Core Insights - New Ziguang Group is leveraging "technology leadership + ecological empowerment" to drive its comprehensive layout in four core areas: 5G-A/6G communication, automotive electronics, edge AI, and intelligent computing infrastructure [1] Group 1: 5G-A and 6G Development - The global transition to 5G-A has officially begun with the freezing of the 3GPP R18 standard, marking the start of the commercial era for 5G-A [3] - New Ziguang Group is collaborating with industry partners to develop over a hundred industry terminals for key scenarios such as smart healthcare and intelligent manufacturing, facilitating the large-scale implementation of 5G-A [3] - In 6G exploration, the company focuses on non-terrestrial network (NTN) technology, participating in international standard organizations and successfully testing satellite communication technology [3] Group 2: Automotive Electronics - New Ziguang Group is systematically developing automotive-grade chip products, including high-end domain controllers and intelligent cockpit SoCs, and has established deep collaborations with major automotive manufacturers [4] - The company has achieved the highest level of safety certification for its intelligent cockpit reference design, enhancing the efficiency and accuracy of automotive electronic development [4] Group 3: Edge AI Solutions - The rise of edge AI is seen as a key breakthrough for industry applications, with New Ziguang Group launching a platform solution that supports various devices and provides low-latency, high-security experiences [5] - The company is building an open and scalable edge AI collaboration ecosystem with partners across the chip, operating system, and algorithm sectors [5] Group 4: Computing Power and Industry Models - New Ziguang's subsidiary, H3C, is introducing a full-stack intelligent computing infrastructure to meet the surging demand for AI computing power, with deployments in key sectors like government and finance [6] - The launch of the "Lingxi" series of industry models targets specific vertical pain points, while the "Turing Town" model addresses industry challenges related to computing center utilization [6] Group 5: Collaborative Ecosystem and Future Vision - New Ziguang Group aims to foster a collaborative ecosystem to activate the "AI+ future," focusing on innovation in key technologies and business models [7] - The company is transitioning from a technology provider to an industry ecosystem enabler, promoting the integration of technology value and social value [7]

Core Viewpoint - The company reported strong revenue growth in the first half of 2025, driven by increased demand for ICT equipment due to the AI wave, although profit margins faced pressure [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 47.425 billion yuan, a year-on-year increase of 24.96%, and a net profit attributable to shareholders of 1.041 billion yuan, up 4.05% [1]. - The company's non-recurring net profit reached 1.118 billion yuan, reflecting a year-on-year growth of 25.10% [1]. - For Q2 2025, the company reported revenue of 26.635 billion yuan, a 27.17% increase year-on-year, and a net profit of 0.692 billion yuan, up 18.01% [1]. Group 2: Business Segments - The ICT infrastructure and services segment generated revenue of 36.042 billion yuan in H1 2025, marking a 37.80% year-on-year increase, accounting for 76.00% of total revenue [1]. - The subsidiary, Xinhua San, achieved revenue of 36.404 billion yuan in H1 2025, with a net profit of 1.851 billion yuan [1]. - Domestic government and enterprise business revenue for Xinhua San reached 31.035 billion yuan, a significant year-on-year increase of 53.55%, while international business revenue was 1.919 billion yuan, up 60.25% [1]. Group 3: Profitability and Margin Analysis - The company reported a gross margin of 15.24% and a net margin of 2.71% for H1 2025, reflecting a decline of 3.79 percentage points and 1.84 percentage points year-on-year, respectively [2]. - In Q2 2025, the gross margin was 14.90% and the net margin was 3.35%, showing a year-on-year decline of 3.38 percentage points and 1.55 percentage points [2]. Group 4: Product and Technology Development - The company is focusing on "AI for ALL," emphasizing innovations in AIGC applications, efficient multi-dimensional computing power supply, and high-quality network connectivity [2]. - Key product launches include the UniPoDS80000 super node, which improves training efficiency by 25% and inference efficiency by 63% compared to previous models [3]. - The company introduced a high-density liquid-cooled cabinet solution and new generation lossless network solutions based on DDC architecture, expanding its product matrix with domestic key chips and core components [3]. Group 5: Profit Forecast and Investment Outlook - Based on the company's performance in 2024 and H1 2025, profit forecasts for 2025-2026 have been adjusted to 1.92 billion yuan and 2.57 billion yuan, respectively, with a projected profit of 3.28 billion yuan for 2027 [3]. - The corresponding PE valuations for 2025-2027 are estimated at 45, 34, and 27 times [3].

Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company reported a revenue of 47.425 billion yuan in the first half of 2025, representing a year-on-year growth of 24.96%. The net profit attributable to shareholders was 1.041 billion yuan, up 4.05% year-on-year, while the net profit after deducting non-recurring gains and losses reached 1.118 billion yuan, with a year-on-year increase of 25.10% [1][2] - The demand for ICT equipment is driven by the AI wave, with the company's subsidiary, Xinhua San, achieving a revenue of 36.404 billion yuan in the first half of 2025, a year-on-year increase of 37.75% [2] - The company is focusing on "AI for ALL," innovating products and technologies in areas such as AIGC applications and high-quality network connectivity, and has launched several advanced solutions [4] Financial Performance - The company's gross margin for the first half of the year was 15.24%, and the net margin was 2.71%, both showing a decline compared to the previous year [3] - The company has adjusted its net profit forecast for 2025-2026 to 1.92 billion yuan and 2.57 billion yuan, respectively, with a projected PE ratio of 45 for 2025 [5] - The financial data indicates a revenue growth rate of 21.57% for 2025, with expected revenues of 96.069 billion yuan [5][13] Product and Technology Development - The company has introduced the UniPoDS80000 super node, which significantly enhances training and inference efficiency compared to traditional server setups [4] - The launch of high-density liquid-cooled cabinets supports the deployment of high-performance AI acceleration cards, improving computing density [4] - The company has expanded its product matrix with new 400G and 800G switch products, achieving rapid revenue growth in these segments [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company's core subsidiary, Xinhua San, has experienced rapid growth, driven by both domestic government and enterprise sectors as well as overseas business expansion. The revenue from ICT infrastructure has increased, with strong growth in server sales. However, the gross margin has declined due to changes in revenue structure and acquisition-related financial costs, which have impacted net profit. The company is committed to advancing its "Computing Power x Connectivity" strategy and is actively pursuing an H-share listing to optimize its capital structure for long-term development [5][11]. Summary by Sections Financial Performance - In the first half of 2025 (25H1), the company achieved a revenue of 47.42 billion yuan, a year-on-year increase of 25.0%. The net profit attributable to shareholders was 1.04 billion yuan, up 4.1% year-on-year, while the net profit after deducting non-recurring items was 1.12 billion yuan, reflecting a 25.1% increase year-on-year. In the second quarter of 2025 (25Q2), the revenue reached 26.64 billion yuan, marking a year-on-year growth of 27.2% and a quarter-on-quarter increase of 28.1% [5][11]. Subsidiary Performance - The core subsidiary, Xinhua San, reported a revenue of 36.40 billion yuan in 25H1, representing a year-on-year growth of 37.7% and a quarter-on-quarter increase of 27.1%. The net profit was 1.85 billion yuan, up 1.7% year-on-year. Domestic government and enterprise business benefited from the sustained demand for AI computing power, achieving a revenue of 31.04 billion yuan, a significant increase of 53.5% year-on-year. International business revenue reached 1.92 billion yuan, growing by 60.2% year-on-year [11]. Strategic Initiatives - The company is accelerating its overseas business expansion, which has become a second growth curve. In 25H1, overseas revenue reached 1.98 billion yuan, a year-on-year increase of 53.0%. The company has established 22 overseas subsidiaries and has over 3,300 certified overseas partners, focusing on regions such as Southeast Asia, Central Asia, the Middle East, and Europe [11]. Margin and Cost Analysis - The overall gross margin for 25H1 was 15.2%, a decrease of 3.8 percentage points year-on-year. The gross margin for the ICT infrastructure and services business was 18.1%, down 6.3 percentage points, attributed to the higher proportion of lower-margin server products. Financial expenses increased significantly due to acquisition-related costs, impacting overall profitability [11]. Future Outlook - The company is expected to maintain strong growth, with projected net profits for 2025-2027 at 1.942 billion yuan, 2.318 billion yuan, and 2.826 billion yuan, respectively, corresponding to year-on-year growth rates of 24%, 19%, and 22%. The price-to-earnings ratios are projected to be 40 times, 34 times, and 28 times for the respective years [11].

Core Viewpoint - The article highlights the strategic upgrade of Unisplendour Corporation's subsidiary, H3C Group, in response to the urgent demand for computing power infrastructure in the AI era, emphasizing the establishment of the Turing Town model as a replicable and promotable industrial model [1][11]. Group 1: AI Infrastructure Development - H3C Group emphasizes the importance of building a robust computing power infrastructure as a foundation for AI applications, likening it to "repairing the road" for a long-distance run [3]. - The company proposes a "Computing Power × Connectivity" concept to address challenges such as low resource utilization and network congestion in traditional computing clusters [3][4]. - H3C has developed leading super-node products that enhance training and inference efficiency by 25% and 62.5% respectively, supporting large model training [4]. Group 2: Turing Town Model - The Turing Town model aims to create a complete commercial closed loop, addressing the traditional challenges of high investment, operational difficulty, and low profitability in computing centers [5][6]. - H3C collaborates with local government platform companies to ensure efficient utilization of computing resources through joint operations [5]. - The model has established four capability centers, forming a comprehensive AI industrial ecosystem that covers hardware adaptation, model optimization, scenario incubation, and industry empowerment [6]. Group 3: Market Demand and Differentiation - H3C's approach is demand-driven, identifying key areas such as internet, research, and model training to ensure high utilization of computing resources [6]. - The company differentiates itself in a competitive AI server market by offering integrated solutions rather than just hardware, transforming from a product supplier to a solution participant [6][7]. Group 4: Data Value Activation - H3C introduces the "Intelligent Trusted Data Space" solution to facilitate data circulation while ensuring data security, addressing the issue of data ownership transfer [8]. - The "Data Bridge" tool allows for data analysis without transferring ownership, maintaining the data sovereignty of the provider [8]. Group 5: Future Goals and Expansion - H3C aims to expand its computing power infrastructure in Guizhou and the western region, focusing on the Turing Town as a regional intelligent computing hub [11]. - The company plans to attract AI model and algorithm application enterprises to build a full-chain industrial ecosystem and promote large-scale AI applications in various sectors [11].

Core Insights - The core viewpoint emphasizes the importance of optimizing network performance in AI infrastructure, which, despite accounting for only about 10% of investment, can enhance overall computing capabilities by over 30% [1][8]. Group 1: Strategic Focus - The company has adopted "computing power × connectivity" as its core strategy, aiming to break the traditional separation between computing and networking ecosystems [3][7]. - The company is committed to a "diverse heterogeneous" open strategy, collaborating deeply with various GPU manufacturers to adapt to a multi-faceted industry landscape [3][8]. Group 2: Technological Innovations - The company introduced the "end-network collaboration" solution, which allows GPUs or network cards to "perceive" network status, enhancing communication efficiency and achieving an average network performance improvement of 16% and a congestion prevention improvement of 20% [4]. - A new high-performance 800G AI switch, H3C S9828-128EP, was launched, featuring 128 ports and achieving a 70% reduction in equipment usage and a 50% reduction in optical module usage compared to previous models [5]. - The DDC (Diversified Dynamic-Connectivity) architecture was unveiled, achieving a 107% improvement in effective bandwidth compared to ECMP and a 2.5% performance enhancement over InfiniBand in all-to-all scenarios [6]. Group 3: Market Positioning - The company is positioned as a key player in domestic AI infrastructure construction, holding a top 2 or 3 position in both computing and networking fields [7][8]. - The company aims to support national strategies like "East Data West Computing" by providing a deterministic network that ensures stable and high-capacity data transmission across vast distances [8][9].