Core Viewpoint - The company is positioned as a core partner of Huawei, focusing on the development of the HarmonyOS ecosystem and AI computing capabilities, which are expected to drive revenue recovery and growth in the coming years [1][2]. Group 1: Business Strategy and Growth - The company anchors its strategy on the "1+3" business matrix, which includes cloud intelligence, HarmonyOS, MetaERP, and computing power, aiming to build a unique ecological position in the wave of self-reliance and AI industrialization [1]. - The company has contributed over 4.85 million lines of code to the open-source HarmonyOS, ranking second in the community, and has developed over 6,000 native applications covering six major industries [1][2]. - The first HarmonyOS PC is set to launch in May 2025, with over 150 dedicated applications and 2,000 integrated ecological applications already adapted [2]. Group 2: AI Development and Market Position - The company positions itself as a "computing power operator + Agent implementer" in the AI sector, operating multiple Ascend intelligent computing centers across cities to enhance utilization through computing power scheduling and model optimization [2]. - The AI business covers the entire stack from cloud to edge, with expectations that AI-related value-added service revenue will become a new growth engine by 2025 [2]. - The company has launched the DeepSeek integrated machine in collaboration with Huawei, combining Ascend computing power with large model capabilities, targeting sectors such as government and finance [2]. Group 3: Financial Projections - Revenue projections for the company are estimated at 17.8 billion, 19.46 billion, and 22.14 billion yuan for the years 2025, 2026, and 2027, respectively, with net profits attributed to ordinary shareholders expected to be 610 million, 730 million, and 890 million yuan for the same years [3]. - The company is compared to peers in the Huawei supply chain, with an average PE ratio of 50x for 2025E, and a target market value of 17 billion yuan is set after applying a 56% discount due to its Hong Kong listing [3].

Core Viewpoint - Huawei has launched its first HarmonyOS-based PCs, including the MateBook Fold, MateBook Pro, and the commercial MateBook HM940, marking a significant step in expanding the HarmonyOS ecosystem beyond mobile devices [1][3]. Group 1: Product Launch and Features - The MateBook Fold is priced starting at 23,999 yuan, the MateBook Pro at 7,999 yuan, while the price for the HM940 has not been disclosed [1]. - The MateBook Fold features an 18-inch display when fully opened, weighs 1.16 kg, and has a thickness of 7.3 mm when unfolded [5]. - The MateBook Pro weighs 970 g and has a thickness of 13.5 mm, showcasing a lightweight design [5]. - The HM940 is tailored for commercial use, focusing on security and includes features like real-time transcription and summarization for meetings [5]. Group 2: Development and Ecosystem - The development of HarmonyOS for PCs involved over five years of work by thousands of engineers across more than 20 research institutes [3]. - HarmonyOS aims to unify the user experience across devices, allowing seamless interaction between Huawei smartphones, tablets, and PCs [3]. - The new PCs have achieved compatibility with over 1,100 peripheral devices and have adapted more than 150 dedicated applications for various use cases [6]. Group 3: Market Position and Challenges - As of April 2025, Windows holds a market share of 71.06%, while macOS and Linux hold 15.64% and 4.27% respectively, indicating a challenging environment for HarmonyOS as a new entrant [7]. - The company aims to reach a target of 100,000 applications in the HarmonyOS ecosystem by 2025 to meet consumer demands [8]. - The upcoming sales of the new PCs will coincide with the traditional peak season for consumer electronics, which will be crucial for their market performance [8].

Core Viewpoint - The article discusses Huawei's launch of the HarmonyOS on PCs, highlighting the challenges it faces in competing with the entrenched dominance of Windows in the operating system market [3][4][9]. Group 1: Market Position and Strategy - Huawei has achieved a 11% market share in China's PC market with 4.3 million units shipped in 2024, ranking second [5]. - The push for HarmonyOS PCs is driven by the need for a consistent user experience across devices, especially after the transition of mobile and IoT devices to HarmonyOS [6][7]. - The HarmonyOS PC aims to fill a gap in the domestic "Xinchuang" (信创) product market, which focuses on self-sufficiency in technology to avoid external risks [9][12]. Group 2: Product Features and Development - The HarmonyOS PC has been developed over five years with over 10,000 engineers and 2,700 core patents [7]. - The initial product, Matebook Pro, features a user interface that combines elements from both Windows and HarmonyOS mobile systems, aiming for a more streamlined user experience [14][17]. - Huawei has adapted 300 applications for the HarmonyOS PC, with over 2,000 more in the pipeline, although it still faces a significant gap compared to the millions of applications available on Windows [19][21]. Group 3: Competitive Advantages and Challenges - The native AI capabilities of HarmonyOS may provide a competitive edge, as Windows struggles to integrate AI due to its legacy code and system complexity [26][28]. - The article notes that while HarmonyOS PCs are positioned to capture the government and enterprise market, competing in the consumer market against Windows will be a long-term challenge, potentially taking five to ten years [34][36]. - User habits established over decades with Windows present a significant barrier to adoption for HarmonyOS PCs [37]. Group 4: Long-term Outlook - Despite the challenges, the long-term potential for HarmonyOS PCs is promising, especially given the 900 million users of HarmonyOS across smartphones and IoT devices since its launch in 2019 [38].

Core Viewpoint - Huawei's introduction of the HarmonyOS on computers represents a significant challenge to the dominance of Windows, which has not been effectively challenged since its inception as a universal operating system [1][2][8]. Market Position - In 2024, Huawei is projected to ship 4.3 million PCs, capturing an 11% market share in mainland China, making it the second-largest player in the market [3]. - The HarmonyOS PC aims to fill a gap in the domestic market for "trusted and controllable" products, particularly in the context of government and enterprise procurement [8][9]. Technical Features - HarmonyOS offers unique features such as distributed soft bus capabilities, enabling high-speed, low-latency data transfer and task collaboration across different devices, which Windows cannot match [4]. - The system has been developed over five years with over 10,000 engineers and more than 2,700 core patents [4]. Product Development - The first hardware platform for HarmonyOS is the new Matebook Pro, which integrates design elements from previous models while introducing a new user interface [11]. - The interface combines elements from both Windows and HarmonyOS mobile systems, aiming to simplify user interactions [11][13]. Software and Hardware Adaptation - Huawei has created an application store for HarmonyOS PCs, with 300 applications already adapted and over 2,000 more in the process [13][15]. - The company is also addressing hardware compatibility by providing drivers for various peripherals, which is crucial for PC users [17]. Competitive Landscape - While HarmonyOS has advantages in AI integration, Windows has a vast library of software that poses a significant challenge for HarmonyOS in the short term [15][20]. - The AI capabilities of HarmonyOS, such as the "image dialogue" feature, are designed to leverage a combination of cloud and local processing, providing a competitive edge [20][22]. Long-term Outlook - The potential for HarmonyOS PCs in the government and enterprise market is strong due to existing demand for domestic products [23]. - Competing with Windows in the consumer market will be a long-term endeavor, likely taking five to ten years to establish a significant presence [24][25]. - User habits and the entrenched nature of Windows as a standard operating system present additional challenges for HarmonyOS [26]. User Base - Since its launch in 2019, HarmonyOS has accumulated 900 million users across smartphones and IoT devices, providing a substantial foundation for the new PC initiative [26].