Investment Rating - The report maintains a "Recommended" rating for the industry [1] Core Insights - The report highlights a significant performance improvement in the ArgoDB solution based on the Haiguang 7000 series processor, achieving a 62% enhancement over the previous world record in the TPC-DS benchmark [4] - The trend of using low-cost storage to replace expensive memory in vector databases is identified as a major technological shift [4] - The domestic vector database market is transitioning from technical exploration to large-scale implementation, with positive signals of million-level purchases in key sectors like finance and energy [4] Summary by Sections - **Performance Records**: The ArgoDB solution has set new performance records in both TPC-DS and TPC-C benchmarks, indicating strong technological advancements [4] - **Cost Structure**: The report outlines two billing models for vector databases: annual subscription and pay-as-you-go, with specific pricing examples provided for different regions [4] - **Investment Opportunities**: The report suggests focusing on companies such as StarRing Technology, Dameng Data, Haima Data, Taiji Co., SuperMap Software, and Torus [4]

Investment Rating - The industry investment rating is "Buy" [3] Core Insights - The report highlights the potential of HBF (High Bandwidth Flash) technology to meet the memory capacity requirements of AI large models, which have been increasing due to the growth in model parameters and context lengths [13][20] - Companies with a database technology foundation are well-positioned to develop data infrastructure software based on HBF, with major players including Huawei and Alibaba, as well as independent firms like StarRing Technology and PingCAP [29][32] - The maturity of HBF technology is expected to drive the application of related data infrastructure software, particularly in AI inference tasks [33] Summary by Sections HBF Technology Development - HBF is anticipated to become the optimal solution for meeting the memory capacity demands of AI large models, as current HBM (High Bandwidth Memory) solutions are insufficient [20][23] - The first batch of HBF samples is expected to be delivered in the second half of 2026, with integrated AI inference hardware projected for early 2027 [23] Data Infrastructure Software Opportunities - The report identifies a growing need for data processing software that can handle the high memory requirements of various AI models, particularly large language models and video generation models [28][30] - Companies with existing database technology capabilities are likely to develop software optimized for HBF, enhancing their competitive edge in the market [29][32] Key Company Valuations and Financial Analysis - StarRing Technology (688031.SH) has a current price of CNY 97.99 with a rating of "Increase" [8] - Cambricon (688256.SH) is rated "Buy" with a target value of CNY 1480.92, reflecting strong growth potential [8] - Inspur Information (000977.SZ) is rated "Increase" with a current price of CNY 62.85 [8] - Unisplendour (000938.SZ) is rated "Buy" with a target value of CNY 39.18 [8]

Group 1 - OpenAI and Oracle signed a massive computing power cooperation agreement worth hundreds of billions, leading to a 30% surge in Oracle's stock price and elevating Larry Ellison back to the title of the world's richest person [1] - Oracle's stock price increase reflects its successful transformation from a traditional database vendor to an "AI Ready" data platform provider, driven by the demand for unified, intelligent, and real-time data architectures [1][2] - By 2025, global data volume is expected to reach 213.56ZB, with China contributing 51.78ZB, indicating a strong market demand for AI-ready data infrastructure [1][2] Group 2 - Oracle's CEO and CTO emphasized the strategic direction of "AI databases," enabling seamless integration with major AI models and addressing enterprise data security concerns [2] - Oracle's remaining performance obligations (RPO) have exceeded $450 billion, reflecting a 359% year-on-year growth, indicating strong market demand for its services [3] Group 3 - In China, the need for localized, full-stack, and compliant data platforms has led to inquiries about potential "Chinese versions of Oracle" [4] - Companies like Yonyou Network, Dameng Database, and Transwarp Technology are being considered as potential counterparts to Oracle in the Chinese market, each with unique strengths [5] Group 4 - Transwarp Technology has developed an "AI-Ready Data Platform," positioning itself as a leader in AI data infrastructure in China, with significant recognition from international authorities [6][7] - Transwarp's platform emphasizes compliance and adaptability to complex regulatory environments, supporting private deployment and hybrid cloud architectures [7] Group 5 - Despite similarities with Oracle, Transwarp faces challenges in ecosystem development, open-source influence, and global standard participation [8] - Transwarp's revenue for the first half of 2025 was $1.53 million, with AI-related orders around $300,000, showing strong growth potential [8] Group 6 - The success of Oracle is attributed not only to technology but also to its comprehensive ecosystem from databases to cloud services and AI infrastructure [9] - The emergence of a true "Oracle" in China will depend on the ability to create a healthy, open, and sustainable software ecosystem and business model [9]

Core Viewpoint - The commercialization wave of AI is accelerating, with the 2025 mid-year report serving as a critical window for evaluating companies' performance, particularly in terms of financial data and order status [1] Financial Performance - In the first half of the year, the company achieved revenue of 153 million yuan, a year-on-year increase of 8.82%, while the net profit loss narrowed significantly to -143 million yuan, indicating improved financial health [2] - The gross margin for Q2 reached 52.24%, showing both year-on-year and quarter-on-quarter growth, alongside a reduction in sales and management expense ratios [2] - The operational cash flow has also seen substantial improvement year-on-year, highlighting the company's resilience amid broader profitability pressures in the tech sector [2] AI Infrastructure and Market Position - The company is experiencing a commercial turning point in AI infrastructure, with large model-related orders nearing 30 million yuan, accounting for nearly 20% of current revenue [3] - The company’s AI solutions are well-aligned with government policies, serving sectors such as finance, energy, and education, which are beginning to replicate successful implementations [3] - The launch of an AI-ready data platform aims to address multi-modal data governance challenges, enhancing product-market fit and potentially leading to ongoing revenue from software licensing and technical services [3] Strategic Partnerships and Expansion - A strategic partnership with Hong Kong Broadband has positioned the company as the first AI and data product supplier for the firm, facilitating digital transformation for businesses in Hong Kong [4] - The collaboration leverages Hong Kong's extensive fiber network and client resources, with the potential for expansion into Southeast Asian markets [4] Comparative Analysis with Global Peers - The company’s growth trajectory can be compared to Databricks, a leading player in the global data and AI sector, particularly in terms of integrating data storage and processing [5][6] - Both companies focus on deep integration of data and AI, with the company aiming to cover the entire process from data collection to intelligent application [6] - The company is expected to transition towards a subscription-based revenue model similar to Databricks, enhancing revenue sustainability and growth potential [7] Industry Trends and Policy Support - The company's growth is supported by national policies recognizing data as a key production factor, with AI integration becoming central to industrial upgrades [9] - Recent government initiatives emphasize the importance of AI, providing a favorable environment for the company's AI infrastructure offerings [9] - The company is positioned as a leader in the data infrastructure sector for generative AI, as highlighted in recent market evaluations [9] Domestic Market and Localization - The company is aligned with national goals for domestic replacement and self-sufficiency in technology, particularly in critical infrastructure [10] - The company has achieved full-stack compatibility with major domestic CPUs and operating systems, enhancing its competitive edge in the market [10][11] - The company’s products have passed significant security and compliance certifications, reinforcing its position as a trusted provider in the domestic market [11] Future Outlook - Following the release of its semi-annual report, market expectations have improved, with projections for revenue growth from 500 million yuan in 2025 to 794 million yuan in 2027, indicating a compound annual growth rate of approximately 26% [12]

Core Viewpoint - The commercialization of AI is reaching a critical turning point, with StarRing Technology's recent half-year report indicating significant financial recovery and the emergence of AI infrastructure orders, marking a transition from high investment to efficiency [1][3]. Financial Performance - In the first half of the year, the company achieved revenue of 153 million yuan, a year-on-year increase of 8.82%, while the net profit loss narrowed significantly to -143 million yuan, showing a marked improvement [2] - The gross margin for Q2 reached 52.24%, with both year-on-year and quarter-on-quarter increases; sales and management expense ratios decreased to 43.94% and 34.30%, respectively, indicating improved operational efficiency [2] - The operating cash flow net amount has also shown substantial year-on-year improvement, highlighting the company's resilience amid broader profitability pressures in the tech sector [2]. AI Infrastructure and Market Position - The half-year report revealed that large model-related orders approached 30 million yuan, accounting for nearly 20% of the revenue, indicating a strong market demand for AI infrastructure [3] - The company has established strategic partnerships, such as with Hong Kong Broadband, positioning itself as a key AI and data product supplier in Hong Kong, which could lead to further regional expansion [4]. Comparison with Databricks - StarRing Technology's growth logic is compared to Databricks, a leading player in the global big data and AI sector, suggesting that StarRing is on a similar trajectory of integrating data and AI [5][6] - Both companies focus on providing comprehensive solutions that meet the full-stack needs of enterprise clients, which is particularly important in the Chinese market [7]. Industry Trends and Policy Support - The company's growth is supported by national policies recognizing data as a key production factor, with recent government initiatives promoting the integration of AI and data governance [9] - StarRing's AI infrastructure aligns with the government's push for "AI+" actions, positioning the company to benefit from the increasing demand for data-driven solutions [9]. Domestic Market Opportunities - The push for domestic alternatives and self-sufficiency in technology, as mandated by government policies, enhances StarRing's competitive edge in the enterprise market [10] - The company has successfully completed full-stack adaptations for various domestic CPUs and operating systems, ensuring compatibility and performance advantages [10][11]. Future Growth Projections - Analysts have raised revenue forecasts for StarRing, predicting a compound annual growth rate of approximately 26% from 2025 to 2027, driven by the accelerating demand for AI infrastructure [12].