Group 1 - The international environment is becoming increasingly complex and severe, with recent naval joint exercises between China and Russia focusing on practical combat scenarios, including joint maneuvering and air defense [1] - The United States is constructing a counter-drone defense system and plans to include Ukraine in testing, utilizing various methods such as lasers and electromagnetic pulses [1] - The trend of great power competition is expected to intensify, with the defense strategies of the US and its allies shifting focus towards the Indo-Pacific region, potentially escalating tensions around China [1] Group 2 - The military industry is projected to perform well in the long term, as modern warfare requires advanced aircraft and missiles, as well as cost-effective equipment like rockets for sustained consumption and reliable communication systems [1] - China is reshaping its aviation supply chain, achieving breakthroughs in areas such as engines and hydraulic oil to reduce foreign dependency, with expectations to accelerate improvements during the 14th Five-Year Plan [1] - By 2027, China aims to achieve its military modernization goals in line with the centenary of the People's Liberation Army [1] Group 3 - The military ETF (512660) tracks the China Securities Military Industry Index (399967), which selects representative companies from the defense and military sectors, covering the entire industry chain across land, sea, air, and space [1] - This index reflects the overall performance of listed companies in the military industry within the Chinese A-share market, characterized by distinct military features and high industry concentration [1]