Summary of AIDC Industry Update and Q&A Industry Overview - The AIDC (Artificial Intelligence Data Center) industry is experiencing a recovery in overseas computing infrastructure, with companies like Nvidia and Corewave showing positive performance focused on training and inference demand [1][2] - Domestic AIDC is constrained by chip limitations, model breakthroughs, and application deployment, but major data centers like GDS and Century Internet are maintaining stable deployment rates despite the H20 ban [1][2][3] Key Insights - **Overseas Market Recovery**: Nvidia's focus is on training demand, while Corewave caters to large enterprises like Microsoft. Companies such as Broadcom and Marvell have optimistic revenue expectations for ASICs, and Oracle's OCI business reflects growth in inference demand [1][2][5] - **Domestic Market Dynamics**: Despite short-term impacts from trade wars, major Chinese internet companies like Alibaba and ByteDance are investing heavily in AI. Long-term solutions for domestic AI challenges include breakthroughs in chips (e.g., Cambricon, Huawei Cloud Matrix 384) and improvements in model capabilities [1][3][4] - **Investment Recommendations**: Companies with stable deployment rates and core leading customer orders, such as Runze Technology, Aofei Data Port, Century Internet, and GDS, are recommended for investment due to their low valuations and potential for significant improvement [1][4] Performance Trends - **Overseas Demand Trends**: The overseas computing market is showing strong growth, particularly in GPU and ASIC demand. Nvidia has launched new GB series chips, and companies like Marvell and Broadcom have revised their market demand expectations upward [7][8] - **Domestic Market Performance**: The domestic computing market faced some disruptions in Q2 due to geopolitical factors and chip restrictions, but overall guidance remains stable. The AIDC sector is expected to see improved order visibility and capital expenditure growth in the coming quarters [8][9] Future Outlook - **Upcoming Quarters**: The outlook for the domestic computing market in the next two quarters is positive, with expectations of accelerated capital expenditure and construction progress, particularly in the AIDC core hardware supply chain [9] - **AI Data Center Growth**: AI data center-related sectors are showing good business growth elasticity, with significant order increases in server power supplies and UPS systems [10][14] - **HVDC Development**: Both domestic and international markets are seeing increased adoption of HVDC solutions, with major Chinese internet companies pushing for its application [11][12] Global AI Demand - **Inference Demand Growth**: Global inference demand is rapidly increasing, with companies like Google and ByteDance significantly ramping up their requirements [16] - **US vs. China AI Demand**: The US is entering a new model iteration cycle with large clusters, while China's AI demand is primarily focused on inference due to limited resources for training [17] Market Sentiment - **US AI Industry Expectations**: The US AI industry is expected to see significant changes in the next six months, with rapid stock price increases in sectors like NV and ASIC, indicating a potential expansion from overseas to domestic supply chains [18] - **AI Business Models**: The US has a stronger likelihood of successful AI business models due to higher payment willingness, while China's market faces challenges in this regard, potentially affecting profit margins [19] Conclusion - The AIDC industry is poised for growth, driven by both domestic and international demand for AI capabilities. Investment in key players with stable growth prospects is recommended, while monitoring the evolving landscape of AI business models and market dynamics is crucial for future success [20]

Summary of Conference Call for StarNet Ruijie Company and Industry Overview - The conference call pertains to StarNet Ruijie, a company operating in the network communication and data center sectors, with a focus on AI infrastructure and solutions [2][3][15]. Key Points and Arguments Business Performance - In Q1 2025, domestic business remained stable while export business grew over 50%, particularly in network switch sales [2][5]. - The overall gross margin for Ruijie Network is approximately 35%, showing a slight decline due to structural factors [2][6]. - The company is focusing on data centers and SMBs (Small and Medium-sized Businesses) for revenue growth, with direct sales expected to increase to 57% in 2024 [2][8]. Market Dynamics - Demand for internet intelligent computing center switches is driven by capital expenditures from major internet companies like Alibaba, Tencent, and ByteDance [2][5]. - Ruijie Network holds a leading market share in the domestic data center white-box switch market, with competition involving chip providers, demand-side internet companies, and equipment manufacturers [6][10]. Product and Production Insights - Data center products are produced in an automated factory in Fuzhou, with plans for capacity expansion in Q2 2025 [2][7]. - The company emphasizes inventory management to ensure timely delivery and revenue recognition, with inventory increasing to meet production needs [4][9]. Strategic Focus and Adjustments - The company has undergone personnel reductions and strategic refocusing towards more certain revenue-generating areas due to anticipated economic changes post-pandemic [7][13]. - The adjustment in focus has led to a shift in revenue structure, with data center and SMB businesses expected to drive future growth [7][14]. International Expansion and Future Plans - Ruijie Network has established a global presence since 2018, focusing on SMB products for international markets, with export growth rates exceeding 50% [10][11]. - Future international expansion plans include entering Southeast Asian markets for various product lines, including optical communication and financial technology [11][12]. AI Integration and Future Directions - The company recognizes AI's significant impact on future business, planning to develop infrastructure and applications in sectors like education, healthcare, and government [16][17]. - Specific initiatives include integrated machines for financial technology and partnerships with telecom operators to enhance computing efficiency [18][19]. Additional Important Insights - The company is exploring advanced technologies such as brain-computer interfaces and aims to create subscription-based services from AI-generated content in the metaverse [19][20]. - StarNet Ruijie's overall strategy focuses on providing high-quality solutions around AI applications across various industries, which is expected to enhance profitability and operational efficiency [20].

Summary of the Conference Call for Ruijie Networks Industry and Company Overview - **Company**: Ruijie Networks - **Focus**: Transitioning strategic focus towards the data center market, particularly in the internet sector, while facing potential declines in the operator market due to product strategy adjustments [2][6] Key Points and Arguments - **Market Growth**: The data center market is expected to maintain growth, with the overall data center market growing over 50% as per IDC reports [4] - **Product Segmentation**: - SMB products account for approximately 70% of overseas business - Campus and enterprise network products make up about 20% [2] - **Delivery Acceleration**: The acceleration in deliveries during Q2 2025 is attributed to the execution of contracts with ByteDance and Tencent from Q4 2024, rather than new capital expenditures [2][6] - **Profit Margins**: - The gross margin for 400G PH5 products is expected to return to 15%-20% - The overall gross margin for all internet data center products is around 20%-21% [2][9] - **AI and Cloud Computing**: The company is actively participating in the trend of increased computing power demand driven by domestic cloud vendors' self-developed chip architectures, focusing on AI Fabric and Scale-up solutions [2][10] Financial Performance - **Q1-Q2 2025 Performance**: - Data center switching business shows rapid growth - Network security business declined nearly 50% YoY in Q1, with a reduced decline in Q2 - Cloud desktop business also faced a decline, influenced by market conditions [4] - **Market Segmentation**: - Internet market growth exceeded 30% in Q1 and continued in Q2 - SMB market showed double-digit growth in H1 but slowed down due to international conditions [4] Future Outlook - **2025 Projections**: - The data center market is expected to maintain appropriate growth rates - The operator market is anticipated to decline due to strategic product focus changes [6] - **Product Development**: - The company has completed B20 adaptation and established interconnectivity with Ethernet switching devices in overseas data centers [12] - New product iterations are expected to support the next generation TH76, with stable pricing for white-box products [9] Additional Insights - **JDM Model**: The company has secured independent bids for intelligent computing R&D projects with major cloud vendors like Alibaba, Tencent, and ByteDance, indicating a strong market position [3][13] - **Product Structure**: - Current product shipment volume ranks 400G first, followed by 200G and 100G, with 800G being less common [14] - The transition from 400G to 800G is expected to accelerate significantly by mid-2026 [14] - **LPO Modules**: The company is expanding production capacity for LPO modules, with expected improvements by mid-2025 [15][16] Conclusion Ruijie Networks is strategically positioning itself in the growing data center market while navigating challenges in the operator sector. The focus on AI-driven solutions and partnerships with major cloud vendors highlights its commitment to innovation and market leadership. The company anticipates stable growth in its core business areas while adapting to emerging trends in technology and market demands.

通信 需求仍强劲，国产链再出发 20250624 摘要 AI 驱动算力需求激增，光模块用量环比增长 30%，AI 工具调用占比提 升至 30%，云厂商通过囤货和租赁保障算力，预计三季度后或有新的采 购方案，为国内产业链带来机遇。 国内光模块产业链受益于云厂商需求，如阿里巴巴大规模招标和 H 公司 增加高光模块配比订单，二线云厂商需求增加，自动驾驶等应用场景驱 动算力需求，预计下半年云厂商持续招标，国产厂商通过海外布局扩大 市场份额。 IDC 行业存量资产预计短期内消化，国产产业链超预期或改善行业情绪， CSP 大客户占比高及传统机柜无法满足需求加速 IDC 去化，IDC 运营行 业价格接近历史低点，供需结构失衡问题凸显，关注润泽科技等规模大、 贝塔属性强的标的。 算力租赁市场迎来布局时机，国内需求与产业紧密度相关，大厂资本开 支保持高位，AI 端侧需求增加将释放推理算力需求，Blackwell 芯片推 理能力更强，算力租赁成为大厂获取高端算力的重要途径，推荐具有稳 定芯片获取渠道公司。 Q&A 当前国内算力产业链的核心观点是什么？ 国内算力产业链在 2025 年第二季度的需求情况仍然非常强劲，相关主要公司 的 ...

Core Insights - The partnership between Ruijie Networks and AMD aims to address the increasing global demand for computing power and the acceleration of digital transformation in China [1][8] - The collaboration focuses on a dual-driven model of "computing architecture innovation and scenario innovation" to provide efficient solutions for key areas such as intelligent computing centers and cloud desktops [1][5] Group 1: Market Context - According to a report by IDC and Inspur, China's intelligent computing power is expected to reach 1037.3 EFLOPS by 2025, representing a 43% year-on-year growth, with an even higher growth rate of 74.1% anticipated for 2024 [1] - The increasing demand for computing power is driven by applications in generative AI and autonomous driving, making the integration of network infrastructure and computing capabilities a core issue for industrial intelligence [1] Group 2: Technical Collaboration - The fourth-generation AMD EPYC processors utilize a 5nm process with up to 96 cores and support for PCIe 5.0 and CXL 1.1 memory expansion, achieving a 2.7 times improvement in energy efficiency compared to previous generations [2] - The collaboration includes the development of a dual-A cloud desktop solution that reduces total cost of ownership (TCO) by 30% and an AI training cluster based on a Rack Scale architecture that supports 64 interconnected GPUs [5] Group 3: Product Features - Ruijie Networks has introduced intelligent gateways in the data center network field, integrating AMD processors to achieve deep collaboration between computing and networking [4] - The RG-CS7010 cloud server, equipped with dual EPYC processors, supports 128 physical cores and has improved virtualization performance by 200% compared to previous models, making it suitable for high-frequency interaction scenarios in education and healthcare [4] Group 4: Strategic Goals - The partnership aims to build a self-controlled computing ecosystem, leveraging Ruijie Networks' self-developed Rack Scale architecture compatible with domestic GPUs to create a differentiated competitive edge in AI training clusters [6] - The collaboration aligns with national strategies such as "East Data West Computing" and aims to meet the goal of achieving a Power Usage Effectiveness (PUE) of less than 1.25 for new data centers by 2025 [7] Group 5: Future Outlook - The companies plan to launch the next generation of EPYC processors based on the sixth-generation Zen6 architecture and Ruijie's next-generation intelligent switches by 2025, which will enhance computing density and network bandwidth [7] - This partnership represents a significant shift in industry logic, aiming to overcome traditional IT architecture performance bottlenecks through deep collaboration between computing and networking [7][8]

Event Overview - The 2025 MWC Shanghai Mobile Communication Conference will be held from June 18 to 20, 2025, serving as a key platform for showcasing the latest developments and strategies in the mobile industry in China and the Asia-Pacific region [1] - MWC is one of the largest and most influential exhibitions in the global mobile communication field, featuring leading companies, experts, government departments, and decision-makers [1] Key Themes and Agenda - The conference will focus on four main themes: Artificial Intelligence+, 5G Integration, Empowering Connectivity, and Industry Connectivity, with industry leaders delivering keynote speeches [1] - A detailed agenda includes various summits and sessions, such as the IoT Summit and Open Gateway Summit, scheduled throughout the event [2] Industry Growth Projections - According to the GSMA's report on the mobile economy in the Asia-Pacific region, the mobile industry is expected to contribute over $1 trillion by 2030, with growth rates in the region anticipated to exceed the global average due to the accelerated application of 5G technology [3] Historical Performance of Leading Companies - ZTE Corporation announced ten innovative products and solutions related to 5G-A during the MWC 2024, experiencing a continuous rise in stock prices before and during the conference [4] Participating Companies - Notable speakers at the conference will include executives from major companies such as Meige Intelligent, Unisoc, ZTE, China Mobile, and China Unicom, among others [6]

Investment Rating - The report maintains an "Overweight" rating for the telecommunications sector [10] Core Insights - The combined capital expenditure of BAT (Baidu, Alibaba, Tencent) for Q1 2025 reached 54.4 billion RMB, representing a year-on-year increase of 105% but a quarter-on-quarter decline of 23% [2][3][15] - The decline in capital expenditure is attributed to the impact of NVIDIA's H20 export restrictions, but the long-term growth trend in capital expenditure is expected to remain intact [2][3][17] - The report suggests focusing on domestic GPU capabilities and related supply chains, including optical modules, AIDC, switches, and copper connections, as they are likely to fill the demand gap created by the restrictions [2][3][17] Summary by Sections Market Overview - The telecommunications index fell by 2.31% last week, while the Shanghai Composite Index and Shenzhen Component Index decreased by 0.57% and 0.46%, respectively [2][14] Key Companies and Dynamics - The report highlights a positive outlook for the AI computing chain in the telecommunications industry for 2025, recommending companies such as Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, Taicheng Light, and Ruijie Network [4] - Core asset value reassessment is recommended for China Mobile, China Telecom, and China Unicom, along with a focus on new productivity in satellite internet, low-altitude economy, and deep-sea technology [4] Capital Expenditure Insights - In Q1 2025, Baidu, Alibaba, and Tencent's capital expenditures were 2.9 billion, 24 billion, and 27.5 billion RMB, respectively, with year-on-year growth rates of +42%, +136%, and +91% [3][15] - The report notes that the capital expenditure for Q1 is typically lower than that of Q4 in previous years, indicating a seasonal trend [17] Recommendations - The report recommends a focus on companies involved in the domestic GPU supply chain and related industries due to the anticipated growth in AI applications and infrastructure investments [2][3][17]

Core Points - The company has approved the 2024 annual profit distribution and capital reserve transfer plan at the shareholders' meeting held on May 21, 2025, which includes a cash dividend and a stock increase [1][2] - The total number of shares before the distribution is 568,181,818, and after the distribution, it will increase to 795,454,545 shares [2][4] Profit Distribution and Capital Increase - The profit distribution plan involves a cash dividend of 6.06 RMB per 10 shares (before tax), totaling 344,318,181.71 RMB [1][2] - Additionally, the company will increase capital by issuing 4 new shares for every 10 shares held [1][2] Key Dates - The record date for the distribution is June 3, 2025, and the ex-dividend date is June 4, 2025 [2] - The new shares will be listed on June 4, 2025 [2] Distribution Method - The distribution will be made to all shareholders registered with the China Securities Depository and Clearing Corporation Limited, Shenzhen Branch, as of the record date [2][5] - Any fractional shares will be allocated based on a sorting method until the total number of shares distributed matches the planned increase [2] Share Capital Changes - The total share capital will increase from 568,181,818 shares to 795,454,545 shares following the distribution [2][4] - The annual earnings per share is projected to be 0.7217 RMB [4]

一、股东大会审议通过利润分配及资本公积金转增股本方案的情况 1、公司 2024 年年度股东大会审议通过了 2024 年年度权益分派方案，具体 内容为：以 2024 年 12 月 31 日股份总数 568,181,818 股为基数，以未分配利润向 全体股东每 10 股派发现金股利 6.06 元（含税），共计派发现金股利 344,318,181.71 元（含税）；同时，以资本公积金向全体股东每 10 股转增 4 股，共计转增 227,272,727 股，本次转增后公司总股本将增加至 795,454,545 股（最终以中国 证券登记结算有限责任公司深圳分公司登记为准）。本次利润分配不送红股。本 次利润分配方案披露至实施期间，若公司总股本发生变化，公司将维持每股现金 分红和每股转增股份比例不变，相应调整现金分配总额和转增总额。 2、自本次利润分配方案披露至实施期间，公司总股本未发生变化。 证券代码：301165 证券简称：锐捷网络 公告编号：2025-023 锐捷网络股份有限公司 2024 年年度权益分派实施公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 锐捷网 ...

Core Viewpoint - The report highlights that Ruijie Networks is experiencing significant growth in its data center switch segment, driven by the domestic AI development, with a target price set at 94.99 yuan, reflecting a potential upside of 45% [1][2]. Group 1: Financial Performance - In 2024, the company is expected to achieve a revenue of 116.99 billion yuan, a year-on-year increase of 1.36%, with a gross margin of 38.62% [3]. - The net profit attributable to shareholders for 2024 is projected to be 5.74 billion yuan, representing a year-on-year growth of 43.09% [3]. - For Q1 2025, revenue is anticipated to reach 25.36 billion yuan, a year-on-year increase of 18.14%, with a net profit of 1.07 billion yuan, showing a remarkable year-on-year growth of 4543.67% [3]. Group 2: Market Position and Growth Drivers - The data center switch revenue is expected to reach 39.64 billion yuan in 2024, marking a substantial year-on-year growth of 120%, with the company achieving the top market share in the 200G/400G data center switch segment [4]. - The company has successfully expanded its international market presence, with overseas revenue reaching 18.69 billion yuan in 2024, a year-on-year increase of 52.72% [4]. - The company maintains a competitive edge in the domestic internet market for data center switches, holding the largest market share [4]. Group 3: Cost Management - The company has effectively controlled its expense ratios, leading to an upward adjustment in profit forecasts despite a downward revision in revenue expectations for certain business segments [2][3]. - The sales, management, financial, and R&D expense ratios for 2024 are reported as 15.51%, 5.50%, -0.12%, and 16.12%, respectively, with notable changes in comparison to the previous year [3].