Core Insights - ZTE Corporation ranked second in the "Top 100 Innovative Enterprises in China" with a score of 86.74, following Huawei, highlighting its significant R&D investments and patent achievements [1][10] - The company is transitioning from a traditional telecommunications provider to a leader in both network connectivity and intelligent computing, reflecting a strategic shift towards AI and computing power [4][5] Group 1: Strategic Shift - ZTE's management foresaw the structural adjustments in operator investments as 5G network construction matures, prompting a proactive shift from "full connectivity" to "connectivity + computing power" [3][4] - The new vision aims to position ZTE as an "engine manufacturer" in the digital economy, moving beyond merely being a builder of infrastructure [4] Group 2: Technological Foundation - ZTE's strategy is supported by substantial R&D investments, with 2024 R&D expenses projected at 24.03 billion yuan, accounting for approximately 20% of revenue [6] - Cumulatively, ZTE invested 117.07 billion yuan in R&D from 2019 to 2024, resulting in significant technological advancements and numerous patents, including nearly 5,500 AI-related patent applications [6][7] Group 3: Market Performance - In the first half of 2025, ZTE's revenue from its second growth curve, including servers and storage, nearly doubled year-on-year, now representing over 35% of total revenue [8] - The AI server segment alone accounted for 55% of the revenue in this category, indicating strong demand from leading domestic internet companies [8] Group 4: Industry Recognition - ZTE's innovations in AI have garnered industry accolades, including the highest award at the 2025 World Artificial Intelligence Conference and significant contracts from major operators like China Mobile [9][10] - The company's comprehensive self-developed capabilities in AI technology are seen as a unique long-term competitive advantage, as reflected in positive evaluations from multiple brokerage firms [9]

Core Viewpoint - ZTE Corporation is focusing on the development of liquid-cooled servers, AI solutions, and high-performance computing infrastructure, positioning itself as a leader in the intelligent computing industry [1] Group 1: Liquid-Cooled Servers - The company’s liquid-cooled servers are primarily aimed at the high-performance computing market, with performance ranking among the best in the industry, catering to diverse computing scenarios [1] - ZTE has successfully delivered liquid-cooled servers to domestic operators and the internet sector [1] Group 2: Robotics - ZTE is collaborating with ecosystem partners on humanoid robots, focusing on computing power, networking, and intelligent hardware and software research and development [1] Group 3: Artificial Intelligence - The company is committed to investing in artificial intelligence, positioning intelligent computing as a long-term strategic focus, enhancing product development and industry ecosystem collaboration [1] - ZTE is developing a full-stack computing infrastructure, including self-developed chips, intelligent computing servers, and large-scale clusters, to provide end-to-end AI solutions [1] - The self-developed high-performance custom processor chips aim to reduce total cost of ownership (TCO) for applications like cloud computing and big data processing [1] - The company’s AI Booster software platform offers a one-stop AI solution, simplifying AI innovation and reducing model migration costs for clients [1] - ZTE's self-developed Nebula large models have achieved top rankings in various AI inference benchmarks, indicating strong capabilities in algorithm innovation and data engineering [1] Group 4: Computing Infrastructure - ZTE provides a range of high-performance training servers and cost-effective inference servers, meeting diverse intelligent computing needs from central to edge [1] - The company’s intelligent computing super-node system, based on its self-developed AI large-capacity switching chip "Lingyun," supports large-scale interconnection of domestic GPU cards [1] - ZTE has launched high-density switches with leading performance in the market, catering to various sectors including telecommunications and finance [1] Group 5: Military Sector - The company has not engaged in any business within the military sector [1]

Core Viewpoint - ZTE Corporation is focusing on liquid cooling servers, AI solutions, and self-developed chips to enhance its competitiveness in the high-performance computing market and AI industry [1] Group 1: Liquid Cooling Servers - ZTE's liquid cooling servers are primarily used in the high-performance computing market, with the company claiming its high-performance liquid cooling servers are among the best in the industry [1] - The company has successfully delivered liquid cooling servers to domestic operators and the internet sector [1] Group 2: AI Strategy - ZTE is positioning intelligent computing as a long-term strategic focus, enhancing R&D in intelligent computing products and collaborating with industry partners [1] - The company is developing a full-stack computing infrastructure, including self-developed chips, intelligent computing servers, and large-scale clusters to meet diverse AI application needs [1] - ZTE's self-developed high-performance processors aim to reduce total cost of ownership (TCO) for applications like cloud computing and big data processing [1] Group 3: Software and Models - ZTE's AI Booster platform offers comprehensive AI solutions, simplifying AI innovation for clients and reducing costs associated with model migration [1] - The company has received top scores in IDC's report on AI inference computing power, showcasing its capabilities in complex hardware and software integration [1] - ZTE's self-developed Nebula large models have achieved significant rankings in algorithm innovation and data engineering [1] Group 4: Infrastructure and Ecosystem - ZTE is building a domestic intelligent computing ecosystem, having won the 2025 China Computing Conference's major breakthrough award [1] - The company is launching high-density switches and a full range of servers to support large-scale intelligent computing clusters in various markets [1] Group 5: Military Sector - ZTE has not engaged in any business within the military sector [1]

Group 1 - The stock price of Keda Guochuang on August 8 was 24.95 yuan, down 0.78 yuan, representing a decline of 3.03% [1] - The trading volume on that day was 135,000 hands, with a transaction amount of 338 million yuan [1] - Keda Guochuang focuses on software development, with business areas including artificial intelligence and big data [1] Group 2 - The company announced that its products, including the Xingyun large model and Jiuzhang AI platform, received Ascend compatibility certification, while its data middle platform and intelligent middle platform received Kunpeng compatibility certification [1] - A subsidiary of the company recently received government subsidy funding of 5 million yuan [1] Group 3 - On August 8, the net outflow of main funds for Keda Guochuang was 61.3747 million yuan, with a cumulative net outflow of 175 million yuan over the past five days [1]

Group 1 - The Ministry of Education's Vocational Education Development Center signed a memorandum of cooperation with Beijing Volcano Engine Technology Co., Ltd. to promote vertical model construction in vocational education [1][4] - The collaboration will focus on training in the automotive and e-commerce sectors, developing intelligent applications, and nurturing AI-skilled talent [4][8] - Volcano Engine will provide comprehensive support including funding, computing power, and industry data to selected vocational schools and teaching teams [4][9] Group 2 - The Vocational Education Development Center previously signed a strategic cooperation framework agreement with ZTE Corporation to work on communication, intelligent manufacturing, and computer fields [4][8] - The center plans to collaborate with Alibaba Cloud Computing in the fields of cloud computing, artificial intelligence, and cross-border e-commerce within the year [8] - The center's director emphasized that advancements in artificial intelligence, particularly generative AI, are reshaping the future of education and creating new opportunities for vocational education [8][9] Group 3 - Volcano Engine, as a subsidiary of ByteDance, has significant technical expertise in AI and large model technology, aiming to integrate industry advancements with vocational education [9][10] - ZTE Corporation, a leading global ICT solutions provider, has made notable investments in AI and large model technology, intending to drive educational transformation through technological innovation [10]

Core Viewpoint - The article highlights the significant advancements in communication technology showcased at the MWC 2025, emphasizing the role of Chinese manufacturers, particularly ZTE, in driving innovation in both communication infrastructure and intelligent computing solutions [1][2]. Group 1: Communication Acceleration - The 5G-A technology is entering a phase of accelerated development and commercialization, with ZTE leading initiatives such as ATG civil aviation communication and NTN satellite communication to achieve ubiquitous connectivity [4]. - ZTE has made significant strides in the deployment of 5G infrastructure, achieving the first domestic NR-NTN low Earth orbit satellite simulation verification and supporting China Telecom in launching the first IoT NTN commercial network [4]. - ZTE's core capabilities in chipsets, algorithms, and architecture are being leveraged to create efficient, simplified, and green mobile communication networks, with the introduction of AI capabilities across network layers [4][5]. Group 2: All-Stack Intelligent Computing Evolution - ZTE positions intelligent computing as a long-term strategic focus, aiming to build a comprehensive intelligent computing solution that meets the surging demand for computing power driven by AI model advancements [7]. - The company has developed domestic intelligent computing servers and self-developed chips to support various computing acceleration hardware, facilitating efficient deployment of AI applications [7][8]. - ZTE's international expansion in the intelligent computing sector is evident, with a significant increase in overseas data center orders, exceeding 100% year-on-year growth in 2024 [8]. Group 3: Terminal "AI Together" - ZTE's terminal business aims to integrate AI technology across various devices, enhancing user experience and promoting the concept of "AI for All" [9][10]. - The introduction of the "AI Together" concept allows for the intelligent integration of multiple AI models, enabling devices to select the most suitable model for user needs [11]. - ZTE's terminal products, including smartphones and smart wearables, have seen significant market success, with the Nubia brand expanding to over 30 countries and achieving top sales in the gaming smartphone segment [11][12].

Core Viewpoint - The emergence of DeepSeek has ignited the application of AI large models, intensifying the global AI competition and leading to a surge in computing power demand [1] Group 1: Financial Performance - In 2023, the company reported a total revenue of 121.3 billion yuan, a year-on-year decrease of 2.38%, with revenues from operator networks, government and enterprise, and consumer businesses at 70.33 billion yuan, 18.56 billion yuan, and 32.41 billion yuan respectively, accounting for 58%, 15.3%, and 26.7% of total revenue [1] - The revenue from operator networks decreased by 15.02% year-on-year, primarily due to the overall decline in domestic investment [3] Group 2: Industry Trends and Opportunities - The peak of 5G investment has passed, and operator investments are shifting towards emerging fields such as AI and computing networks, with predictions indicating that the three major operators' AI investments will reach 100 billion yuan over the next three years, while leading Chinese internet companies will invest over 500 billion yuan in AI [5] - The evolution of AI technology and its applications will promote the construction of intelligent computing centers and increase business volume on the consumer side, becoming the main engine driving growth in the ICT industry over the next 3-5 years [5] Group 3: AI and Computing Initiatives - The company has made significant progress in AI and computing, promoting the development of a diverse domestic intelligent computing ecosystem and actively participating in the construction of distributed high-performance domestic computing resource pools [6] - The company has launched the AiCube training and deployment machine, which facilitates faster and more secure deployment of DeepSeek models [6] Group 4: Consumer Market and Product Development - The company is focusing on AI smartphones as a key area for rapid market catch-up, with its Nubia brand entering over 30 countries and developing AI smartphones based on major telecom operators' large models [10] - The consumer business revenue grew by 16.1% year-on-year, with smartphone product revenue increasing by over 40% [11] Group 5: Future Strategy - The company aims to embrace AI and build a new experience centered on multi-terminal intelligent interconnection and ecosystem expansion, leveraging its self-developed chips and comprehensive solutions [12] - The company plans to maintain a growth trajectory in mobile and interconnected products by adhering to differentiated innovation and cost leadership strategies [12] - The company is positioned to reshape the ICT industry landscape with its "connection + computing + terminal" full-stack capability system, aiming to strengthen its resilience and explore new opportunities in the AI wave [13]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index within the next 12 months [6][12]. Core Views - The company's revenue for 2024 was 121.30 billion yuan, a decrease of 2.38% year-on-year, with a net profit attributable to shareholders of 8.43 billion yuan, down 9.66% year-on-year. The operating cash flow also saw a significant decline of 34.05% [1][2]. - The operator network business faced challenges, but the company is seeing growth in its computing power and terminal segments, which are expected to enhance operational resilience [4][5]. Summary by Sections Overall Performance - The company reported a total revenue of 121.30 billion yuan in 2024, with a decline in operator network revenue by 15.02% to 70.33 billion yuan, while enterprise and consumer segments showed growth [2][3]. - The enterprise business revenue increased by 36.68% to 18.57 billion yuan, although the gross margin decreased by 19.58 percentage points [2]. - Consumer business revenue grew by 16.12% to 32.41 billion yuan, with a slight increase in gross margin [2]. Computing Power - The company accelerated its penetration into major industry clients, with a doubling of revenue from internet giants and large banks, contributing to nearly 60% growth in domestic enterprise revenue [3]. - The company is involved in building distributed high-performance computing resource pools and has developed proprietary chips to support various computing acceleration hardware [3]. Terminals - The company has expanded its AI terminal offerings, with mobile phone revenue increasing by over 40% [4]. - Home broadband terminal shipments exceeded 100 million units, maintaining the top global market share for four consecutive years [4]. Financial Forecast - The company forecasts net profits of 8.74 billion yuan in 2025, 9.31 billion yuan in 2026, and 10.15 billion yuan in 2027, with corresponding PE ratios of 21, 20, and 18 [5][9].