Group 1 - The first batch of L3 level autonomous driving vehicle access permits has been approved in China, marking a significant step towards commercial application in the industry. Two models will be tested in designated areas in Beijing and Chongqing, with specific speed capabilities of 50 km/h and 80 km/h respectively [11][12][18]. - There are 31 automotive-related companies listed on the North Exchange, with a total market value of 81.626 billion yuan as of December 19, 2025. Key companies include Aodiwei, Huanxin Technology, and others [18][20]. - Aodiwei has developed a new generation of AKII vehicle-mounted ultrasonic sensors, which have been delivered in bulk to both joint venture and domestic brands. The company reported a revenue of 502 million yuan for the first three quarters of 2025, with a year-on-year growth of 12.31% [25][27]. Group 2 - The five major industries on the North Exchange, including high-end equipment, information technology, chemical new materials, consumer services, and pharmaceutical biology, all experienced average gains in the week of December 15 to December 19, 2025, with consumer services leading at +4.75% [2][33]. - The average price-to-earnings (PE) ratio for the high-end equipment industry rose to 36.9X, while the information technology sector reached 68.6X, indicating a positive trend in investor sentiment [2][35]. - The technology sector, comprising 154 companies, saw a median price increase of 1.61% during the same period, with notable performers including Tianli Composite and Huanxin Technology, which rose by 41.42% and 40.59% respectively [3][46]. Group 3 - The median PE ratio for the electronic industry increased to 48.6X, while the automotive sector's median PE ratio rose to 34.2X, reflecting a growing valuation in these sectors [3][63][66]. - Huanxin Technology, a provider of integrated solutions for smart cities, has signed a cooperation agreement with Huawei for comprehensive collaboration in smart connected vehicles and V2X infrastructure [28][30]. - The total market value of companies in the smart city and smart transportation sectors reached 21.592 billion yuan, with eight companies listed in this category [24].

Group 1 - The core viewpoint of the report indicates that the leading carbon fiber companies are raising prices, with high-end product demand expected to recover first. Toray announced a price increase of 10%-20% for its TORAYCA™ carbon fiber products starting January 2026, while Jilin Chemical Fiber plans to raise prices by 5,000 RMB and 10,000 RMB per ton for its 12TK and 3K carbon fibers respectively, also effective January 2026 [1][10] - The current carbon fiber market shows a clear differentiation, with general and large tow products facing strong competition, while high-performance products have stabilized in price, with some specifications experiencing tight supply and demand [1][10] - The report highlights that the carbon fiber industry in China is expected to continue expanding, with production capacity projected to reach 135,500 tons by 2024, and a production volume of approximately 59,000 tons, reflecting an 8.2% year-on-year growth [16][17] Group 2 - The report notes that the chemical new materials sector on the North Exchange has seen a weekly increase of 2.53%, with the metal new materials segment performing particularly well, rising by 11.31% [3][30] - Jilin Carbon Valley has established itself as a major player in the carbon fiber market, with a full range of products from small to large tow fibers, and has achieved stable large-scale production of high-quality products [2][27] - The report provides insights into the performance of individual stocks within the chemical new materials sector, with notable increases in stock prices for Tianli Composite (+41.42%), Jilin Carbon Valley (+9.17%), and others [34][37] Group 3 - The report includes a detailed analysis of chemical product price trends, highlighting fluctuations in prices for various materials such as MDI, TDI, and natural rubber, with MDI priced at 18,900 RMB per ton and TDI at 14,800 RMB per ton [38] - The carbon fiber demand distribution in China for 2023 shows that the top three application areas are sports and leisure (26.1%), wind power blades (24.6%), and aerospace and military (11.6%) [20][21] - The report emphasizes the strategic investments by companies like Hechang Polymer, which aims to enhance resource integration and business synergy through the introduction of strategic investors [4][66]

Group 1 - The brain-computer interface (BCI) is recognized as a future industry in China's 14th Five-Year Plan, with policies aimed at fostering its development, including a target for core technology breakthroughs by 2027 and achieving global leadership by 2030 [3][12][16] - The global BCI market was valued at $1.5 billion in 2021 and is projected to reach $3.3 billion by 2027, while the domestic market is expected to grow from 3.2 billion yuan in 2024 to 4.6 billion yuan by 2026, reflecting an 18.81% year-on-year growth in 2024 [3][17][19] - Non-invasive BCIs dominate the market, accounting for 86% of the total, with medical applications being the primary focus, representing 56% of the downstream enterprises [18][23][25] Group 2 - The 2024 national pharmaceutical circulation market is projected to reach 2.947 trillion yuan, with the wholesale market accounting for 77.94% of total sales, and the retail market contributing 22.06% [4][40][46] - The pharmaceutical distribution industry is characterized by a continuous optimization of structure, enhanced professional service capabilities, and a growing focus on health services, driven by aging populations and increased health awareness [52][53] - The North Exchange has 11 listed companies related to pharmaceuticals, with significant profit margins reported, including companies like Deyuan Pharmaceutical and Xinghao Pharmaceutical, which have shown substantial growth in net profits [4][51][68] Group 3 - The North Exchange's pharmaceutical and biotechnology sector saw a weekly increase of 1.91%, with medical devices leading the growth at 6%, while 80.95% of the sector's stocks experienced an increase in market value [5][58][61] - Notable stock performances include Lude Medical and Beiyikang, which saw weekly increases of 20.61% and 10.46%, respectively, indicating strong market interest in these companies [5][67] - As of December 19, 2025, there are 13 pharmaceutical and biotechnology companies queued for listing on the North Exchange, with an average revenue of 382 million yuan and net profits exceeding 100 million yuan for several firms [68][69]

Investment Rating - The investment rating for the retail industry is "Positive" (maintained) [1] Core Insights - The retail industry index rose by 6.66% in the week of December 15-19, 2025, outperforming the Shanghai Composite Index by 6.63 percentage points, ranking first among 31 primary industries [6][15] - The launch of the Hainan Free Trade Port has shown promising initial results, with duty-free sales reaching 118 million yuan on the first day and a significant increase in the number of zero-tariff goods [4][25][26] - The report emphasizes the importance of consumer sentiment and the potential for high-growth sectors within the retail space, particularly in jewelry, offline retail, cosmetics, and medical aesthetics [7][30][31] Summary by Sections Retail Market Review - The retail industry index closed at 2458.79 points, with a weekly increase of 6.66% [6][15] - The supermarket sector saw the highest weekly increase of 14.18%, while the commercial property sector led with a year-to-date increase of 22.51% [17][19] Industry Dynamics - The Hainan Free Trade Port officially commenced operations on December 18, 2025, with a focus on "one line open, two lines controlled, and free trade within the island" [4][25] - The proportion of zero-tariff goods increased from 21% to 74%, covering approximately 6,600 items, which is expected to reduce import tax burdens by about 20% for related enterprises [26][25] Investment Themes - Investment Theme 1: Focus on high-end jewelry brands with differentiated product offerings, recommending companies like Chow Tai Fook and Lao Pu Gold [7][30] - Investment Theme 2: Emphasize offline retail companies adapting to trends and AI-enabled cross-border e-commerce leaders, recommending Yonghui Supermarket and Aiying Room [7][30] - Investment Theme 3: Highlight domestic cosmetics brands that meet emotional value and safety ingredient innovations, recommending brands like Maogeping and Proya [7][31] - Investment Theme 4: Focus on differentiated medical aesthetics product manufacturers and leading chain medical institutions, recommending Aimeike and Kedi-B [7][31] Company-Specific Insights - Chow Tai Fook reported a revenue of 38.986 billion HKD for FY2026H1, with a slight decline of 1.1% year-on-year, while net profit increased by 0.1% [37] - Lao Pu Gold achieved a revenue of 12.354 billion HKD for FY2025H1, marking a significant increase of 250.9% year-on-year, with net profit rising by 285.8% [36] - Yonghui Supermarket's revenue for the first three quarters of 2025 was 42.434 billion yuan, down 22.2% year-on-year, with net profit showing a significant loss [44]

Investment Rating - Industry investment rating: Positive (maintained) [1] Core Views - The report highlights the potential recovery in fiber optic cable prices driven by increased demand from AI applications and the acceleration of domestic AI bidding processes [6][19] - The AI ecosystem is continuously evolving, with significant advancements in models and infrastructure, particularly from major players like ByteDance and Google [15][16] - The demand for fiber optic cables is expected to rise due to the increasing requirements for internal network connectivity in AI model training and application deployment [18] Summary by Sections 1. Weekly Investment Insights - The opening of the Volcano Engine FORCE conference showcased advancements in AI agent technology and cloud-native architecture [13] - The daily token usage of the Doubao model has surpassed 50 trillion, indicating rapid industry adoption [15] - Google is enhancing its AI ecosystem, with new TPU chips expected to drive demand for liquid cooling solutions [16] - Companies are increasingly interested in renting TPU chips, which will further stimulate ASIC demand [17] - AI is driving the demand for fiber optic cables, with prices expected to recover [18] - Investment recommendations focus on key sectors such as optical networks, liquid cooling, and domestic computing power [19] 2. Communication Data Tracking - As of October 2025, the total number of 5G base stations in China reached 4.758 million, with a net increase of 507,000 from the end of 2024 [28] - The number of 5G mobile phone users reached 1.184 billion, reflecting a year-on-year growth of 18.99% [28] - The shipment of 5G mobile phones in September 2025 was 24.106 million units, representing an 8.02% year-on-year increase [28] 3. Operator Performance - The revenue from cloud services for major operators showed strong growth, with China Mobile's cloud revenue reaching 56.1 billion yuan, up 11.3% year-on-year [47] - China Telecom's cloud revenue for the first half of 2025 was 57.3 billion yuan, a 3.8% increase [47] - The ARPU values for major operators remained stable, with slight decreases noted for China Unicom [47][52]

Report Information - Report Date: December 19, 2025 [1] - Report Title: 2025 November Fiscal Data Review - Research Team: Fixed Income Research Team [2] - Analysts: Chen Xi, Wang Shuaizhong [3] - Event: The Ministry of Finance announced the fiscal data for November 2025 [4] Industry Investment Rating - Not provided in the report Core Viewpoints - In 2025 H2, the economic growth rate may not decline significantly [8] - Structural issues such as prices are expected to improve trend - wise [8] - The bond - stock allocation continues to shift, and bond yields are expected to rise continuously [8] Summary by Relevant Catalog 11 - month Fiscal Data Focus - Tax revenue continued positive growth, and the decline of non - tax revenue narrowed. In November, tax revenue increased by 2.8% year - on - year, and has maintained positive growth for 8 consecutive months. The decline of corporate income tax and individual income tax in November may be the main reason for the slowdown in tax revenue growth. The securities trading stamp tax increased by 2.3% year - on - year in November, with a slower growth rate. The importance of investing in people is highlighted, and attention should be paid to fiscal expenditures in related industries. [5] - The decline in land transfer income continued to drag down government fund revenue. From January to November, government fund revenue decreased by 4.9% year - on - year, with land transfer income down 10.7%. The real estate market is in a transition period, and the ebb of land finance may still drag down government fund revenue. [5] - Government fund expenditures turned positive year - on - year in November, reaching 2.8%, up 41 pct from October. Central government fund expenditures increased significantly to 31.5%, up 25.2 pct from the previous value. In October, the central government allocated 500 billion yuan from the local government debt balance limit. The issuance of new special bonds accelerated in November, and the issuance progress reached 101.3% by the end of November, up 11.2 pct from October. [6] General Public Budget - **Income**: In November, general public budget income decreased by 0.02% year - on - year. Central income decreased by 4.2% year - on - year, while local income increased by 4.1%. Tax revenue items such as foreign - trade enterprise export tax rebates, property tax, deed tax, land value - added tax, urban land use tax, and environmental protection tax increased compared with October. Non - tax revenue decreased by 10.8% year - on - year. [7] - **Expenditure**: In November, general public budget expenditure decreased by 3.7% year - on - year. Central expenditure increased by 4.9% year - on - year, and local expenditure decreased by 5.1%. Infrastructure expenditure items such as urban and rural community affairs and agriculture, forestry, and water affairs decreased year - on - year, and the increase in central expenditure drove the year - on - year increase in fiscal expenditure in November compared with the previous value. [7] Government Fund Budget - **Income**: In November, government fund income decreased by 15.8% year - on - year. Central income decreased by 9.1% year - on - year, and local income decreased by 16.1%. Land transfer income decreased by 26.8% year - on - year. [7] - **Expenditure**: In November, government fund expenditure increased by 2.8% year - on - year. Central expenditure increased by 31.5% year - on - year, and local expenditure increased by 1.7%. Land transfer expenditures decreased by 7.5% year - on - year. The growth rate of government fund expenditures in November increased compared with October. [7] Bond Market Viewpoint - With the revision of economic expectations, bond yields are expected to rise trend - wise [8]

Group 1: Inflation Overview - The U.S. November CPI increased by 2.7% year-on-year, while core CPI rose by 2.6%, both below market expectations[2] - Overall inflation shows a significant downward trend, with November CPI down 0.3 percentage points from September, and core CPI down 0.4 percentage points[3] - Core service inflation is a key driver of the overall inflation decline, with a notable decrease in core service inflation contributing to the unexpected drop in CPI[4] Group 2: Energy and Food Inflation - Energy prices rose by 4.2% year-on-year in November, an increase of 1.4 percentage points from September, while food prices increased by 2.6%, down 0.5 percentage points from September[4] - Core goods inflation showed a slight decline, with core goods year-on-year growth decreasing by 0.15 percentage points compared to September[4] - The significant drop in core service inflation, particularly in housing, is a major factor in the overall CPI decline[21] Group 3: Future Inflation Trends - Inflation levels are expected to continue declining, with core inflation remaining a critical factor; the super core service inflation (excluding housing) decreased to 2.7% year-on-year in November[5] - The high base in December 2024 may lead to further declines in overall inflation levels, with core inflation potentially stabilizing or decreasing[5] - The uncertainty remains regarding whether businesses will raise prices in 2026 as the Fed's rate cuts begin to support the economy[5] Group 4: Federal Reserve Implications - The importance of inflation risk in Federal Reserve decision-making may decrease, as inflation trends show a clear downward trajectory and public inflation expectations are also declining[5] - Despite the decline in inflation, the Fed is unlikely to implement significant rate cuts in the short term, as inflation may not reach the 2% target until 2027[6] - The Fed is expected to monitor economic conditions closely, with a potential for 1-2 rate cuts in 2026, primarily in the second half of the year[6]

Investment Rating - The investment rating for the company is upgraded to "Outperform" [1][6] Core Insights - The company reported a revenue of 569 million yuan for Q1-Q3 2025, representing a year-on-year growth of 30.49%. The net profit attributable to shareholders was 62.34 million yuan, with a slight increase of 0.46% year-on-year [3] - The growth in revenue is primarily driven by the increase in both volume and price of konjac powder products, as well as the rising sales of konjac food products. The company is transitioning from a raw material manufacturer to an application service provider, with R&D expenses increasing by 31.01% year-on-year [3][4] - The market for konjac deep-processing products has been expanding, with a compound annual growth rate of 26% over the past decade. There is significant potential for market expansion as consumer demand for healthy foods increases [4] Financial Summary - Revenue projections for the company are as follows: 798 million yuan in 2025, 983 million yuan in 2026, and 1.227 billion yuan in 2027, with year-on-year growth rates of 29.4%, 23.3%, and 24.8% respectively [5][9] - The net profit attributable to shareholders is expected to be 90 million yuan in 2025, 110 million yuan in 2026, and 134 million yuan in 2027, with growth rates of 3.9%, 21.9%, and 22.0% respectively [5][9] - The company's gross margin is projected to be 23.6% in 2025, with a net margin of 11.3% [9]

Core Insights - The report highlights a significant recovery in government fund expenditures, indicating a potential boost to the macroeconomic environment [3][4] - The banking sector is experiencing a trend of deposit migration from smaller banks to larger ones, reflecting changing consumer preferences and market conditions [23][24] - The report emphasizes the positive outlook for the non-bank financial sector, particularly with the merger of China International Capital Corporation (CICC) and other securities firms, which is expected to enhance their competitive position [30][31] Macroeconomic Overview - In November, the national general public budget revenue was 1.4026 trillion yuan, while expenditures reached 2.2713 trillion yuan, indicating a fiscal deficit [3] - Tax revenue growth is slowing, with a year-on-year increase of only 2.8% in November, down from 8.6% previously, suggesting economic pressures [4] - Government fund income decreased by 15.8% year-on-year, but expenditures surged by 41% to 1.1232 trillion yuan, indicating a strategic push to stimulate the economy [4][5] Banking Sector Analysis - The report notes a decline in non-bank deposits by 83.3 billion yuan in November, suggesting a shift in consumer behavior towards larger banks [23] - Smaller banks saw a year-on-year decrease in savings deposits, while larger banks experienced an increase, indicating a trend of deposit consolidation [24] - The report anticipates that the credit demand will continue to slow, particularly in consumer lending, as banks adjust to market conditions [24][27] Non-Bank Financial Sector Insights - The merger of CICC with Dongxing Securities and Xinda Securities is expected to significantly enhance CICC's net assets and market position [30][31] - The report forecasts a robust growth in CICC's net profit, projecting increases of 83%, 35%, and 20% for the years 2025 to 2027, respectively [31] - The merger is anticipated to improve capital efficiency and expand CICC's wealth management and investment banking capabilities [33] Industry Trends - The report identifies a recovery in the offline IPO market, with significant improvements in new share issuance and investor returns [14] - The "merger six guidelines" have led to a notable increase in merger and acquisition activities, particularly in the technology sector [15] - The report highlights a growing interest in sectors such as textiles, automotive, and steel, as indicated by increased institutional research activity [8][9]

Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The report highlights the continuous improvement of Google's AI ecosystem, with the release of TPUv7 Ironwood and Gemini 3 series models, which are expected to drive demand for liquid cooling solutions and enhance market expansion [3][4] - There is a strong demand for TPU, with companies like Anthropic and Meta planning to rent TPU chips from Google, indicating a significant market opportunity [4] - The AI sector is expected to boost the demand for optical fibers and cables, leading to a potential price recovery in this segment [5] - The report emphasizes three core investment themes: "Optical, Liquid Cooling, and Domestic Computing Power," while also highlighting opportunities in satellite and edge AI [6] Summary by Sections Industry Overview - The report indicates a positive outlook for the industry, with a focus on the advancements in AI technology and its implications for related sectors [1] Market Trends - The demand for TPU is increasing, with notable partnerships and rental agreements being established, which will likely enhance ASIC demand [4] - The AI-driven growth is expected to elevate the usage of optical fibers and cables, particularly in data center interconnects and metropolitan area networks [5] Investment Recommendations - Recommended stocks include Invec (leader in liquid cooling solutions), with beneficiaries such as Feilong Co., Dayuan Pump Industry, Lingyun Co., and others in the optical fiber and cable sector [4][5][6]