Core Viewpoint - The company is experiencing significant growth in its non-GAAP net profit and maintaining a high level of prosperity in its smart IoT business, driven by initiatives in open-source HarmonyOS, open-source Euler, and enterprise-level AI [1]. Financial Performance - The company forecasts a target price of 76.80 yuan and maintains a "buy" rating, predicting EPS for 2025-2027 to be 0.24, 0.28, and 0.33 yuan respectively, with a PE of 320 times for 2025 based on comparable company valuations [2]. - In the first half of 2025, the company reported revenue of 1.747 billion yuan, a year-on-year increase of 10.55%, with a net profit attributable to shareholders of 60 million yuan, down 29.43%, and a non-GAAP net profit of 52 million yuan, up 47.33% [2]. - In the second quarter of 2025, revenue reached 914 million yuan, a year-on-year increase of 12.88%, with a net profit attributable to shareholders of 29 million yuan, down 51.60%, and a non-GAAP net profit of 25 million yuan, up 69.61% [2]. - The financial technology business generated revenue of 890 million yuan in the first half of 2025, up 6.06%, while the smart IoT business generated 606 million yuan, up 23.85% [2]. Business Development - The company is actively integrating AI technologies into its financial services, covering six major state-owned banks, 12 joint-stock banks, and over 280 licensed financial institutions by mid-2025 [3]. - In the smart IoT sector, the company is developing a domestic "end-edge-cloud" security digital foundation for industrial interconnectivity, leveraging AI technology for advanced applications [3]. - The company plans to implement new intelligent equipment-based solutions for smart distribution networks, substations, and new microgrids over the next three years [3]. - Innovative business segments achieved revenue of 368 million yuan in the first half of 2025, representing a year-on-year increase of 8.96% and accounting for 21.07% of total revenue [3]. AI Strategy - The company is focused on building a comprehensive AI technology stack, centered around a triad framework of "knowledge-perception-decision," which includes various AI-driven products such as multi-modal knowledge engines and decision-making agents [4]. - The company has developed an "AI hub" product matrix, including integrated hardware and three core software platforms, along with AI-driven testing service platforms and financial knowledge assistants [4].

Investment Rating - The report maintains a rating of "Accumulate" for the company with a target price of 76.80 CNY [5][12]. Core Insights - The company has shown significant growth in net profit excluding non-recurring items, with a strong performance in the smart IoT business, driven by open-source HarmonyOS, Euler, and enterprise-level AI [2][12]. - The financial forecast indicates a steady increase in revenue and net profit over the next few years, with projected revenues of 3,838 million CNY in 2025 and 5,072 million CNY in 2027, reflecting growth rates of 12.9% and 15.4% respectively [4][12]. - The company is actively integrating AI technologies into its financial services, expanding its reach to major state-owned banks and over 280 small and medium-sized banks [12]. Financial Summary - Revenue is projected to grow from 3,106 million CNY in 2023 to 5,072 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 15.4% [4][12]. - Net profit attributable to the parent company is expected to increase from 164 million CNY in 2023 to 266 million CNY in 2027, with a notable growth rate of 20.6% in 2027 [4][12]. - The earnings per share (EPS) is forecasted to rise from 0.21 CNY in 2023 to 0.33 CNY in 2027 [4][12]. Business Development - The company is focusing on building a comprehensive AI technology stack, including a product matrix centered around knowledge, perception, and decision-making [12]. - The smart IoT segment is expected to maintain high growth, with revenue from this sector projected to reach 6.06 billion CNY in 2025, reflecting a year-on-year growth of 23.85% [12]. - The company aims to implement innovative solutions in smart energy, including new intelligent equipment and smart distribution network solutions over the next three years [12].

Group 1 - The 2025 Harmony Ecosystem Conference was held on August 30, showcasing Guokewi's contributions to the OpenHarmony chip adaptation and ecosystem development [1][2] - Guokewi has launched 8 open-source Harmony chip platforms for mass production in various sectors, including smart home, smart vision, and commercial display [1][2] - In the smart home and education sectors, the GK6323V100C chip supports over 50 native Harmony applications and has been selected as the first development platform in the Harmony ecosystem [1][2] Group 2 - In the smart vision sector, Guokewi has integrated low-power AOV solutions and over 30 audio-video AI algorithms into the OpenHarmony 5.1 system, achieving a 20% reduction in media latency [2] - The company has collaborated with China Mobile to develop solar-powered cameras and pet companion robots based on the open-source Harmony smart vision chip platform [2] - In the large screen sector, Guokewi has enhanced the OpenHarmony 4.0 version to support 30 core functions and optimize 12 key performance indicators for video calls and network sharing [2] Group 3 - Guokewi's distributed display system, based on Harmony soft bus technology, enables multi-screen content synchronization and cross-screen control for commercial displays [2] - The company aims to drive breakthroughs in artificial intelligence technology within the open-source Harmony ecosystem, leveraging 16T-32T computing power chip platforms [2][3] - Guokewi emphasizes the importance of chip adaptation capabilities as a foundation for the development of the open-source Harmony ecosystem [3]

Core Insights - Huawei's HarmonyOS ecosystem has made significant progress, with major internet applications adapting to the platform and a growing number of mid-tail applications joining, indicating that the ecosystem is now fundamentally usable [1] - Guokewi, as a core chip supplier for the open-source HarmonyOS, showcased its achievements in chip adaptation and ecological co-construction at the 2025 HarmonyOS Ecological Conference [1] Group 1: Company Achievements - Guokewi initiated the adaptation of open-source HarmonyOS chips in March 2023, establishing a clear technical evolution path [1] - The company has completed a leap in iterations from OpenHarmony 3.1 to OpenHarmony 5.1 for smart vision, commercial display, and audio-visual solutions within two years [1] - Guokewi has set industry benchmarks by achieving multiple "first certifications" during the adaptation process [1] Group 2: Product Certifications - The ultra-high-definition display chip GK6780V100 received the first Harmony certification in the commercial display sector, while the ultra-video decoding chip GK6323V100C obtained the first certification in the audio-visual field [2] - The affordable black light AOV vision chip GK7206V1 set an industry record by achieving Harmony certification in just 70 days from chip submission to approval [2] - Currently, Guokewi has eight open-source HarmonyOS chip platforms in mass production across smart home, smart vision, smart display, and commercial display sectors [2] Group 3: Technological Advancements - Guokewi is focusing on AI technology breakthroughs within the open-source HarmonyOS, aiming to enhance ecosystem advancement [3] - The company plans to utilize a 16T-32T computing power chip platform to support mainstream large models through an open toolchain architecture, facilitating efficient AI capability transfer [3] - Guokewi emphasizes that chip adaptation is crucial for the depth and breadth of ecosystem development, and it will continue to strengthen its full-stack adaptation capabilities [3]

Core Viewpoint - The 2025 Harmony Ecosystem Conference held in Shenzhen highlighted the importance of the Harmony open-source platform in the digital and intelligent transformation of the transportation industry, emphasizing collaboration among various stakeholders to enhance the ecosystem's development [2][3]. Group 1: Event Overview - The "Smart Transportation Sub-Forum" was successfully held, focusing on the theme "New Ecology of Transportation for Common Development," bringing together government, enterprises, academia, and research institutions to discuss the value of open-source Harmony in the transportation sector [2]. - The event featured speeches from key industry figures, including the Secretary-General of the China Intelligent Transportation Association, who expressed strong support for the collaborative development of the Harmony ecosystem [2][3]. Group 2: Industry Impact - The open-source Harmony ecosystem is rapidly flourishing in the transportation sector, with the "Traffic Jiahong" distribution already applied in over ten provinces and more than 45 types of transportation equipment developed [3]. - The initiative aims to create a safe, reliable, and technologically advanced digital foundation for intelligent transportation, with a call for all industry players to embrace open-source Harmony [3]. Group 3: Technological Developments - The "Traffic Jiahong" operating system solution has shown significant results in urban rail transit, with a focus on operational needs and safety, efficiency, and sustainability [4]. - Key technological features of "Traffic Jiahong" include a unified system, distributed soft bus, and AI model empowerment, addressing various innovative applications and equipment needs in urban and rail transportation [4]. Group 4: Expert Contributions - Various experts presented on topics such as the characteristics and pathways of the transportation industry's innovation and development, as well as the application of artificial intelligence in the railway sector [5]. - The Harmony ecosystem exhibition showcased cutting-edge results in the transportation field, illustrating the core value of Harmony technology in driving industrial intelligent transformation [5].

Group 1 - The 2025 HarmonyOS Ecological Conference was held in Shenzhen, marking the launch of the open-source HarmonyOS ecosystem in the transportation industry [1] - The initiative aims to build a secure, reliable, and technologically advanced digital foundation for intelligent transportation [1] - Various experts and entrepreneurs discussed the value and integration of open-source HarmonyOS in the digital and intelligent transformation of the transportation sector [1] Group 2 - The China Intelligent Transportation Association expressed full support for the co-construction of the HarmonyOS ecosystem, emphasizing collaboration among leading companies and developers [1] - The Guangdong Intelligent Transportation Association highlighted that new technologies and businesses from the HarmonyOS ecosystem will provide a reliable technical foundation for smart transportation development in Guangdong [1] - The association aims to support well-known enterprises in Guangdong to deepen the construction of the HarmonyOS ecosystem in the transportation field [1] Group 3 - The Deputy Director of the Key Laboratory of Highway Science Research Institute of the Ministry of Transport stated that the HarmonyOS has been demonstrated in over 10 provinces within the highway sector [2] - A professor from Beijing Jiaotong University shared insights on the application of artificial intelligence in the railway sector, proposing a collaborative innovation approach with open-source HarmonyOS [2] - The HarmonyOS ecosystem is rapidly flourishing in the transportation industry, with over 45 types of transportation equipment and applications in multiple scenarios across six fields [2]

Core Viewpoint - Huawei's rotating chairman Xu Zhijun emphasized the progress of the HarmonyOS ecosystem, stating that while it has become functional, it still has room for improvement towards achieving "perfection" [1][2]. Group 1: Progress of HarmonyOS Ecosystem - The HarmonyOS ecosystem has made significant advancements over the past year, with major internet applications now adapted to HarmonyOS and a growing number of mid-tail applications joining [1]. - A total of 21 categories of SDKs and middleware necessary for application development have been extensively adapted to HarmonyOS, enhancing development efficiency [1]. - Products running on HarmonyOS have demonstrated clear advantages in connectivity, speed, power consumption, smoothness, security, battery life, photography, and AI capabilities due to its core technologies [1]. Group 2: Industry Applications and Challenges - Open-source HarmonyOS has found widespread applications in industries such as finance, electricity, energy, transportation, and communication [2]. - Despite the progress, Xu noted that the ecosystem is still in the "ecological introduction phase," and some applications lack "capillary-level" functionalities, which could hinder user experience [2]. - The high level of digital application penetration in China presents challenges for the development of new ecosystems, as it sets a high bar for application developers [2]. Group 3: Call to Action - Xu called for developers of HarmonyOS-adapted applications to expedite the enhancement of functionalities to provide users with an optimal experience [2]. - He urged government and enterprise units to accelerate the adaptation of internal applications to HarmonyOS [2]. - Existing Huawei smartphone users were encouraged to upgrade to HarmonyOS to help advance the ecosystem, along with a call for more chip manufacturers, hardware vendors, software developers, and application developers to join the open-source HarmonyOS community [2].

Core Viewpoint - Huawei's rotating chairman Xu Zhijun emphasized the progress and challenges of the HarmonyOS ecosystem during his keynote speech at the HarmonyOS Ecological Conference 2025, stating that while significant advancements have been made, the ecosystem is still in the introduction phase and has room for improvement [1][2]. Group 1: Progress in HarmonyOS Ecosystem - The head applications of the internet have adapted to HarmonyOS, and mid-tail applications are gradually joining, indicating that the ecosystem is fundamentally usable [1]. - A large number of SDKs across 21 categories, including security, media, and gaming, have been adapted to HarmonyOS, enhancing application development efficiency [1]. - Products equipped with HarmonyOS have demonstrated significant advantages in connectivity, speed, power consumption, smoothness, security, battery life, photography, and AI capabilities due to core technologies like distributed architecture, soft bus, microkernel, and native AI [1]. Group 2: Challenges and Call to Action - Despite the advancements, there are still gaps in achieving an "extreme" user experience, with some applications lacking "capillary-level" functionalities that could hinder user adoption [2]. - The high level of digital application penetration in China's mobile internet poses greater challenges for the development of the new ecosystem [2]. - Xu Zhijun called for developers to enhance the functionalities of HarmonyOS applications, encourage enterprises to adapt internal applications, and for existing Huawei smartphone users to upgrade to HarmonyOS to promote its advancement [2].

Core Insights - The 2025 HarmonyOS Ecological Conference commenced on August 30, showcasing Guokewi's advancements in open-source HarmonyOS chip adaptation and ecosystem development [1] - Guokewi has established a clear technological evolution path since launching open-source HarmonyOS chip adaptation in March 2023, achieving significant milestones in chip compatibility and ecosystem contributions [1][2] - The company has completed the iterative upgrade from OpenHarmony 3.1 to OpenHarmony 5.1 across various applications, demonstrating its capability in driving the open-source Harmony ecosystem [1] Chip Development and Applications - Guokewi has successfully launched eight open-source HarmonyOS chip platforms for mass production in smart home, smart vision, smart display, and commercial display sectors [2] - In the smart home and education sectors, the GK6323V100C chip has been integrated into multiple benchmark projects, supporting over 50 native Harmony applications [2] - The company has optimized the OpenHarmony 4.0 version for large-screen scenarios, enhancing core functionalities and performance metrics to match Android system experiences [2] Commercial Display and AI Integration - Guokewi's distributed display system, based on Harmony soft bus technology, enables multi-screen content synchronization and cross-screen control for commercial applications [3] - The company is advancing AI capabilities through a 16T-32T computing power chip platform, aiming to facilitate the commercial deployment of AI PCs and AI PADs [3] - The open-source HarmonyOS is positioned as a core technological engine for industry upgrades during the ongoing digital transformation [3]

Core Insights - The company, Huwei Intelligent, reported a half-year revenue of 278 million yuan, representing a year-on-year growth of 24.44%, and a total profit of 2.08 million yuan, up 16.9% from the previous year [2] Revenue Breakdown - Domestic sales revenue reached 119 million yuan, with a year-on-year increase of 6.89%, while overseas sales revenue was 158 million yuan, showing a significant growth of 42.01% [3] - The gross profit margin for domestic sales decreased by 3.4 percentage points to 9.22%, while the gross profit margin for overseas sales increased by 1.06 percentage points to 17.48% [3] Market Expansion Strategies - The company actively engages in market research and on-site investigations to understand customer needs and pursue cooperation opportunities [3] - Participation in various domestic and international trade shows, such as CES and embedded exhibitions, is a key strategy for customer development and order acquisition [3] - The company has established stable partnerships with numerous well-known domestic and international enterprises in the smart terminal sector, with core customer relationships lasting over five years [3] R&D Investment and Technological Advancements - The company maintains a high level of R&D investment, focusing on key technology areas such as cloud terminals, AI terminals, 5G communication terminals, and edge computing terminals [4] - Successful implementation of the first 5G mass production project marks a significant breakthrough in the 5G communication terminal sector, contributing to revenue growth [4] - The company is advancing the development of open-source HarmonyOS terminals and continuously iterating consumer tablet and AIoT smart terminal products [4] Production Capacity Enhancement - The Jiangmen R&D and production base is progressing as planned and is entering the completion acceptance phase, with advanced intelligent production and storage systems being partially utilized [6] - Full production is expected in the third quarter, which will significantly enhance production efficiency and capacity, supporting market expansion and large orders from leading industry clients [6]