Guosheng Computer： Dongfeng Warrior joined HI mode, asked the world to reach the top of the January sales list, and Huawei’s industry continued to verify.

Source: Guosheng Computer Imagination

Original title: [Guosheng Computer] Huawei Industry Continuous Verification

Core view

Dongfeng Warriors joined HI mode and asked the world to reach the top of the January sales list. 1) On February 13th, 2024, Yu Chengdong shared in his personal Weibo, driving for 15 hours from Anhui Kaiwenjie M9 to Shenzhen for 1314 kilometers. He used Huawei’s advanced intelligent driving all the way, except for the need to manually select the toll gate when leaving Shenzhen Expressway, and took over the whole journey. 2) On February 22, 2024, it was announced that Bravissimo Technology, a subsidiary of Dongfeng, and Huawei formally signed a strategic cooperation agreement. The two parties will jointly promote the commercialization of Huawei’s smart car solutions, and constantly explore new technologies, industries, formats and models in the future to bring users a more extreme smart travel experience. 3) On February 19, 2024, BAIC Blue Valley (600733) said in response to an investor’s question that its first model under the cooperation with Huawei’s smart selection mode is planned to be put on the market this year, which is positioned as a high-end smart car. 4) In the past three months, Huawei’s car cooperation model has been continuously promoted. Lantu: On January 22, 2024, Dongfeng Lantu and Huawei formally signed a strategic cooperation agreement. Jianghuai: On December 2, 2023, Jianghuai Automobile (600418) and Huawei Terminal Co., Ltd. signed the Cooperation Agreement on Intelligent New Energy Vehicles, which is valid for 10 years from the date of signing. Chery: On November 28th, 2023, at the full scene conference of Zhijie S7 and Huawei, HarmonyOS Zhixing’s first car Zhijie S7 was officially released. 5) In January 2024, AITO asked all departments to deliver 32,973 new cars, an increase of 34.76% from the previous month.Among them, the single-day delivery in 24 days exceeded 1,000, making it the first time to become the monthly sales champion of new power brands in China market. 6) The first year of autonomous driving is approaching, and the industry is progressing continuously. As a leader in domestic autonomous driving technology, Huawei’s ability of mapping is continuously improving. Since its launch in April 2023, ADS 2.0 has been continuously iterated. At the same time, through the establishment of joint ventures, it has realized industrial technology empowerment, and through the intelligent car selection model, it has been empowered in sales channels and other aspects. Cooperative car companies are expected to give full play to their first-Mover advantage. Judging from the sales reservations of the new M7 and M9, the industrial logic is being continuously verified.

HarmonyOS’s system faced a major update in the third quarter, and its experience and installed capacity exceeded expectations. 1) On February 23, 2024, according to the official news of HarmonyOS, from now on, 12 mobile phones including Huawei P30, Mate 20 and Glory 20 started the beta recruitment of HarmonyOS 4.0. 2)HarmonyOS is constantly updated: On February 22nd, 2024, at the end of Huawei’s Pocket 2 conference, Yu Chengdong announced a major update of the HarmonyOS system this fall, and promised that the performance of Pocket 2 mobile phones would be improved by 30%. Yu Chengdong also said that when there are enough native applications, the user experience of all Huawei mobile phones will be greatly improved. 3) HarmonyOS has become the "roof of the world" of mobile operating system in China, and the number of ecological devices has increased from 700 million to 800 million in just five months. According to Gong Ti, president of Huawei’s BG software department, it will reach 800 million to 1 billion units by the end of 2024. In September, 2023, Huawei officially announced that the next version after HarmonyOS 4.0 will be HarmonyOS NEXT, which will fully launch the deployment of native applications in HarmonyOS. In January, 2024, Huawei announced that the developer preview of HarmonyOS NEXT HarmonyOS Galaxy Edition was open to developers, and HarmonyOS Ecology entered the second stage, which will accelerate the HarmonyOS application of thousands of applications.

Suggested attention: 1) Huawei Smart Cars: Jianghuai Automobile, Sailis, Changan Automobile (000625), Desai Xiwei (002920), Zhongke Chuangda (300496), Wanma Technology (300698), Alte, Lingdian Electronic Control, Huayi Technology, Jingwei Hengrun, Dongfeng Motor (600000). 2) Huawei HarmonyOS: iSoftStone, ChinaSoft International, Zhidu (000676), Jiulian Technology, Tuowei Information (002261), Runhe Software (300339), Zhiwei Intelligent, Changshan Beiming (00158), Dongfang Zhongke (002819), Chanz Education, etc.

Risk warning: technical iteration is less than expected, economic downturn is more than expected, and industry competition is intensified.

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01

Dongfeng Warriors joined HI mode and asked the world to top the sales list in January.

1. Huawei’s car cooperation model has been continuously promoted.

Dongfeng’s Warriors Technology and Huawei formally signed a strategic cooperation agreement. On February 22, 2024, Mengshi Technology announced that Mengshi Technology, a subsidiary of Dongfeng, and Huawei formally signed a strategic cooperation agreement. The two parties will jointly promote the commercialization of Huawei’s smart car solutions, and constantly explore new technologies, new industries, new formats and new models in the future, bringing users a more extreme smart travel experience.

The strategic cooperation between Dongfeng Warrior and Huawei will realize the complementary advantages and mutual empowerment of new energy luxury off-road brands and smart technology pioneer brands. As a luxury electric off-road brand in China, Dongfeng Warrior is the strategic pioneer of Dongfeng Company’s "East Wind Rising" plan and "Leaping Action" of scientific and technological innovation. It embodies Dongfeng’s 54-year wisdom in building cars, leads the development of Dongfeng’s new energy and intelligent technology, builds super warrior products based on the standards of super platform, super power and super off-road, and is committed to becoming a cultural leader of luxury electric off-road. As the world’s leading provider of ICT infrastructure and intelligent terminals, Huawei has profound technical accumulation and leading advantages in the fields of intelligent networking and intelligent driving.

Beiqi Blue Valley revealed that the new car in cooperation with Huawei will be launched this year. On February 19th, 2024, when answering questions from investors, Beiqi Blue Valley said that its first model in cooperation with Huawei’s smart selection mode is planned to be put on the market in 2024, which is positioned as a high-end smart car. The company will disclose the progress of cooperation in due course.

According to the previous announcement of BAIC Blue Valley, in order to meet the design and production requirements of new models, the company upgraded the existing BE22 platform in all directions to build a new generation of high-end pure electric intelligent networked automobile platform of BAIC New Energy. The upgraded BE22 platform products will be produced by Beijing high-end intelligent ecological factory. BAIC New Energy leased the land, workshop and ancillary facilities of Miyun Factory, and purchased equipment assets to carry out key technical transformation on welding and painting production lines, forming an annual production capacity of 50,000 high-end new energy vehicles.

2. The sales volume of the world has been continuously broken.

Ask the world to top the sales of new forces in January. On February 1, 2024, a number of new energy vehicle companies announced their car-making transcripts in January 2024. According to the Securities Times, the delivery volume of new energy vehicle companies such as Lantu Automobile, LI, Kykrypton, Xpeng Motors, Zero Run Automobile and Nezha Automobile all increased year-on-year. Among them, AITO delivered 32,973 new cars, an increase of 34.76% from the previous month, of which 24 days delivered more than 1,000 new cars in a single day, making it the first time to become the monthly sales champion of new power brands in China market.

The delivery of the new M7 in Wenjie reached a new high, with 31,253 new cars delivered in a single month. For the first time, the delivery in a single month exceeded 30,000, opening a new chapter in delivery speed. Since it was listed in September, 2023, the total number of new M7 has exceeded 140,000, and the order growth and delivery efficiency have been accelerated hand in hand, which has promoted the continuous increase of delivery volume.

The cumulative number of M9 in the sector has exceeded 40,000. Since it was officially listed on December 26th, 2023, the new M9 cars in the world have successively arrived at 252 stores in 89 cities across the country, with a cumulative breakthrough of 30,000 vehicles within seven days of listing, and it has been announced that it has exceeded 40,000 vehicles.

Yu Chengdong personally drove over more than 9000 kilometers, and took over the whole journey. On February 13th, 2024, Yu Chengdong shared in his personal Weibo that the whole journey from Anhui Kaiwenjie M9 to Shenzhen took 15 hours, and he used Huawei’s advanced intelligent driving all the way, except when he left Shenzhen Expressway, he had to manually select the toll gate and took over the whole journey. When encountering traffic jams, multiple construction sections, emergency braking in front, emergency lane change, turning and other complex road conditions, intelligent driving calmly responds. In addition, Yu Chengdong also emphasized that HUAWEI ADS 2.0′ s map-less NCA has brought the technical ability that can be opened all over the country without relying on high-precision maps, and the experience has been greatly improved.

In the past, Huawei’s car cooperation model has been continuously promoted:

On January 22, 2024, Dongfeng Lantu and Huawei formally signed a strategic cooperation agreement. The two sides will work together to create the ultimate smart travel experience around the needs of users according to their respective advantages. Accelerate the large-scale commercialization of intelligent technology through innovative exploration of cooperative vehicles in various fields.

The signing of this strategic cooperation agreement marks that the cooperation between Dongfeng Lantu and Huawei has entered a new stage. At the signing site, the two sides conducted in-depth exchanges around the development trend of intelligent networked vehicles. The two sides indicated that they would give full play to their respective advantages and jointly promote the high-quality development of the automobile industry. The person in charge of Lantu Automobile said that Huawei’s profound accumulation of ICT technology and continuous breakthrough in the field of intelligence will help Dongfeng Lantu to further upgrade and iterate in the field of intelligent new energy vehicles. Up to now, Dongfeng Lantu and Huawei have not announced the specific cooperation mode.

On December 2, 2023, Jianghuai Automobile announced that it signed the Cooperation Agreement for Intelligent New Energy Vehicles with Huawei Terminal Co., Ltd., which is valid for 10 years from the date of signing. From the specific cooperation mode, 1) JAC is responsible for building an advanced production base, giving full play to JAC’s advantages in the field of advanced manufacturing, providing users with all-round solutions for intelligent manufacturing based on the industrial internet and mature manufacturing management experience, and building advanced manufacturing capabilities with the help of Huawei’s advantages in related fields, so as to realize efficient delivery of cooperative vehicles; 2) In view of the global sales network and strong brand marketing and user operation capabilities of Huawei Terminal, Huawei Terminal or its designated third party will provide exclusive sales services for cooperative vehicles worldwide, including but not limited to marketing, sales, users and ecological operation.

On November 28th, 2023, at the full scene conference of Zhijie S7 and Huawei, HarmonyOS Zhixing’s first car Zhijie S7 was officially released. As a smart car with high energy and large space, Zhijie S7 creates a high-end fashion appearance and a more outstanding space experience with the brand-new OneBox design. The new DriveONE 800V silicon carbide high-voltage power platform and Huawei Turing intelligent chassis combine power with intelligent driving control. The HarmonyOS 4 smart cockpit was launched, and with intelligent technologies such as HUAWEI ADS 2.0 advanced intelligent driving system, it brought consumers a brand-new smart travel experience.

3. 2024 or the first year of global autonomous driving.

Globally, the penetration rate of advanced autonomous driving is accelerating. According to the global self-driving penetration, according to the SAE classification standard, in 2021, the penetration rate of L0 self-driving cars will exceed 50%, L1 will be 25%, L2 will be 20%, and L3-4 will be 0. With the development of self-driving technology, it is estimated that the penetration rate of L2 self-driving cars will reach 57% in 2030, and L3 and L4 will increase to 7.0% and 3.0% respectively.

Tesla, the autonomous driving giant, ushered in an important upgrade of FSD;

According to Tesla Side, Tesla released the first public version of FSD Beta 12.1.2 to some car owners on January 22, 2024. The remarkable feature of this version is the use of end-to-end neural network, which is expected to greatly improve Tesla’s Advanced Driver Assistance System (ADAS). The neural network is trained on the basis of millions of video clips, which replaces most of the previous explicit C++ coding and improves the system’s ability to deal with complex driving situations. According to the release notes of FSD Beta v12, this update replaces more than 300,000 lines of explicit C++ code.

Prior to this, Musk said in May 2023 that V12 "is reserved for FSD to become’ end-to-end artificial intelligence’, covering everything from images to steering, braking and acceleration." According to The Verge, an American technology media report, Tesla FSD V12 now relies on body cameras and artificial intelligence, instead of relying on other types of body sensors such as lidar like other competitors. In August 2023, in a live road test in Palo Alto, California, Musk demonstrated the driving level of Tesla Model S equipped with FSD V12 in the construction area, lane change and complex road conditions, which proved the system’s ability to adapt to complex road conditions. During the whole live broadcast, FSD V12 showed the driving performance of highly human beings, including driving according to the road traffic speed instead of the standard speed limit, and continuing to drive at the Stop Sign at the unmanned intersection (according to the traffic regulations, drivers need to stop completely before starting).

4. Huawei is the leader of the core technology of autonomous driving in China, and the intelligent driving of high-level urban areas without maps covers the whole country.

HUAWEI ADS 2.0 was launched in April 2023, and it continued to iterate and its capabilities were upgraded.

Since its release in April 2023, HUAWEI ADS 2.0 has built a rich scene library on the AI ? ? training cluster, deeply learning more than 10 million km every day, and continuously optimizing the iterative intelligent driving algorithm and scene strategy. As of September 2023, the long-distance NCA pilot MPI(Miles Per Intervention) is as high as 200km, and the success rate of urban elevated import and export is as high as 99%.

According to the disclosure made at the press conference of Zhijie S7 and Huawei on November 28th, 2023, the learning and training ability of AI has been continuously improved, with the computing power reaching 2.8 EFLOPS, learning 12 million+kilometers every day, and the model is iterated every five days.

Since January 31, 2024, the M5 and the new M7 versions of Zhijie have been upgraded with the OTA version of the high-end package, which can realize NCA high-end intelligent driving in urban areas without relying on high-precision maps nationwide, bringing a smart driving experience that can be opened all over the country.

5. Relying on the ownership structure and technical barriers, the competition pattern of Huawei car-related companies is good.

From the perspective of Huawei’s internal structure, Huawei BU plans to develop independently and launch external financing. On November 25th, 2023, Changan Automobile and Huawei signed the Memorandum of Investment Cooperation. Through negotiation between both parties, Huawei intends to set up a company (the "Target Company") engaged in R&D, design, production, sales and service of automotive intelligent systems and components solutions, whose business scope includes automotive intelligent driving solutions, automotive intelligent cockpit, intelligent digital platform for automobiles, intelligent Che Yun, AR-HUD and intelligent headlights, and inject relevant technologies, assets and personnel dedicated to the business scope of the target company into the target company. Changan Automobile plans to invest to acquire no more than 40% equity of the target company and carry out strategic cooperation. Both parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China, facing the world and serving the industry.

The equity of the target company is expected to be diversified, and the existing strategic partners have been invited.

According to the Memorandum of Investment Cooperation, the target company will gradually open its equity to investors such as existing strategic partner car companies and car companies with strategic value, and become a company with diversified equity.

On November 28th, 2023, at the press conference of Zhijie S7, Yu Chengdong, managing director of Huawei and chairman of BU, a smart car solution, responded that Huawei had sent invitations to invest in new companies to several smart car selection partners, such as Cyrus, BAIC, Chery and Jianghuai, and hoped that powerful car companies such as FAW Group would participate.

Taking Cyrus as an example, according to its WeChat WeChat official account and the relevant provisions of the long-term strategic cooperation agreement between the two parties, this strategic adjustment of Huawei Car BU will not affect the long-term strategic partnership between the two parties, the supply relationship of parts to Cyrus, and the continuous provision of products and services to AITO owners and potential users. At the same time, at present, Cyrus has received an invitation to jointly invest in the target company and jointly participate in building an electrified and intelligent open platform. The company is actively demonstrating the related matters of participating in investment and cooperation.

From the perspective of industry barriers, autonomous driving design is extremely difficult, requiring deep technical accumulation, early cooperation and early benefit, which is expected to form a first-Mover advantage. Continuous algorithm training and accumulation is the key to improve the user experience and finally realize automatic driving. On the road of autonomous driving to commercialization, there are still many technical thresholds to be overcome. Due to the complexity of corner case in the actual road situation and the difficulty in accumulating long tail data, in the future, the bottlenecks affecting the final experience of autonomous driving scheme will still be perception algorithm, planning and control algorithm and simulation training algorithm.

Fusion perception algorithm: Vision-based perception framework, generation and enhancement of lidar data, lane-level traffic light perception in complex light environment, processing of flickering and fuzzy light source, processing of brightness difference between color and light source, identification of overlapping objects, and traffic flow perception are the decisive factors of the final vehicle’s ability to construct the surrounding environment.

Planning and control algorithm: The industry still needs to make deep efforts in the core algorithm fields such as multi-object and multi-step game decision-making under the condition of uncertain perception/prediction, horizontal and vertical joint motion planning, humanoid decision-making and planning model in complex interaction including object risk and scene risk, key scene extraction and automatic annotation in massive data (603138).

Simulation system: it is necessary to build an intelligent interaction model of traffic participants, create a large-scale dynamic and static simulation scene, and finally form a high-fidelity and rich simulation system.

02

HarmonyOS system ushered in a major update in the third quarter, and its experience and installed capacity exceeded expectations.

1. HarmonyOS 4.0 is progressing continuously.

HarmonyOS 4.0 opens beta recruitment. On February 23, 2024, according to the official news of HarmonyOS, from now on, 12 mobile phones including Huawei P30, Mate 20 and Glory 20 started the beta recruitment of HarmonyOS 4.0.

HarmonyOS is always new, and the performance of Pocket 2 mobile phone will be greatly improved in autumn. On February 22nd, 2024, at the end of Huawei’s Pocket 2 conference, Yu Chengdong announced a major update of the HarmonyOS system this fall, and promised that the performance of Pocket 2 phones would be improved by 30% by then. Yu Chengdong also said that when there are enough native applications, the user experience of all Huawei mobile phones will be greatly improved.

2. HarmonyOS has become the mobile operating system "roof of the world".

HarmonyOS is an operating system officially released by Huawei at the Huawei Developers Conference (HDC.2019) held in Dongguan in 2019. Huawei HarmonyOS system is a brand-new distributed operating system for all scenarios, which is more suitable for the future mobile world of Internet of Everything. According to Huawei official website, HarmonyOS 4 was officially released at Huawei Developers Conference 2023(HDC.Together) in August 2023, which brought users a fun, smooth and safe wisdom experience, and the privacy and security functions were also upgraded. By applying risk behavior control and application anti-tracking, a pure and safe application environment was created.

The market share of HarmonyOS continued to increase, and it was close to iOS in China in November 2023. According to Counterpoint’s data, by Q3 of 2023, the market share of HarmonyOS in the global smartphone operating system was 3%, showing a growth trend. In the domestic market, the market share of HarmonyOS has reached 13%, which is close to iOS. Considering the continuous shipment of Huawei mobile phones, it is expected to drive the continuous increase of market share.

PC may become another important ecological terminal in HarmonyOS. 1) In April 2023, at the OpenHarmony Developer Conference 2023 of the Open Atomic Open Source Foundation, iSoftStone and its subsidiary Honghu Wanlian released the SwanLinkOS commercial PC release version (Beta version) based on the OpenHarmony 3.2 Release version. 2) In October, 2023, the team of engineers from Xunlong Open Source HarmonyOS completed the initial adaptation of Orange Pi OS (OH) to PC on the development board equipped with RK3566, which was the first time that the open source HarmonyOS operating system was run on PC equipment in China.

Open source construction accelerates ecological maturity and the number of terminals expands rapidly.

According to WeChat official account of OpenAtom Openharmony, as of November 2023, the community of OpenAtom OpenHarmony has accumulated more than 6,200 contributors, generating more than 244,000 PR, 23,000 Star, 62,000 Fork and 59 SIG, and 447 products have passed the compatibility evaluation, of which 42 have been released commercially.

The number of ecological equipment in HarmonyOS has increased rapidly. On January 18th, 2024, Yu Chengdong, CEO of BG and chairman of BU, a smart car solution, announced the latest progress of HarmonyOS’s ecology: the number of ecological equipment in HarmonyOS increased from 700 million to 800 million in just five months, and the interconnection of thousands of industries will open a new blue ocean of trillions of industries. According to Gong Ti, President of Huawei BG Software Department, by the end of 2024, the number of ecological equipment in HarmonyOS will gradually reach 800 million to 1 billion, which is developing rapidly.

3. HarmonyOS HarmonyOS Next is coming soon.

HarmonyOS NEXT, the next version of HarmonyOS system, is coming soon.

In September 2023, Huawei officially announced that the next version after HarmonyOS 4.0 will be HarmonyOS NEXT, and Huawei will fully launch the deployment of native applications in HarmonyOS, which is a historic leap in Huawei’s mobile application ecology.

On January 18th, 2024, Huawei announced that the developer preview of HarmonyOS NEXT HarmonyOS Xinghe Edition was open to developers, which means that HarmonyOS Ecology has entered the second stage, which will accelerate the application of thousands of industries in HarmonyOS.

HarmonyOS Xinghe Edition’s end-cloud collaborative native intelligence features not only benefit users, but also support the application’s ability to use large models efficiently and safely. As low as "one line of code", HarmonyOS native intelligence can be called, allowing developers to apply "zero cost" AI. In addition, relying on the new "heterogeneous native" parallel mechanism of HarmonyOS kernel, it can bring extreme fluency beyond the traditional kernel and improve the efficiency of memory management by three times. HarmonyOS Xinghe Edition is expected to release a developer Beta version in Q2 and a consumer-oriented commercial version in Q4 in 2024.

HarmonyOS native application training continued to advance. In terms of personnel training, at present, 305 college students have participated in HarmonyOS activities, 135 colleges and universities have entered HarmonyOS campus open classes, 286 enterprises have participated in HarmonyOS Ecological School, 380,000+developers have passed HarmonyOS certification, and more than 150 production-learning cooperation projects have provided a "granary" with sufficient reserves for the sustainable innovation and prosperity of HarmonyOS’s ecology.

In order to further boost the development potential of HarmonyOS’s ecology, Huawei announced that "Yaoxing Plan" will invest 7 billion yuan to encourage HarmonyOS developers to innovate in HarmonyOS’s native applications, meta-services and SDK. At the same time, Huawei will join hands with partners to train more than 100,000 HarmonyOS developers every month, relying on HarmonyOS Ecological School, colleges and universities to jointly train talents in HarmonyOS, and the city issued a talent training policy in HarmonyOS. And announced the opening of the 2024HarmonyOS Innovation Competition, with the highest single prize of 1 million yuan, providing an open platform for developers to practice by competition and continue to advance.

According to the report of Securities Times Network, the fifth HarmonyOS School Innovation Training Camp was held in Beijing from November 14th to 16th, 2023. This training camp focuses on the development of HarmonyOS’s ecology, the characteristics of Harmony OS operating system, and the development of native applications/meta-services in HarmonyOS, and attracts more than 200 technical partners from 60+ enterprises, including Meituan, Baidu, Qunar, Industrial and Commercial Bank of China (601398), Postal Savings Bank, China Telecom, 58 Tongcheng, Zhihu, Ink Weather, car home, BOSS Direct Employment and Transfer.

Since Huawei announced that HarmonyOS NEXT was ready to go in September 2023 and HarmonyOS native applications were fully launched, the first batch of more than 200 native applications in HarmonyOS have been accelerated, covering convenient life, travel, financial convenience, social information, productivity tools, audio-visual entertainment, games and other fields, and the territory of native applications in HarmonyOS has basically taken shape. At the same time, Ant Group, China UnionPay, Iflytek (002230) and other partners have also opened up vertical innovation capabilities, and together with Huawei’s base capabilities, they have provided developers with efficient full-link development tools, which can reduce the development workload by up to 90% and help the industry accelerate the application of HarmonyOS-based development. Partners can also access HarmonyOS’s ecology rapidly through the minimal development of meta-services.

03

capital proposals

1. Huawei Smart Car: Continue to be optimistic about Huawei Smart Car Industry Chain, which is a subdivision track with clear competition pattern and excellent medium-term logic. Considering Huawei’s industry-leading effects in autonomous driving, intelligent cockpit and intelligent safety, Huawei’s cooperative ecology is expected to enhance its product strength in the environment of intensified competition in the whole machine factory, and companies related to the industrial chain are expected to benefit from the development dividend of domestic smart cars by relying on ecological advantages, forming a pre-paid card position. At the same time, it is necessary to pay attention to the industrial changes brought by technology leaders, and autonomous driving is expected to accelerate its landing, forming an overall opportunity for the industry.

Suggested attention: Jianghuai Automobile, Celes, Changan Automobile, Desai Siwei, Zhongke Chuangda, Wanma Technology, Alte, Lingdian Electronic Control, Huayi Technology, Jingwei Hengrun, Dongfeng Motor, Beiqi Blue Valley, Guangting Information, etc.

2. Huawei HarmonyOS: the core manufacturer of native application-related services in HarmonyOS and open source ecological construction in HarmonyOS, which is expected to benefit from the ecological expansion in HarmonyOS. At the same time, in the future, it will cut into not only the mobile market, but also the brand-new IOT demand of thousands of industries, facing the sea of stars.

Suggested attention: iSoftStone, ChinaSoft International, Zhidu, Jiulian Technology, Tuowei Information, Runhe Software, Zhiwei Intelligent, Changshan Beiming, Dongfang Zhongke, Chanz Education, etc.

04

Risk warning

Technology iteration is less than expected: if technology iteration is less than expected, it will have a certain adverse impact on companies related to the industrial chain.

The economic downturn exceeds expectations: if the macroeconomic boom declines, the investment in informatization will slow down, which will affect the willingness of enterprises to reinvest, thus affecting consumers’ willingness to consume and the willingness to produce in the industrial chain, which will have an adverse impact on the whole industry.

Intensified industry competition: If related enterprises speed up the technology iteration and application layout, the overall industry competition will intensify, which will threaten the growth of enterprises in the industry at present.