Summary of Conference Call Records Industry Overview - The conference call primarily discusses the **domestic computing power industry** in China, particularly focusing on the developments and future prospects of **AI and large models** [1][3][4]. Key Points and Arguments 1. **Increased Capital Expenditure**: Major companies are showing enhanced confidence in investing in AI and large models, with expectations of capital expenditure growth in 2026, which is likely to boost domestic computing power demand [1][3]. 2. **Core Operating Data Disclosure**: Companies like Tencent and Kuaishou have begun to disclose key operational data, such as token consumption, improving market sentiment towards domestic computing power [1][3]. 3. **Model and Application Updates**: Companies including Minimax and Kuaishou have released updates to their models and applications, such as Deepsec V3.1, positively impacting market sentiment [1][3]. 4. **Supply Chain Changes**: Major companies have started to accept domestic chips, with widespread application in the internet sector since Q3, indicating positive changes on the supply side [1][3]. 5. **Export Control Uncertainties**: Recent uncertainties regarding H20 export controls and potential halts in production provide domestic computing power with time and space for product iteration and capacity enhancement [1][4]. 6. **Upcoming Product Launches**: A new wave of domestic computing power products is expected to be launched in 2026, with performance comparable to NVIDIA's H100 and H800, allowing for increased market share due to trade friction limiting overseas chip procurement [1][4]. Additional Important Insights 1. **Long-term Growth Prospects**: The future outlook for the domestic computing power sector is optimistic, with anticipated new product releases and enhanced competitiveness [4][8]. 2. **Technological Adaptation**: The introduction of U18M 0 data representation is expected to improve performance and efficiency in both domestic and NVIDIA cards, indicating a significant engineering optimization [5][6]. 3. **Market Position of Shengke Communication**: Shengke Communication holds a unique position in the domestic computing power supply chain, with a product range that spans from 100G to 25.6T switching capacity, and is well-positioned to benefit from the increasing demand for domestic chips [2][10][12]. 4. **Server Sector Dynamics**: The server sector is experiencing high demand, driven by the growth of domestic AI chips and the increasing acceptance of these chips by operators, suggesting a positive outlook for companies like Inspur and Ziguang [16][18]. Conclusion The domestic computing power industry is poised for growth, driven by increased investments in AI, positive market sentiment from key operational disclosures, and significant technological advancements. Companies like Shengke Communication are strategically positioned to capitalize on these trends, while the server sector remains robust amid rising demand for AI capabilities.