Core Viewpoint - The HarmonyOS ecosystem has transitioned from a "small-scale trial" to a new phase of "exponential expansion" [1][28]. Group 1: Product Launch and User Engagement - The recently launched Huawei nova 14 series, equipped with HarmonyOS 5, has attracted significant consumer interest, indicating a rapid embrace of the HarmonyOS ecosystem by mainstream users [2][27]. - Hundreds of HarmonyOS applications were launched just before the nova 14 series went on sale, covering various high-frequency user needs such as entertainment, travel, shopping, and office tasks [2][28]. Group 2: User Experience and Interaction - The introduction of HarmonyOS 5 marks the beginning of a "Harmony Era," where users will experience a seamless integration of various Huawei devices [3][25]. - The "smile curve" theory explains the evolution of user engagement, highlighting the importance of maintaining user satisfaction as they transition from initial curiosity to habitual use [4][6]. - HarmonyOS 5 aims to enhance user experience by leveraging AI capabilities, making the operating system more intuitive and responsive to user needs [10][11]. Group 3: Innovative Features and AI Integration - HarmonyOS 5 introduces a more intelligent AI that adapts to user emotions and context, enhancing the overall interaction experience [11][13]. - New features such as "AI Magic Move" and "AI Portrait Enhancement" cater specifically to the needs of younger users, providing innovative tools for digital content creation [13][14]. - The operating system also supports new interaction methods like "Tap to Share" and "Live Window," allowing for seamless connectivity and real-time updates [16][18][20]. Group 4: Market Position and Future Outlook - The nova 14 series is seen as a critical test for HarmonyOS 5, particularly in appealing to the younger demographic, which has diverse and rational upgrade demands [27][28]. - With over 200 million units sold in the nova series since 2022, the launch of HarmonyOS 5 is expected to significantly increase user adoption and expand the ecosystem [27][28]. - The growth of HarmonyOS is anticipated to create a positive feedback loop, attracting more developers and accelerating the innovation of applications within the ecosystem [30].

Market Overview - The three major stock indices in Shanghai and Shenzhen opened lower on May 26, with the Shanghai Composite Index experiencing a high and then retreating, while the Shenzhen Component and ChiNext indices showed a downward trend, continuing the adjustment seen in the previous two trading days [1] - By the midday close, the Shanghai Composite Index was at 3338.42 points, down 0.30%, with a trading volume of approximately 256.1 billion; the Shenzhen Component was at 10060.36 points, down 0.71%, with a trading volume of approximately 391.1 billion; the ChiNext Index was at 1995.61 points, down 1.28%, with a trading volume of approximately 172.6 billion [1] Institutional Insights - CITIC Securities noted an increase in external uncertainties and a faster rotation of themes, leading to a heightened preference for certain assets. They recommend prioritizing core assets and low-position sectors, while emphasizing the importance of domestic stimulus policies and global geopolitical changes [2] - China Galaxy Securities observed frequent style switching between large and small caps, indicating a lack of sustained upward trends. They highlighted the cautious sentiment among investors and the ongoing support from domestic policies aimed at stabilizing growth [2] Industry Focus - Guojin Securities reported strong growth in domestic demand for home appliances, with a focus on leveraging subsidies and the white goods sector's potential. They also suggested monitoring the black goods sector for ongoing structural upgrades and identifying opportunities in small appliances [3] Policy Developments - The Ministry of Commerce announced a plan to cultivate around 100 leading national smart supply chain enterprises by 2030, emphasizing the use of AI, IoT, and blockchain technologies to enhance supply chain digitalization and resilience [4] - The State Administration for Market Regulation is seeking public opinions on a guideline aimed at regulating the fees charged by online trading platforms to ensure fair practices and promote healthy development in the platform economy [5]

Market Overview - The overall market is in a turbulent phase, but interest rate cuts provide a hedge, leading to strong demand for CATL (宁德时代) shares, boosting market confidence [1] - The Hang Seng Index continued to rise last week [1] - A new round of tariffs was announced by Trump, imposing a 50% tariff on the EU and a 25% tariff on non-US smartphone manufacturers starting June 1, which negatively impacts consumer electronics [1] - The upcoming Federal Reserve meeting minutes may exert pressure on US stocks if they lean hawkish [1] - The National Development and Reform Commission approved the "Green and Low-Carbon Development Action Plan for Manufacturing (2025-2027)" [1] Nuclear Energy Sector - Trump's executive order aims to promote the US nuclear power industry, leading to a surge in related company stock prices [3] - The order requires the Nuclear Regulatory Commission to reduce regulatory measures and expedite the approval of new reactors and nuclear plants [3] - China General Nuclear Power Corporation (中广核矿业) expects a revenue of 8.624 billion yuan in 2024, a year-on-year increase of 17.05%, with a pre-tax profit of 814 million yuan, up 48.3% [3] AI and Technology Sector - The AI industry is accelerating, with significant advancements in Agent commercialization, including updates to Google's Gemini 2.5 model and Anthropic's Claude 4 model [5] - Huawei's HarmonyOS PC was officially launched, marking a breakthrough in the consumer sector [6] - The potential market for HarmonyOS PCs is substantial, with an estimated annual market shipment of 40 million units in mainland China in 2024 [6] Market Data - The Hong Kong Stock Exchange reported a total of 101,082 open contracts for the Hang Seng Index futures in May, with a net open interest of 34,435 contracts [7] - Concerns over rising funding costs were raised due to a significant drop in long-term bonds in Japan and the US [7]

Group 1 - The open-source HarmonyOS has exceeded 130 million lines of code, with over 8,600 contributors and more than 1,100 compatible software and hardware products across various industries [1] - The open-source model promotes collaboration and innovation, breaking traditional technology monopolies and enabling a collective effort in the development of autonomous operating systems [1] Group 2 - Zhiyuan Robotics has completed a new round of financing, with JD Technology and Shanghai Embodied Intelligence Fund becoming new shareholders [2] - The Shanghai Embodied Intelligence Fund, established in April 2025, focuses on investments in the embodied intelligence industry chain [2] - The development of the embodied intelligence industry requires collaboration among government policies, capital support, corporate innovation, and market cultivation [2] Group 3 - NVIDIA plans to launch a new AI chip for the Chinese market based on the Blackwell architecture, with prices significantly lower than the previous H20 chip, expected to start mass production in June [3] - The new AI processor is priced between $6,500 and $8,000, indicating a potentially lower specification and simplified manufacturing process compared to the H20 [3] - The Chinese semiconductor industry is poised for new development opportunities driven by external pressures and market demand, necessitating ongoing efforts in technological innovation and market expansion [3]

Group 1 - Xiaomi officially launched its self-developed 3nm mobile SoC chip "Xuanjie O1" on May 22, marking it as the fourth company globally to release a self-developed 3nm chip after Apple, Qualcomm, and MediaTek [1][3][7] - The release of "Xuanjie O1" signifies a critical step for China's chip industry, transitioning from "following" to "leading" in high-end chip development, and showcases the country's growing self-design capabilities [10][7] - The recent advancements in Chinese technology, including breakthroughs in domestic chips and operating systems, indicate a shift from "technology following" to "standard leading," with significant releases from companies like Huawei and Xiaomi [3][7] Group 2 - Huawei's CloudMatrix 384, unveiled on May 16, introduces a new AI computing infrastructure, enhancing processing efficiency and breaking traditional GPU limitations [5][10] - The launch of Huawei's Harmony OS laptops further solidifies its ecosystem, establishing Harmony OS as a competitive operating system alongside Windows and MacOS [7][10] - The successful test flight of the domestically developed C919 aircraft on May 18 marks a significant milestone in China's aviation industry, breaking the previous monopoly held by Airbus and Boeing [12][10] Group 3 - The AG600 "Kunlong" amphibious aircraft's successful test flight on May 18 demonstrates China's advancements in multi-purpose aircraft, crucial for disaster response and emergency rescue [14][10] - The introduction of the "Ji Xiang Fang Zhou" hospital ship enhances China's maritime medical capabilities, aligning with international standards and improving emergency response [24][26] - The emergence of various advanced technologies in both civilian and military sectors reflects a broader trend of technological accumulation leading to significant breakthroughs in China's strategic capabilities [30][10]

Core Insights - The article discusses the evolution of the internet traffic ecosystem and the development trends of the HarmonyOS ecosystem, highlighting the challenges faced by the mobile internet and the transformative potential of HarmonyOS in creating a new traffic ecosystem [1][5][7]. Internet Traffic Ecosystem - The mobile internet is experiencing a growth bottleneck, with a compound growth rate of only 0.08% in the number of independent devices over the past five years, indicating a saturation of the market and a decline in user dividends [7]. - The current traffic distribution model is limited by ecological fragmentation and technical bottlenecks, necessitating a shift towards a more integrated and efficient traffic ecosystem [10][11]. HarmonyOS Development Trends - HarmonyOS is positioned as a key player in the next-generation traffic ecosystem, leveraging its distributed architecture to facilitate seamless communication across multiple devices and enhance user experience [19][22]. - The ecosystem's core capabilities include full-scene coverage across multiple devices and AI-driven efficiency improvements, which are essential for creating a smart and interconnected user experience [25][30]. Advantages of HarmonyOS Ecosystem - HarmonyOS has emerged as the third-largest mobile operating system globally, providing a competitive alternative to Android and iOS, and is recognized for its unique technological advantages [28]. - The ecosystem's distributed architecture allows for the integration of various traffic sources, creating a comprehensive commercial monetization loop [30]. - HarmonyOS emphasizes security with the highest industry standards, enhancing user trust and experience [37]. User Insights - The user base of HarmonyOS primarily consists of young to middle-aged professionals, predominantly male, with a high level of education and income, indicating strong purchasing power and a preference for high-quality products [60][62]. - Users exhibit a high acceptance of online advertising, with nearly 70% open to it, and a significant portion likely to make purchases after viewing ads [75][76]. Marketing Solutions - The article outlines various marketing solutions tailored for different industries, including automotive, luxury goods, health, and food and beverage, leveraging the capabilities of the HarmonyOS ecosystem to enhance brand visibility and consumer engagement [95][99][103][105].

Group 1 - The recent U.S. ban on Huawei's Ascend AI chips has shown a pattern of inconsistent policy, initially declaring global use of Huawei chips illegal, then shifting to a "risk warning" shortly after, reflecting confusion in U.S. strategy and highlighting China's resilience in technology [1][3] - Despite the U.S. tech war, China has not been significantly hindered; instead, it has made strides in technology, with Huawei's Ascend chips performing competitively at 40% of the price of international counterparts, and countries like Saudi Arabia and the UAE purchasing them [3][5] - Chinese companies like Xiaomi have developed 3nm chips, achieving top-tier design capabilities, while advancements in domestic operating systems, electric vehicles, and large model technologies are emerging as new global options [3][5] Group 2 - The U.S. blockade appears counterproductive, with companies like NVIDIA projected to lose $15 billion due to the ban, leading to complaints that the U.S. is ceding market share to China [5] - The underlying issue is the underestimation of China's innovative capacity, as restrictions have inadvertently spurred the development of alternatives, such as Huawei's backup plans and advancements in 3D stacking technology [5][7] - China's response to U.S. attempts to ban Huawei's chips has been assertive, warning that any organization or individual assisting U.S. measures will be held accountable, undermining the legitimacy of U.S. legal claims [7][8] Group 3 - The ongoing competition can be likened to building walls versus creating bridges, with China's technological advancements illuminating a path of diverse coexistence [8] - The narrative of innovation suggests that true progress cannot be stifled, as it is rooted in market demand and thrives on open collaboration, ultimately flourishing through resilience in adversity [8]

Core Viewpoint - Huawei's HarmonyOS is becoming a key factor for the company's market breakthrough, especially with the launch of new devices like the Nova series and HarmonyOS-powered computers, indicating a significant penetration into the mainstream consumer market [3][10]. Group 1: Product Launch and Market Response - The pre-order volume for HarmonyOS computers has reached nearly 140,000, with over 100,000 for the HarmonyOS foldable computer priced from 23,999 yuan [3]. - The inventory for the Nova series smartphones is double that of the previous generation, suggesting optimistic sales prospects [3]. - Huawei's CEO of Terminal BG, He Gang, emphasized the importance of differentiated experiences in attracting users to the new system [4]. Group 2: AI Integration and Development Strategy - Huawei has established a strategic project named "543" to develop competitive flagship smartphones, focusing on integrating AI capabilities into HarmonyOS [5]. - The AI assistant, Xiaoyi, is evolving to become an integral part of HarmonyOS, enhancing user interaction through advanced language models and emotional recognition [6]. - As of the end of last year, over 20,000 native HarmonyOS applications and services have been launched, with a target of reaching 100,000 applications to meet consumer demand [6]. Group 3: Market Position and Future Outlook - Huawei's market share in the Chinese smartphone market reached 19.4% in Q1, driven by strong demand for the Nova 13 and flagship Pura 70 series [10]. - HarmonyOS has surpassed Apple's iOS in market share for four consecutive quarters, reaching 19% in Q4 2024, while Android holds 64% [10]. - The future growth of HarmonyOS will depend on maintaining a production scale of several tens of millions of units annually to support its overseas ecosystem [10].

Core Insights - The launch of the book "Hongmeng Kaiwu: The Dawn of Terminal Operating Systems" marks a significant milestone in the narrative of China's technological advancements, particularly in the context of the Hongmeng operating system's development from inception to its current state [2][36] - The book serves as a comprehensive account of Huawei's journey in creating the Hongmeng operating system, highlighting the challenges faced and the innovative strategies employed to overcome them [10][50] Group 1 - The book details the evolution of the Hongmeng operating system, portraying it as a monumental case study of a company transforming from weakness to strength [5][10] - It emphasizes Huawei's philosophy of "survival" leading to "thrive," showcasing the company's resilience in the face of external pressures [8][50] - The narrative includes insights from over 100 interviews with key figures involved in the Hongmeng project, providing a rich historical context and valuable lessons for the industry [10][45] Group 2 - The book illustrates how the Hongmeng operating system represents a strategic response to the global technological landscape, particularly in light of U.S. sanctions against Huawei [19][39] - It discusses the importance of building a robust ecosystem around the operating system, which is crucial for its success in the consumer market [19][30] - The narrative positions Hongmeng as a symbol of China's shift from being a follower in technology to becoming a leader, offering a unique perspective on innovation and ecosystem development [16][36] Group 3 - The book is described as a significant contribution to understanding the dynamics of technological innovation in China, akin to the historical significance of "two bombs and one satellite" [42] - It highlights the need for openness and caution against extreme nationalism in the context of technological advancement [42] - The publication is expected to inspire industry peers to engage in the ongoing technological revolution represented by Hongmeng [16][36]

Core Insights - Huawei's future remains uncertain, with CEO Ren Zhengfei expressing a crisis awareness regarding the company's survival amidst competition from other Chinese firms that are not under sanctions and possess superior chip capabilities [2] - The development of the HarmonyOS is seen as a strategic move to compete globally against Android and iOS, with the goal of establishing a significant presence in the operating system market [2][3] Group 1: HarmonyOS Development and Strategy - HarmonyOS is positioned as a collaborative ecosystem that requires participation from various industries, emphasizing a symbiotic relationship rather than a hierarchical one [4][6] - The ecosystem's growth is not solely Huawei's responsibility; it calls for contributions from developers, government, and enterprises to create a robust native ecosystem [4][6] - The ambition is to achieve a market share where HarmonyOS competes alongside iOS and Android, with a vision of "one-third of the market" [17] Group 2: Technological Challenges and Opportunities - The lack of core technologies such as operating systems and processors in China has hindered the establishment of a comprehensive industrial ecosystem [3][7] - The emergence of HarmonyOS is seen as a critical step in addressing the technological gap between China and Western countries, particularly in foundational technologies [7][8] - The development of HarmonyOS is not just a Huawei initiative but a broader movement for China's technological independence and resilience against geopolitical challenges [8][9] Group 3: Educational and Industrial Impact - HarmonyOS has been integrated into educational curricula, marking a significant shift in how technology is taught in Chinese universities [11][12] - The collaboration between educational institutions and industry is fostering a new generation of talent equipped to contribute to the HarmonyOS ecosystem [12] - The advancements in HarmonyOS are expected to drive innovation across various sectors, including transportation and smart devices, showcasing its practical applications [13][14] Group 4: Market Position and Global Strategy - Huawei's strategy includes solidifying its domestic market presence before expanding internationally, particularly in light of challenges in the U.S. market [19][22] - The company aims to create a unique identity for HarmonyOS that resonates with users who appreciate Chinese culture and technology, differentiating it from Western applications [22] - The future of HarmonyOS hinges on maintaining a balance between domestic growth and international aspirations, with a focus on building a sustainable ecosystem [22][23]