Group 1 - Nokia plans to invest $4 billion to expand its R&D and manufacturing capabilities in the United States, with approximately $3.5 billion allocated for R&D and $500 million for capital expenditures in Texas, New Jersey, and Pennsylvania [2] - The first large-capacity all-solid-state battery production line in China has been established, capable of mass production of automotive-grade all-solid-state batteries with over 60 ampere-hours [2] - China successfully launched the Communication Technology Test Satellite No. 21, which will be used for satellite communication, broadcasting, and data transmission [2] Group 2 - The world's largest "Hualong One" nuclear power base, the Fujian Zhangzhou Nuclear Power Unit 2, has successfully connected to the grid for the first time, marking significant progress in the batch construction of "Hualong One" [3] - The first mass production prototype of Xiaopeng Motors' land aircraft carrier has rolled off the production line, indicating the imminent mass production phase of this innovative vehicle [2]

Core Viewpoint - Nokia has decided to delist its shares from the regulated market of Euronext Paris, citing a comprehensive assessment of trading volume, costs, and administrative requirements associated with the listing [1] Group 1: Delisting Decision - The delisting is expected to save Nokia significant regulatory fees and administrative burdens, estimated to be in the millions of euros [1] - Nokia's shares will continue to be listed on the Helsinki Nasdaq and its American Depositary Receipts (ADR) will remain on the New York Stock Exchange [1] - The decision has raised concerns among investors regarding Nokia's operational status, leading to a 4.76% drop in its U.S. stock [1] Group 2: Business Strategy and Market Position - The delisting coincides with a critical point in Nokia's business strategy transformation, shifting focus from mobile phones to network infrastructure, mobile networks (5G), cloud services, and technology licensing [2] - Nokia holds a 13% share of the global telecom equipment market, ranking second behind Huawei, which has a 31% share [4] - The company is facing challenges in the North American telecom market, with AT&T terminating a significant 5G contract with Nokia in favor of Ericsson [4] Group 3: Financial Performance - Nokia's Q3 financial report for the period ending September 2025 shows adjusted net sales of €4.833 billion, a 12% year-over-year increase, but operating profit declined by 10% to €435 million [5] - The company plans to increase investments in artificial intelligence, with NVIDIA announcing a $1 billion acquisition of a 2.9% stake in Nokia [5] - The partnership with NVIDIA aims to enhance Nokia's 5G and 6G software to run on NVIDIA chips, accelerating the development of AI-native mobile networks [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The company has a strong foundation in marine communication technology, which is expected to drive continuous expansion in overseas markets and improve the quality of its main business operations. The subsidiary, Changjiang Computing, is rapidly generating revenue amidst the domestic computing power construction wave, potentially becoming the key growth engine for the company in the coming years [2][12]. Financial Performance - In the third quarter of 2025, the company achieved a total revenue of 17.072 billion yuan, a year-on-year decrease of 19.30%. However, the net profit attributable to shareholders increased by 30.28% to 513 million yuan [6][12]. - The company is projected to have net profits of 920 million, 1.15 billion, and 1.38 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 31%, 25%, and 20% [12]. Business Development - The company is advancing its optical network construction towards ultra-high speed, large capacity, low latency, and intelligent directions, while maintaining rapid development in computing power infrastructure. Despite a slight decline in revenue due to reduced capital expenditures from domestic operators, the company has optimized its revenue structure [12]. - The company has made significant strides in international markets, achieving breakthroughs in Southeast Asia, the Americas, and Africa, and has secured substantial market shares in optical network and broadband products [12]. - The computing power business is accelerating, focusing on building a soft and hard integrated, domestically produced computing power platform to meet the needs of key sectors and the digital transformation of various industries [12]. Research and Development - The company has consistently invested heavily in R&D, maintaining global competitiveness in OTN and broadband access products. It is recognized as a major supplier in the global market and a source of original technology [12]. - The company has developed core technologies in marine communication, being the only high-tech enterprise globally that integrates chip devices, shore-based and underwater equipment, and marine engineering equipment [12].

Core Viewpoint - Nokia's stock surged by 10% to $6.105 following better-than-expected Q3 earnings driven by growth in network infrastructure and optical networks [1] Financial Performance - Nokia's Q3 net sales increased by 12% year-over-year to €4.828 billion, surpassing analyst expectations of €4.64 billion [1] - Adjusted operating profit decreased by 10% year-over-year to €435 million, but exceeded analyst expectations of €324 million [1] - Adjusted earnings per share remained flat at €0.06 compared to the same period last year [1] Business Drivers - The growth in performance was primarily driven by demand from artificial intelligence and cloud services customers [1] - After a period of weak 5G equipment sales, Nokia diversified its business by expanding into new areas such as AI and defense [1] Updated Guidance - The company updated its full-year profit forecast to €1.7-2.2 billion, an upward revision from previous expectations [1]

Core Insights - Nokia's Q3 2025 earnings performance exceeded market expectations, driven by growth in network infrastructure and optical network businesses [1] - The company reported a 12% year-on-year increase in net sales to €4.828 billion, surpassing analyst expectations of €4.64 billion [1][2] - Adjusted operating profit decreased by 10% to €435 million, but was better than the average analyst forecast of €324 million [1][2] Financial Performance - Net sales for Q3 2025 reached €4.828 billion, up from €4.326 billion in Q3 2024, marking a 12% increase [2] - Gross margin decreased to 43.7% from 45.2% year-on-year, reflecting a 150 basis points decline [2] - Operating profit for Q3 2025 was €239 million, down 14% from €278 million in Q3 2024 [2] - Profit for the period fell to €80 million, a 54% decrease from €175 million in the same quarter last year [2] Business Segment Performance - Network infrastructure segment reported net sales of €1.953 billion, a 28% increase year-on-year [2] - Mobile networks segment saw net sales of €1.842 billion, a slight decline of 1% [2] - Cloud and network services segment achieved net sales of €645 million, up 8% year-on-year [2] - Nokia Technologies segment reported net sales of €391 million, a 1% increase [2] Future Outlook - Despite previous adjustments to profit expectations due to tariffs and currency fluctuations, Nokia reaffirmed its full-year operating outlook, now expecting comparable operating profit between €1.7 billion and €2.2 billion [3] - The company is focusing on expanding into sectors like artificial intelligence and defense to diversify its customer base beyond mobile operators [3] - CEO Justin Hotard is set to outline strategic plans on November 19 during the capital markets day [3]

Core Viewpoint - The company has delivered a strong half-year performance with increased profits despite revenue pressure, showcasing its resilience and strategic focus on R&D and international market expansion [1][2]. Financial Performance - The company achieved a total revenue of 11.117 billion yuan and a net profit of 287 million yuan, marking a year-on-year increase of 32.02% [1][2]. - The net profit excluding non-recurring items was 282 million yuan, reflecting a growth of 31.59% year-on-year [2]. - Operating costs decreased by 20.64%, contributing to a slight improvement in gross margin [2]. - Operating cash flow showed significant improvement, with a net outflow of 609 million yuan, an 81.61% enhancement compared to the same period last year [2]. R&D Investment - The company maintained a high level of R&D investment, with 1.439 billion yuan spent in the first half of 2025, accounting for 12.95% of total revenue [1][3]. - Continuous breakthroughs in core technologies such as optical transmission and broadband access were reported, including the global first trial of 400G/800G integrated rate ROADM [3]. - The company has focused on optimizing its R&D project structure while ensuring core technology development, leading to improved resource utilization efficiency [3]. International Market Expansion - The company achieved significant market share in Southeast Asia, the Americas, and Africa, with overseas assets reaching 1.046 billion yuan, representing 2.43% of total assets [1][4]. - The company has established a global presence with three overseas production bases, eight R&D centers, and eleven global delivery centers, covering over 100 countries and regions [4]. - The company actively participates in international exhibitions to enhance its brand presence and has become a long-term partner for operators in Southeast Asia, Latin America, and Europe [4]. Corporate Governance and Shareholder Returns - The company has consistently maintained a cash dividend policy since its listing, with a dividend payout ratio exceeding 30%, totaling 3.794 billion yuan in cash dividends [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Viewpoints - The company, as a "national team" in the optical communication field, has outstanding technological innovation achievements and stable market operations. It is actively expanding into growth sectors such as computing and storage, with a positive outlook on its long-term development potential amidst the digital economy wave [2][4]. - In the first half of 2025, the company achieved operating revenue of 11.117 billion yuan, a year-on-year decrease of 19.73%, while the net profit attributable to shareholders increased by 32.02% to 287 million yuan [4]. Summary by Relevant Sections Business Performance - The company has consolidated its market share in the domestic operator market while accelerating the layout of new products. It has successfully won bids for various projects, including optical network procurement for major telecom operators and server projects for China Tower and Unicom [9]. - Internationally, the company has seen continuous improvement, achieving breakthroughs in Southeast Asia, the Americas, and Africa, capturing significant market shares [9]. Technological Innovation - The company ranked first in the "Top 100 High-tech Enterprises in Hubei Province for 2024," showcasing its strong innovation capabilities. It has completed the world's first 400G/800G hybrid rate ROADM network pilot and launched the industry's first 50G PON technology solution [9]. - The company has successfully incubated five national-level specialized and innovative "little giant" subsidiaries, demonstrating its industry-leading technological advantages [9]. Financial Forecast and Investment Recommendations - The company is expected to see accelerated profit release due to high demand for domestic computing power. The marine communication technology accumulation is expected to facilitate continuous overseas expansion, improving the quality of main business operations. The subsidiary, Changjiang Computing, is anticipated to become a significant growth driver in the coming years [9]. - The projected net profit attributable to shareholders for 2025-2027 is 1.0 billion, 1.3 billion, and 1.57 billion yuan, representing year-on-year growth rates of 42%, 30%, and 20%, respectively [9].