Core Viewpoint - The successful IPO of Tensu Zhixin (09903) on January 8 marks a significant milestone for the domestic high-end computing chip industry, reflecting strong market interest and confidence in domestic AI capabilities [1] Group 1: IPO and Market Response - Tensu Zhixin's stock price surged by 31.54% at opening, leading to a market capitalization exceeding 40 billion HKD, indicating robust investor enthusiasm for domestic high-performance computing chips [1] - The IPO attracted 18 cornerstone investors, including major players like ZTE Corporation (Hong Kong) and UBS AM Singapore, with total subscription commitments reaching 1.583 billion HKD [1] Group 2: Strategic Partnership with Paradigm Intelligence - The collaboration between Paradigm Intelligence and Tensu Zhixin extends beyond capital investment to include deep technological synergy and business collaboration [2] - Paradigm Intelligence's strategic investment aims to bridge the gap between domestic computing hardware and AI applications, fostering a self-sufficient AI computing foundation [2] - The introduction of Paradigm's ModelHub XC and EngineX addresses compatibility issues between domestic computing and large models, facilitating easier deployment of AI models for enterprise clients [2] Group 3: Benefits for Paradigm Intelligence - Tensu Zhixin's strong market performance enhances the value of Paradigm Intelligence's holdings, optimizing its asset structure and elevating its valuation [3] - The IPO provides Tensu Zhixin with increased funding for R&D and capacity expansion, ensuring a stable and cost-effective supply of domestic computing resources for Paradigm Intelligence [3] - The partnership creates a "software + hardware" synergy, establishing a competitive edge and a robust technological moat for Paradigm Intelligence in the enterprise AI market [3] Group 4: Market Implications - The listing of Tensu Zhixin signifies a pivotal moment in the maturation of the domestic AI industry, accelerating the development of a stable and efficient domestic computing ecosystem [4] - The domestic GPU market is projected to exceed 100 billion CNY in the next five years, with ongoing collaboration between Paradigm Intelligence and Tensu Zhixin expected to drive practical applications of domestic computing in enterprise scenarios [4] - The "soft and hard integration" model shortens the conversion cycle from laboratory to production line, enhancing client adoption willingness and project delivery certainty [4] Group 5: Future Outlook - The successful IPO of Tensu Zhixin is a key achievement for the domestic GPU industry and a significant outcome of Paradigm Intelligence's strategic positioning [5] - The close partnership is anticipated to accelerate the maturation of the domestic AI computing ecosystem and provide Paradigm Intelligence with robust growth momentum in the wave of AI large model applications [5]

Core Viewpoint - The successful IPO of Tensu Zhixin (09903) on the Hong Kong Stock Exchange marks a significant milestone for the domestic high-end computing chip industry, reflecting strong market interest and confidence in domestic AI capabilities [1][3]. Group 1: IPO and Market Response - Tensu Zhixin's stock price surged by 31.54% after opening, leading to a market capitalization exceeding 40 billion HKD, indicating robust investor enthusiasm for domestic high-end computing chips [1]. - The IPO attracted 18 cornerstone investors, including major players like ZTE Corporation and UBS AM Singapore, with total commitments reaching 1.583 billion HKD, showcasing strong backing for the company [1]. Group 2: Strategic Partnership with Paradigm Intelligence - The collaboration between Tensu Zhixin and Paradigm Intelligence goes beyond financial investment, focusing on strategic investment and ecosystem collaboration to bridge the gap between domestic computing hardware and AI applications [1]. - Paradigm Intelligence's ModelHub XC and EngineX address compatibility issues between domestic computing power and large models, facilitating easier deployment of AI models for enterprise clients [1]. Group 3: Benefits for Paradigm Intelligence - The strong performance of Tensu Zhixin's stock enhances the value of Paradigm Intelligence's holdings, optimizing its asset structure and improving its valuation [2]. - The IPO provides Tensu Zhixin with increased funding for R&D and capacity expansion, ensuring a stable and cost-effective supply of domestic computing power for Paradigm Intelligence [2]. - The deep collaboration with Tensu Zhixin creates a "software + hardware" synergy, establishing a competitive edge in the enterprise AI market [2]. Group 4: Market Implications - Tensu Zhixin's IPO signifies a pivotal moment for the maturation of the domestic AI industry, providing a stable and efficient foundation for domestic AI chips to transition from "usable" to "user-friendly" [3]. - The domestic GPU market is expected to exceed 100 billion CNY in the next five years, with ongoing collaboration between Paradigm Intelligence and Tensu Zhixin driving practical applications of domestic computing power in enterprise scenarios [3]. - The "soft and hard integration" cooperation model shortens the conversion cycle from laboratory to production line, enhancing client adoption willingness and project delivery certainty [3]. Group 5: Future Outlook - The successful listing of Tensu Zhixin is a key achievement for the domestic GPU industry and a significant outcome of Paradigm Intelligence's strategic layout, promising stronger growth momentum and broader development space in the AI large model application wave [4]. - The close cooperation between Paradigm Intelligence and Tensu Zhixin is expected to contribute to a new chapter in China's AI industry and promote independent innovation [4].

Core Insights - Fourth Paradigm reported a revenue of 4.402 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 36.8% [1] - The company's AI platform, Prophet AI, achieved a revenue of 3.692 billion yuan, growing 70.1% year-on-year, and accounted for 83.9% of total revenue [2] - The company is positioned to benefit significantly from the ongoing penetration of AI across various industries in China, with a projected revenue growth of approximately 30% from 2025 to 2027 [3] Financial Performance - For Q3 2025, the company achieved a revenue of 1.78 billion yuan, reflecting a year-on-year increase of 31.4% [1] - Gross profit for the first three quarters was 1.621 billion yuan, with a gross margin of 36.8% [1] - R&D expenses totaled 1.468 billion yuan, up 8.4% year-on-year, with an R&D expense ratio of 33.8%, down 8.9 percentage points [1] Product and Market Expansion - The number of benchmark users increased to 103, with an average revenue contribution of 25.49 million yuan per user, a growth of 71.4% [1] - The company launched ModelHub XC and the AI engine system EngineX, enhancing compatibility with domestic chips [2] - New AI applications are being explored in sectors such as energy, manufacturing, retail, and sports, indicating a long-term growth potential [2] Industry Positioning - Fourth Paradigm has maintained the largest market share in China's machine learning platform sector for seven consecutive years [3] - The company is well-positioned to capitalize on the digital transformation opportunities in various industries, particularly as data volumes increase [3] - The expected revenue for the company in 2025, 2026, and 2027 is projected to be 6.937 billion, 9.062 billion, and 11.797 billion yuan, respectively [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company reported a revenue of 4.402 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 36.8%. The gross profit reached 1.621 billion yuan, with a gross margin of 36.8% [2][4]. - The company's R&D expenses amounted to 1.468 billion yuan, reflecting an 8.4% increase year-on-year, while the R&D expense ratio decreased by 8.9 percentage points to 33.8% [2][4]. - The enterprise-level Agent expansion has led to significant growth in the company's "Prophet AI" platform, which generated 3.692 billion yuan in revenue, a 70.1% increase year-on-year, accounting for 83.9% of total revenue [2][4]. Summary by Sections Business Performance - In Q3 2025, the company achieved a quarterly revenue of 1.78 billion yuan, a year-on-year increase of 31.4%. The demand for AI applications that deliver tangible business value has surged among enterprise clients, leading to the acquisition of new business opportunities across key industries such as energy, manufacturing, finance, and retail [8]. - The number of benchmark users increased to 103, with an average revenue contribution of 25.49 million yuan per user, marking a 71.4% year-on-year growth [8]. Product Development - The "Prophet AI" platform's revenue share continues to rise, with a reported 36.92 billion yuan in revenue for the first three quarters of 2025, up 70.1% year-on-year. The revenue from SHIFT intelligent solutions decreased by 12.5% to 6.02 billion yuan due to increased standardization in existing scene deliveries [8]. - The company has enhanced its core products and expanded downstream applications, launching ModelHub XC and the AI engine system EngineX, which are compatible with various domestic chips [8]. Market Position - The company is positioned as a leader in AI, benefiting from the ongoing penetration of AI across various industries. The potential for digital transformation in Chinese enterprises is significant, with traditional sectors like finance and automotive leading the way, while energy and manufacturing present substantial market opportunities [8]. - The company has maintained its position as the market leader in China's machine learning platform sector for seven consecutive years, with projected revenues of 6.937 billion, 9.062 billion, and 11.797 billion yuan for 2025-2027, reflecting a compound annual growth rate of approximately 30% [8].

Core Insights - The platform revenue is the main growth driver, achieving profitability for the first time in a single quarter. The company reported a revenue of 4.402 billion yuan for the first three quarters, a year-on-year increase of 36.8% [1] - In Q3 2025, the revenue reached 1.776 billion yuan, up 31.4% year-on-year. The "Prophet" platform continued to show high growth, generating 1.543 billion yuan in revenue for Q3 2025, a year-on-year increase of 67.6% [1] - The number of benchmark customers increased to 103, with a significant rise in average revenue per user (ARPU) to 25.49 million yuan, up 71.4% year-on-year [1] Revenue Breakdown - The "Prophet" platform accounted for 86.9% of total revenue in Q3 2025, compared to 68.1% in the same period last year [1] - The SHIFT intelligent solutions generated 231 million yuan in revenue for Q3 2025, a slight decline of 1.7% year-on-year, while AIGS revenue plummeted to 2 million yuan, down 99.1% year-on-year [1] R&D Efficiency - R&D expenses for the first three quarters amounted to 1.489 billion yuan, an increase of 8.4% year-on-year, with an R&D expense ratio of 33.8%, down 8.9 percentage points year-on-year [1] - Gross profit for the first three quarters was 1.621 billion yuan, reflecting a year-on-year increase of 20.1%, with a stable gross margin of 36.8% [1] Product Development - The company launched ModelHub XC and AI Engine EngineX on September 22, enhancing the synergy between domestic AI software and hardware. This supports multi-architecture and multi-model batch adaptation [2] - The company has made progress in AI applications in energy storage and stablecoin development [2] Investment Outlook - As an enterprise-level AI service provider, the company is positioned to benefit from top-down policy trends, with the trend of enterprise intelligence expected to accelerate over the next decade [2] - The company's enhanced adaptability among various AI infrastructure is expected to facilitate further commercialization [2] - The target price is maintained at 72.80 HKD with a "Buy" rating [2]

Investment Rating - The investment rating for the company is "Buy" with a target price of 72.80 HKD, maintaining the current rating [3][6]. Core Insights - The company achieved its first quarterly profit in Q3 2025, driven by platform revenue growth, with total revenue for the first three quarters reaching 44.02 billion RMB, a year-on-year increase of 36.8%. The Q3 revenue was 17.76 billion RMB, up 31.4% year-on-year [1]. - The "XianZhi" platform continued to show strong growth, generating 15.43 billion RMB in Q3 2025, a year-on-year increase of 67.6%, accounting for 86.9% of total revenue [1]. - The number of benchmark customers increased to 103, with a significant rise in average revenue per user (ARPU) to 25.49 million RMB, up 71.4% year-on-year [1]. - Research and development efficiency improved, with R&D expenses of 14.89 billion RMB for the first three quarters, a year-on-year increase of 8.4%, and an R&D expense ratio of 33.8%, down 8.9 percentage points year-on-year [1]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: 2024A at 5,261 million RMB, 2025E at 7,181 million RMB, 2026E at 9,579 million RMB, and 2027E at 12,539 million RMB, reflecting growth rates of 25.13%, 36.50%, 33.41%, and 30.89% respectively [8]. - The company is expected to turn profitable with a projected net profit of 58 million RMB in 2025E, increasing to 802 million RMB by 2027E, with corresponding growth rates of 121.76% and 154.35% [8]. - The earnings per share (EPS) is projected to improve from -0.52 RMB in 2024A to 1.54 RMB in 2027E [8].

Core Viewpoint - The company, Fourth Paradigm, has demonstrated significant growth in its financial performance for the first three quarters of 2023, with total revenue reaching 4.402 billion RMB, a year-on-year increase of 36.8%, and a notable acceleration in its core AI platform business, which saw a revenue increase of 70.1% [2][3]. Financial Performance - Total revenue for the first three quarters of 2023 was 4.402 billion RMB, reflecting a 36.8% year-on-year growth, significantly surpassing the growth rate of the same period in 2024 [2]. - Gross profit reached 1.621 billion RMB, with a year-on-year increase of 20.1%, indicating a marked improvement compared to 2024 [2]. - The gross margin stood at 36.8%, remaining stable throughout the period, with the company achieving its first quarterly profit in Q3 2023 [2]. R&D and Technological Advancements - R&D expenses amounted to 1.489 billion RMB, an increase of 8.4% year-on-year, while the R&D expense ratio decreased by 8.9 percentage points to 33.8%, showcasing improved efficiency in R&D investment [3]. - The company has invested in domestic GPU manufacturers, holding over 9% of shares in leading GPU firm Xiwang and strategically investing in another firm, Tianshu Zhixin [5]. AI Application and Market Expansion - Fourth Paradigm is focusing on the integration of domestic computing power with large models through its ModelHub XC and EngineX AI engine, aiming to convert hardware computing potential into visible business value [5]. - The company has launched the "Virtual VRAM" expansion card, allowing for memory expansion up to 256GB without hardware replacement, facilitating large-scale AI tasks [6]. Industry Trends and Strategic Initiatives - The "AI+" initiative by the State Council aims to promote deep integration of AI across various industries, marking the arrival of the AI-as-software era [8][9]. - Fourth Paradigm is addressing the fragmented software market by offering a unified AI-driven solution to streamline business processes and decision-making [9]. - The company has reported 103 benchmark users, with an average revenue contribution of 25 million RMB per user, reflecting a 71.4% year-on-year growth [10]. Consumer Electronics and Collaboration - The Phancy consumer electronics business is expanding, focusing on AI capabilities in smart terminals, with collaborations with brands like AOC and luxury car manufacturers for innovative product development [11].

Core Insights - The company reported a total revenue of 4.402 billion yuan for the first three quarters of 2023, representing a year-on-year growth of 36.8%, surpassing the growth rate of the same period last year [1] - Gross profit reached 1.621 billion yuan, with a year-on-year increase of 20.1%, and the gross margin stood at 36.8% [1] - The company achieved its first quarterly profit in Q3 2023, indicating a significant milestone [1] Revenue Breakdown - The core product, the Prophet AI platform, generated revenue of 3.692 billion yuan, reflecting a substantial year-on-year growth of 70.1% [1] - The demand for practical AI applications among enterprise clients has led to the acquisition of numerous new business opportunities across key industries such as energy, manufacturing, finance, and retail [1] R&D Investment - Research and development expenses amounted to 1.489 billion yuan, an increase of 8.4% year-on-year, with an R&D expense ratio of 33.8%, which is a decrease of 8.9 percentage points [1] - The company has optimized the efficiency of its R&D investments while maintaining technological leadership [1] Strategic Investments - The company has made significant investments in domestic computing power, holding over 9% of shares in GPU manufacturer Xiwang and strategically investing in another GPU manufacturer, TianShuZhiXin, through its subsidiary fund [2] - The launch of ModelHub XC and its core AI engine system, EngineX, aims to enable deep, efficient, and stable collaboration between domestic computing power and large models, maximizing the conversion of hardware computing potential into visible business value and efficiency improvements [2] - The platform has already certified hundreds of models, with plans to update the number of certified models to the thousands within six months [2]

Core Insights - The company reported a total revenue of 4.402 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 36.8%, significantly surpassing last year's growth rate [1] - Gross profit reached 1.621 billion yuan, with a year-on-year increase of 20.1%, indicating a notable improvement compared to the previous year's growth [1] - The gross profit margin stood at 36.8%, remaining stable, with the company achieving its first quarterly profit in Q3 [1] Business Expansion - The company has captured numerous new business opportunities across key industries such as energy, manufacturing, finance, and retail, driven by the urgent demand for practical AI applications from enterprise clients [1] - The core product, the Prophet AI platform, experienced explosive growth, generating 3.692 billion yuan in revenue, a year-on-year increase of 70.1%, which accelerated the company's overall performance [1] Investment in Domestic Computing Power - The company has invested in leading domestic GPU manufacturers, holding over 9% of Hangzhou Xiwang Chip Technology Co., and strategically investing in Shanghai Tensu Zhixin Semiconductor Co. through its subsidiary fund [2] - The launch of ModelHub XC and the core AI engine system EngineX aims to enable deep, efficient, and stable collaboration between domestic computing power and large models, maximizing the conversion of hardware computing potential into visible business value [2] - The platform has already certified over a hundred models, with plans to expand to thousands within six months and tens of thousands within a year [2] AI Software Era - The company is responding to the government's initiative to promote the integration of AI across various industries, marking the arrival of the AI-as-software era [3] - By utilizing an "AI Agent + World Model" approach, the company aims to simplify traditional business processes and software architectures, driving decision-making through a unified AI brain [3] - The company has achieved 103 benchmark users, with an average revenue contribution of 25 million yuan per user, reflecting a year-on-year growth of 71.4% [3] Consumer Electronics Development - The Phancy consumer electronics business has been actively developing AI capabilities in smart terminals, facilitating the transition of consumer electronics into consumer goods [4] - The company has launched AI smart glasses equipped with a 13-megapixel camera and is collaborating with brands like AOC to enhance AI-enabled wearable devices [4] - Future collaborations with diverse brands, including Lamborghini and Maserati, are planned to introduce co-branded products, showcasing the company's commitment to innovation in the AI space [4]

Group 1 - The company reported a revenue of 4.402 billion yuan for the first three quarters of the year, representing a year-on-year growth of 36.8% [1] - Gross profit reached 1.621 billion yuan, with a year-on-year increase of 20.1%, resulting in a gross margin of 36.8% [1] - The company achieved its first quarterly profit in the third quarter of this year [1] Group 2 - The company's core product, the AI platform, generated a revenue of 3.692 billion yuan in the first three quarters, marking a significant year-on-year growth of 70.1% [1] - The company has been expanding its customer base in key industries such as energy, manufacturing, finance, and retail due to increasing demand for practical AI applications [1] - Research and development expenses amounted to 1.489 billion yuan, reflecting an 8.4% year-on-year increase, while the R&D expense ratio decreased by 8.9 percentage points to 33.8% [1] Group 3 - The company has increased its investment in computing power by acquiring over 9% of domestic GPU manufacturer Xiwang and strategically investing in another domestic GPU company, TianShuZhiXin [2] - The launch of ModelHubXC and the core AI engine system EngineX aims to achieve deep, efficient, and stable collaboration between domestic computing power and large models [2] - The company introduced the "Virtual VRAM" expansion card, allowing single-card memory to be expanded to 256GB without hardware replacement, supporting large-scale AI tasks [2]