Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The emergence of high-performance open-source large models has significantly lowered the barriers and costs for AI application innovation, driving the development of intelligent computing applications across various sectors such as finance, government, education, healthcare, and industry [7][14] - The report emphasizes the differentiated network connection requirements arising from the rapid growth of intelligent computing applications, highlighting the need for high bandwidth, low latency, and high reliability to support AI model training and inference [7][15] - The report proposes five key features for high-quality computing dedicated lines tailored for intelligent computing applications: intelligent perception, business certainty experience, elastic network on demand, intelligent operation and maintenance, and optical computing collaboration [7][15] Summary by Sections Overview - The proliferation of open-source large models since 2023 has disrupted the previous monopoly in the field, enabling rapid innovation in intelligent computing applications across various industries [14] - The report identifies the need for networks to perceive business types and provide differentiated connection capabilities to ensure optimal service experiences [14] Differentiated Dedicated Line Service Requirements for Intelligent Computing Applications Financial Intelligent Computing Applications - Financial institutions are leveraging AI for customer service, risk management, and operational efficiency, requiring high bandwidth and low latency for various applications [17][22] - Specific network requirements include: - AI service assistants: 5 Mbps bandwidth, latency < 5 ms, availability ≥ 99.99% [27] - Digital lobby managers: 200 Mbps bandwidth, latency < 2.5 ms, availability ≥ 99.99% [27] - AI financial compliance checks: 150 Mbps bandwidth, latency < 5 ms, availability ≥ 99.99% [27] - AI fraud detection systems: 5 Mbps bandwidth, latency < 5 ms, availability ≥ 99.99% [27] Government Intelligent Computing Applications - The report discusses the transition from basic digitalization to comprehensive intelligent governance, emphasizing the need for flexible network services to handle varying demands [29][33] - Network requirements include: - Intelligent government customer service: < 5 Mbps bandwidth, latency < 500 ms, availability ≥ 99.99% [38] - Intelligent traffic management: < 200 Mbps bandwidth, latency < 20 ms, availability ≥ 99.99% [38] - Intelligent environmental monitoring: 200 Kbps to 20 Mbps bandwidth, latency < 500 ms, availability ≥ 99.99% [38] Educational Intelligent Computing Applications - The report highlights the transformation in education through intelligent computing, with applications in personalized learning and automated assessment [39][43] - Network requirements include: - Smart classrooms: 100-500 Mbps bandwidth, latency < 25 ms, availability ≥ 99.99% [45] - Intelligent monitoring systems: ~4 Gbps bandwidth, latency < 5 ms, availability ≥ 99.99% [45] Healthcare Intelligent Computing Applications - The healthcare sector is increasingly adopting intelligent computing to enhance diagnostic accuracy and operational efficiency [46][49] - Network requirements include: - AI-assisted imaging: 10 Gbps bandwidth, latency < 10 ms, availability ≥ 99.9% [52] - AI-assisted diagnosis: 500 Mbps to 1 Gbps bandwidth, latency < 5 ms, availability ≥ 99.9% [52] Public Security Intelligent Computing Applications - AI is being integrated into public security to enhance risk identification and response capabilities [54][58] - Network requirements include: - AI video monitoring: 200 Mbps bandwidth, latency < 5 ms, availability ≥ 99.99% [60] - AI policing services: 20 Mbps bandwidth, latency < 50 ms, availability ≥ 99.99% [60] Entertainment Intelligent Computing Applications - The report discusses the digital transformation of the entertainment industry, particularly in cloud gaming and media production [66][67] - Network requirements include: - Cloud gaming: 120 Mbps bandwidth per user, latency < 1 ms [66] - 3D scene reconstruction: 1 Gbps bandwidth, latency < 1 ms [67]

Group 1 - In the first half of the year, China's industrial and information economy demonstrated strong resilience, with industrial added value above designated size growing by 6.4% year-on-year, and manufacturing investment increasing by 7.5% [3] - The telecommunications sector reported a revenue of 905.5 billion yuan, with a year-on-year growth of 9.3%, and the number of 5G base stations reached 4.55 million, with 1.118 billion 5G mobile phone users [3] - The software business also showed robust growth, with total revenue reaching 7.0585 trillion yuan, a profit increase of 12%, and exports growing by 5.3% [3] Group 2 - The Shanghai Cooperation Organization (SCO) has become a significant regional cooperation organization, with a trade volume exceeding 8 trillion dollars in 2024, accounting for one-fourth of global trade [4] - The SCO aims to promote sustainable development and modernization, with 2025 designated as the "Year of Sustainable Development" [4] Group 3 - The Ministry of Industry and Information Technology (MIIT) has actively engaged in international cooperation with SCO countries, focusing on building an open and inclusive global digital industry ecosystem [9] - MIIT has conducted training for over 830 digital technology talents through the China-SCO Big Data Cooperation Center, facilitating digital transformation [7][9] - The MIIT has also initiated pilot projects to expand foreign investment in value-added telecommunications services, with over 40 foreign enterprises receiving pilot approvals [9][10] Group 4 - The MIIT emphasizes high-level opening up in the industrial sector, removing foreign investment restrictions in manufacturing, and promoting trade liberalization through bilateral cooperation [10] - The MIIT plans to enhance cooperation in energy industries, promote industrial transformation, and build innovative cooperation platforms with SCO countries [10]

Core Insights - The report highlights the growth potential of the intelligent computing machine (ICM) industry in China, driven by the integration of high-performance AI chips, server hardware, and algorithm frameworks, which significantly lowers the barriers to using computing power for AI model training and inference [1][9] - The global AI market is projected to reach $36,885 billion by 2025, with continuous growth in China's cloud computing and server shipments, supported by policies such as the "Interim Measures for the Management of Generative AI Services" [1][36] - DeepSeek's open-source large model, with training costs only 5% of GPT-4, accelerates the adoption of ICMs, creating a closed-loop of "model + computing power + scenario" that meets the data security and localization needs of various industries [1][9] Industry Overview - The ICM industry is transitioning from a "cloud-first" approach to "edge collaboration," driven by the demand for distributed computing nodes and the need for data security and real-time processing [2][9] - The industry chain includes upstream hardware suppliers (chips, storage), midstream solution providers (e.g., Huawei, Tianrongxin, Xinhua San), and downstream applications in government, finance, and healthcare [2][9] - The report indicates that ICMs are becoming core devices in distributed nodes, despite challenges such as insufficient technology maturity and high initial investment [2][9] Market Drivers - The AI market's growth is a fundamental driver for the ICM industry, with significant increases in both the global AI market and AI chip market expected by 2025 [36][37] - The demand for data security and compliance in sensitive industries is creating a blue ocean market for ICMs, as enterprises seek localized solutions to avoid data leakage [9][36] Applications and Case Studies - ICMs are being applied in various sectors, including government (e.g., Beijing, Shanghai, Shenzhen using DeepSeek for efficiency), healthcare (e.g., Harbin Medical University optimizing diagnosis processes), and finance (e.g., Zhongke Keke collaborating with multiple vendors to launch industry-specific ICMs) [2][9] - The report emphasizes the role of ICMs in enhancing operational efficiency and data security across these sectors [2][9] Future Outlook - The report anticipates that as edge AI and hybrid computing models become more prevalent, ICMs will achieve deeper applications in vertical industries, promoting the democratization of AI computing power and the intelligent transformation of industries [2][9]

Group 1 - The financial industry is increasingly demanding technology talent, with major state-owned banks investing over 110 billion yuan in fintech by the end of 2024 and employing over 100,000 fintech personnel [1] - The integration of information technology and finance has evolved significantly, transitioning from basic tools to advanced AI-driven financial services, enhancing service models, channels, efficiency, and precision [1] - The Chinese government has emphasized the importance of digital finance, urging financial institutions to accelerate their digital transformation and enhance their digital operational capabilities [2] Group 2 - Financial institutions are increasing the proportion of technology personnel to prepare for digital transformation, with some establishing dedicated teams focused on computing power, algorithms, and data, generating over 1.33 million lines of code monthly [3] - The financial industry faces challenges in retaining and effectively utilizing technology talent, as graduates with IT backgrounds prefer opportunities in research institutions, internet companies, and startups [3] - There is a need for financial technology personnel to understand financial business, necessitating structured training programs to develop "tech + finance" hybrid talents, which reflects the industry's human resource management capabilities and long-term vision [3]