Core Viewpoint - The commercialization of 5G technology is accelerating, with 5G-A evolving to provide faster speeds, lower latency, and broader connectivity, significantly transforming lifestyles and industries, powered by the rapid development of AI technology [1][11]. Group 1: 5G-A Deployment and Investment - China's three major telecom operators have completed 5G-A coverage in 31 provinces and over 300 cities, focusing on key areas such as business districts and transportation hubs [1]. - China Mobile plans to invest 9.8 billion yuan to open over 100,000 tri-band aggregation base stations within the year [1]. - China Unicom has launched 5G-A services in 39 major urban areas and is conducting low-altitude communication demonstrations across 31 provinces [1]. - China Telecom has deployed approximately 75,000 5G-A base stations, covering 121 cities [1]. Group 2: Smart Home Innovations - Shanghai Unicom has introduced "Smart Home Assistant," an AI robot that integrates multiple functions such as video calls, digital archives, and home monitoring, enhancing convenience through voice interaction [3][7]. - The AI camera for infant monitoring features advanced capabilities like face covering detection and real-time alerts to parents, addressing traditional security blind spots [7]. - The "Smart Home Assistant" also supports educational content for children and fitness programs for the elderly, effectively acting as a personal trainer [7]. Group 3: Network Performance and User Experience - In a performance test, 5G-A mobile download speeds reached 9389.45 Mbps, while fixed network speeds were recorded at 1191.08 Mbps with a ping of only 2 milliseconds, allowing for rapid downloads of large files [9]. - The low latency of the network supports seamless remote collaboration and smart device control, ensuring stable connections for multiple devices [9]. Group 4: Intelligent Transportation Systems - The "Double 20" vehicle networking demonstration zone showcases a significant technological breakthrough with a 20 ms end-to-end latency and 20 Mbps upload speed, essential for future autonomous driving applications [10]. - The system can provide real-time traffic data to optimize public transport schedules and improve road efficiency by over 30% [10]. - Collaborations between Shanghai Telecom and public transport groups have resulted in increased public transport usage and reduced congestion [10]. Group 5: Future Outlook - The integration of 5G-A and AI is transforming communication technology from mere connectivity to a core driver of smart living and industrial change, shaping a digital future for China [11]. - The convergence of computing and networking technologies is making advanced technology more accessible and impactful in everyday life [11].

Core Insights - Nvidia reported record revenue of 441 billion yuan for Q1 of fiscal year 2026, exceeding expectations in a competitive global AI landscape [1] Financial Performance - Data center revenue reached 39.1 billion USD in Q1, marking a 10% increase from the previous quarter [2] - Nearly 70% of data center revenue was contributed by the new Blackwell architecture GPUs, as the transition from Hopper to Blackwell nears completion [2] Market Trends - AI is becoming a new global infrastructure, with a focus on sovereign AI and enterprise-level AI agents [2] - The reshaping of the global landscape is driving countries to relocate manufacturing, creating massive data and computational needs [2] Technological Developments - The integration of computing power networks is expected to foster innovative applications in various sectors, including smart mining and smart cities [3] - The demand for computing power is critical for the implementation of AI across industries, with a focus on ease of use, flexibility, and scalability [3] Company Initiatives - WIMI is advancing its AI computing strategy by building a high-end computing base and collaborating with industry partners to enhance factory efficiency [4] - WIMI's holographic cloud platform supports large model training and inference, aiming to reduce latency and improve energy efficiency [4] Industry Outlook - Nvidia is positioned as the largest chip company globally by revenue and market capitalization, leading the AI computing infrastructure sector [5] - The diverse range of hardware and software products from Nvidia is enabling larger-scale sales to customers, indicating a significant shift in the global tech landscape [5]

Core Viewpoint - The report emphasizes that computing networks, as a new type of infrastructure combining "computing + connectivity," are crucial for the digital transformation of the industrial internet, aiming to achieve ubiquitous computing, symbiotic networks, intelligent orchestration, and integrated services [1][19]. Group 1: Development Background and Trends - The digital economy and industrial digital transformation require superior network connectivity and robust computing power to meet demands for ultra-high bandwidth, ultra-low latency, and high security [20]. - Computing networks represent a fusion of new infrastructure demands, integrating 5G, industrial internet, AI, cloud/edge computing, and blockchain technologies [21]. - The development of computing networks is driven by the convergence of 5G and edge computing technologies, enhancing service reliability and reducing latency [21][22]. Group 2: Current Status of Computing Networks - Computing networks have become a hot topic in the industry, with operators, equipment manufacturers, and research institutions actively participating in research and establishing a development roadmap and architecture [22][23]. - Initial achievements have been made in core technology areas such as computing modeling, perception, routing, and trading, with various standards being developed [23][24]. Group 3: Application Scenarios of Computing Networks - Computing networks will transform the supply, application, and service methods of computing power, enhancing service flexibility and efficiency across various industries [27]. - Specific applications include: - **Cloud VR Video Services**: Utilizing multi-layered computing power to meet the increasing demand for immersive experiences [28][29]. - **V2X Vehicle Networking**: Integrating AI and IoT to enhance data processing and transmission capabilities for smart transportation [30][34]. - **Green and Low-Carbon Initiatives**: Addressing energy consumption issues in data centers by optimizing resource utilization and supporting carbon neutrality goals [33][36]. Group 4: Key Technologies in Computing Networks - Key technologies include unified resource description frameworks, IT/OT data boundary integration, multi-factor routing based on SRv6/IPv6, and digital twin networks for optimizing industrial operations [2][19]. - The focus is on overcoming technical bottlenecks related to heterogeneous hardware abstraction and generalization of computing primitives to support deep integration in industrial scenarios [2]. Group 5: Vision and Future Outlook - The vision for computing networks is to achieve a state where computing power is as accessible as utilities like water and electricity, enabling seamless integration of services across various sectors [21][22]. - Future developments will focus on enhancing industry collaboration and deepening the integration of computing networks in industrial applications, positioning them as a core engine for digital economic growth [2].

Core Viewpoint - The report emphasizes the integration of computing networks and industrial internet, highlighting that computing networks serve as a new type of information infrastructure centered on computing and rooted in networking, facilitating the digital transformation of industries [1][21]. Group 1: Development Background and Trends - The digital economy and industrial digital transformation require superior network connectivity and robust computing power to meet demands for ultra-high bandwidth, ultra-low latency, and high security [22]. - Computing networks are emerging as a hot topic in the industry, with operators, equipment manufacturers, and research institutions actively engaging in research and establishing a development roadmap and architecture system [24][25]. - International organizations like ITU and IETF are working on establishing standards for computing networks, indicating a global push towards computing and network convergence [26][27]. Group 2: Key Technologies - Key technologies for computing networks include unified metrics for computing and network, real-time user demand and state perception, multi-factor joint scheduling algorithms based on IPv6/SRv6, and ensuring end-to-end service reliability [2]. - The report identifies the need to overcome technical bottlenecks such as heterogeneous hardware abstraction and edge computing collaboration to optimize industrial production processes [2]. Group 3: Application Scenarios - Computing networks will transform the supply, application, and service methods of computing power, enhancing service flexibility and efficiency across various industries [29]. - Specific application scenarios include Cloud VR services, V2X vehicle networking, and green low-carbon initiatives, all benefiting from the integration of computing and networking capabilities [30][32][37]. Group 4: Collaborative Development - The industrial internet network is crucial for connecting people, machines, and objects in industrial environments, with internal and external networks serving different operational needs [39].

Core Insights - The report explores the integration of computing networks with the industrial internet, emphasizing the development of a new type of infrastructure that supports industrial production and management [1][28]. Group 1: Background and Trends of Computing Networks - The digital economy and industrial digital transformation require high-quality network connections and powerful computing capabilities, with the industrial internet serving as a support for this transformation [2][29]. - The "East Data West Computing" initiative and new infrastructure projects demand enhanced network and computing infrastructure, highlighting the need for computing networks that reflect these integration demands [2][30]. - Computing networks, emerging from the fusion of 5G and edge computing technologies, are a domestically originated innovation aimed at achieving a new type of information infrastructure [2][30][31]. Group 2: Current Status and Application Scenarios of Computing Networks - Computing networks have become a focal point in the industry, with operators and research institutions establishing development routes and frameworks, achieving initial results in core technology areas [2][31][33]. - Application scenarios include Cloud VR video services, V2X vehicle networking, and green low-carbon initiatives, all benefiting from the collaborative capabilities of computing networks [3][37][38]. Group 3: Collaborative Development of Industrial Internet and Computing Networks - The industrial internet network is divided into internal and external networks, with computing infrastructure including central clouds and edge clouds [4][48]. - The integration of computing networks and the industrial internet promotes mutual enhancement, with the industrial internet driving the application of computing networks in vertical industries [4][48]. Group 4: Key Technologies in Computing Networks for Industrial Internet Applications - Key technologies include computing measurement, network awareness, integrated scheduling, in-network computing, and digital twin systems [6][50]. - These technologies aim to unify and flexibly schedule network and computing resources, ensuring task processing and service consistency [6][7]. Group 5: Vision and Outlook - The vision for computing networks within the industrial internet is to create a new generation of integrated infrastructure that meets the demands of new industrial applications [7][28]. - The current stage is seen as a starting point, requiring collaboration across the industry to drive technological breakthroughs [7][28].

Core Insights - The emergence of DeepSeek has significantly elevated the intelligent computing industry, demonstrating the "Jevons Paradox" where technological advancements lead to increased demand despite reduced resource consumption [1] - The cost of model training has decreased by 85% over the past three years, while the elasticity of computing power demand has expanded sixfold, making AI technology more accessible to all enterprises [1] - By the end of 2024, China's intelligent computing AI computing power supply is expected to reach 1450 EFlops, with a projected growth rate of over 40% annually for the next three years [1] Group 1: Challenges in Intelligent Computing - The first major challenge arises from the exponential growth in computing power demand driven by large models, which requires over 200 times the hardware supply [5] - The second challenge is the rapid penetration of AI across various industries, leading to difficulties in integrating AI technology with specific scenarios, as many emerging applications lack best practices [6] - The third challenge pertains to the ecosystem, where developers face fragmentation of tools, high learning costs, and uneven resource access, complicating collaboration between traditional enterprises and AI technology suppliers [7] Group 2: Strategic Innovations and Solutions - Huawei emphasizes the need for a comprehensive transformation involving innovations in computing architecture, resource scheduling, business models, and computing infrastructure to address the supply-demand contradiction [3] - Huawei is committed to a long-term strategy that supports the intelligent computing industry through foundational infrastructure, AI ecosystem development, and product empowerment [15][16] - The company has established a complete solution for the MoE architecture, enhancing resource utilization by 20% through dynamic balancing of multiple experts [11] Group 3: Ecosystem Development and Collaboration - Huawei's strategy includes hardware openness, software openness, enabling partners, and talent development, aiming to create a collaborative AI industry ecosystem [12][14] - The company has partnered with over 2,500 industry collaborators and developed more than 5,800 certified solutions, demonstrating its commitment to ecosystem building [14] - Huawei's focus on synergizing computing and networking technologies positions it uniquely to address the challenges of intelligent computing and enhance overall performance [20]

Core Insights - The summit highlighted the urgent need for transformation in the computing industry, emphasizing the shift from traditional data centers to intelligent computing systems driven by high-density and high-elasticity demands [1] - The intelligent computing sector in China is experiencing rapid growth, with an expected compound annual growth rate of 46.2% over the next five years, leading to a trend towards large and super-large intelligent computing centers [1][2] - Intelligent computing applications are expanding beyond large model training to include sectors such as autonomous driving, smart cities, medical imaging, and industrial manufacturing, significantly enhancing efficiency and precision [2] Industry Trends - Intelligent computing is increasingly being utilized in emerging scenarios such as the metaverse, digital twin technology, AI for science, financial quantitative trading, and film production, indicating its broad applicability across various fields [2] - The construction of a robust computing ecosystem is crucial for the development of the intelligent computing industry, with companies like Huawei committing significant resources to foster partnerships and drive technological advancements [3] Challenges and Opportunities - The intelligent computing industry faces challenges such as the need for better integration of computing networks and addressing the disconnect between computing supply and application demand [3] - Companies are focusing on transforming data centers from mere cabinet rental services to intelligent computing service providers, enhancing their value proposition in the market [3]

Core Insights - The rapid expansion of AI computing power in China is highlighted, with the current capacity reaching 3000P for training and 1000P for inference, and over 250 innovative solutions developed across various sectors [1] - The integration of computing power and network technology, referred to as "算网融合" (computing-network integration), is identified as a critical path for addressing the growing demand for AI computing resources and enhancing computational efficiency [3][6] - The Chinese intelligent computing power market is projected to grow significantly, with estimates indicating a market size of $25.9 billion by 2025, reflecting a 36.2% increase from 2024 [2] Industry Growth and Trends - The intelligent computing power scale in China is expected to reach 1037.3 EFLOPS by 2025, representing a 43% increase from 2024, and is projected to double by 2026 [2] - The compound annual growth rate (CAGR) for China's intelligent computing scale from 2023 to 2028 is forecasted at 46.2%, indicating a strong trend towards large and super-large intelligent computing centers [2] - The demand for AI models is driving a significant increase in computing power requirements, with current needs exceeding hardware supply by over 200 times [3] Technological Developments - Companies are focusing on transforming data centers into intelligent computing centers, emphasizing the need for efficient, green, and high-performance solutions [4][5] - Huawei is leveraging advanced technologies such as zero-loss networking and intelligent computing network scheduling to enhance computing resource utilization from 40% to 75% [5] - The integration of distributed computing architecture, low-latency networks, and virtualization technologies is essential for achieving high-quality development in computing power [6] Market Dynamics - The competition among enterprises for intelligent computing resources is intensifying, with a focus on optimizing computing infrastructure and enhancing service capabilities [5] - The shift from hardware-centric approaches to efficiency-driven models in AI computing is becoming evident, necessitating a demand-oriented and benefit-oriented approach in intelligent computing center construction [6]

Group 1 - China Unicom is leveraging its strengths in computing power and network capabilities to create an integrated solution that combines cloud, network, endpoint, and security services [1] - The company has launched a family robot named "Zhi Jia Tong Tong," which represents its innovation in integrating computing power networks, artificial intelligence, and the real economy [1] - The deployment of over 300 intelligent computing cloud pools allows for resource allocation closer to users, enhancing service responsiveness [1] Group 2 - The company aims to enhance complex task processing capabilities and provide intelligent emotional support through the "Zhi Jia Tong Tong" product, utilizing the Yuanjing large model [2] - Huawei emphasizes the collaboration of endpoint, network, cloud, and user experiences to redefine the smart home concept, supporting the development of "Zhi Jia Tong Tong" [2] - The integration of hardware and intelligent interaction innovations is a key focus, ensuring an optimal user experience through dual 10G capabilities [2]

Investment Rating - The report assigns a "Buy" rating to China Unicom (0762.HK) [4] Core Viewpoints - China Unicom is positioned as a leading integrated information service operator, with a focus on digital information services and cloud business as a second growth curve [1][3] - The company achieved revenue of CNY 389.6 billion in 2024, a year-on-year increase of 4.6%, and a net profit of CNY 20.6 billion, up 10.1% year-on-year [1][4] - The company has a strong dividend yield, averaging over 6% from 2020 to 2024, providing a defensive attribute [1][4] Summary by Sections Company Overview - China Unicom was established in 1994 and operates in 31 provinces in China and several countries abroad, ranking 279th in the 2024 Fortune Global 500 [1][13] - The company aims to build a comprehensive digital information infrastructure to support economic and social development [13] Business Focus - The company focuses on two core businesses: "Connected Communication" and "Intelligent Network Computing" [2][3] - The Connected Communication business generated revenue of CNY 261.3 billion in 2024, a 1.5% increase year-on-year, with mobile and broadband user growth [2][45] - The Intelligent Network Computing business, which includes cloud services, generated revenue of CNY 82.5 billion, up 9.6% year-on-year, with the cloud segment alone reaching CNY 68.6 billion, a 17.1% increase [2][19] Financial Analysis - The company forecasts net profits of CNY 21.7 billion, CNY 23.2 billion, and CNY 25.1 billion for 2025, 2026, and 2027 respectively [4][5] - The average P/E ratios for 2025 and 2026 are projected at 12x and 11x, respectively, indicating a valuation below comparable companies [4] Industry Environment - The telecommunications industry in China is experiencing a slowdown, with overall revenue growth of 3.2% in 2024, while emerging businesses like cloud computing and big data are growing steadily [26][29] - New business segments accounted for 25% of total telecommunications revenue in 2024, with significant growth in cloud computing and big data [29][40] Strategic Initiatives - China Unicom is enhancing its cloud capabilities and has established over 300 integrated computing resource pools, with a computing power scale exceeding 17 EFLOPS [3][47] - The company is leveraging AI and cloud technologies to drive digital transformation across various sectors, including government, healthcare, and industrial applications [3][40]