Core Insights - The report highlights that the recent improvement in supply-demand policies is expected to partially reverse the current unfavorable economic situation, driven by increased domestic demand from projects like the Yaxia Hydropower Station and ongoing "anti-involution" policies [4][10] - The cyclical stocks have shown strong performance recently, with the market's expectations for price improvements rapidly increasing, indicating a potential continuation of market valuation support in the short term [4][10] - The report emphasizes that the current market environment is characterized by ample liquidity, which, combined with the low valuation levels of cyclical sectors, has contributed to the rapid upward movement of these stocks [4][10] Stock Recommendations - The August stock selection includes: SF Express (transportation), Satellite Chemical (chemicals), Anji Technology (chemicals), Heng Rui Medicine (pharmaceuticals), Bairen Medical (pharmaceuticals), Beijing Renli (services), Feiliwa (electronics), Industrial Fulian (electronics), Pengding Holdings (electronics), and Hehe Information (computers) [10][11] - The report notes that the July stock selection achieved an absolute return of 9.64%, outperforming the market benchmark (CSI 300) by 6.10 percentage points, with individual stocks like Jitu Express-W and Shenghong Technology yielding returns of 57.23% and 42.94%, respectively [6][10] Industry Analysis Transportation Sector - SF Express reported a steady growth in Q1 2025, with a net profit of 2.234 billion yuan, a year-on-year increase of 16.87%, driven by an improved product matrix and service competitiveness [12][13] Chemical Sector - Satellite Chemical achieved a record high net profit in Q4 2024, benefiting from stable raw material prices and increased sales margins, with a sales gross margin of 27.11% [14][15] - Anji Technology experienced rapid revenue growth in 2024, with a gross margin of 58.45%, attributed to market expansion and product diversification [17][18] Pharmaceutical Sector - Heng Rui Medicine's overseas licensing agreements have contributed to significant revenue growth, with Q4 2024 net profit increasing by 107.20% year-on-year [20][21] - Bairen Medical's revenue growth was driven by the successful launch of its first interventional valve product, which significantly boosted its performance in 2024 [22][23] Service Sector - Beijing Renli has a strong market presence in the human resources industry, with a broad service offering and a robust client base, positioning it for continued growth [25][26] Electronics Sector - Feiliwa is expanding its production capacity in quartz fiber cloth, targeting the growing demand in the PCB market, with a projected CAGR of 12% from 2024 to 2029 [27][28] - Industrial Fulian's cloud computing business has shown significant growth, with revenue from AI servers increasing by over 150% [31][32] - Pengding Holdings is expected to achieve steady revenue and profit growth in the first half of 2025, driven by cost control and product structure optimization [33][34]

Core Viewpoint - The company showcased innovative AI technologies at the 2025 World Artificial Intelligence Conference, including the "Infinite Scanning" technology for high-definition imaging and upgraded AI authentication technology to address information security challenges in the digital age [1][2]. Group 1: Infinite Scanning Technology - The "Infinite Scanning" technology addresses challenges in high-definition recording of large cultural relics, overcoming issues such as incomplete images and distortion, which traditional image stitching tools struggle to resolve [1]. - This technology allows users to capture large images, such as a 3.85m by 1.71m replica of "Kunyu Wanguo Quantu," by simply moving their smartphones, with AI automatically optimizing and stitching the images into a complete high-definition picture [1][2]. - AI can intelligently identify elements within the image, providing viewers with insights into historical perceptions of the world over 400 years ago [1]. Group 2: AI Authentication Technology - The upgraded AI authentication technology offers millisecond-level detection of multi-modal information, addressing issues like financial fraud and misinformation exacerbated by AI-generated content [2]. - The company employs incremental learning strategies to develop multi-layered detection solutions for video tampering, achieving over 90% accuracy in identifying images generated by mainstream models [2]. - This technology is designed to withstand attacks by analyzing visual features and perspective relationships, ensuring rapid and precise identification of manipulated content [2]. Group 3: Future Applications - The company emphasizes the importance of applying technological innovations in real-world scenarios, aiming to enhance the positive value of AI technologies in cultural heritage preservation and digital security [3].

Investment Rating - The report maintains a "Hold" rating for the industry [4] Core Insights - The upcoming release of GPT5 is expected to challenge the new heights of multimodal AI, with the potential to integrate various functionalities such as reasoning, multimodal capabilities, and programming, aiming for L5 level multimodal AI [1][9] - Global tech giants are aggressively investing in multimodal AI, which is seen as a pioneer in AI monetization, with companies like Tencent, Alibaba, and ByteDance making significant advancements in this area [1][18][21] Summary by Sections 1. GPT5 and Multimodal AI - GPT5 is anticipated to elevate multimodal AI to a new standard, with most current models still at L3 level, indicating a significant gap to L4 and L5 levels [1][12] - The General-Level framework has been established to evaluate multimodal models, categorizing them into five levels based on their capabilities [9][12] 2. Key Companies in Multimodal AI - **Meitu**: Launched RoboNeo, an AI agent that integrates image editing, video generation, and web design, showcasing strong aesthetic capabilities [2][29] - **Kuaishou**: The Keling 2.0 model has achieved an impressive annual recurring revenue (ARR) of $100 million by Q1 2025, indicating strong monetization potential [2][34] - **Wondershare**: The Tianmu 2.0 model, supported by Huawei Cloud, enhances audio and video creation capabilities, aiming to democratize content creation [2][37] - **Hehe Information**: Expanded its capabilities in AI authentication and introduced a cross-platform cloud resource management terminal [2][42] - **Foxit Software**: Developed an intelligent document solution that transforms unstructured documents into structured data, enhancing efficiency in legal applications [2][48] 3. Investment Recommendations - The report suggests focusing on companies related to multimodal AI, such as Meitu, Kuaishou, Wondershare, Hehe Information, and Foxit Software, as they demonstrate strong monetization capabilities [3][59]

Group 1 - The 2025 World Artificial Intelligence Conference showcased unprecedented scale, with over 800 companies and more than 3,000 cutting-edge exhibits, including 40 large models and 60 smart robots [2][5] - Baidu introduced its new digital human technology, NOVA, which aims to replicate top-tier influencer capabilities and is expected to be available to the industry by October [5][6] - The AI-powered educational tool, Youdao AI Answering Pen SpaceOne, integrates advanced AI models to assist students in problem-solving across various subjects [6][8] Group 2 - Black Lake Technology presented its AI Agent-based flexible manufacturing solution, which enhances order response speed and fulfillment efficiency for small and medium-sized factories [11][12] - SenseTime launched its embodied intelligence platform "Wuneng," designed to provide robots and smart devices with advanced perception and interaction capabilities [12][13] - Wuneng aims to facilitate interaction between intelligent devices and the real world, enhancing operational efficiency in various applications [12][13] Group 3 - The conference emphasized the importance of international collaboration in AI governance to ensure the development of "good AI" that does not threaten human existence [15][17] - Discussions highlighted the need for equitable access to AI technology and the importance of addressing safety concerns to benefit all nations [17][18] - Experts called for effective regulation of AGI to minimize risks and ensure it serves as a global public resource [18]

Group 1: Event Overview - The 2025 World Artificial Intelligence Conference (WAIC 2025) was held in Shanghai from July 26 to 28, attracting over 800 tech companies and showcasing more than a hundred "global debuts" or "China debuts" of new products [1] - Over 20 companies from the Sci-Tech Innovation Board participated, marking the largest scale of participation in history, with innovations covering foundational computing power, AI agents, and embodied intelligence [1] Group 2: AI Application Expansion - The Sci-Tech Innovation Board has gathered over 40 core enterprises in the AI industry chain, covering various segments such as computing power, algorithms, data, and application scenarios, with a majority focusing on algorithms and application scenarios [2] - Companies are shifting from closed-source to open-source foundational models, seeking suitable application scenarios to address user pain points, which is crucial for the transition of AI applications from "assistive" to "mainstream" roles [2] - Kingsoft Office (688111) launched WPS AI 3.0, a new native office AI assistant "WPS Lingxi," recognized as a "treasure of the exhibition" at WAIC 2025, aiming to lower the usage threshold of AI tools and promote an "efficiency revolution" in office scenarios [2] - Hehe Information introduced new features for its core product, ScanMaster, enabling high-definition scanning and seamless stitching of large artworks, addressing challenges in the digitalization of cultural heritage [2] Group 3: Advancements in Embodied Intelligence - The past year has seen explosive growth in embodied intelligence in China, with a significant increase in the number and scale of exhibited embodied intelligence companies and products at WAIC 2025, featuring over 150 humanoid robots [3] - Companies demonstrated the operational capabilities of embodied intelligence products in logistics, healthcare, and dining services, indicating a shift from mere exhibits to interactive "robot colleagues" [3] - Hechuan Technology (688320) showcased high-precision joint drive products for humanoid robots, meeting demands for compact spaces and precise control, enhancing the core power for intelligent movement [3] Group 4: Strengthening Computing Power - GPU companies, including Moer Technology and Muxi Technology, showcased cutting-edge products at WAIC 2025, with Moer Technology presenting a comprehensive general acceleration computing platform based on domestic GPUs [4] - Muxi Technology unveiled its latest training and inference integrated GPU, Xiyun C600, featuring HBM3e memory with a data storage capacity increase from 64GB to 144GB, positioning it as one of the most advanced high-bandwidth memory products on the market [4] Group 5: Future Outlook - The recent "1+6" reform policy by the China Securities Regulatory Commission aims to establish a growth tier in the Sci-Tech Innovation Board, expanding the applicability of the fifth set of standards to AI and other frontier fields, which is expected to accelerate innovation in key technologies and the construction of the AI industry ecosystem [5] - The Sci-Tech Innovation Board is anticipated to become the main capital market platform for building China's AI industry cluster, contributing new "intellectual" productivity to global AI development [5]

Group 1 - The 2025 World Artificial Intelligence Conference (WAIC 2025) commenced in Shanghai, attracting over 1,572 global leaders from 73 countries and regions, including 12 top award winners and over 80 leading academicians [1] - The event features a themed street area called "WAIC 2025 Alley," showcasing various robots that captivated a large audience [6] - The exhibition area of this year's conference exceeded 70,000 square meters, with over 800 companies showcasing more than 3,000 cutting-edge exhibits, including over 40 large models and 60 smart robots, marking the largest scale in the event's history [56] Group 2 - The conference's core sub-venue, Xuhui West Bank, focused on the construction of an artificial intelligence innovation ecosystem and hosted a high-level meeting on global AI governance [8] - The event highlighted the rise of domestic chip manufacturers, attracting increasing attention from both domestic and international exhibitors [30] - Huawei showcased its Ascend 384 SuperNode, which utilizes a supernode architecture to achieve high-bandwidth, low-latency interconnection among 384 NPUs, addressing communication bottlenecks within clusters [36]

Group 1 - The 2025 World Artificial Intelligence Conference (WAIC) opened in Shanghai, showcasing over 3,000 cutting-edge exhibits, including innovations from Hehe Information such as "Infinite Scanning" and "AI Authentication" aimed at addressing clarity and information forgery issues in multimodal large models [1] - Hehe Information's "Infinite Scanning" technology was applied to the historical map "Kunyuan Wanguo Quantu," which is the earliest and most complete Chinese world map, originally created in 1608, highlighting its significant historical value [1] - The technology allows for high-definition scanning and seamless stitching of large artworks, enabling users to interactively explore and enhance the quality of images, thus creating a "collection-level" large image [3] Group 2 - The "Infinite Scanning" technology addresses challenges faced when capturing large artifacts, such as incomplete images or poor quality due to distortion and color loss, which traditional image stitching tools cannot effectively resolve [2] - The application of this technology is expanding into various professional fields, including engineering, design, urban planning, and surveying, where large documents are often difficult to store and transport [3] - The technology is based on intelligent high-definition and AIGC image enhancement algorithms, combined with innovative AI image stitching techniques, enhancing image content understanding and situational processing capabilities [3]

Core Viewpoint - Company Hohhot Information is expanding its market presence by applying for a listing on the Hong Kong Stock Exchange after successfully launching on the Shanghai Stock Exchange's Sci-Tech Innovation Board in September 2022. The company's flagship product, "Scan All-in-One," has significantly contributed to its revenue growth and market position in the AI sector [1][2][11]. Financial Performance - The total revenue of Hohhot Information for the years 2022 to 2024 is projected to be RMB 988.46 million, RMB 1.186 billion, and RMB 1.438 billion respectively. In Q1 2023, the revenue reached RMB 395 million, marking a 20% increase from RMB 327 million in the same period last year [2][5]. - The revenue contribution from the "Scan All-in-One" product is expected to rise from 72.3% in 2022 to 81.1% in Q1 2024, indicating its dominance in the company's product lineup [1][3]. Product Breakdown - The revenue from C-end products, including "Scan All-in-One," "Business Card All-in-One," and "Qixinbao," accounted for 82.2%, 84.3%, and 83.8% of total revenue from 2022 to 2024. In Q1 2023, this segment's contribution increased to 86.6% [3][5]. - The "Scan All-in-One" product's revenue is projected to grow from RMB 714.57 million in 2022 to RMB 1.112 billion in 2024, while the "Business Card All-in-One" and "Qixinbao" products have shown mixed performance [3][5]. Market Position and Competitive Advantage - Hohhot Information ranks first in China and fifth globally in terms of revenue from C-end efficiency AI products with over 100 million monthly active users [1][2]. - The company has leveraged advancements in AI, particularly in optical character recognition (OCR) technology, achieving a character recognition rate of 81.9% in complex scenarios, which is significantly higher than competitors [7][8]. Future Growth Potential - The company plans to enhance its product offerings by developing new features such as RPA (Robotic Process Automation) and expanding its global market presence, particularly in emerging markets like Brazil, Indonesia, and Mexico, where the conversion rate is currently below one-fourth of that in China [10][11]. - Hohhot Information aims to establish a global technical support center and expand its marketing network to improve brand influence and customer service [10].

Core Viewpoint - Shanghai government has launched a comprehensive set of 17 policies aimed at promoting the high-quality development of the software and information services industry, referred to as "soft information industry" [1][2]. Group 1: Policy Measures - The first category of measures includes direct reward policies for enterprises, establishing a tiered subsidy mechanism based on different development stages, with rewards for high-revenue and high-growth companies [2]. - For high-quality enterprises, districts are encouraged to reward those with annual revenues exceeding 2 billion yuan and growth rates 1.2 times above the city average [2]. - For small and micro enterprises, one-time rewards are provided based on growth rates, ranging from 300,000 to 500,000 yuan [2]. Group 2: AI Application Incentives - The second category focuses on incentivizing AI applications, including the use of "computing power vouchers" to lower costs for model deployment and support for significant projects with up to 30% funding subsidies [3]. - Support is also provided for the development of general intelligent agents, with funding for those achieving a certain user scale, and for software companies embedding AI functionalities [3]. Group 3: Structural Policies for New Growth - The third category includes structural policies aimed at nurturing new growth drivers, with specific measures for high-end software, digital content, digital technology, and data elements [3]. - For high-end software, an application compensation of up to 80% is available for early-stage domestic software products [3]. - The digital content sector will see innovative service models and pilot programs for copyright pledge financing [3]. Group 4: Burden Reduction Policies - The fourth category proposes six specific measures under "four reductions and two optimizations," including lowering financing costs and internet usage costs for small and medium enterprises [4]. Group 5: Industry Performance - In the first five months of the year, Shanghai's soft information industry generated over 690 billion yuan in revenue, marking a year-on-year growth of 20.4%, surpassing the national average of 14.3% [6][7]. - The software and information technology services sector has been a major growth driver, with revenues of approximately 360 billion yuan, reflecting a 27.1% increase [7]. - Key platform enterprises contributed significantly, with 13 major companies generating over 290 billion yuan, accounting for more than 40% of the total revenue [7]. Group 6: Regional Growth - All 15 districts in Shanghai reported positive revenue growth in the soft information industry, with Yangpu and Putuo districts achieving growth rates of 25% and 22.6%, respectively [8]. - In the first five months, Yangpu district's revenue reached approximately 147.3 billion yuan, representing over 20% of the city's total [8]. - Pudong district generated 172.7 billion yuan in revenue, with over 1,000 regulated soft information enterprises established [8].

Core Viewpoint - The Shanghai government has introduced a comprehensive set of 17 policies aimed at promoting the high-quality development of the software and information services industry, focusing on financial incentives, AI application support, structural policies, and reducing burdens on enterprises [1][3][5]. Group 1: Financial Incentives - The first category of policies includes direct financial rewards for companies, establishing a tiered subsidy mechanism based on different stages of enterprise development. High-revenue companies (over 2 billion yuan) with growth rates exceeding 1.2 times the city average will receive rewards [3]. - For small and medium-sized enterprises, one-time rewards will be provided based on revenue size, ranging from 5 million to 30 million yuan. Micro-enterprises will receive one-time rewards based on growth rates, from 300,000 to 500,000 yuan [3]. Group 2: AI Application Support - The second category focuses on incentivizing AI applications, including the use of "computing power vouchers" to lower costs for model deployment. Projects demonstrating significant application effects may receive up to 30% funding support [4]. - The policies also encourage software companies to integrate AI functionalities into their products and support the development of general AI models, with funding support of up to 50% for high-quality projects [4]. Group 3: Structural Policies - The third category aims to cultivate new growth drivers through targeted policies for specific sectors. For high-end software, the maximum application compensation for using early-stage domestic software products can reach 80% [4]. - In the digital content sector, a tiered service model for innovation incubation, registration, trading, and financing will be implemented, alongside pilot programs for copyright pledge financing [4]. Group 4: Burden Reduction Policies - The fourth category includes institutional policies aimed at reducing enterprise burdens, such as lowering financing costs and encouraging financial institutions to expand "seamless renewal" and "no repayment" loan coverage [5]. - Additionally, there will be a push to reduce internet costs, with an aim to lower average broadband and dedicated line fees for SMEs by over 5% [5]. Group 5: Industry Performance - In the first five months of the year, Shanghai's software and information services industry generated over 690 billion yuan in revenue, marking a year-on-year growth of 20.4%, surpassing the national average of 14.3% [9]. - The software and information technology services sector has been a key driver of this growth, with a revenue scale of approximately 360 billion yuan, reflecting a 27.1% increase [9]. - Notably, 13 key platform enterprises contributed over 290 billion yuan, accounting for more than 40% of the total revenue in the sector [9].