Investment Rating - The report maintains a "Recommendation" rating for the industry [6] Core Insights - Huawei's root technology is developing continuously, establishing a solid foundation for the domestic technology industry in AI computing and operating systems. The "pure-blood HarmonyOS" and its ecosystem are expanding, with PCs expected to become the next "main battlefield" [4][19] - The domestic AI computing sector is in a rapid development phase, with computing power construction becoming a new important domestic demand. Ascend is expected to become the "main force" in domestic computing power due to its technological and ecological advantages [4][19] Summary by Sections Market Review - During the week of May 5-9, the CSI 300 index rose by 2%, the SME index increased by 1.49%, and the ChiNext index grew by 3.27%. The computer sector (CITIC) saw a rise of 1.94% [36] Industry News - The State-owned Assets Supervision and Administration Commission (SASAC) emphasized accelerating the mastery of key root technologies and enhancing the performance and level of central enterprises' foundational large models [27] - The China Computing Power Platform (Shanghai) education section and Shanghai Education Intelligent Computing Service Platform were officially launched [31] Company News - Zhaoyi Information announced a restricted stock incentive plan on May 8, proposing to grant 4 million shares, accounting for 3.30% of the total share capital [32] - Highweida reported a share reduction by a major shareholder, with 4.4 million shares sold at an average price of 14.05 yuan per share [33] Weekly Insights - The HarmonyOS is making significant strides, with the Harmony computer officially unveiled, marking a breakthrough in the personal computer sector. The ecosystem has surpassed 1 billion devices, with 7.2 million registered developers and over 110 million lines of code [11][12] - The Ascend AI cloud service has been optimized to support over 160 third-party large models, indicating its capability to provide reliable training and inference support for various applications [21][22] Investment Recommendations - Key companies to focus on in the HarmonyOS ecosystem include Softcom Power, China Software International, Dream Network Technology, Newland, and others. For Ascend, attention should be on companies like iFlytek, Softcom Power, China Great Wall, and others [4][26]

Group 1 - The State-owned Assets Supervision and Administration Commission (SASAC) emphasizes the importance of self-reliance and accelerating the mastery of key technologies in critical fields [1] - The focus is on application-oriented strategies, guiding enterprises to deeply integrate artificial intelligence into key scenarios of research and development, as well as production [1] - There is a call for enhanced collaboration to accelerate the establishment of industrial communities and explore new models for high-quality data sharing and co-construction [1] Group 2 - The need to strengthen internal security capabilities in state-owned enterprises is highlighted, ensuring compliance with national security and mainstream values [1]

Core Insights - The article discusses the transformation of the intelligent language service industry, highlighting the shift from simple language conversion to knowledge understanding and application [2][3][4] - The competitive landscape of large models is evolving, with new players emerging and the industry still in its early stages, akin to the electrical era of the 1920s [2][12] - The paradox of increasing order volume but stagnant profitability in the intelligent language service sector is emphasized, indicating a need for companies to adapt their strategies [5][6] Industry Trends - The intelligent language service industry is experiencing a significant transformation, where machine translation is becoming more prevalent, yet human translators are still needed for quality assurance [4][5] - The demand for intelligent language services is growing, with a reported 30% increase in order volume for a leading company, while revenue only grew by 10% [5] - The industry is moving towards a model where companies provide foundational technologies and tools to partners rather than directly serving end customers [6][7] Data Quality vs. Quantity - The focus is shifting from "big data" to the quality of data, as high-quality data is essential for effective machine learning and AI applications [7][8] - Companies are encouraged to separate data from reasoning to enhance AI systems' adaptability and efficiency [8][9] - The value of data is increasingly recognized as being tied to its knowledge density rather than sheer volume [9][10] Future of Large Models - The current state of large models is not yet mature, and the market dynamics are still evolving, with many applications yet to be discovered [10][12] - The competition in AI is expected to focus more on foundational technology frameworks rather than just parameter size [11][12] - The future of AI services in the enterprise market is unlikely to be free, as solving business problems incurs costs [12]

Core Insights - The history of HarmonyOS is characterized as a tragic and heroic narrative rather than a simple tale of heroism, emphasizing the collective effort and struggles of its creators [1] - HarmonyOS is presented as a shared achievement, not solely belonging to Huawei or China, but as a collective endeavor that resonates with a broader audience [1] - The book aims to provide an accessible and engaging account of the development of HarmonyOS, focusing on real stories behind the technology [1][2] Group 1 - The project involves in-depth interviews with around 300 key figures across six core technology products, aiming to comprehensively document the journey and stories behind them [2] - Initial excitement about completing the six books by 2024 was met with unforeseen challenges, leading to delays in writing and publishing [2][4] - The first book, "The Rise of Euler," was published in 2023, with "Harmony" being the second book scheduled for 2025 [2] Group 2 - The extensive writing process has led to a deeper understanding of Huawei, revealing its transformation over the past six years amid technological challenges [4][5] - The narrative of Huawei's journey is seen as one of the most significant stories of the era, deserving of continuous exploration and analysis [5] - The book encapsulates the struggles and triumphs of ordinary individuals in the tech industry, highlighting their courage and determination in overcoming failures [6]