Group 1 - The Inclusion Bund Conference on September 11, 2025, focused on commercialization as a primary concern for AI entrepreneurs, scholars, and investors [1][3] - Zhu Xiaohu, a partner at Jinsha River Venture Capital, advised entrepreneurs to prioritize stable technologies over cutting-edge ones for commercialization [1][3] - User retention is emphasized as the key metric for evaluating AI applications, rather than annual recurring revenue (ARR) [3][16] Group 2 - Zhu Xiaohu identified that low-code and no-code AI applications are likely to be replaced by AI, leading to a decrease in demand for collaborative tools like Figma [10][15] - The need for smaller, efficient organizations in AI companies was highlighted, with a focus on maintaining high "intelligence density" [5][29] - Wang Xingxing, CEO of Yushu Technology, noted that the AI field is still in its early stages, with significant growth potential yet to be realized [24][29] Group 3 - Wang Jian, founder of Alibaba Cloud, stressed the importance of open resources (data and computing resources) over just open-source code for advancing AI applications [42][50] - The shift from open-source code to open resources is seen as a revolutionary change in the AI landscape, particularly following recent developments in model training and deployment [43][49] - The conference participants agreed that the AI era allows small teams to achieve significant outcomes, challenging traditional notions of team size and efficiency [29][40]

Core Viewpoint - The integration of robots with "embodied intelligent brains" is set to transform daily life, enhancing convenience in various sectors such as retail and home services [1]. Group 1: Retail Innovations - Future convenience stores will feature efficient retail scenarios where customers can order products via tablets, and robots will fulfill these orders quickly, with implementations planned in over 100 locations nationwide within the year [3][4]. - The use of robots in low-demand night shifts can significantly reduce marginal costs, making them accessible to a broader customer base as commercial deployment expands [5]. Group 2: Advancements in Service Robots - Life service robots are making breakthroughs, with developments in dexterous hand movements that closely mimic human sensitivity, crucial for their integration into everyday life [6][8]. - The evolution of robots from merely executing commands to understanding human intentions is highlighted, particularly in home environments where emotional interactions are becoming more sophisticated [10][11]. Group 3: Technological Support and Development - A comprehensive platform supports the development of these robots, combining large model capabilities with virtual simulation environments, facilitating data collection, algorithm training, and model validation for developers [11][12]. - The "embodied intelligent brain" technology is enabling robots to better understand and respond to human needs, thus redefining daily life and enhancing convenience and emotional warmth in interactions [14].

Core Viewpoint - SenseTime successfully completed the placement of 1.667 billion new Class B shares, raising approximately HKD 2.5 billion, with funds primarily allocated for AI core business development and strategic layout in cutting-edge fields like embodied intelligence and real-world assets [1][2]. Group 1: Fundraising Details - The placement of 1.667 billion shares represents 4.58% of the company's issued Class B shares and 4.50% of the total issued shares, with a subscription price of HKD 1.50 per share, reflecting a discount of approximately 6.25% from the closing price on July 23 [2]. - The entire placement was fully subscribed by Infini Capital, which focuses on global capital allocation needs for Middle Eastern sovereign wealth funds and family offices [2]. Group 2: Allocation of Funds - 30% of the net proceeds will be used for the development of AI core business, including the expansion of the "SenseTime Big Device" infrastructure platform [3]. - Another 30% will support the research and development of generative AI and multimodal large models, aiming to commercialize applications in vertical fields such as smart hardware and digital finance [3]. - 20% will be invested in the integration of embodied intelligence and emerging technologies, while the remaining 20% will be allocated for general operating expenses [3]. Group 3: Strategic Developments - SenseTime plans to establish an independent company focused on embodied intelligence, with a core team including its chief scientist and former JD Research Institute director [4]. - The company has restructured its organizational framework into a "1+X" model, where "1" represents the core business and "X" represents the ecosystem of independent enterprises, including sectors like smart vehicles and home robots [4]. Group 4: Industry Context - The AI industry in China is experiencing significant growth in financing, with leading companies like SenseTime accelerating their technological layouts through capital operations [5]. - The competition in AI technology is evolving from algorithmic levels to hardware and application scenarios, with a shift towards "technology leadership" rather than just "high cost-performance alternatives" [5]. - SenseTime has engaged in deep collaborations with various embodied intelligence companies, developing projects like the "embodied intelligence brain" and emotional support robots [5][6].

Investment Rating - The report maintains a "Recommended" rating for the industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [7]. Core Insights - The industry is entering a commercialization phase, particularly in the unmanned logistics sector, driven by the upcoming launch of Tesla's Robotaxi service and supportive policies from the postal authority [5][4]. - The Shanghai Pudong New Area has introduced a comprehensive set of 16 policies to support the development of the embodied intelligence industry, including financial support of up to 20 million yuan for key technology breakthroughs [3]. - The report highlights significant investment opportunities in companies involved in embodied intelligence, particularly those focusing on training models, chips, and robotics [6]. Summary by Sections Industry Events - Tesla plans to launch its Robotaxi service on June 12, marking a significant milestone in the autonomous vehicle and AI space [1]. - Honor has confirmed its entry into the robotics business during its product launch event [2]. - The National Postal Administration has announced initiatives to accelerate technological development in the postal industry, emphasizing AI applications [4]. Market Performance - The industry has shown strong performance, with a 15% absolute return over the past month and a 20.9% return over the past year [9]. - The total market capitalization of the industry stands at 3,839.5 billion yuan, with 475 listed companies [7]. Investment Opportunities - Key investment targets include: - Nvidia (NVDA) for embodied intelligence training and chip solutions [6]. - Tesla (TSLA) and other robotics manufacturers like UBTECH and Yujian for embodied intelligence products [6]. - Companies providing core components such as motor control chips and sensors [11]. Financing Events - Various financing events have been recorded, with companies like Shanjing Harmonic raising significant funds to expand production capacity and enhance automation [13]. - Notable investments include 3 billion yuan for Shanjing Harmonic and undisclosed amounts for other startups focusing on embodied intelligence [14].