1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - In 2025, China's GDP reached 1,401,879 billion yuan, a year - on - year increase of 5.0% at constant prices, achieving the annual growth target. The quarterly growth rate showed a "high at first and stable later" trend. The tertiary industry was prominent, with the added value of the second and first industries also growing [9]. - The decline in China's real estate development investment intensified in 2025, with the investment in residential properties also facing increasing pressure. The sales side was under greater pressure, and the average price of commercial housing had obvious downward pressure [9]. - In December 2025, the added value of industrial enterprises above the designated size in China increased steadily, with new kinetic energy characteristics in industrial growth and obvious differentiation in traditional industries. Exports showed resilience, and residents' income increased steadily [11]. - In December 2025, China's imports and exports reached a record - high monthly scale. Exports to ASEAN and the EU increased, while exports to the US decreased [97]. - In December 2025, China's manufacturing PMI returned to the expansion range, and the non - manufacturing business activity index also rebounded, but there were significant industry differences [252][260]. 3. Summary of Each Section 3.1 National Economic Accounting - In 2025, China's GDP reached 1,401,879 billion yuan, a 5.0% year - on - year increase at constant prices. The quarterly growth rates from the first to the fourth quarter were 5.4%, 5.2%, 4.8%, and 4.5% respectively. The tertiary industry added value was 808,879 billion yuan, growing 5.4%. The second - industry added value was 499,653 billion yuan, growing 4.5%. The first - industry added value was 93,347 billion yuan, growing 3.9% [9]. 3.2 Industry - In December 2025, the added value of industrial enterprises above the designated size increased by 5.2% year - on - year and 0.49% month - on - month, with an annual growth of 5.9%. Manufacturing was the main growth driver, and new kinetic energy in industrial growth was prominent, while traditional high - energy - consuming sectors were weak. Exports showed resilience [11]. 3.3 Price Index - In December 2025, China's CPI increased by 0.8% year - on - year, and remained flat for the whole year. Food prices increased by 1.1%, and non - food prices increased by 0.8%. PPI decreased by 1.9% year - on - year in December 2025, with a 2.6% decline for the whole year [64][72]. 3.4 Real Estate - In 2025, China's real estate development investment was 827.88 billion yuan, a 17.2% year - on - year decrease. Residential investment decreased by 16.3%. The construction area, new construction area, and sales volume of commercial housing all declined [9][125][129][133]. 3.5 Foreign Trade and Investment - In December 2025, China's total imports and exports were 601.42 billion US dollars, a 6.24% year - on - year increase. Exports were 357.78 billion US dollars, a 6.6% increase, and imports were 243.64 billion US dollars, a 5.7% increase. The trade surplus was 114.14 billion US dollars [97]. 3.6 Fixed - Asset Investment - In 2025, China's fixed - asset investment (excluding rural households) was 4,851.86 billion yuan, a 3.8% year - on - year decrease. Private fixed - asset investment decreased by 6.4%. Investment in the first, second, and third industries showed different trends [117]. 3.7 Domestic Trade - The report shows the trends of service retail sales, catering revenue, and commodity retail, and the year - on - year changes in the retail sales of enterprises above the designated size in various industries [161][163][168]. 3.8 Transportation - The report presents the year - on - year changes in the transportation volume of four types of goods and passengers, and the traffic flow of subways in nine major cities and traffic fixed - asset investment [171][176][179]. 3.9 Banking and Currency - The report analyzes the new social financing scale, social financing scale stock, new RMB loans, and currency liquidity. In December, the M1 - M2 "scissors gap" expanded, reflecting weakening capital activation and weak corporate business and trading willingness [186][197][203]. 3.10 Fiscal and Employment - The report shows the central and local general budget public revenues and expenditures, and the situation of urban new employment and surveyed unemployment rate [235][240][241][245]. 3.11 Business Surveys - In December 2025, China's manufacturing PMI was 50.1%, returning to the expansion range. The non - manufacturing business activity index was 50.2%, also rebounding, but with significant industry differences [252][260]. 3.12 US Macroeconomy - The report provides data on the quarterly changes in the US real GDP annualized quarterly rate, employment, retail sales, and the Fed's asset structure and federal funds rate [267][271][277][279].

Group 1 - The U.S. government has announced a 10% "minimum benchmark tariff" on trade partners, with some partners facing higher tariffs, which has prompted mixed responses from companies in various sectors [1] - Companies in the home appliance and power equipment sectors have stated that the impact of U.S. tariff policies on their operations is limited, viewing it as an opportunity to expand into emerging markets [1] - According to a report by Founder Securities, while there is increased downward pressure on exports due to tariff policies, the long-term global competitive advantage of the export chain remains intact, indicating strong resilience in domestic exports [1] Group 2 - Domestic demand-driven industries such as food and beverage and publishing have shown significant resilience against tariff impacts, with companies like Dongpeng Beverage achieving 100% domestic procurement and production [2] - Leading publishing companies have reported minimal effects from U.S. tariffs as their main operations and raw materials are sourced domestically [2] - The steel industry is managing potential risks through supply-side adjustments, with limited impact from U.S. tariffs due to small export volumes to the U.S. [2] Group 3 - Export-oriented industries are adapting to tariff pressures through capacity transfer, market diversification, and technological upgrades, with companies like Ningbo Bowei Alloy establishing production bases in the U.S. and Vietnam to mitigate tariff impacts [3] - The pesticide and fertilizer sector is viewing U.S. tariffs as a growth opportunity, with companies planning to increase exports to regions like South America and Europe due to gaps left by competitors [3] - In the semiconductor industry, companies are diversifying their supply chains and focusing on domestic alternatives to reduce reliance on U.S. markets, with limited direct sales to the U.S. [3] Group 4 - Some companies in design and testing phases report minimal direct impact from tariffs due to low export ratios to the U.S., although downstream clients may experience cost pressures [4] - The value of the testing phase in chip production is relatively low, and the origin determination typically does not rely on this phase [4] Group 5 - Companies are shifting from passive responses to proactive upgrades, focusing on technological innovation, brand building, and global expansion to reshape their positions in the global supply chain [6] - A leading home appliance company has adjusted its production to comply with the USMCA, resulting in negligible cost impacts from tariffs on its U.S. sales [6] - A major automotive company has proactively reduced its exports to the U.S. in response to anticipated tariffs, indicating limited overall impact on its export business [6]