Summary of Key Points from Conference Call Records Industry Overview - The focus is on the Hong Kong stock market, particularly the technology sector, which is seen as having continued investment potential despite recent fluctuations in market performance [1][3][9]. Core Insights and Arguments - **Market Activity and Fund Flows**: High trading activity is noted, with net inflows in margin financing and a significant return of retail investors. Equity fund positions are above 80%, and new fund issuance in September has exceeded 100 billion [1][2]. - **Impact of Major Shareholder Actions**: Recent reductions in holdings by major shareholders and IPOs have had minimal impact on overall market capitalization [4]. - **Profitability and Market Sentiment**: Although the profit-making effect has slightly decreased, it remains at a high level. Positive sentiment indicators suggest a likelihood of market stability or upward movement, contingent on further accumulation of fundamental and industrial factors [5]. - **Sector Performance**: The technology, media, and telecommunications (TMT) sectors, along with high-end manufacturing, are expected to maintain high growth rates. Specific areas of interest include communication equipment, power grid equipment, computers, engineering machinery, batteries, rail transit equipment, and defense industries [6]. - **U.S. Federal Reserve's Interest Rate Policy**: The Fed's recent interest rate cuts are viewed as preemptive, with historical data indicating strong market performance following such actions. This supports a positive outlook for sectors like innovative pharmaceuticals, Hong Kong technology, consumer goods, and resource products [7]. - **Investment Strategy**: The recommendation is to maintain high portfolio positions, focusing on domestic computing power, Hong Kong technology, and innovative pharmaceutical trends, while also considering sectors related to capacity changes and consumer goods [8]. Additional Important Insights - **Valuation Comparisons**: Hong Kong's market valuation is considered balanced compared to global markets, with foreign investment still underweight in Hong Kong stocks. The appreciation of the RMB and favorable global valuation conditions are expected to attract more foreign capital [3][19][20]. - **Earnings Improvement**: The earnings growth rate for over 500 Chinese companies listed overseas is projected at 9%, indicating a stabilization in profitability after a downturn [21]. - **Technological Sector Dynamics**: Chinese technology companies are increasing capital expenditures, particularly in R&D, which is expected to enhance their growth potential and positively impact related industries [23]. - **Future Market Outlook**: The long-term outlook for the Hong Kong market is optimistic, driven by improving fundamentals, supportive policies, and the potential for significant earnings recovery in leading technology firms [24]. Conclusion - The Hong Kong technology sector is positioned for continued growth, supported by favorable market conditions, improving fundamentals, and strategic investment opportunities. The overall sentiment remains cautiously optimistic, with indicators suggesting that the market has room for further development [27][30].

当然对国内来讲非常重要的就是，一方面从模型层面上来讲，国内的DeepSeek-R1，包括像字节豆包等 大模型从技术实力或者从表现上来讲也在不断追赶海外的头部大模型，另一方面国产的GPU市场还是 有比较巨大的投资机会。 有一些国产的算力产业链标的，前几年还处在业绩亏损的状态，但是在今年市值出现了比较明显的增 长，或者说股价涨幅会比它短期的业绩释放更早。所以大家就会有很多疑问，是不是这里面会存在一些 涨幅过高或者说估值过高的问题。但从产业趋势层面上来讲，包括我们去看市场空间层面来讲，我们觉 得国产算力或者说国产GPU层面还是有比较巨大的投资机会的。 首先我们看到，今年在英伟达二季度的财报说明会里，黄仁勋最新的表述也提到，整个国内能够提供的 算力芯片市场就能够达到500亿美金的体量，并且未来每年还会有差不多30%的年均复合增速。算力芯 片市场折算下来差不多就是3000多亿人民币到4000亿人民币的体量，这个体量我觉得相对还是比较庞大 的，并且未来每年还能够会有30%的增速。 但是在今年我们看到，一方面是由于海外的制裁，另一方面国内也在积极推进算力芯片，包括GPU，包 括国产的ASIC渗透率提升等等。所以未来几年我们 ...

Group 1 - The core viewpoint of the article highlights the resurgence of domestic computing power, with the domestic chip ETF, Guotai (589100), rising over 5% during trading [1][3] - The State Administration for Market Regulation announced an investigation into NVIDIA for violating China's antitrust laws, while Huawei launched new supernodes and Ascend series chips, indicating a strong domestic push for AI computing power [3] - The development of domestic computing power is supported by continuous iterations of domestic chips like Huawei's Ascend, alongside increasing capital expenditures from major domestic internet companies, indicating a robust demand [3][4] Group 2 - The article suggests that a new arms race in AI is underway, with a shift in demand from AI training to inference, indicating stronger and more sustained investment compared to previous cycles [4] - The improving market risk appetite suggests that there is still room for valuation increases within the relevant industry chain, encouraging investors to pay attention to the Guotai chip ETF (589100) and the chip ETF (512760) [4]

Group 1 - The core viewpoint of the article emphasizes that the recent interest rate cut by the Federal Reserve may benefit growth investments in the global stock market, particularly in the artificial intelligence sector [1][2] - The newly launched Kexin AI ETF aims to track the Kexin AI Index, covering various segments of the AI industry chain, from upstream computing infrastructure to downstream application scenarios, thereby diversifying risks associated with single sectors [1][3] - The driving logic in the AI field is identified as a "chip + application" dual engine, with increasing domestic market penetration for computing power and strong policy support for domestic chip companies [1][4] Group 2 - The Kexin AI ETF is currently in a significant issuance period, attracting attention from investors due to the influx of medium to long-term funds and potential policy support from the "14th Five-Year Plan" [2] - Despite recent market volatility, certain technology growth sectors, especially those related to AI, such as semiconductor chips and communication equipment, continue to show strong market performance [2][3] - The Kexin AI Index, which the ETF tracks, includes leading companies in both upstream computing power and downstream applications, with a significant weight in the semiconductor industry at approximately 51% [3] Group 3 - The article forecasts that the leading role of the AI sector will become increasingly prominent, driven by breakthroughs in large model technologies and rapid growth in domestic AI market demand [4] - The dual driving feature of the AI industry, encompassing both upstream computing power and downstream applications, is expected to create stronger synergies in future market competition [4] - Investors are encouraged to adopt a dual layout strategy of "chip + application" to better capture future investment opportunities within the AI industry chain [4]

Core Viewpoint - The article highlights a slight recovery in thematic trading activity, with most hot themes transitioning from gains to losses, while the domestic semiconductor theme remains active. It emphasizes the focus on emerging technologies, anti-involution, and expanding domestic demand as core lines of investment [1]. Thematic Summaries Theme 1: Domestic Computing Power - The capital market is accelerating financing for hard technology, with domestic AI chip company Moore Threads entering the IPO review stage, aiming to raise 8 billion yuan for self-controlled AI chip investments. The development of artificial intelligence in China is moving towards large-scale commercialization, which will further drive investment demand in computing power infrastructure and accelerate the construction of the domestic computing power ecosystem. Recommended investments include domestic computing power companies benefiting from increasing penetration rates and AI application companies benefiting from improved model efficiency and reduced costs [2]. Theme 2: Commercial Aerospace - The commercial aerospace sector is experiencing low-cost, high-reliability, and large-scale development driven by both supply and demand. It has become a key area of global technological competition, with low-orbit satellite frequency resources becoming scarce. Multiple satellite constellations in China are entering large-scale networking phases, with breakthroughs in reusable rocket technology and large liquid rocket technology. The demand explosion, technological innovation, and scenario breakthroughs are creating opportunities for large-scale development in China's commercial aerospace industry. Recommended investments include rocket manufacturing, satellite payloads, and new infrastructure benefiting from increased transport capacity, as well as satellite communication, navigation, remote sensing, and space tourism [3]. Theme 3: Anti-Involution - An article by General Secretary Xi Jinping emphasizes the need to address low-price disorderly competition among enterprises. The Ministry of Industry and Information Technology has pointed out that breaking "involution-style" competition is essential for achieving high-quality development in sectors like photovoltaics. The current release of capacity and significant increase in installed capacity in China's photovoltaic industry have led to a substantial decline in industry chain prices. The new energy sector, including energy storage, lithium batteries, and photovoltaics, is expected to benefit from concentrated capacity release and improving demand trends. Recommended investments include energy storage, lithium batteries, and photovoltaics, as well as sectors like pig farming, papermaking, chemicals, and aviation facing demand constraints [4]. Theme 4: Embodied Intelligence - The Minister of Science and Technology has indicated that efforts are underway to accelerate the application of humanoid robots in various scenarios such as automotive manufacturing, logistics, and power inspection. Tesla is set to hold meetings related to its Optimus robot, while Yuzhu Technology is initiating listing guidance, and Zhiyuan plans to acquire a controlling stake in a listed company, accelerating capital operations and financing processes. The industry is poised for large-scale development, with various forms of robots being produced on a large scale in China. Recommended investments include core components benefiting from technological upgrades, such as sensors and actuators, as well as manufacturers capable of large-scale production [5].

报告导读： 昇腾芯片迭代升级，超节点迈向百万卡集群，国产算力持续加速。 投资建议。 根据智东西， 2026-2028 年昇腾芯片基本保持每年迭代一代的速度。根据智东西与华为中国公众号， Atlas 900 A3 ，目前已累计部署 300 多 套， Atlas 950 SuperPoD 和 Atlas 960 SuperPoD 超节点基于此建立的算力集群规模可分别超过 50/100 万卡。我们认为（ 1 ）伴随昇腾芯片与超节点 迭代，昇腾链相关环节有望受益；（ 2 ）昇腾产品迭代路径或为其他国产算力芯片指明方向，驱动国产算力芯片性能迭代。 单卡性能迭代升级，支持 FP8 、 FP4 等数据格式。 根据智东西， 2026-2028 年昇腾芯片基本保持每年迭代一代的速度， 2026Q1 推出昇腾 950PR ， 2026Q4 推出昇腾 950DT ， 2027Q4 推出昇腾 960 ， 2027Q4 推出昇腾 970 。根据智东西，与 910C 相比，昇腾 950 及以后系列新增支持 SIMT 微 架构，编程模式较 SIMD 更灵活，对开发者更加友好。根据智东西，昇腾 950 系列芯片将支持 FP8/MXFP8/H ...

Group 1: Company Overview - NetDragon's revenue for the first half of 2025 was RMB 2.38 billion, a year-on-year decline of 28%[5] - The gross profit was RMB 1.7 billion, down 24.7% year-on-year, but the gross margin improved by 2.9 percentage points to 69.5%[5] - The company has a net cash position of approximately RMB 2.3 billion and holds 12,000 Ethereum as digital asset reserves[5] Group 2: Business Segments - The gaming and other businesses generated RMB 1.74 billion in revenue, a decrease of 18% year-on-year, but only a 4% decline compared to the second half of 2024, indicating stabilization[6] - The education segment, Mynd.ai, reported revenue of RMB 640 million, impacted by tightened customer budgets, with ongoing cost optimization efforts[7] Group 3: Financial Projections - The target price for NetDragon is set at HKD 20.24, representing a 71% upside from the last closing price[8] - The adjusted EPS for 2025 is projected at HKD 1.004, a decrease of 25% from previous estimates, while 2026 EPS is expected to be HKD 1.175, down 22%[2] Group 4: Market Strategy - The company plans to return at least HKD 600 million to shareholders through dividends and share buybacks over the next year[5] - New game titles and expansion into overseas markets are expected to drive future growth, with several products in the pipeline for release[6]

Core Viewpoint - The ongoing developments in US-China relations have intensified the focus on computing power, leading to a surge in domestic alternatives in the semiconductor sector [1] Group 1: Market Performance - Domestic computing power concepts have gained traction, with the Guotai Science and Technology Chip ETF (589100) rising over 5% and the Chip ETF (512760) increasing nearly 5% [1][2] - The top-performing ETFs include Guotai Science and Technology Chip ETF (5.61%), Xinchuang ETF (5.30%), and Chip ETF (4.90%) [2] Group 2: Industry Developments - Recent US-China trade negotiations have seen both sides exerting pressure, with the US adding 23 Chinese entities to its export control list and China investigating US analog chip companies for anti-dumping [3] - Huawei has launched new supernodes and Ascend series chips, with the Ascend 950 supernode expected to surpass Nvidia's NVL576 system by 2027 [3] - Domestic computing power is evolving on both supply and demand sides, with Huawei's Ascend chips providing support for the AI industry and domestic internet companies adapting to these chips, leading to increased capital expenditure [3] Group 3: AI and GPU Market - The AI industry is experiencing positive developments, with Oracle signing a $300 billion agreement with OpenAI for computing resources over five years, starting in 2027 [4] - The domestic GPU market is projected to exceed 100 billion yuan, with significant growth potential as the semiconductor industry gains experience in GPU manufacturing [4] Group 4: Investment Opportunities - The Guotai Science and Technology Chip ETF (589100) is highlighted as a key investment opportunity, tracking the semiconductor and electronics sector with a potential daily fluctuation of up to 20% [5] - The index focuses on high-tech and growth potential companies in the semiconductor field, featuring leading domestic chip manufacturers [5] Group 5: Top Holdings in the Index - The top ten weighted stocks in the Zhongzheng Science and Technology Chip Index include HaiMi Information (11.79%), Cambricon (9.97%), and SMIC (9.47%) [7]

Group 1: Macroeconomic Insights - Overall consumption shows improvement, with notable increases in automobile retail and high-end liquor prices due to seasonal effects and base effects [2] - Investment in infrastructure is accelerating with special bonds issuance, while real estate sales are recovering during the peak season, although the land market is cooling [2] - Production across most industries is declining, with adjustments in power generation and steel sectors influenced by demand and profit [2] Group 2: Market Strategy - Market adjustments present opportunities, and the Chinese stock market is expected to continue its upward trajectory, driven by the demand for assets and capital market reforms [3][21] - The transition from a "L-shaped" economic recovery to a more stable growth pattern is becoming evident, enhancing the certainty of economic and social development [4][22] - The technology sector remains a key focus, with recommendations for investments in internet, semiconductor, and innovative pharmaceutical companies [5][23] Group 3: Sector Comparisons - The new technology trends in AI and domestic production are rapidly advancing, indicating a new capital expenditure expansion cycle in emerging industries [5][23] - Financial sector stocks are recommended for gradual allocation due to potential increases in dividend returns after recent adjustments [5][23] - The shift in economic governance is expected to improve supply-demand dynamics in cyclical industries such as non-ferrous metals, chemicals, and real estate [5][23] Group 4: Thematic Recommendations - The report highlights the potential of domestic computing power investments and the growth of the commercial aerospace sector, driven by technological innovations and market demand [6][24][30] - The "anti-involution" trend is expected to benefit industries like lithium batteries, energy storage, and agriculture, as well as sectors facing price recovery [6][24][31] - The development of embodied intelligence is gaining momentum, with significant investments in robotics and related technologies [6][24][31]

Summary of Key Points from the Conference Call Industry Overview - The Chinese computing power market is projected to reach $50 billion by 2025, with a growth rate exceeding 50% in the coming years, potentially exceeding $100 billion by 2027/2028, indicating significant room for domestic production increase, possibly surpassing a trillion-dollar scale [1][4] Core Insights and Arguments - Huawei's launch of the Super Point signifies a shift towards super node cabinet clusters, raising competitive barriers in the industry, with other players like Shuangwang and Pinduoduo actively following suit, expected to enhance their capabilities by mid-2026 [1][5] - The supply side in 2026 is expected to have sufficient capacity, but leading players like Huawei and Zhongke Xun will maintain significant advantages and quotas, ensuring they retain a competitive edge [1][6] - Key players in the Zhongke system, such as Cambricon and Haiguang, have notable advantages in the domestic production process due to early testing and strategic national positioning, which will continue to benefit them in 2026 [1][7] - Anticipated capital expenditures (CAPEX) from major internet companies in 2026 are expected to exceed expectations, with a higher-than-expected domestic production rate due to increased policy support and a shift towards purchasing domestic chips [1][8] Market Dynamics - The market sentiment leans towards a supply surplus, with domestic production capacity expected to match or exceed demand, maintaining a high growth trajectory similar to 2025 [1][9] - There is a growing trend among chip manufacturers and major companies to develop Super Points to enhance overall computing efficiency, aligning with the trend of large models and addressing communication volume issues in data and expert model parallelism [2][10] Additional Important Insights - The current configuration value of domestic computing power remains positive, with Nvidia's uncertain future in China impacting its revenue forecasts, as it no longer includes Chinese revenue in profit predictions [3] - The domestic computing power market is vast, with potential for a domestic production rate increase to over 80% if Nvidia's role in China continues to diminish [4] - Huawei's recent announcement of over 8,000 nodes indicates its leading position in the Super Point domain, although its performance may not be as outstanding as expected [13] - Haiguang and Cambricon are also making progress in the Super Point area, with product launches anticipated soon, maintaining a competitive landscape among the top players [14] Future Trends - The domestic computing power market is expected to continue its strong growth into next year, with the top three players maintaining a solid position and minimal competitive pressure [15]