Summary of Conference Call on China Internet Equities Industry Overview - **Industry**: China Internet Equities - **Key Focus**: AI applications and quick commerce (QC) trends Key Trends in Consumer AI Applications 1. **Concentration of Top Players**: - Chatbot applications are primarily dominated by ByteDance and DeepSeek, with Tencent having a smaller share [1][7] 2. **Impact on Traditional Search**: - Baidu (BIDU) has seen a decline in young user engagement, attributed to a shift towards AI-native and social apps. However, user engagement for those aged over 40 remains stable due to increased traffic to AI search [1][7] - Daily time spent on AI-native apps is approximately 10 minutes, indicating limited impact on traditional search and productivity apps [1][7] 3. **Emerging AI Applications**: - ByteDance's Jimeng leads in video generation app users, while Ant's healthcare AI assistant AQ has entered the top 10 AI-native apps. Education AI apps are also gaining traction among Chinese users [1][7] 4. **Integration of AI into Existing Apps**: - Alibaba's (BABA) Quark app saw over 50% of users engaging with its AI features post-integration, while Tencent's QQ Browser, with a larger user base, is experiencing slower AI plugin development [1][7] Quick Commerce (QC) Competition 1. **Market Resilience**: - Meituan (MT) has shown resilience in QC, with a slight improvement in weekly session share from August to early October, while Eleme and JD have seen declines [2] 2. **User Growth and Engagement**: - Taobao added 47 million year-over-year daily active users (DAU) in September, surpassing JD's 34 million and MT's 8 million. Despite seasonal tapering, 23% of Taobao's monthly active users (MAU) and 18% of JD's are utilizing QC [2] 3. **Expansion in Lower-Tier Cities**: - Taobao's merchant percentage compared to MT increased from 58% in January to 72% in October, driven by growth in lower-tier cities. Approximately 64% of Eleme's new merchants are from tier 3 and below cities [2] 4. **Rider Capacity Trends**: - Taobao experienced significant year-over-year growth in daily active crowdsourcing (+80%) and priority riders (+30%) in Q3 2025, while MT's priority riders decreased by 6% [2] In-Store Competition - **Douyin's Competitive Edge**: - Douyin Laike's MAU surpassed MT's in the second half of 2024, particularly excelling in lower-tier cities, while MT remains strong in top-tier cities. Competition intensified since March 2025 due to Douyin's increased investment in top-tier cities [3] Investment Recommendations - **Preferred Stocks**: - Tencent and Alibaba are recommended for their AI potential, both rated as "Buy" [7] Additional Insights - **User Engagement Metrics**: - MAU of AI-generated content applications reached 287 million in September [8] - **Market Dynamics**: - The competitive landscape is evolving with significant shifts in user engagement and merchant coverage, particularly in the context of lower-tier city expansion and AI integration [2][3] This summary encapsulates the key points discussed during the conference call, highlighting the competitive landscape and emerging trends within the China Internet Equities sector.

Group 1 - The core point of the article highlights the recognition of over 20 Chinese tech companies in the 2025 "300 Best Inventions" list by Time Magazine, showcasing significant advancements in various fields including AI, robotics, and wearable technology [1][3] - The list marks the largest scale in its history, indicating a growing influence of innovation from Chinese enterprises on a global stage [1] - Among the recognized companies, notable mentions include Yushu Technology, DeepSeek, Xiaomi, Lenovo, BYD, Huawei, Honor, and Jizhe, reflecting a diverse representation of the Chinese tech landscape [1] Group 2 - In the robotics sector, Yushu Technology's R1 robot has been highlighted for its innovative design, featuring a weight of approximately 25 kilograms and the ability to perform complex movements such as boxing and running, thanks to its advanced AI system [1] - The DeepSeek R1 model in the AI domain has gained attention for its performance comparable to top models from OpenAI, developed in just a few months with a training cost of $6 million, and it remains free for users unlike many foreign paid models [3]

Core Insights - The article highlights the significant presence of Chinese companies in the 2025 "300 Best Inventions" list published by TIME magazine, showcasing innovations across various fields such as AI, robotics, and consumer electronics [1][17]. Group 1: Robotics and AI Innovations - Yushu Technology's R1 robot has redefined traditional humanoid robots, featuring a weight of approximately 25 kg and the ability to perform complex movements like boxing and running, equipped with an AI system for voice recognition and image processing [1]. - DeepSeek's R1 model, a generative AI project, has achieved performance comparable to top models from OpenAI, with a training cost of only $6 million (approximately 42.7 million RMB), and remains free for users [3][17]. Group 2: Consumer Electronics - Xiaomi's 15 Ultra smartphone, developed in collaboration with Leica, features a retro design and integrated AI tools for enhanced imaging experiences [5]. - Huawei's Pura 80 Ultra smartphone stands out with its innovative imaging system, including a dual telephoto camera capable of 3.7x and 9.4x zoom, enhancing photo clarity and color representation [11]. Group 3: Sustainable Technology - Lenovo's Yoga solar-powered laptop offers a new power solution for users away from stable power sources, utilizing photovoltaic cells to charge the battery, providing one hour of video playback with just 20 minutes of sunlight exposure [7]. - BYD's Seagull electric vehicle, equipped with a 30 kWh battery, offers a range of 300 km and a top speed of 130 km/h, highlighting its significance in the electric vehicle market [9]. Group 4: Battery Technology - Honor's new battery technology, featuring a silicon content of 25% and a thickness of only 2.3 mm, extends battery life while maintaining a capacity of 6100 mAh, applied in the Honor Magic V5 smartphone with over 35 hours of battery life [13]. Group 5: Design Innovations - The Zip projector by Jizhe, with its unique pocket-sized foldable design, offers features like zero-latency autofocus and vertical full-screen mode, enhancing user experience for various applications [15].

Core Insights - The article discusses the emergence of Chinese open-source AI models as significant players in the global AI landscape, particularly in light of recent developments from American tech companies [4][21][26] Group 1: New Developments in AI Models - Cursor has released a major update, introducing its own code model, Composer, which utilizes reinforcement learning and is capable of processing code efficiently [4][7] - The Composer model reportedly generates code four times faster than similar models, indicating a significant advancement in performance [7] - Speculation arises regarding the underlying technology of these models, with suggestions that they may be based on Chinese AI models, particularly the GLM series [9][11][16] Group 2: Industry Reactions and Analysis - Industry experts suggest that many new models, including Cursor's Composer, are fine-tuned versions of existing Chinese models rather than entirely new creations, highlighting the high costs associated with developing foundational models from scratch [17][18] - The success of open-source models is emphasized, with Nvidia's CEO noting their role in accelerating AI applications and the need for developers to leverage these resources [21][23] - The article points out that the leading open-source models in the HuggingFace community predominantly originate from Chinese companies, showcasing their growing influence [23][26] Group 3: Implications for Global AI Competition - The advancements in Chinese open-source models are reshaping the competitive landscape of AI, with a shift in positions between leaders and followers in the technology race [26] - The article concludes that the capabilities of Chinese models are now sufficient to support the development of Western products, indicating a new era of multipolar competition in AI [20][26]

DWS全球研究主管Johannes Mueller在2025外滩年会上接受21世纪经济报道记者采访时表示，一方面， 这并不意味着资金要立即完全撤出美国，美国企业部门在盈利能力、创新、科技等方面是标杆，一部分 资金仍然会留在美国。 0:00 南方财经 21世纪经济报道记者吴斌 上海报道 今年全球资金出现搬家现象，中国、欧洲资产赢得更多青睐，这究竟是短期的市场情绪波动，还是意味 着持续数十年的旧范式正在发生根本性的扭转？ 但另一方面，Mueller提醒，美国股市在MSCI全球指数中占比高达70%，比重有些过高，债券市场、外 汇储备配置的情况也基本类似。进一步分散投资、摆脱对美国市场依赖的趋势才刚刚开始，未来几年会 是一个循序渐进的过程：资金减少对美国市场的依赖，并进一步拓展中国、欧洲等市场。 今年DeepSeek的"斯普特尼克时刻"惊艳世界，中国资产迎来价值重估，"十巨头"崭露头角，东方力量重 塑全球市场。 对于中国资产今年的大涨，Mueller分析称，中国资产的交易价格较低，利率走低也使股票投资更具吸 引力，"DeepSeek时刻"让人们意识到中国也有一个非常活跃、富有创造力的科技行业，这些因素推动了 中国资产 ...

Core Insights - The evolution of AI products is transitioning from Chatbots to AI Agents, which are expected to become the mainstream form of AI applications in the next phase [1][8] - The adoption rate of AI Agents in enterprises is projected to increase significantly, driven by commercial value [1][8] - Major tech companies like OpenAI, Google, and Lenovo are actively developing and upgrading their AI Agent products, leading to commercial success and enhanced corporate value [1][2][8] Industry Trends - AI Agents are facilitating a shift in enterprise budgets from "buying tools" to "buying results," creating favorable conditions for the growth of the Agent ecosystem [1][7] - The global AI Agent market is expected to see substantial growth, with revenues projected to exceed $5 billion in 2024 and reach $10 billion by 2025, with a CAGR of 44.9% from 2024 to 2032 [8][10] - The demand for AI Agents is driven by their ability to enhance productivity and deliver measurable ROI, particularly for B2B clients [4][6][11] Company Developments - Lenovo has launched a comprehensive upgrade of its AI Agents, introducing three major types of super Agents aimed at personal, enterprise, and urban applications [2][5] - Lenovo's enterprise AI Agent has generated 1.89 billion yuan in revenue within six months, demonstrating significant user engagement and improved conversion rates [10] - OpenAI's investment in the startup Cursor has led to a remarkable achievement of $100 million ARR within 12 months, highlighting the rapid growth potential in the AI Agent space [10] Competitive Landscape - The competition among AI Agent providers is intensifying, with companies needing to lower deployment costs and enhance efficiency to maintain market position [12][15] - A shift towards a results-based payment model (RaaS) is emerging, where companies pay based on the actual business outcomes delivered by AI Agents [11][12] - IDC reports indicate that 70% of enterprises are considering changing or adding AI platform suppliers, reflecting a dynamic market environment [10][11]

这一成果迅速在产业界引发热烈讨论。 日 前 ， DeepSeek 在 人 工 智 能 开 源 社 区 Hugging Face 上 发 布 了 一 个 全 新 的 多 模 态 模 型 DeepSeek-OCR 。 在华为旗下的学术平台"黄大年茶思屋"上，有技术专家甚至指出，该模型的核心构件视觉 encoder的高效解码，为光计算和量子计算在LLM（注：大语言模型）领域的引入提供了明确 的技术路径。 10月29日，图灵量子相关负责人在接受21世纪经济报道记者采访时表示， DeepSeek-OCR技 术能更有效地将光计算高并行性和低功耗优势发挥出来，相信很快便会有光计算芯片结合大 模型的应用出现 。 光学压缩破局 一直以来，上下文的长度是困扰大模型性能的重要瓶颈 。比如，上下文窗口过小，会导致模 型无法一次性阅读用户之前的输入信息（比如文章），影响推理的准确性。 针 对 这 个 痛 点 ， 业 内 提 出 了 稀 疏 注 意 力 、 检 索 增 强 生 成 等 多 种 技 术 来 应 对 。 这 一 次 ， DeepSeek首次提出"上下文光学压缩"（Contexts Optical Compression）技术 ...

Core Viewpoint - The article discusses the evolving landscape of AI investment in China, highlighting the shift from merely "catching up" to establishing a unique innovation path driven by domestic capabilities and market conditions [6][11]. Group 1: Investment Trends - BlueRun Ventures has been actively investing in various AI sectors, including foundational models, embodied intelligence, and AI hardware, creating a systematic investment map [5][14]. - The firm emphasizes the importance of open-source models and their cost-effectiveness, which fosters rapid iteration and application development [9][10]. - The investment strategy is centered around five key trends, including the rise of open-source large language models, reinforcement learning, and the development of autonomous systems [9][10]. Group 2: Market Dynamics - China's economic structure is undergoing a transformation, with technology-driven growth becoming the new mainline, supported by increasing domestic demand and consumption [7][8]. - The competition between Chinese AI entrepreneurs and their U.S. counterparts is characterized by a dual-track approach, leveraging open-source ecosystems and diverse application scenarios [7][8]. - The emergence of successful Chinese AI products, such as DeepSeek, signifies a shift towards independent innovation and global competitiveness [8][11]. Group 3: Talent and Ecosystem - The density of talent, particularly in AI and related fields, is crucial for the success of new ventures, with a notable influx of young, highly educated entrepreneurs returning to China [13][16]. - BlueRun Ventures has established a supportive ecosystem for entrepreneurs, including initiatives like Boomi ng Camp and Boomi ng Hub, to foster collaboration and innovation [18][19]. - The firm believes that the future of AI investment lies in early-stage opportunities, emphasizing the importance of independent thinking amidst market noise [19][20].

Core Insights - DeepSeek has launched a new multimodal model, DeepSeek-OCR, which has sparked significant discussion in the industry regarding its potential applications in AI and quantum computing [1] - The model's visual encoder is noted for its efficient decoding capabilities, providing a clear technical pathway for integrating optical and quantum computing into large language models (LLMs) [1][2] Group 1: Technological Innovations - DeepSeek-OCR introduces "Contexts Optical Compression," allowing text to be processed as images, theoretically enabling infinite context and achieving a token compression of 7-20 times [2][3] - The model maintains 97% decoding accuracy at 10x compression and 60% accuracy at 20x compression, which is crucial for implementing memory and forgetting mechanisms in LLMs [2][3] Group 2: Implications for Optical Computing - The technology reduces the number of data segmentation and assembly operations, thereby lowering overall computational load and pressure on backend hardware [3][4] - DeepSeek-OCR's approach may facilitate the integration of optical computing chips with large models, leveraging the high parallelism and low power consumption of optical technologies [3][4] Group 3: Industry Challenges and Developments - Current challenges for optical computing include the need for advanced photonic-electronic integration and a mature software ecosystem to support large-scale development [5] - Key players in the optical computing space include domestic companies like Turing Quantum and international firms such as Lightmatter and Cerebras Systems, with Turing Quantum making strides in thin-film lithium niobate technology [5]

Core Viewpoint - The integration of large model inference systems can significantly enhance the high-quality development of listed companies, emphasizing the importance of "model fine-tuning" and "model inference application" [1][3]. Group 1: Model Development and Application - The lifecycle of artificial intelligence large models includes data acquisition, preprocessing, model training, fine-tuning, and inference, with model training being the most critical phase [3]. - Due to the lack of specialized domain data, foundational large models require "model fine-tuning" to adapt to specific industry scenarios, transforming general capabilities into specialized ones for sectors like healthcare, finance, and manufacturing [3]. - Companies are advised to leverage existing foundational large models from specialized tech firms like DeepSeek and Huawei, focusing on fine-tuning and inference applications rather than starting from scratch [3]. Group 2: AI PC and Its Implications - The architecture of large model inference systems centers around GPUs, which provide superior computational power and bandwidth, leading to the emergence of "AI PCs" [4]. - AI PCs are expected to become a significant industry, potentially allowing individuals to possess personalized intelligent assistants within the next couple of years [4]. - Various applications of AI PCs have been identified, such as enhancing customer service efficiency in banking and automating design processes in chip development, addressing industry pain points [4]. Group 3: AI as a Competitive Advantage - AI is positioned as a core infrastructure for companies, moving beyond being merely an IT tool, with the next competitive battleground focusing on the integration of data algorithms and computational efficiency [5][6]. - AI serves as a second engine for growth, reshaping products, services, and operational models, thereby creating new revenue streams and improving profit margins [6]. - The ability to convert data into decision-making power through AI enhances internal processes, reduces operational costs, and establishes formidable competitive barriers [6].