Investment Rating - The semiconductor industry is rated as "stable improvement" for the next 12 to 18 months, with potential for upward adjustments based on demand growth from automotive electronics and artificial intelligence [5][7]. Core Insights - The semiconductor industry in China is expected to benefit from effective industrial support policies, accelerating domestic substitution processes, and a stable upward trend in credit quality [5][8]. - The competition in the semiconductor industry remains a key national focus, with ongoing support for high-end breakthroughs and supply chain management [7][9]. - The recovery of the semiconductor industry is driven by the mild recovery in consumer electronics and rapid development in automotive electronics and artificial intelligence [19][24]. - The global semiconductor sales reached approximately $697.18 billion in 2025, with a year-on-year growth of 11.22%, indicating a new recovery cycle after a previous downturn [20][24]. - The domestic semiconductor market in China is projected to reach $210.88 billion in 2025, growing by 14.68% year-on-year, driven by AI and automotive electronics [24]. Industry Fundamentals Analysis - The semiconductor industry is supported by a comprehensive policy framework that includes national and local government initiatives aimed at enhancing self-sufficiency and technological breakthroughs [9][10]. - The production of integrated circuits in China reached 484.3 billion units in 2025, a year-on-year increase of 87.28%, with exports also showing significant growth [11][24]. - The industry is characterized by a high degree of concentration, with the top ten chip design companies holding over 65% of the market share globally, predominantly led by U.S. firms [30][31]. Credit Performance of Industry Enterprises - The overall financial performance of the semiconductor industry has improved, with revenue, profit, and operating cash flow showing growth, while debt levels remain manageable [29]. - The industry has not experienced any bond extensions or defaults, indicating a stable credit environment [29]. - The chip design sector has seen rapid growth, particularly in AI chip manufacturers, which have outperformed other segments [31].

Group 1 - The company has changed the official website of its brand "Xiangge" to "Yuanli Juhe" [1] - An investor inquired whether the automotive autonomous driving chip business line under Xiangge has been abandoned and if Yuanli Juhe is a new business under the company [1] - The company clarified that Yuanli Juhe is not related to the company or Xiangge Technology [1]

Investment Rating - The report indicates a positive outlook for the industry, suggesting a potential for significant growth in the coming months [6][44]. Core Insights - The report highlights a rapid release of computing power demand driven by the dual forces of training and inference, with 2026 identified as a pivotal year for this transition [6]. - Major internet companies are intensifying their competition in AI, leading to a surge in demand for high-quality, multi-modal models, which in turn is expected to drive substantial growth in computing power requirements [11][25]. - The supply side is expected to improve structurally, with domestic computing power resources becoming more abundant, thus supporting the anticipated demand explosion [6][32]. Summary by Sections 1. Rapid Release of Computing Power Demand - The "arms race" in large models continues unabated, with leading internet firms like ByteDance, Alibaba, and Tencent releasing new models with trillions of parameters, enhancing their competitive edge [11][12]. - The demand for inference computing power is rising at an unexpected rate, with significant user growth reported for AI applications, particularly the Doubao app, which reached 226 million monthly active users by December 2025, marking a year-on-year increase of over 200% [6][25]. 2. Supply Side Improvements and Domestic Production Acceleration - The approval of NVIDIA's H200 AI chips for the Chinese market is expected to alleviate computing power shortages for major internet firms, facilitating faster model iterations [32]. - Domestic computing power chips have reached a performance level that is now considered "good enough," with significant advancements in local chip development and deployment [33]. 3. Full-Chain Inflation in Domestic Computing Power - The report predicts that the computing power industry will enter a "full-chain inflation" cycle in 2026, with growth expected across various segments including AIDC, cloud services, and supporting power equipment [38]. - Major tech companies are projected to increase their capital expenditures significantly, with estimates suggesting that the four largest tech firms in Silicon Valley will spend up to $650 billion in 2026 [40]. 4. Related Companies - The report lists several companies as relevant to the industry, including Dongyangguang, Hanwha, Haiguang Information, Wangsu Technology, and others, indicating a broad spectrum of potential investment opportunities [4][44].

Group 1 - The core viewpoint of the article highlights the performance of the Chip Leader ETF (516640), which opened down by 0.67% at 1.179 yuan on February 13 [1] - The major holdings of the Chip Leader ETF include companies such as Cambricon, SMIC, and Haiguang Information, with varying performance; for instance, Cambricon fell by 1.12%, while Northern Huachuang rose by 1.00% [1] - The ETF's performance benchmark is the CSI Chip Industry Index return, managed by Fortune Fund Management Co., Ltd., with a return of 18.79% since its inception on August 19, 2021, and a recent one-month return of -0.29% [1]

Group 1 - The core point of the article highlights the performance of the chip ETF Guangfa (159801), which opened with a decline of 0.63% at 0.953 yuan [1] - Major holdings in the chip ETF include companies like Zhongxin International, which fell by 0.30%, and Haiguang Information, which decreased by 0.89% [1] - The ETF's performance benchmark is the National Securities Semiconductor Chip Index return rate, managed by Guangfa Fund Management Co., Ltd., with a return of 91.88% since its inception on January 20, 2020, and a recent one-month return of 0.16% [1] Group 2 - The article lists the performance of various stocks within the ETF, including Cambrian Technology down by 1.12%, and North Huachuang up by 1.00% [1] - Other notable stock performances include Zhaoyi Innovation unchanged at 0.00%, and Changdian Technology down by 1.35% [1] - The article emphasizes the importance of cautious investment due to market risks, although it does not provide specific investment advice [1]

Group 1 - The core viewpoint of the article highlights the performance of the Sci-Tech Chip ETF managed by Huatai-PineBridge, which opened at a decline of 0.95% on February 13, 2024, priced at 1.771 yuan [1] - The major holdings of the ETF include companies such as SMIC, Haiguang Information, and Cambrian, all of which experienced declines in their stock prices, with the largest drop being 2.78% for Chipone [1] - The ETF's performance benchmark is the Shanghai Stock Exchange Sci-Tech Board Chip Index, with a return of 78.76% since its inception on December 18, 2024, and a monthly return of 1.72% [1]

Group 1 - The core viewpoint of the article highlights the performance of the Chip ETF Huatai Fu (516920), which opened down by 0.95% at 1.143 yuan on February 13 [1] - The major holdings of the Chip ETF include companies such as Cambricon, which opened down by 1.12%, and SMIC, which fell by 0.30% [1] - The ETF's performance benchmark is the CSI Chip Industry Index return rate, managed by Huatai Fu Fund Management Co., Ltd., with a return of 15.53% since its establishment on July 27, 2021, and a recent one-month return of -0.33% [1] Group 2 - The article lists the performance of various stocks within the ETF, including Haiguang Information down by 0.89%, Northern Huachuang up by 1.00%, and Ziguang Guowei down by 0.83% [1] - The article emphasizes the importance of cautious investment due to market risks, although it does not provide specific investment advice [1]

Core Viewpoint - The semiconductor design sector in the STAR Market is experiencing significant growth, with key stocks showing strong performance and an increase in ETF investments, driven by rising demand and pricing in the memory and storage markets [1][2]. Group 1: Market Performance - The STAR Market Chip Design Theme Index (950162) rose by 1.10% as of February 13, 2026, with notable increases in constituent stocks such as Shengke Communication (+10.18%) and Jiewate (+6.45%) [1]. - The E Fund STAR Chip Design ETF (589030) increased by 0.94%, with a recent price of 1.07 yuan, and has seen a cumulative increase of 6.74% over the past week [1]. - The ETF recorded a turnover rate of 2.01% during the trading session, with a total transaction volume of 9.3767 million yuan [1]. Group 2: Fund Growth and Inflows - The E Fund STAR Chip Design ETF has seen a significant increase in scale, growing by 1.7171 million yuan over the past two weeks, ranking second among comparable funds [1]. - The ETF's share count increased by 14.1 million in the past month, also ranking second among comparable funds [1]. - Over the last ten trading days, the ETF attracted a total of 10.7451 million yuan in inflows [1]. Group 3: Industry Insights - According to TrendForce, DRAM contract prices have risen by over 40% in Q4 2025, with further increases expected in Q1 2026, particularly in the DDR4 market due to supply-demand imbalances [2]. - Wanlian Securities highlights the ongoing AI wave driving demand for key hardware components, suggesting that storage and PCB sectors are in an expansion cycle, with potential growth in AI consumer electronics [2]. - The E Fund STAR Chip Design ETF has achieved an 80.00% weekly profit percentage and a 77.78% monthly profit probability since its inception [2]. Group 4: Fee Structure and Index Composition - The management fee for the E Fund STAR Chip Design ETF is 0.50%, and the custody fee is 0.10%, which are among the lowest in comparable funds [3]. - The STAR Market Chip Design Theme Index primarily includes companies involved in chip design, with digital chip design accounting for 76.8% of the index weight, benefiting from industry uptrends [3]. - As of January 30, 2026, the top ten weighted stocks in the index account for 58.7% of the total index, including companies like Lanqi Technology and Haiguang Information [3].

Summary of Key Points from the Conference Call Industry Overview - The AI video production industry is transitioning from high-cost, long-cycle, and high-threshold production to low-cost, efficient, and democratized industrial production, reshaping supply and demand dynamics and creating investment opportunities. However, there are concerns about the potential impact of large model capabilities on applications [2][3]. Core Insights and Arguments - The announcement of price increases by cloud service providers like Amazon AWS indicates the growing scarcity of AI cloud infrastructure, confirming the high demand for global AI computing power. The market is expected to replicate the post-Chinese New Year rally seen in 2025 [2][3]. - The release of models such as CloudOps 4.6 and Zhizhu GLM 5 marks a shift in AI from chatbots to customized team collaboration executors, which is anticipated to drive exponential growth in the industry by 2026 and change digital work patterns for businesses and individuals [2][5]. - Investment opportunities in domestic computing power related to AI applications are promising, with recommendations for GPU companies like Cambricon and self-developed ASIC chips from internet firms. Attention is also drawn to the expected price increases in target materials, with companies like Jiangfeng Electronics, OLAI New Materials, and Ashi Chuang being highlighted [2][6]. Investment Opportunities - The price increase of CCL (copper foil substrate) is expected to manifest in Q1 2026, with a projected overall positive performance for 2026-2027. Beneficiary companies include Nanya New Materials, Shengyi Technology, and Huazheng New Materials [2][8]. - In the AI hardware sector, there are significant investment opportunities related to domestic computing power, particularly due to the high power consumption of various AI applications, especially video-related ones [6][7]. Military Applications of AI - AI is primarily applied in military fields for situational awareness and unmanned operations, with Palantir's $4.3 billion large order demonstrating the substantial commercial potential of AI in military situational awareness [4][10][11]. - The development of unmanned operations is expected to accelerate significantly, with a focus on increasing the proportion of unmanned equipment in military operations [12][13]. Communication Chain Opportunities - Opportunities in the AI industry chain within the communication sector are identified in three main areas: AIS cloud services, network endpoints, and computing endpoints. Price increases in related components are anticipated due to the growth of AI applications and model upgrades [14]. Media and Entertainment Sector - The media and internet industry shows significant investment opportunities in AI applications, particularly with ByteDance's CDS 2.0 model, which enhances video production capabilities and efficiency. Companies with strong IP and distribution capabilities are recommended for investment [15]. Gaming Industry Impact - AI technology is expected to significantly enhance game development efficiency and user experience. Companies like Perfect World and KAEYING Network are highlighted as key investment targets due to their innovative projects [16][17]. Pharmaceutical Industry Potential - AI has substantial potential in the pharmaceutical industry, particularly in drug development, where it can shorten development cycles and improve efficiency. Companies like Hongbo Pharmaceutical and others are noted for their advancements in utilizing AI for drug development [18]. Multimodal Model Development - The development of multimodal models is rapidly advancing, with significant improvements in capabilities and usability. Companies like ByteDance and others are leading in this space, indicating a competitive landscape similar to the early stages of text models [19][20][21][22]. Recommended Companies for Investment - In the multimodal direction, companies such as Wanjing Technology, Haitai Ruisheng, and others are recommended for their strong positions in AI creative tools and applications [26]. This summary encapsulates the key insights and investment opportunities discussed in the conference call, providing a comprehensive overview of the current landscape in the AI industry and its various applications across sectors.

Group 1 - As of February 12, the A-share margin financing balance reached 26,456.02 billion yuan, an increase of 1.17 billion yuan from the previous trading day, accounting for 2.54% of the A-share circulating market value [1] - The margin trading volume on the same day was 2,161.58 billion yuan, which is an increase of 35.52 billion yuan from the previous trading day, representing 10% of the total A-share trading volume [1] - Among the 31 primary industries, 12 experienced net financing inflows, with the electronics industry leading at a net inflow of 759 million yuan [1] Group 2 - A total of 43 stocks had net financing inflows exceeding 100 million yuan, with Liou Co., Ltd. leading at a net inflow of 557 million yuan [2] - Other notable stocks with significant net financing inflows include Zhaoyi Innovation, Lanke Technology, Chip Origin, Kunlun Wanwei, New Yisheng, Jinkai New Energy, Shengtun Mining, Cambricon, and Zijin Mining [2] - According to Guotai Haitong Securities, the price increase of traditional fiberglass electronic cloth has accelerated since February, indicating a tightening supply and rising demand due to AI electronic cloth [2]