Group 1 - GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading high-performance data center operator and service provider in China and Southeast Asia [2] - The company reported a total revenue of 2.723 billion RMB for the fiscal year ending March 31, 2025, representing a year-on-year growth of 11.96% [1] - The net profit attributable to shareholders reached 763 million RMB, showing a significant year-on-year increase of 320.64% [1] Group 2 - GDS operates data centers in key economic hubs in China, as well as in non-first-tier cities to meet diverse customer needs [2] - The data centers are characterized by large scale, abundant power supply, high density, and efficiency, with all critical systems featuring multiple redundancies [2] - The company maintains neutrality towards operators and cloud service providers, allowing customers to freely connect with major telecom operators and access multiple cloud service providers hosted in GDS data centers [2]

Core Viewpoint - Century Internet (VNET) is a leading digital infrastructure company in China, focusing on data center services and cloud computing solutions, with a significant presence in the market and a strategic partnership with Microsoft [1][2]. Financial Performance - As of March 31, 2025, Century Internet reported total revenue of 2.246 billion RMB, representing a year-on-year growth of 18.34% [1]. - The company's net profit attributable to shareholders was -238 million RMB, showing a decrease of 27.03% compared to the previous year [1]. Business Operations - Century Internet operates over 50 data centers across more than 30 cities in China, with a base business operational capacity exceeding 480 MW and over 52,000 operational cabinets in urban areas [2]. - The company has established large-scale data center industry clusters in key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao, facilitating smooth data migration from first-tier cities to edge cities [2]. Strategic Partnerships - As a strategic partner of Microsoft, Century Internet operates international-standard cloud services in China, including Microsoft Azure, Microsoft 365, Dynamics 365, and Power Platform [2]. Client Base - The company has built a solid foundation for business development for over 6,000 high-quality enterprise clients, including nearly 100 leading companies in high-growth industries, leveraging its strong resources and operational capabilities [2].

Investment Strategy - The satellite sector is showing a trend of "East rising, West falling," indicating that China may achieve a latecomer advantage in low Earth orbit satellites. The number of Starlink satellites falling has increased significantly, with 316 expected to fall in 2024, compared to only 2 in 2020. This trend correlates with heightened solar activity [12][16] - The "computing satellite" sector is emerging as a new avenue, with China potentially holding a first-mover advantage. The "Star Computing" plan aims to establish a space-based computing network with 2,800 satellites, while the "Three-body Computing Constellation" will achieve a total computing power of 1,000 POPS [13][14] - Four key advantages are expected to establish satellites as a new type of infrastructure: universal connectivity, high-speed communication, large-scale user access, and safety and reliability. Satellite internet can provide access in remote areas, with latency as low as 20-50 milliseconds and peak speeds reaching 500 Mbps [14][15] Industry News - Starlink satellites have been falling at an increasing rate, with over 500 reported to have fallen between 2020 and 2024. This trend provides valuable insights for China's satellite development, helping to avoid similar risks in the future [16][17] - China Mobile has initiated a procurement project for 170,000 data center switches, with Huawei and ZTE among the winning bidders. This reflects ongoing investments in infrastructure to support AI demand [17][18] - China Mobile has successfully launched a trusted data space project for data annotation, which aims to support various sectors including smart vehicles and healthcare, marking a shift towards a more skill-intensive data industry [18][19] - China Post has successfully conducted long-distance cargo transport using fixed-wing drones, marking a significant breakthrough in low-altitude logistics [19] Market Review and Focus - The communication sector saw a slight decline of 0.5% this week, with notable performances in optical modules and low-altitude economy sectors. The satellite internet sector is highlighted as a potential investment opportunity [20][21] - Recommended stocks for next week include companies involved in satellite internet, such as Aerospace Universe and Tianyin Machinery, as well as long-term focus on major telecom operators like China Mobile and China Telecom [24]

Core Viewpoint - Guian New Area is rapidly developing into a modern city with a focus on high-quality, green, and intensive growth, attracting major enterprises and establishing itself as a key player in the digital economy and advanced manufacturing sectors [1][4][7]. Industry and Company Summary - Guian New Area has attracted 26 Fortune Global 500 companies, 9 Chinese Fortune 500 companies, and 3 private Fortune 500 companies, indicating a strong industrial presence [5]. - The area has established 26 large-scale data centers, with a computing power exceeding 81 EFLOPS, of which over 98% is intelligent computing, making it one of the strongest regions in China for domestic intelligent computing capabilities [3][6]. - The region aims to become a national computing power guarantee base, a research and production base for new energy power batteries and materials, and an important industrial backup base [4]. - In 2024, the industrial output value of the new energy battery and materials industry is projected to reach 7.692 billion yuan, with a year-on-year growth of 43.2%, while the advanced equipment manufacturing industry is expected to achieve an industrial output value of 3.659 billion yuan, growing by 35% [7]. - The software and information technology service industry in Guian New Area is anticipated to generate revenue of 70.9 billion yuan in 2024, reflecting a growth of 28.5%, with the digital economy's added value accounting for 53.3% of GDP [12][14]. - The area has built a complete industrial chain from battery material research to vehicle manufacturing, with a current battery production capacity of 35 GWh [6]. - Guian New Area has developed a robust digital infrastructure, including the largest cloud data center in southern China, which serves various sectors including internet, government, and finance [8][10].

Group 1: Green Transition in Luliang - Luliang City is pursuing a unique green low-carbon transition that is tailored to local conditions and resources, emphasizing a "China-style solution" through systematic approaches in industrial restructuring and institutional innovation [1][3] - The city has implemented a comprehensive livestock waste management project in Wenxian County, which processes 1.5 million tons of solid waste annually, converting it into 80,000 tons of biomass fuel, effectively replacing 34,000 tons of standard coal [1] Group 2: Industrial Development - Luliang is promoting the development of low-carbon building materials by utilizing coal chemical by-products and solid waste, with an industrial park projected to process 1.3 million tons of industrial solid waste in 2024, generating approximately 140 million yuan in output [2] - The park also recycles 10,000 tons of rubber waste into modified asphalt, contributing an additional 30 million yuan in value, aligning with national strategies for energy and transportation integration [2] Group 3: Hydrogen Energy Initiatives - Luliang is leveraging its high demand for heavy-duty transportation and hydrogen by-products from coal chemical processes to promote hydrogen energy applications, addressing the dual challenges of "no vehicles available" and "idle hydrogen sources" [3] - The city is transitioning from gray hydrogen to blue and green hydrogen, aiming to establish a high-quality hydrogen energy ecosystem in inland regions [3] Group 4: Future Development Strategies - Future initiatives include promoting green industrial upgrades through smart microgrids that integrate photovoltaic, energy storage, and adjustable loads to enhance energy efficiency [4] - The city plans to utilize the "Tianhe-2" supercomputer and green electricity to deepen "computing and electricity synergy," supporting emerging industries with dynamic load matching [4]

Key Insights - The report emphasizes the transformative impact of artificial intelligence (AI) on China's economy, predicting an average increase of approximately 1.3% in total factor productivity (TFP) from 2025 to 2035 due to AI advancements, which could contribute an additional 14.8% to GDP by 2035 [1] - The report highlights the ongoing challenges in the real estate market, indicating that the adjustment period has entered its fourth year, with significant inventory issues persisting despite government efforts to stabilize the market [11][12] - The report discusses the need for a new supply-side reform that adapts to the current economic landscape, moving beyond traditional methods to address structural issues and promote high-quality development [7][8] Macro Insights - The report notes that the Producer Price Index (PPI) has experienced negative growth for 32 months, indicating a prolonged period of deflationary pressure that has not been seen since previous economic crises [2] - It suggests that the current economic environment necessitates a comprehensive approach to stimulate domestic demand, with a focus on balancing supply and demand to achieve sustainable growth [4][5] - The report outlines the importance of addressing the structural overcapacity and "involution" competition in various industries, advocating for a more market-oriented approach to capacity reduction [15][19] Real Estate Sector - The report identifies the critical need for inventory reduction in the real estate sector, emphasizing that the current high levels of unsold properties pose a significant challenge to market stabilization [12][13] - It discusses the government's "three red lines" policy aimed at curbing debt expansion in the real estate sector, which has led to a prolonged adjustment phase [11] - The report suggests that a more proactive government role is necessary to facilitate the clearing of excess inventory and stabilize the housing market [14] Industry Dynamics - The report highlights the competitive pressures in the automotive and renewable energy sectors, noting that many companies are engaged in "involution" competition, which undermines market stability and profitability [21][22] - It emphasizes the need for industries to innovate and adapt to avoid the pitfalls of excessive competition and to promote sustainable growth [24][25] - The report advocates for the establishment of a unified national market to enhance resource allocation and reduce local protectionism, which has historically led to inefficiencies [26][27]

智通财经记者 | 张熹珑 从广东北部的韶关站出发，崭新的厂房鳞次栉比，行车不到几分钟，北江智算中心、中国电信粤港澳大湾区智能算力中心等建筑出现在视野里，彰显着这座 小城的"野心"。 过去三年，这座四线城市实现了算力产业的从无到有。在6月13日的第四届粤港澳大湾区（广东）算力产业大会暨第三届中国算力网大会上，韶关市委书记 陈少荣提到，目前已引进22个智算中心项目，总投资超过600亿元，已形成12万标准机架承载能力，即将成为华南地区最大的算力集聚区。 与之形成反差的是，韶关此前在广东省的存在感并不高。定位为"北部生态发展区"，韶关的综合经济实力在全省处于较后位置，直至2023年，全市GDP才突 破1600亿元。2024年，韶关GDP达1647.56亿元，经济总量在广东21市中排名第15位。 智通财经根据韶关市统计局整理 AI产业为这座城市带来重塑竞争力的新窗口。2022年，国家正式实施"东数西算"战略，粤港澳大湾区是八个国家算力枢纽节点之一，韶关是该枢纽节点内唯 一的国家数据中心集群。 翻查韶关2024年政府工作报告和统计公报可以发现，这座粤北城市的经济转型很有特点：传统重工业占比正在下降，但装备制造、有色金属等 ...

Core Insights - The article highlights the transformation of Shaoguan into a digital hub, driven by the establishment of the national integrated computing network and the data center cluster in the Guangdong-Hong Kong-Macao Greater Bay Area [2][3][4] - The computing power generated in Shaoguan is positioned as a critical resource for supporting various sectors, including smart manufacturing, smart cities, and digital governance [3][4][6] - Guangdong aims to strengthen its artificial intelligence (AI) industry, with specific targets set for computing power scale and infrastructure development by 2025 [4][5][10] Group 1: Digital Transformation - Shaoguan is evolving from a traditional industrial base to a "super digital engine," providing substantial computing power to the Greater Bay Area [7][9] - The data center cluster in Shaoguan is designed to meet the real-time computing needs of cities like Guangzhou and Shenzhen, enhancing the region's digital economy [2][3][8] Group 2: Computing Power Infrastructure - The Guangdong provincial government has set a target for computing power to reach 38 EFLOPS by 2025, with intelligent computing accounting for 50% of this capacity [4][5] - A high-speed optical network has been established, with 13 lines connecting Shaoguan to the Greater Bay Area, enabling ultra-low latency for financial transactions and other critical applications [8][9] Group 3: AI Industry Development - Guangdong is implementing policies to foster AI and robotics innovation, aiming to create a high-tech industrial pillar and a global hub for AI and robotics [5][10] - The province's AI capabilities are showcased through various projects and solutions across multiple sectors, emphasizing a collaborative approach among cities in the Greater Bay Area [9][10]

Summary of Conference Call Records Industry Overview - The conference call discusses the overseas AI computing power infrastructure, highlighting the positive performance of companies like Nvidia and Broadcom in the data center sector, driven by optimistic demand for AI training and inference. New large-scale data centers are being established in multiple countries, with significant growth in AI cloud services reported by Oracle and Coface [1][2][3]. Key Points and Arguments AI Computing Power Market - Concerns regarding overseas computing power infrastructure have eased, with Nvidia and Broadcom reporting strong performance. The demand for AI training and inference remains optimistic, leading to the establishment of new large-scale data centers [1][2]. - Nvidia's AI network business grew over 170% year-on-year in Q2 2025, with expectations for continued strong demand in 2026. At least three clients plan to deploy million-card clusters by 2027, primarily driven by inference demand [2][3]. Domestic Computing Power Market - The domestic computing power market faces challenges due to the H20 ban, leading to a significant drop in supply. However, there is a surge in inference demand, while training supply remains insufficient [5]. - Recommendations include focusing on domestic computing power chain targets that are less affected by tariffs and rely more on internal circulation, as well as overseas AI chain targets with strong performance [5]. Optical Communication Industry - The optical communication industry is experiencing high demand, with expectations for global 800G module demand to reach 35-40 million units by 2026. There are shortages in DSP, EML lasers, and other components, with many companies showing signs of performance recovery [6][7]. - Investment opportunities include companies with sustained high growth and low PE valuations, such as Xuchuang, New Yisheng, and Tianfu, as well as emerging technologies related to CPU passive optical devices [9]. Data Center Industry Trends - The data center industry is preparing for mass production of liquid cooling technology, with significant participation from various manufacturers. Despite short-term impacts from the H20 ban, confidence in domestic computing power development remains strong [8]. - The trend towards large-scale cluster construction is evident, with companies like Broadcom preparing for potential million-card clusters, which will drive demand for optical modules [11]. Additional Important Insights - The AI computing power sector significantly impacts the optical communication industry, with cloud vendors increasing capital expenditures on AI. The introduction of 1.6T optical modules is expected to boost the performance of leading companies [10]. - The liquid cooling industry is on a growth trajectory, with an increase in the number of participating manufacturers and a shift towards new cooling materials. The period of 2026-2027 is anticipated to be crucial for liquid cooling technology to replace traditional air cooling [19]. - The domestic data center and computing service industry is expected to replicate North America's successful development model, particularly in addressing chip shortages and sustaining AI application growth [18]. Investment Recommendations - Investors are advised to focus on companies like Tianfu and Taicheng, which are positioned in the upstream of the industry chain, including passive optical components and optical chips. Other potential targets include Zhishang Technology and Yuanjie, which are familiar and promising development objects [17].

Summary of Conference Call Records Industry Overview - The focus is on the **solid-state battery** industry, highlighting advancements in pilot line construction and the potential for accelerated industrialization [1][2][3]. Key Points and Arguments - **Pilot Line Construction**: Leading companies like Guoxuan High-Tech have established a 200MWh pilot line, with expectations for small-scale production by 2027 and mass production by 2030. Secondary and non-listed companies are also actively preparing for early production, which could catalyze the sector [1][2][3]. - **Material Trends**: High-nickel solutions remain the mainstream material system for solid-state batteries. Rapid advancements are noted in silicon-based anodes and sulfide preparation processes, with polymer and halide solutions also being applied [1][4]. - **Market Dynamics**: The current market environment shows significant investment opportunities in solid-state batteries, IDAC companies, humanoid robots, and new photovoltaic technologies. The national battery index recently increased by 1.84% [2]. - **HVDC Systems**: NVIDIA has identified HVDC as the next-generation power supply solution for data centers, collaborating with Weidi to develop an 800V HVDC architecture. This is expected to become the mainstream solution for IDC power systems in the long term [1][6]. - **Emerging Technologies**: Huawei's developer conference is anticipated to showcase advancements in embodied intelligence, with the Pangu model expected to achieve breakthroughs in multimodal perception and autonomous decision-making [1][10]. Additional Important Insights - **Solid-State Battery Packaging**: The trend is towards soft-packaging, which can effectively suppress material expansion during production and use. Aluminum-plastic films are seen as having significant investment potential in this area [1][17][16]. - **Dry Process Technology**: The dry process is becoming essential for solid-state electrode manufacturing, with companies like Qingyan Electronics and Tian'ao Electronics making notable progress [1][18][19]. - **Challenges in Sulfide Batteries**: Companies in the sulfide battery sector face challenges such as immature equipment, low production yields, and high costs of lithium sulfide, which hinder the overall cost competitiveness of solid-state batteries [1][14]. - **Investment Opportunities**: Key companies to watch include Xiamen Tungsten New Energy for materials, and in the equipment sector, small-cap companies are favored due to the uncertainty in identifying clear leaders [1][5]. Conclusion The solid-state battery industry is at a pivotal moment, with significant advancements in technology and production capabilities. The focus on high-nickel materials, the development of HVDC systems, and the potential of new technologies like embodied intelligence present numerous investment opportunities. However, challenges remain, particularly in the sulfide battery sector, which could impact the overall growth trajectory of the industry.