Core Viewpoint - The company, Unisplendour Corporation Limited, is set to become a "super invisible champion" in the digital infrastructure market as it applies for a listing on the Hong Kong Stock Exchange, aiming to establish an "A+H" listing structure [1] Group 1: Company Overview - Unisplendour is a leading ICT infrastructure and service provider in China, with a history dating back to 1988, and is ranked third in the Chinese digital infrastructure market with an 8.6% market share as of 2024 [1] - The company has been publicly listed on the Shenzhen Stock Exchange since 1999, with a market capitalization of 72.7 billion yuan as of December 8 [1] Group 2: Business Segments - The company operates primarily in two segments: digital infrastructure, which includes ICT infrastructure products and cloud services, and ICT product distribution [2] - Unisplendour is referred to as the "shovel seller" of the AI era, providing essential AI computing infrastructure and tools to various industries [2] Group 3: Financial Performance - From 2022 to 2024, Unisplendour's revenue showed steady growth, reaching 73.75 billion yuan in 2022, 77.54 billion yuan in 2023, and 79.02 billion yuan in 2024, with a significant increase to 47.43 billion yuan in the first half of 2025, representing a 25% year-on-year growth [2] - In contrast, net profit declined from 3.74 billion yuan in 2022 to 1.98 billion yuan in 2024, with a further drop to 1.28 billion yuan in the first half of 2025, marking a 25.53% decrease [3] Group 4: Strategic Positioning - The decline in profit is attributed to the company's strategic shift from high-margin traditional network equipment to becoming a comprehensive AI infrastructure provider, focusing on market share rather than short-term profits [3][4] - High R&D investments and increasing sales and financial expenses are seen as necessary costs for future growth, with R&D expenditures of 5.30 billion yuan in 2022, 5.64 billion yuan in 2023, and 5.10 billion yuan in 2024 [3] Group 5: Market Outlook - The digital economy is experiencing a "gold rush," with the digital solutions market in China expected to grow from 1 trillion yuan in 2020 to 1.9 trillion yuan by 2024, reflecting a compound annual growth rate of 18.1% [5] - The digital infrastructure market is projected to grow from 300 billion yuan in 2020 to 600 billion yuan by 2024, with a compound annual growth rate of 16.0% [5] Group 6: Competitive Advantages - Unisplendour possesses a full-stack ICT technology capability, covering the entire industry chain from "chip to cloud," enabling it to provide integrated solutions that meet the evolving needs of clients [6] - The company has made significant technological advancements, including the launch of an 800G intelligent computing switch and a new network architecture, positioning it well for the next generation of data centers [6] Group 7: Challenges and Considerations - The company faces challenges in balancing market share and profit margins, as its strategy to capture AI market share puts pressure on gross margins [7] - Sustained high R&D and capital expenditures are necessary to maintain technological leadership, posing long-term tests for the company's cash flow and capital structure [7]