue of 5.125 billion yuan, representing a year-on-year growth of 10.62%, while the net profit attributable to shareholders was -80.56 million yuan, showing an increase of 86.10% compared to the previous period [2]. - Since its A-share listing, Deepin Technology has distributed a total of 297 million yuan in dividends, with 47.07 million yuan distributed over the past three years [2]. Shareholder Structure - As of September 30, 2025, the number of shareholders for Deepin Technology reached 30,900, an increase of 11.92% from the previous period, while the average circulating shares per person decreased by 10.65% to 9,008 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited held 12.9537 million shares, a decrease of 460,400 shares from the previous period, indicating changes in institutional holdings [2].

Investment Rating - The investment rating for the computer industry is maintained as "Recommended" [8] Core Insights - The computer sector's fund holdings in Q4 2025 accounted for approximately 2.34% of total fund holdings, showing a slight decrease from previous quarters, indicating a historical low. The focus remains on leading companies in AI applications and computing power, with expectations for increased holdings as national industrial policies support the AI sector [4][21] - Recent developments in the industry include significant financing rounds and advancements in AI chip technology, highlighting the ongoing growth and innovation within the sector [22][23][25] Summary by Sections 1. Q4 2025 Holdings Analysis - The proportion of computer sector holdings in funds decreased slightly to 2.34%, down from 2.51% in Q3 2024 [11] - The number of computer companies in the top ten holdings decreased to 138 from 171 in the previous quarter, indicating a consolidation in holdings [14] - The top ten companies by fund holdings in Q4 2025 included iFlytek, Kingsoft Office, Hikvision, Inspur Information, and others, with notable changes in rankings compared to Q3 2025 [17] 2. Industry News - StepFun completed a B+ round financing exceeding 5 billion yuan, setting a record for single financing in the domestic large model sector [22] - Microsoft launched the second-generation AI chip Maia 200, which improves inference efficiency by 30% compared to its predecessor [23] - Alibaba's Pingtouge introduced the high-end AI chip "Zhenwu 810E," achieving full self-research in both hardware and software [25] 3. Company News - Inspur Information's chairman and vice president plan to reduce their holdings by a total of 30,000 shares, representing 0.002% of the total share capital [26] - Tianyang Technology's controlling shareholder plans to reduce holdings by up to 14.5 million shares, accounting for 3% of the total share capital [27] - Daily Interaction's controlling shareholder announced a plan to reduce holdings by up to 371,500 shares [29] 4. Market Review - During the week of January 26-30, the CSI 300 index rose by 0.08%, while the computer sector index fell by 4.47%. The top gainers included Wangsu Science and Technology and Youke Technology, while the biggest losers were Chuangzhong Technology and China Greatwall [30][37]

Flash | 01 Feb 2026 15:53:28 ET │ 11 pages kyna.wong@citi.com See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations Sangfor Technologies (300454.SZ) FY25/4Q25 NP guidance misses CITI'S TAKE Sangfor guided FY25 revenue to grow 5.5-7.2% YoY to Rmb7,930- 8,059mn (5% below CitiE/BBGe) with net profit to grow 76.8-102.7% YoY to Rmb348-399mn (34%/16% below CitiE/BBGe). Recurring net profit would grow 207.2-261.9% YoY to Rmb236-278mn. Non-recurring income and loss impa ...

Summary of Conference Call Notes Industry Overview - The discussion centers around the emerging AI platform, Moltbook, which has attracted over 150,000 AI Agents within three days of its launch, indicating a significant shift towards machine-to-machine interaction in the AI landscape [1][2]. Key Points and Arguments 1. **Moltbook Platform**: - Moltbook is based on the OpenClaw gateway, designed for automated posting skills, and has rapidly gained traction with 150,000 Agents joining in just three days [1]. - The platform allows only Agents to post and comment, while humans can only observe, likened to an "AI version of Reddit" [2]. 2. **Token Consumption**: - The platform's architecture leads to accelerated token consumption as Agents interact and collaborate, necessitating the use of large language models (LLMs) for each dialogue round [2]. - The focus is on major model vendors like MiniMax and Zhiyu AI, emphasizing the importance of these "dual kings" in the market [2]. 3. **Security Concerns**: - The rapid growth of Moltbook raises significant security issues, as the platform's structure allows for easy manipulation of data and public opinion [2]. - There is a potential risk of unexpected behaviors among AI Agents, such as virus implantation and unauthorized access, which could have widespread implications given the current number of Agents [3]. - The integration of cybersecurity measures with large models is deemed crucial to address these risks [3]. Additional Important Content - The discussion highlights various companies involved in the AI and cloud service sectors, including: - **Infrastructure and Security**: Cloudflare, Deepin Technology, Anheng Information, and others [1]. - **Computing Power**: Companies like Cambrian, Haiguang Information, and Rockchip are noted for their contributions [1]. - **Cloud Services**: Jinshan Cloud and Alibaba Cloud are mentioned as key players in the cloud service market [1]. - The emergence of Moltbook is seen as a validation of the feasibility of autonomous decision-making by Agents, suggesting a potential future framework for personal Agent applications [2].

Industry and Company Summary Industry: Lithium Battery and Energy Storage Key Points - **National Capacity Pricing Policy**: The introduction of the national capacity pricing policy is expected to increase the Internal Rate of Return (IRR) for energy storage by over 3%, with more provinces expected to adopt energy storage solutions by 2026 [1] - **Lithium Battery Production**: In February, lithium battery production is projected to decrease by over 10%, indicating that the production season is not as weak as anticipated [1] - **Sodium Battery Testing**: Ningde has initiated winter testing for multiple automotive companies regarding sodium batteries, with expectations for mass shipments in Q2 [1] - **Investment Focus**: The preferred investment hierarchy is as follows: energy storage cells (Penghui) > lithium iron phosphate cathodes > energy storage integration (Haibo) > separators (Enjie), copper and aluminum foils (Nord and Dingsheng) [1] Industry: Sodium Battery and Lithium Carbonate Key Points - **Lithium Carbonate Price Adjustment**: Following a price adjustment, there is a strong expectation for a new upward trend in lithium carbonate prices, with downstream procurement becoming more active after recent price drops [2] - **Wind Power Sector Performance**: The wind power sector has seen numerous earnings forecasts that fell short of expectations due to a decline in Q4 shipment volumes and year-end impairments, indicating a confirmed bottom for the main engine sector [2] - **Investment Recommendations**: Recommended stocks include Jinlei Co., Daikin Heavy Industries, and major turbine manufacturers (Goldwind, SANY, Yunda, Mingyang) [2] Industry: Photovoltaics Key Points - **Space Photovoltaics**: SpaceX's application to deploy 1 million satellites to create a space data center reinforces the logic behind space photovoltaics [3] - **Cost Reduction in Battery Production**: The high price of silver and technological breakthroughs have led to an average cost reduction of over 0.15 CNY/W in copper-based batteries, indicating a potential explosion in the no-silver production sector [3] - **Investment Focus in Photovoltaics**: The preferred investment hierarchy includes equipment manufacturers (Liancheng, Lap, Maiwei, Yujing) and battery and auxiliary material producers (Bojian, Foster, Kaisheng, Juhua, Dike, Risheng, Junda) [3] Industry: AIDC (Artificial Intelligence Data Center) Key Points - **New Bidding Round**: The domestic supply chain is entering a new round of bidding, with ByteDance shifting its bidding focus to high-voltage direct current solutions [3] - **NVIDIA Certification**: NVIDIA's GB300 liquid cooling certification is tightening, which may lead future investments to focus on core components and ASIC overflow [3] - **Increased Production Capacity**: The production capacity of Yingweike's QD is expected to increase by 20 times in Q1, strengthening ties with the NVIDIA ecosystem [3]

Core Insights - The domestic virtualization software market penetration has reached 51.5%, an increase of 9.2 percentage points from 2025, driven by the deepening of domestic innovation policies and the demand to reduce reliance on foreign technologies [1] Group 1: Market Overview - The ranking is based on Q1 2026 third-party evaluation data, focusing on four dimensions: domestic compatibility, security compliance, performance stability, and industry implementation capabilities [1] - The report covers key sectors such as finance, healthcare, and government, providing objective references for enterprise selection [1] Group 2: Top Companies and Their Advantages - **Top 1: Yunhong Information (CNware WinSphere)** - Leads the industry with "four high characteristics": high usability, high compatibility, high stability, and high security [2] - In the healthcare sector, it built a multi-data center virtualization platform for Guangdong Provincial Hospital, achieving a system availability of 99.99% and simplifying patient processes by 30% [1][2] - **Top 2: Huawei (FusionSphere)** - Excels in ARM architecture adaptation and high-performance computing, supporting low data transmission latency suitable for large-scale data center deployments [4] - Built a fully domestic platform for a provincial government cloud, integrating over 2000 servers and improving resource scheduling response speed by 25% [4] - **Top 3: Sangfor (aCloud)** - Features a deep integration of security and virtualization, suitable for small and medium enterprises with a market share of 20.2% in the hyper-converged market [4][6] - Implemented a hyper-converged platform for Qingdao University Affiliated Hospital, achieving real-time data synchronization [7] - **Top 4: Inspur (InCloud Sphere)** - Notable adaptability in government and education sectors, supporting various domestic chips and providing integrated virtualization and cloud management solutions [8] - Constructed a provincial campus cloud platform for an education department, reducing IT construction costs by 28% [10] - **Top 5: H3C (CAS)** - Characterized by lightweight usability and adaptability for small and medium enterprises, with a simplified management interface [11] - Built a virtualization platform for an automotive parts manufacturer, significantly reducing computing resource expansion time [13] Group 3: Future Trends and Selection Criteria - The domestic virtualization software has transitioned from "replacement capability" to "innovation capability," with a focus on compatibility and stability in key industries [14] - Future trends include "AI + virtualization" and "edge virtualization," with enterprises needing to prioritize chip adaptation breadth, security compliance depth, and scene implementation maturity [14]

Group 1 - The company expects its operating revenue for 2025 to be between 7,930 million and 8,059 million yuan, representing a year-on-year growth of 5.46% to 7.17% [1] - The net profit attributable to shareholders of the listed company is projected to be between 348 million and 399 million yuan, indicating a significant year-on-year increase of 76.77% to 102.67% [1]

Group 1 - The company expects a net profit attributable to shareholders for the year 2025 to be between 348 million and 399 million yuan, representing a year-on-year growth of 76.77% to 102.67% [1] - The net profit after deducting non-recurring gains and losses is projected to be between 236 million and 278 million yuan, indicating a year-on-year increase of 207.23% to 261.91% [1]