Summary of Conference Call Notes Industry Overview - The conference call discusses the **overseas computing power sector** and **domestic substitution sector** within the semiconductor and technology industries [1][2][3]. Key Points and Arguments Overseas Computing Power Sector - Strong demand for overseas computing power has led to historical high stock prices for related companies, with a projected PE ratio of 10-12 times for leading firms by 2026, indicating potential for further price increases [1][3]. - Major cloud providers like Amazon, Google, Meta, and Microsoft are optimistic about AI applications, which have improved internal structures and advertising efficiency, leading to sustained capital expenditures (CAPEX) [2]. - ODM manufacturers, such as Hon Hai, have visibility on AI server orders extending to 2027, with supply unable to meet demand [2]. - Tight supply of HBM from manufacturers like SK Hynix and Micron has caused a surge in DDR5 and graphics memory prices, leading to structural changes in the memory market [2]. - Nvidia is expected to release a new computing card compliant with North American restrictions by the end of the year, amidst evolving US-China negotiations [5]. Domestic Substitution Sector - The domestic substitution sector is currently at a low point but presents investment value, particularly with the introduction of 28nm lithography machines stimulating the lithography supply chain [1][3]. - Companies like Huafeng Special Control and Juguang Technology are highlighted for their potential growth, with Huafeng expected to launch new products in the second half of the year and Juguang benefiting from low domestic penetration rates in its industry [1][3]. - A new equipment replacement policy for 2025, valued at 200 billion RMB, is set to drive domestic substitution in instruments and equipment, serving as a short-term catalyst [1][3]. Challenges and Future Outlook - The domestic computing power sector faces challenges primarily related to chip supply, with limited recovery since the trade war [4]. - Despite overall capital expenditures from domestic cloud providers remaining stable, the application of computing ICs in major internet companies will take time due to external restrictions and internal adaptation needs [4][5]. - The domestic C-end demand sector may experience impacts from reduced national subsidies and high base effects from the previous year, with investment opportunities expected to focus on individual stocks and third-quarter performance guidance [6]. Additional Important Insights - The overall sentiment in the overseas computing power sector remains optimistic, with expectations for continued growth driven by AI advancements and capital investments [2]. - The domestic substitution sector is seen as a long-term play, with specific companies showing promise due to their unique product offerings and market conditions [1][3].

Core Viewpoint - The computing power sector remains a constant focus in the stock market, with companies that possess high barriers to entry being the true investment opportunities, despite short-term fluctuations in stock performance [1]. Investment Trends - Major internet giants are significantly increasing their investments in computing power, with Tencent planning to invest 82 billion yuan by 2025, China Mobile aiming for 37.3 billion yuan (25% of its capital expenditure), and Alibaba intending to invest 380 billion yuan over the next three years, exceeding its total investment in the past decade [3]. Companies with High Barriers - Runze Technology is identified as a leading operator in the AIDC infrastructure and data center sector, being the largest data center industrial park operator in the country [4]. - Ruijie Networks specializes in network equipment and security products, standing out in the domestic data center switch market [5]. - Unisplendour ranks among the top three in the domestic market through its Xinhua San servers, having established deep partnerships with major clients like Alibaba Cloud and ByteDance [5]. - Cambricon is recognized as a leader in domestic AI chips, providing strong support for autonomous AI computing power [6]. - LightSpeed Technology leads in the optical module sector with strong R&D capabilities and a wide product range [7]. - Gaolan Co. focuses on thermal management equipment and control systems, having launched the world's first 12U immersion liquid cooling module, ranking among the top three in the domestic liquid cooling market [7]. - Oulu Tong is a core supplier of server power supplies, with deep expertise in product R&D and manufacturing [8]. - GigaDevice specializes in the development and production of memory and microcontrollers, being a leader in NOR Flash memory chips [9]. - DataPort holds competitive advantages in IDC and cloud service solutions, establishing a solid foothold in data center and cloud service sectors through partnerships with leading cloud providers [9]. - The last company mentioned is a rare "smart manufacturing + computing power" leader in China, possessing complete proprietary intellectual property across its supply chain, with multiple major global clients and significant shareholder confidence in its future growth [10].

这一战略动作背后，是*ST金刚重整投资人暨产业合作伙伴上海弘琪云创科技集团（以下简称"弘琪云 创"）与产业投资人广东欧昊集团有限公司（以下简称"欧昊集团"）的深度协同。根据公告披露，弘琪 云创将借助自身产业优势和算力业务积累，协同欧昊集团在新能源电力领域的深厚基础，协助*ST金刚 拓展"算力资源服务+能源"及算力基础设施建设等全新业务增长曲线。 *ST金刚相关负责人向《证券日报》记者表示："公司投资设立金刚数智，从长远发展来看，这不仅是 开辟全新收入渠道的关键一步，更希望将算力业务打造成驱动公司增长的新引擎，更好地适应市场发展 的新趋势。" 资料显示，弘琪云创是国内领先的综合性产业投资集团公司，该公司及控股子公司对外投资了包括电子 信息、人工智能算力基础设施和服务、新材料、传感器智慧物流、产业园区等诸多细分领域产业公司。 目前致力于算力基础设施和服务的企业投资。 *ST金刚的入局并非孤立现象，今年以来，已有光伏企业正信光电科技股份有限公司、电子元器件厂商 合力泰科技股份有限公司、手机壳生产商深圳市杰美特科技股份有限公司等纷纷宣布通过成立合资公司 或收购的方式进军算力领域。 政策东风助力 在AI、大数据、云计算 ...

Group 1 - *ST Jingan has announced its entry into the intelligent computing power sector by establishing Beijing Jingang Shuhai Intelligent Computing Technology Co., Ltd. with a registered capital of 10 million yuan, fully funded by its subsidiary Shanghai Jingang Glass Fireproof Technology Co., Ltd. [2] - The company's debt-to-asset ratio has surged to 134.08% as of the end of Q1 2025, indicating significant financial pressure as it ventures into this new industry [2][6]. - The move into the computing power sector is seen as a strategic attempt to diversify from its primary focus on the photovoltaic industry, which has been subject to volatility [2][5]. Group 2 - The restructuring process for *ST Jingan was initiated after a court application by creditors due to the company's inability to repay debts, leading to the appointment of Shanghai Hongqi Cloud Creation Technology Group Co., Ltd. as a restructuring investor [3][5]. - Hongqi Cloud Creation, established in December 2010, has invested in various sectors including artificial intelligence and computing power infrastructure, although it reported minimal revenue and losses in recent years [4]. - The restructuring agreement allows Hongqi Cloud Creation to acquire approximately 3% of *ST Jingan's shares post-restructuring, with an investment of 105.3 million yuan at a price of about 6.5 yuan per share [5]. Group 3 - *ST Jingan has faced continuous losses since its transition to the photovoltaic sector, with net profits of -202 million yuan, -269 million yuan, and -362 million yuan from 2021 to 2023 [6]. - The company is currently undergoing restructuring for its subsidiaries, with the potential risk of losing significant operational assets if the restructuring fails [7]. - Despite the financial challenges, the company has secured a sales contract for 194 MW of HJT solar cells, which is expected to account for over 50% of its audited revenue for 2024 [9].

Core Insights - The article discusses the fluctuations in capital expenditure among major tech companies following the release of Deepseek, highlighting a surge in domestic computing power and a subsequent cooling off after Tencent's capital expenditure announcement [1] - The ongoing US-China tensions are identified as a significant factor affecting the ability of major companies to invest, particularly in data center expansions due to difficulties in acquiring necessary hardware [1] - Despite the challenges, demand for computing power remains strong, with companies like Nvidia recovering from early-year declines and domestic firms like Huawei and others making strides in the computing power sector [1][2] Group 1 - Major tech companies have increased capital expenditures in response to the booming domestic computing power market, but this trend has cooled following Tencent's announcements and the impact of the "tariff war" [1] - The US-China friction is causing difficulties in hardware acquisition, which is expected to slow down the expansion of data centers across major companies [1] - Nvidia has rebounded from earlier declines, and overseas demand for computing power remains robust, with domestic companies also achieving historical highs in certain sectors [1] Group 2 - Nvidia's founder has acknowledged Huawei as a strong competitor, noting that a significant portion of global AI scholars are based in China, indicating the competitive landscape in the AI sector [2] - Major domestic companies are not reducing their investments in AI, with Alibaba emphasizing its strategic focus on AI for the next decade [2] - Progress in US-China negotiations may lead to improved access to overseas computing power cards, with expectations for more AI applications to be launched in the second half of the year [2] Group 3 - The article suggests that the domestic computing power sector is poised for a resurgence, indicating optimism about future developments [3]

Group 1 - The A-share market is experiencing a divergence, with banking stocks retreating after an initial rise, while computing and metal stocks are gaining momentum, indicating active repositioning by momentum funds and creating new structural opportunities [1] - Global liquidity is expected to remain loose for an extended period, driven by improved trade conditions and cooling inflation expectations, which opens the door for potential interest rate cuts by the Federal Reserve [2] - The expectation of interest rate cuts by the Federal Reserve is leading to a weaker US dollar, which is boosting global risk appetite and pushing up prices of equity assets and commodities, including international copper prices [2][3] Group 2 - The current environment in the A-share market has shifted, with global liquidity easing, positively impacting commodity prices and equity assets, as seen in the rise of resource stocks and computing stocks [3] - The anticipated interest rate cuts by the Federal Reserve are expected to lower funding costs for technological innovation, driving investment in sectors like innovative pharmaceuticals and computing [3] - The A-share market is characterized by a battle of existing funds, with a decrease in trading volume indicating a lack of new capital influx, necessitating funds from high-performing stocks to support the recovery of low-performing stocks [4]

Group 1 - The domestic computing power sector is expected to enter a phase of accelerated growth in the second quarter, with companies like Cambricon projected to exceed 2 billion in revenue, up from 1.1 billion in the first quarter [2] - Major companies such as Guangxun Technology are gaining attention due to anticipated significant performance growth in the second quarter, with Huagong Technology's shipment volume increasing from approximately 400,000 units in April to 600,000-700,000 units in June [2] - The overall computing power sector experienced a wave of negative trading, leading to a significant clearing of positions, with capital inflow recovery at about 50%, indicating a shift from a pessimistic to a certain growth outlook [2] Group 2 - The industry is expected to see a clear growth trend driven by the introduction of 800G and 1.6T technologies, with demand projected to increase by at least 40% to 50% [2] - The anticipated release of NVIDIA's GB200 and GB300 in the second half of the year marks the beginning of an acceleration phase for the industry, with no immediate negative factors expected [2] - The domestic computing power sector has completed its bottoming process, with the first quarter growth being below expectations, but the second quarter is set for rapid growth due to large-scale adoption by enterprises and government [1][2]

Group 1 - Nvidia's stock rose over 4%, reaching a new high with a market capitalization of $3.77 trillion, making it the highest-valued company globally [1] - The AI sector is expected to remain a key investment theme, driven by increased capital expenditure from domestic and international cloud vendors [1][2] - North American computing power upgrades focus on higher bandwidth (1.6T optical modules/CPO), better connectivity (copper cables/AEC), and more efficient DCI (coherent optics/empty core fibers), creating new opportunities across the industry chain [1] Group 2 - The domestic computing power chain is anticipated to recover gradually with the shipment of Nvidia's special supply chips, driven by high demand and improved supply quality [1][2] - The AI application development is expected to accelerate the implementation of edge AI, with a focus on segments like optical modules, copper interconnects, IDC facilities, and switches [2] - The Huabao ETF (159363), the first ETF tracking the ChiNext AI index, has seen significant inflows, indicating strong market interest in AI-related investments [2][3]

Core Viewpoint - The rapid development of the artificial intelligence industry is driving the demand for computing power resources, leading to increased attention on computing power interconnectivity. The "Computing Power Interconnectivity Action Plan" aims to achieve nationwide public computing power standardization and interconnectivity by 2028 [1][2]. Group 1: Computing Power and Its Importance - Computing power has become an essential infrastructure, comparable to water, electricity, and gas in the digital age. It is a core element driving the development of artificial intelligence alongside data and algorithms [1]. - High-quality computing power is crucial for various applications, including smart home devices, AI model generation, intelligent manufacturing, scientific computing, and smart healthcare [1]. Group 2: Understanding Computing Power Interconnectivity - Computing power encompasses not only computational capabilities but also the supporting network, data storage, hardware, software, and connectivity. All three aspects must be operational simultaneously for effective utilization [2]. - By the end of 2024, China's total computing power is projected to reach 280 EFLOPS (exaflops). However, there is a structural imbalance in the computing power market, with both surplus and shortage issues [2]. Group 3: Goals and Strategies for Computing Power Interconnectivity - The goal of computing power interconnectivity is to enhance the flow of computing resources across the country, addressing issues such as low utilization rates and mismatched supply and demand in the industry [3]. - Building a unified and efficient computing network involves improving foundational technologies, increasing data transmission bandwidth, establishing a unified computing power identification system, and ensuring data and privacy security during transactions [2][3]. Group 4: Economic and Social Implications - A well-connected computing network can significantly enhance the efficiency of data transmission and resource allocation, facilitating the sharing of government data and improving logistics, data flow, and capital flow [3]. - In the era of interconnected devices, accelerating interconnectivity across various sectors and elements is not optional but a necessity for economic and social development [3].

Core Viewpoint - Investor relations management is essential for listed companies to convey core value and stabilize market expectations, serving as a cornerstone for the stable operation of capital markets [2] Group 1: Performance and Strength - The 150 awarded companies have a total market capitalization of 11.93 trillion yuan, accounting for 13.70% of all A-shares, with over 30 companies having a market value exceeding 100 billion yuan [3] - In Q1 2025, these companies achieved a total revenue of 2.77 trillion yuan and a net profit of 227.89 billion yuan, representing 16.42% and 15.27% of all A-shares respectively [3] - The average revenue per company is 1.847 billion yuan, and the average profit is 151.9 million yuan, both nearly six times the average of all A-shares [3] Group 2: Profitability - The median return on equity (ROE) for these companies in Q1 is 3%, which is about 2 percentage points higher than the overall A-share market [4] - Companies like Kweichow Moutai and Dongpeng Beverage have maintained ROE above 30% for several years, while Wuliangye has consistently been above 20% [4] Group 3: Growth Potential - Two-thirds of the 150 companies reported year-on-year net profit growth in Q1, with the chemical, energy, and mining sectors showing significant revenue increases [5] - Companies such as Jinshi Resources and Shandong Gold saw revenue growth exceeding 50%, driven by the rise of AI-related companies like Guangxun Technology and Haiguang Information [5] Group 4: Market Value Management - In 2024, the awarded companies announced a total dividend of 392.81 billion yuan, accounting for 16.80% of all A-share dividends, with an average dividend of 2.62 billion yuan per company [7] - 96 of the awarded companies engaged in stock buybacks totaling 17.66 billion yuan, with nearly one-third of these companies repurchasing over 100 million yuan in stock [8] - The average stock price increase for these companies in 2024 was 19.30%, outperforming the Shanghai Composite Index by nearly 7 percentage points [8] Group 5: Information Disclosure and Investor Engagement - 118 of the 150 companies received an "A" rating for information disclosure, representing 78.70% of the total, with 78 companies maintaining this rating for three consecutive years [9] - The average response rate to investor inquiries among these companies is 99.10%, with nearly 80% achieving a 100% response rate [10] - On average, each company received 4.7 institutional research visits, significantly higher than the A-share average of 2.5 visits [10]