Investment Rating - The report rates the industry as "Positive" with expectations that the industry index will outperform the market index by over 5% in the next six months [7]. Core Insights - The "14th Five-Year Plan" emphasizes technological innovation as a driver for building a modern industrial system, elevating the strategic position of the computer industry from a supporting tool to an engine of new productive forces [3][10]. - The primary task for industry development is to tackle "root technologies" to achieve technological self-reliance, focusing on breakthroughs in foundational software, high-end AI chips, and computing infrastructure [3][11]. - The integration of "Artificial Intelligence+" is central to empowering industries, with computer technology permeating all aspects of research, production, and management, leading to new business models [3][12]. - The value release of data as a production factor and the establishment of security barriers are equally important, necessitating advancements in cybersecurity technologies [3][14]. Summary by Sections Strategic Positioning - The computer industry is positioned as a key player in achieving high-quality development and technological self-reliance, moving beyond efficiency enhancement to becoming a cornerstone of digital China and a network power [10]. Core Technologies - The focus is on addressing long-standing "bottleneck" issues by enhancing original innovation and tackling key core technologies, particularly in foundational software and core chips [11]. - China's research capabilities are rapidly improving, with a significant increase in AI-related publications and patents, indicating a strong push towards self-sufficiency in technology [11]. Industry Empowerment - The report highlights the rapid growth of the AI sector, with over 4,700 AI companies and a core industry scale nearing 600 billion yuan, indicating a doubling in four years [12]. - The integration of AI into various industries is expected to drive significant transformations, with a focus on developing industry-specific AI models and solutions [12][13]. Data and Security - The report underscores the importance of balancing development and security, with data becoming a critical production factor and the need for robust cybersecurity measures [14]. - China's extensive 5G infrastructure supports the secure transmission of data, which is essential for the digital economy [14]. Development Outlook - The computer industry is anticipated to enter a golden development period driven by national strategies and market demands, focusing on technological autonomy, industrial intelligence, and security systems [15]. - The competitive landscape is shifting towards a focus on core technologies and deep industry understanding, with companies that excel in foundational software and AI expected to lead the modernization efforts [15].

Core Viewpoint - Suzhou Kedacom (603660) is focusing on enhancing its product offerings and solutions in line with the digital transformation in China and the domestic trustworthiness industry, aiming for sustainable high-quality growth and significant overseas revenue expansion in the coming years [1][5]. Group 1: Business Strategy and Market Position - The company plans to optimize and iterate its products and solutions to improve overall operational efficiency [1]. - A clear strategy for overseas market development has been established, with expectations for rapid revenue growth in the next two years [1][5]. - The company is actively exploring application scenarios and market opportunities beyond government sectors for its audio and video products [1]. Group 2: Product Development and Technological Advancements - The company has developed self-researched high-performance computing servers, which utilize domestic processors and support local operating systems, catering to both internal and industry-specific needs [2]. - The self-developed large model focuses on vertical industries such as public safety and intelligent transportation, with capabilities for multi-modal analysis of audio and video data [2]. Group 3: Industry Trends and Opportunities - The video conferencing industry is expected to benefit from domestic production and information security trends, as well as the rise of cloud services for government and enterprises [2]. - The security monitoring industry will gain from urban smartification, intelligent upgrades, and increased demand for wireless monitoring driven by 5G technology [2]. Group 4: Financial Information and Shareholder Engagement - As of March 31, 2025, a total of RMB 244.68 million of "Kedacom Convertible Bonds" have been converted into common shares, representing 7.74% of the total shares before conversion [3]. - The latest conversion price for the bonds is set at RMB 6.38 per share, with a total share capital of 536,725,572 shares as of March 31, 2025 [3].