Investment Rating - The report rates the computer industry as "Outperform" [1] Core Insights - The computer industry continues to follow core trends of AI, localization, and robotics, with significant developments from Huawei, Hong Kong's digital asset policies, and Xiaomi's product launches [3][18] - Huawei's Developer Conference introduced HarmonyOS 6 and new AI cloud services, marking a new phase for the HarmonyOS ecosystem [3][18] - Hong Kong's Digital Asset Development Policy 2.0 aims to establish the region as a global hub for digital assets, emphasizing blockchain's role in enhancing financial transactions [3][19] - Xiaomi's YU7 model achieved remarkable pre-order success, indicating strong market demand and the company's commitment to R&D investment [3][20] Summary by Relevant Sections Huawei Developer Conference - The conference showcased HarmonyOS 6, with over 40 devices now running the system and more than 9000 applications in development [3][18] Hong Kong Digital Asset Policy - The new policy aims to create a diverse digital asset ecosystem, enhancing Hong Kong's position as a leading international financial center [3][19] Xiaomi Product Launch - Xiaomi's YU7 model received over 200,000 pre-orders within 3 minutes, highlighting its market impact and the company's future R&D investment plans [3][20] Key Companies to Watch - The report highlights key companies in the sector, including Empyrean Technology, Dameng Data, Beijing Kingsoft Office Software, Newland Digital Technology, Jiangsu Tongxingbao, Kingdee International, and Huhu Information [3][18]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [11]. Core Insights - The report highlights the sustained high demand for domestic computing power driven by the ongoing restrictions on advanced chip imports from the US, which accelerates the domestic computing power substitution process. Domestic cloud vendors are increasing capital expenditures and gradually releasing industrial demand, while the iteration of domestic AI models and applications is boosting computing power demand [1][3]. Summary by Sections Investment Recommendations - It is recommended to prioritize attention on the construction and application of domestic AI computing power network infrastructure, including operators such as China Mobile, China Telecom, and China Unicom, as well as server and switch equipment manufacturers like ZTE, Unisoc, Inspur, Ruijie Networks, and Shengke Communication. Additionally, focus on optical modules and optical devices from companies like NewEase, Zhongji Xuchuang, Yuanjie Technology, Huagong Technology, Guangxun Technology, Shijia Photonics, and Huafeng Technology [3]. Industry Trends - The report notes that Huawei's Ascend 910C has begun mass shipments, marking a new phase in the commercialization of domestic computing power. A recent tender announcement indicated that a smart computing center project plans to use 4,500 Ascend 910C-2 servers, with an expected capacity of 20,000 P computing power. The Ascend 910C features a single-chip computing power of 320 TFLOPS (FP16), making it suitable for AI tasks such as natural language processing and computer vision [1][3]. - Domestic cloud vendors and operators are increasing capital expenditures on computing power, with Alibaba planning to invest 380 billion RMB in cloud construction and AI hardware infrastructure over the next three years, averaging over 120 billion RMB annually. Tencent's capital expenditure in Q1 2025 reached 27.5 billion RMB, a year-on-year increase of 91%, with a focus on resources for large model training and inference [1][3]. - The demand for computing power is expected to grow due to breakthroughs in application-side inference technology, which significantly lowers barriers to entry. The report cites Alphabet's inference volume reaching approximately 634 trillion tokens in Q1 2025, a 50-fold increase from the previous year [1][3].

Core Viewpoint - The article emphasizes that the core trends in the computer industry are driven by AI, localization, and the implementation of robotics, with significant developments from Huawei, Hong Kong's digital asset policies, and Xiaomi's product launches [1][3][4] Group 1: Huawei Developer Conference - The Huawei Developer Conference showcased the HarmonyOS 6 operating system and the launch of Huawei Cloud's Pangu Model 5.5, marking a new phase in the Harmony ecosystem [2] - Over 40 Huawei terminal products are now equipped with HarmonyOS 5, featuring more than 260 new functions and over 9,000 applications involved in system-level innovations [2] - Huawei Cloud aims to integrate embodied intelligence into all connected devices, with the introduction of the CloudRobo platform to enhance innovation in this area [2] Group 2: Hong Kong Digital Asset Policy - Hong Kong's government released the "Digital Asset Development Policy Declaration 2.0," aiming to position the region as a global innovation hub for digital assets [3] - The policy highlights the potential of digital assets in financial technology, promoting efficient and low-cost financial transactions through blockchain technology [3] - The government plans to create a diverse digital asset ecosystem that integrates with the real economy and society, reinforcing Hong Kong's status as an international financial center [3] Group 3: Xiaomi Product Launch - Xiaomi's recent launch event introduced several new products, including the YU7 model, which achieved over 200,000 pre-orders in just three minutes and surpassed 240,000 orders within 18 hours [4] - The company plans to continue investing in advanced driver-assistance systems and aims to upgrade its AI model in the second half of the year [4] - Xiaomi's projected R&D investment of 200 billion over the next five years is expected to enhance its market competitiveness across various technological advancements [4]