Investment Rating - The report does not explicitly provide an investment rating for the industry [25]. Core Insights - Accelerating the development of digital RMB is a core path to respond to international monetary system competition and promote the internationalization of the RMB [2][7]. - The People's Bank of China (PBOC) has introduced a new action plan to strengthen the management service system and related financial infrastructure for digital RMB, with a new measurement framework and operational mechanism set to be implemented on January 1, 2026 [2][7]. - The digital RMB will transition from being classified as digital cash (M0) to a deposit liability of commercial banks (M1), allowing banks to pay interest to real-name customers and participate in monetary creation [7][8]. Summary by Sections Development Achievements and Challenges - Since the launch of the first pilot in 2019, digital RMB has expanded nationwide, with a cumulative transaction amount of 16.7 trillion yuan and 230 million personal wallets opened by the end of November 2025 [6]. - Challenges include the maturity of domestic third-party payment systems, which reduces public enthusiasm for using digital RMB, and the dual-layer operation system that limits commercial banks' incentives to promote digital RMB due to unequal responsibilities and benefits [6]. Policy Background for Digital RMB Upgrade - The recent upgrade of digital RMB is aimed at enhancing its monetary creation and interest-bearing functions, as highlighted by the PBOC's action plan [7]. - The current M0 scale is 13.74 trillion yuan, with digital RMB first included in M0 statistics in December 2022, showing a balance of 13.61 billion yuan at that time [7]. Transition from Cash to Deposit - The shift to a deposit model is expected to increase the holding willingness of customers if digital RMB can earn interest, thus boosting transaction volumes [8]. - For commercial banks, treating digital RMB as a stable deposit liability could enhance their willingness to promote it by allowing them to earn interest rate spreads [8]. Future Development Focus - Key areas to monitor include the formal release of the action plan detailing the measurement framework and management system for digital RMB [9]. - Cross-border payments are identified as a significant area for development, with ongoing efforts to enhance efficiency and reduce costs, including partnerships with countries along the Belt and Road Initiative [9]. Mixed Architecture Development Route - Unlike many overseas practices, the digital RMB adopts a mixed architecture of "account system + blockchain + smart contracts," balancing centralized management advantages with decentralized transparency [10].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Insights - On December 29, 2025, the company successfully delivered its first pure electric mining dump truck LK220E and signed a procurement contract for electric mining trucks with Tibet Giant Dragon Copper [2][4]. - The electric mining truck's total lifecycle cost is significantly better than traditional fuel mining trucks, helping reduce carbon emissions and operational costs for Zijin Mining [2]. - The company is entering a performance acceleration period in green electricity starting from Q2, with good sales in energy storage and stable flue gas order scale, while actively expanding into new areas such as sodium-ion batteries [2]. Summary by Relevant Sections Event Description - The first pure electric mining dump truck LK220E was delivered on December 29, 2025, and a procurement contract was signed with Tibet Giant Dragon Copper [4]. Business Performance - The electric mining truck can reduce carbon emissions by over 120 tons annually per unit and lower the cost per ton-kilometer by over 30% compared to traditional fuel trucks, providing both environmental and economic benefits [10]. - The green electricity business reported a net profit of nearly 170 million yuan in the first three quarters, with stable operations in various projects [10]. - The company has a stable order scale in flue gas treatment, with new orders amounting to 7.626 billion yuan in the first three quarters, showing a year-on-year increase of 1.09% [10]. Financial Forecast and Valuation - The company is expected to achieve net profits attributable to shareholders of 1.103 billion yuan, 1.408 billion yuan, and 1.705 billion yuan for the years 2025 to 2027, representing year-on-year growth rates of 32.8%, 27.7%, and 21.0% respectively [10]. - The corresponding PE valuations are projected to be 18.7x, 14.6x, and 12.1x for the same years [10].

Investment Rating - The report maintains a "Positive" investment rating for the heavy truck industry [3] Core Insights - The heavy truck industry continues to show high prosperity, driven by policies encouraging vehicle replacement and increasing demand for new energy vehicles [10][51] - The report highlights three main drivers of growth: low oil and gas price differentials, a surge in new energy vehicle sales due to year-end purchasing incentives, and strong export demand, particularly from Africa [30][48][71] Summary by Sections Overall Performance - In November 2025, wholesale heavy truck sales reached 113,000 units, a year-on-year increase of 65.3% and a month-on-month increase of 6.6% [10] - Heavy truck registration sales were 77,000 units, up 34.4% year-on-year and 9.4% month-on-month [10] - Heavy truck exports totaled 34,000 units, reflecting a year-on-year increase of 38.2% but a month-on-month decrease of 8.3% [10] Key Drivers - **Oil and Gas Price Differential**: The oil and gas price differential remains low, with liquefied natural gas priced at 4,213.7 RMB/ton and diesel at 6,883.8 RMB/ton, resulting in a differential of 2,670 RMB/ton [33] - **New Energy Vehicle Surge**: The new energy heavy truck registration reached 28,000 units in November 2025, marking a 192.6% increase year-on-year and a 40.8% increase month-on-month [51] - **Export Demand**: Heavy truck exports to Africa reached 14,111 units, a significant year-on-year increase of 99.7% [76] Market Segmentation - **By Purpose**: In November 2025, logistics vehicle registration was 60,000 units, up 39.7% year-on-year, while engineering vehicle registration was 17,000 units, up 18.6% year-on-year [13][23] - **By Energy Type**: Natural gas heavy truck registrations were 19,000 units, up 70.7% year-on-year, while new energy heavy trucks accounted for 28,000 units, with a penetration rate of 36.4% [51][38] Company Performance - The top three heavy truck manufacturers in November 2025 were China National Heavy Duty Truck Group, FAW Group, and Dongfeng Motor, with sales of 29,000, 24,000, and 17,000 units respectively [13][27] - The market shares for these companies were 25.5%, 21.0%, and 15.2%, showing varying changes compared to the previous year [27] Inventory Trends - Both enterprises and channels are increasing inventory levels, with a slight rise in inventory by 0.1 thousand units for enterprises and 0.3 thousand units for channels in November 2025 [14]

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - Leap Motor plans to issue 74.832 million domestic shares to FAW at a price of HKD 50.03 per share, totaling HKD 3.744 billion. Approximately 50% of the funds will be allocated for R&D, 25% for operational capital, and 25% for expanding sales and service networks [2][4][6]. - The company is expected to benefit from a strong domestic new car cycle, driving continuous sales growth, while its partnership with Stellantis will facilitate a light-asset overseas expansion, enhancing global sales potential [4][6]. - The projected net profits for Leap Motor from 2025 to 2027 are estimated at CNY 6.3 billion, CNY 5.0 billion, and CNY 8.37 billion, with corresponding P/E ratios of 102.5X, 13.0X, and 7.7X [4]. Summary by Relevant Sections Domestic Market - The company leverages its technological foundation to create a strong price-performance ratio, which is expected to enhance sales during the ongoing new car cycle. Scale effects and product structure optimization are anticipated to improve profitability [4][6]. Overseas Market - The collaboration with Stellantis, the fourth-largest automotive group globally, allows Leap Motor to utilize Stellantis's extensive sales and after-sales network and production capacity for a rapid and flexible overseas expansion. This partnership is expected to yield significant profit contributions from high single-vehicle profitability [4][6]. Product Development and Sales Network - Leap Motor plans to launch 2-3 new products globally each year over the next three years, with several models already introduced in 2025. The company has established a robust domestic sales network with 866 sales outlets across 292 cities and has expanded its international presence with over 700 sales and service points in approximately 30 international markets [6].

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [11]. Core Insights - The company focuses on the overseas transformer market, benefiting from significant advantages in product technology, overseas production capacity, and downstream customer relationships. Given the current tight supply of transformers abroad and the anticipated widening supply gap due to AI development, the company is expected to benefit from this trend, with an increasing proportion of overseas customers driving operational growth. A turning point in operations has already been observed [2][9]. Summary by Sections Overall Business Focus - The company has accelerated its business expansion since its IPO in 2017, focusing on digital transformation and expanding production bases both domestically and internationally. The core business has shifted towards energy products, particularly transformers, which are expected to see a significant increase in revenue share from 56% in 2021 to 73% in 2024 [5][25][20]. Main Business: North America Focus - The company has strategically positioned itself in the North American market, where the construction speed of power supply and grid infrastructure does not match the rapid development of AI data centers, leading to potential electricity shortages. The company has established a competitive edge in overseas production capacity and customer relationships, with plans for production bases in Malaysia, Thailand, the USA, and Mexico [6][74][82]. New Business Ventures - The company is actively developing new areas in AIDC high-voltage direct current power products, particularly in Panama, where it has established a leading position in phase-shifting transformer technology. This segment is expected to contribute additional growth if successful [8][91][107]. Investment Recommendations - The report anticipates that the company's net profit attributable to shareholders will reach 500 million yuan by 2026, corresponding to a PE ratio of approximately 28 times. The ongoing tight supply of transformers and the expected increase in overseas customer share are expected to enhance profit growth elasticity [9][12].

1. Report's Investment Rating for the Industry - The provided content does not mention the industry investment rating. 2. Core Views of the Report - Driven by policies and growth logic, the commercial space sector has recently gained momentum. Since late November, the sector's convertible bonds have shown a pattern of premium compression followed by price increases. The current valuation is high but the equity nature has strengthened, and the short - term forced redemption pressure may be relatively small [6][11]. - A - shares strengthened overall during the week, with the ChiNext and small - and medium - cap styles outperforming. Cyclical manufacturing sectors such as non - ferrous metals and defense industries led the gains, and the sector congestion showed a differentiated pattern [6][11]. - The convertible bond market also strengthened overall, with small - cap indices outperforming large - cap ones. Valuations were differentiated, and the implied volatility and median price remained at high levels. Structurally, cyclical manufacturing sectors performed well, and some high - premium convertible bonds had significant price increases [6][11]. - The primary market issuance was stable with sufficient reserves. Clause games were the current focus, with issuers having a weak willingness to lower the conversion price while the redemption game intensified. Attention should be paid to the valuation adjustment under emotional disturbances [6][11]. 3. Summary by Relevant Catalogs 3.1 Market Theme Weekly Review - During the week from December 21 to December 27, 2025, the equity market strengthened overall. The lithium - battery and commercial space sectors were strong. In the lithium - battery sector, the lithium - battery electrolyte, lithium hexafluorophosphate, lithium - ore, and power - battery indices performed well. In the commercial space sector, the aerospace technology, commercial space, and satellite - internet indices led the gains [24]. 3.2 Market Weekly Tracking 3.2.1 Main Indices Strengthened, Small - and Medium - Cap Performed Well - A - share main indices strengthened during the week, with the ChiNext Index performing strongly among the three major indices. In terms of style, the CSI 500 and CSI 2000 indices outperformed other major size indices [26]. - In terms of capital, the net outflow of the market's main funds converged. The average daily trading volume in the market recovered, and the net outflow of main funds slightly decreased. Main funds showed a net inflow on Monday and Wednesday [26]. - Cyclical manufacturing sectors in the A - share market were strong. Non - ferrous metals, defense industries, power equipment, and machinery sectors led the gains, while banks and coal sectors were relatively weak [29]. - In terms of trading volume, funds mainly concentrated in the electronics, power equipment, and machinery sectors. The average daily trading volume of the electronics sector accounted for over 15% [31]. - The market sector congestion was significantly differentiated. The congestion in the electronics, power equipment, non - ferrous metals, machinery, and defense industries sectors recovered, while that in the social services, beauty care, and food and beverage sectors decreased [33]. 3.2.2 Convertible Bond Market Strengthened Overall, Small - Cap Indices Performed Well - The convertible bond market strengthened from December 21 to 27, 2025. The CSI Convertible Bond Index rose, with small - cap convertible bond indices outperforming large - cap ones. The trading volume recovered, and the average daily trading volume exceeded 80 billion yuan [34]. - Valuations in the convertible bond market were differentiated. By conversion parity range, the conversion premium rate in the 140 - 150 yuan parity range expanded significantly, while those in the 130 - 140 yuan and 100 - 110 yuan ranges compressed significantly. By market price range, the conversion premium rate only expanded significantly in the 100 - 110 yuan and 130 - 140 yuan ranges, and compressed significantly in the 120 - 130 yuan and over 150 yuan ranges [37]. - The weighted implied volatility of the convertible bond market balance strengthened with fluctuations during the week, remaining at a historically high level. The median market price of convertible bonds also strengthened slightly with fluctuations and remained at a high historical level [40]. - Convertible bonds in cyclical manufacturing sectors were more elastic. Defense industries, non - ferrous metals, light manufacturing, and petroleum and petrochemical sectors led the gains. In terms of trading volume, the construction materials, electronics, and light manufacturing sectors accounted for over 10% each [44]. - Most individual convertible bonds recovered during the week. The number of convertible bonds with a range increase of 0 or more was 338, accounting for 84.7% of all outstanding convertible bonds in the market. The top five convertible bonds in terms of cross - week gains during the conversion period were Jiamei Convertible Bond, Zai 22 Convertible Bond, Mengsheng Convertible Bond, Guanglian Convertible Bond, and Huayi Convertible Bond, while the bottom five were Yingte Convertible Bond, Furong Convertible Bond, Xinzhi Convertible Bond, Huati Convertible Bond, and Saili Convertible Bond. The top five gainers generally had a relatively high conversion premium rate [46]. 3.3 Convertible Bond Issuance and Clause Tracking 3.3.1 Primary Market Issuance Plan Update - During the week from December 21 to 27, 2025, one convertible bond was listed (Pulian Convertible Bond), and two were available for subscription (Jin 05 Convertible Bond and Shuangle Convertible Bond). Jin 05 Convertible Bond's issuer is Jinpan Technology, in the power equipment industry, with a latest debt rating of AA+ and an issuance scale of 1.67 billion yuan. Shuangle Convertible Bond's issuer is Shuangle Co., Ltd., in the basic chemicals industry, with a latest debt rating of AA - and an issuance scale of 800 million yuan [50]. - Seven listed companies updated their convertible bond issuance plans during the week, including three at the exchange acceptance stage, one at the general meeting of shareholders approval stage, and three at the board of directors' proposal stage. The total disclosed scale of projects at and after the exchange acceptance stage was 75.74 billion yuan [51][52]. 3.3.2 Clause - Related Announcements - **Lowering the Conversion Price**: Six convertible bonds issued announcements of expected triggering of a lower conversion price, with a market - value - weighted average PB of the underlying stocks of 4.1; five convertible bonds announced not to lower the conversion price, with a market - value - weighted average PB of the underlying stocks of 1.4; no convertible bonds proposed to lower the conversion price [59]. - **Redemption**: Two convertible bonds announced expected triggering of redemption; four announced not to redeem in advance; four announced early redemption [60].

Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Insights - MiniMax and Zhipu have passed the Hong Kong Stock Exchange hearing, indicating a continuous acceleration in the capitalization process of Chinese large model enterprises. Zhipu's foundational model performance is leading, with GLM-4.7 topping the global open-source rankings. The AI model product matrix is complete, and the MaaS platform is progressing well in commercialization. MiniMax is actively laying out AI application segments, with its visual generation platform Hailuo AI and multimodal interaction platform Talkie/Xingye showing active performance, suggesting a promising acceleration in commercialization [2][4][10]. Summary by Sections Event Description - MiniMax and Zhipu have passed the Hong Kong Stock Exchange hearing, indicating a continuous acceleration in the capitalization process of Chinese large model enterprises [4]. Event Commentary - Zhipu's GLM-4.7 model, launched in December 2025, has enhanced coding capabilities and ranks first in both open-source and domestic models with a score of 68 on the Artificial Analysis Intelligence Index. Zhipu's revenue from 2022 to 2024 shows a compound annual growth rate of 130%, with revenue reaching 1.91 billion yuan in the first half of 2025. MiniMax's model matrix includes the MiniMax M series and Hailuo-02 series, with the MiniMax M.2.1 model achieving a score of 49.4% on the Multi-SWE-bench ranking. MiniMax's AI applications have served over 200 million individual users and 100,000 enterprises across more than 100 countries, with significant growth in user spending on its services [10][10][10]. Investment Opportunities - The report highlights several promising segments: 1) The monetization potential of AI interaction products, focusing on leading tool-based companies like Kuaishou [2] 2) Internet giants with advantages in traffic, models, and data [2] 3) Vertical segments such as advertising, e-commerce, and education that have successfully established business models overseas and are expected to replicate domestically [2] 4) AI+ gaming companies that are actively deploying AI [2]

Investment Rating - The industry investment rating is "Positive" and maintained [6] Core Insights - The People's Bank of China has introduced an action plan to enhance the management and service system of digital RMB, marking a transition from the era of digital cash to digital deposit currency starting January 1, 2026 [2][4] - The digital RMB aims to replace physical cash in retail transactions and is designed to maintain the automatic settlement and anonymity features of cash while achieving low-cost and high-efficiency electronic payments [11] - As of November 2025, the digital RMB has processed 3.48 billion transactions with a total transaction amount of 16.7 trillion yuan, indicating significant adoption and usage [11] Summary by Sections Event Description - The People's Bank of China announced a new framework for digital RMB management, which will officially launch on January 1, 2026 [4] Policy Changes - Key policy changes include: 1. Starting January 1, 2026, digital RMB wallet balances will earn interest 2. Digital RMB will transition from 100% reserve to partial reserve for bank-operated institutions 3. Non-bank payment institutions will implement 100% digital RMB collateral [11] Market Performance - The digital RMB has shown strong market performance with significant transaction volumes and wallet openings, indicating a robust growth trajectory in the digital currency space [11]

Investment Rating - The report maintains a "Positive" investment rating for the gaming sector [6]. Core Insights - The number of game approvals in December reached a multi-year high, with significant titles from companies like Tencent, Kaiying, and 37 Interactive Entertainment receiving approval. The total number of game approvals for 2025 is expected to reach 1,771, a 25% increase from 2024, marking the highest number since 2019 [2][4][9]. - The report highlights a new product cycle for listed companies, with several key new games set to launch, suggesting continued investment opportunities in the gaming sector [2][4][9]. Summary by Sections Game Approval Highlights - In December, 147 game approvals were issued, including 144 domestic and 3 imported games. The total for 2025 is projected to be 1,771, with 1,676 domestic and 95 imported games, reflecting a stable approval rhythm [9]. - The pace of imported game approvals has accelerated, with monthly approvals starting from October 2024, averaging around 100 approvals annually over the past three years [9]. New Game Launches - Several companies are advancing their key new games, indicating the onset of a new product cycle. Notable launches include Giant Network's "Supernatural Action Group" and Tencent's "Counter-Strike: Future," among others [9]. - The report lists several companies to watch for investment opportunities, including Giant Network, Kaiying, Perfect World, 37 Interactive Entertainment, and Tencent [9].

Investment Rating - The report maintains a "Positive" investment rating for the communication industry [10]. Core Insights - The communication sector saw a 4.21% increase in the 52nd week of 2025, ranking 8th among major industries in the Yangtze River region. Year-to-date, the sector has risen by 87.14%, ranking 1st [2][4]. - Nvidia has entered a non-exclusive licensing agreement with AI inference chip leader Groq, with a transaction value of $20 billion, significantly above Groq's September valuation of $6.9 billion. This acquisition enhances Nvidia's capabilities in inference processing [5]. - Alibaba's Tongyi Laboratory has launched a self-developed layered architecture image model, Qwen-Image-Layered, which optimizes computing power and enables precise image editing, facilitating the international expansion of domestic multimodal large models [6]. - The Long March 12 rocket successfully completed its first flight, marking a milestone for China's commercial aerospace sector, with new regulations facilitating the listing of rocket companies on the Sci-Tech Innovation Board [7]. Summary by Sections Market Performance - In the 52nd week of 2025, the communication sector increased by 4.21%, with a year-to-date rise of 87.14%, leading among major industries [2][4]. - Top gainers in the sector include Tongyu Communication (+30.7%), Yongding Co. (+28.1%), and Beidou Star (+27.3%), while China Telecom (-5.3%), Dekeli (-3.6%), and Shijia Photon (-3.6%) faced declines [4]. Key Developments - Nvidia's acquisition of Groq focuses on Groq's LPU architecture, which uses on-chip SRAM to enhance memory access speed, improving the overall inference processing ecosystem [5]. - Alibaba's Qwen-Image-Layered model breaks traditional diffusion model limitations, achieving element-level decoupling and precise editing, thus supporting the export of domestic multimodal models [6]. - The successful flight of the Long March 12 rocket represents a significant advancement in commercial aerospace, with new guidelines supporting the listing of rocket companies [7]. Investment Recommendations - Recommended operators include China Mobile, China Telecom, and China Unicom. - For optical modules, recommended companies are Zhongji Xuchuang, Xinyi Sheng, Tianfu Communication, and Shijia Photon, with attention to Taicheng Light and Yuanjie Technology. - In liquid cooling, the recommendation is for Yingweike, while for hollow core fibers, Fenghuo Communication, Hengtong Optic-Electric, and Zhongtian Technology are suggested, with a focus on Changfei Optical Fiber. - For domestic computing power, recommended companies include Runze Technology, Guanghuan New Network, Aofei Data, Huafeng Technology, Guangxun Technology, ZTE, and Unisplendour. - In AI applications, recommended firms are Boshi Jie, Heertai, Tuobang Co., Yiyuan Communication, Meige Intelligent, and Guanghetong. - For satellite applications, recommended companies include Huace Navigation, Haige Communication, and Canqin Technology [8].