Core Viewpoint - The company demonstrates strong revenue growth driven by its "AI in ALL" and "AI for ALL" strategies, with significant advancements in AI technology and market leadership in various sectors [2][3][4]. Financial Performance - In 2024, the company achieved a revenue of 79.024 billion yuan, a year-on-year increase of 2.22% - In Q1 2025, the revenue reached 20.790 billion yuan, showing a year-on-year growth of 22.25% - Subsidiary Xinhua San reported a revenue of 55.074 billion yuan in 2024, up 6.04% year-on-year, with Q1 2025 revenue at 15.295 billion yuan, reflecting a 26.07% increase [2]. Technological Advancements - The company continues to deepen its "AI in ALL" strategy, launching new products such as the S12500AI series and S9827 series, enhancing network performance and supporting high-performance AI computing [3]. - The introduction of the G7 series heterogeneous computing servers and the M9000-X firewall showcases the company's commitment to cutting-edge technology and security [3]. - The company has developed innovative cooling solutions to address high-power chip heat dissipation issues [3]. Market Position and Awards - Xinhua San has won two national science and technology progress awards, highlighting its technological leadership [4]. - The company maintains a strong market presence, leading in various segments such as enterprise WLAN and network routers for multiple consecutive years [4]. AI Application and Industry Integration - The company is focused on bridging the gap in AI application across various industries, launching the LinSeer Cube for end-to-end AI solutions [5]. - It has released several specialized AI models for sectors like healthcare and urban management, contributing to smart city initiatives [5]. Ecosystem Development - The company is actively building a computing power ecosystem, collaborating with partners to establish multiple computing centers across China [6]. - It has launched a new product line targeting small and medium-sized businesses, offering a diverse range of products to meet varied customer needs [6]. Global Expansion - The company is expanding its global footprint, with initiatives like the Turing Town project aimed at creating a comprehensive computing service platform [7]. - It aims to leverage its core technology and market experience to capitalize on AI opportunities and support digital transformation across industries [7].

Financial Data and Key Metrics Changes - The company remains committed to cost efficiency and fiscal discipline, aligning financial strategies with long-term value creation despite facing headwinds from capital expenditures and increased manpower costs [4] - Capital expenditure is expected to be marginally higher compared to the previous fiscal year [14] Business Line Data and Key Metrics Changes - Network services did not experience a revenue decline, but substantial expenses were incurred for new capacities leased for future business requirements [10] - Data center revenues show a secular growth trend, with two new greenfield facilities recently going live, each designed for a capacity of 30 megawatts [12][13] Market Data and Key Metrics Changes - Demand continues to exceed supply in the market, driven by cloud consumption from Indian enterprises and expanding hyperscalers [16] - In the short term, demand is expected to be driven by international hyperscalers, while medium to long-term growth will likely see increased consumption from Indian enterprises [22] Company Strategy and Development Direction - The company intends to strengthen its unique selling advantages in network, data center, and digital services over the coming years [5] - The focus remains on building resilience, enhancing operational agility, and capturing emerging opportunities in the ICT industry [4] Management's Comments on Operating Environment and Future Outlook - The operating leverage for network and data center infrastructure is positive, with potential for increased margins as capacity utilization improves [18] - Construction timelines have marginally improved post-COVID, but substantial demand for capacity creation means timelines have not changed materially [28] Other Important Information - The interest from capital providers remains stable, with no significant changes in the availability of resources such as land and power [27] Q&A Session Summary Question: What drove the decline in network services this quarter? - There was no revenue decline, but substantial expenses were incurred for new capacities leased for future business requirements [10] Question: Can you discuss the dynamics of data center services and the roadmap for the next fiscal year? - Data center revenues have a secular growth trend, with two new facilities recently going live, and the roadmap includes further capacity expansion [12][13] Question: What are the expectations for capital expenditure in fiscal twenty-six? - Capital expenditure will be marginally higher compared to fiscal twenty-five [14] Question: What is the demand mix expected to be driven by in the future? - Short-term demand will be driven by international hyperscalers, while medium to long-term growth will see more Indian enterprise consumption [22] Question: How has the construction timeline changed in the past six to twelve months? - Construction timelines have marginally improved compared to the post-COVID period, but substantial demand for capacity creation remains [28]