Diamond Power Infrastructure has commenced commercial production at a new copper wire-drawing and cable manufacturing line at its integrated Vadodara facility in Gujarat. The line has installed capacity of 1,500 tonnes per month and marks the company’s entry into the copper cable segment. In-house wire drawing integrates conductor production, while existing infrastructure allowed the project to be commissioned without substantial additional investment.

In terms of cable and wire inventories this week, constrained by high copper prices, cable and wire enterprises generally adopted a rigid-demand purchasing strategy, locking in prices for small restocking only during minor copper price pullbacks. As a result, raw material inventories edged down 0.49% month-on-month. To ease inventory pressure, downstream enterprises prioritized drawing down finished goods inventories, which fell 2.33% month-on-month. Looking ahead to next week, the weak demand pattern across all segments is unlikely to reverse, and the industry lacks short-term recovery momentum. Under the dual pressure of high copper prices and off-season demand, SMM expects the copper cable and wire operating rate to fall a further 1.18 percentage points month-on-month to 61.08% next week (August 14–August 20), representing a year-on-year decline of 7.8 percentage points.

This week (August 7–August 13), SMM's copper cable and wire enterprise operating rate came in at 62.25%, down 1.4 percentage points month-on-month and 7.05 percentage points year-on-year. Copper prices remained elevated throughout the week, continuing to suppress downstream purchasing enthusiasm. Combined with overall weak terminal orders and no substantive improvement on the demand side, the industry's production load continued to decline.

SMM, August 12: Foxconn Industrial Internet’s semi-annual report posted substantial profit growth, further confirming the strong momentum of AI computing infrastructure and driving a recovery in sentiment across the high-speed interconnect industry chain. Against the backdrop of expanding computing power, high-speed copper cables have drawn attention from some market funds as a key short-range interconnect solution for AI servers. At the same time, SMM observes that the installation rush for power batteries, high prosperity in energy storage, and surging AI computing-end demand have collectively driven an ongoing climb in operating rates in the copper foil industry. As of the close on August 12, the high-speed copper cable concept rose 2.22%. Among individual stocks, Taichenguang and Hengdongguang jumped over 6%, while the biggest gainers included Xianying Technology, Ruikeda, Dingtong Technology, Far East, Changxin Bochuang, ZTT, and Zhaolong Interconnect. Market News [Shanghai: Build 100,000-card-level ultra-large intelligent computing clusters in Songjiang, Lingang, Qingpu, etc.] The Shanghai Municipal Commission of Economy and Informatization issued the “15th Five-Year Plan for the Development of the Software and Information Services Industry in Shanghai.” The plan mentions creating a tiered supply system that synergizes “large clusters + small clusters + edge computing,” building 100,000-card-level ultra-large-scale intelligent computing clusters in Songjiang, Lingang, and Qingpu, and constructing 1,000-card-level clusters in Baoshan, Pudong, and Jiading. It guides the transformation of traditional data centers and ICT server rooms into 100-card-level edge intelligent computing centers to meet ultra-low-latency computing demands from enterprises and individuals. Focusing on industries such as finance, education, healthcare, culture and tourism, and manufacturing, the plan supports building Model as a Service (MaaS) platforms, providing industry application marketplaces, model customization and hosting, agent building, low-code development, API interfaces, computing power provision and management, and AI inference services, thereby upgrading intelligent computing cloud service capabilities. It also highlights tackling next-generation model architectures and promoting exploration of multiple technology routes based on non-Transformer architectures such as state space models, recurrent neural network variants, and liquid neural networks. Efforts will be accelerated to lay out technology systems for cutting-edge foundation models, including physical intelligence, world models, quantum intelligence, and brain-inspired intelligence. The plan further addresses breakthroughs in networking technologies for ultra-large-scale intelligent computing clusters, focusing on core segments such as high-performance computing chips (GPU/NPU), quantum chips (QPU), high-speed optical interconnects (CPO), high-bandwidth memory (HBM), and heterogeneous servers to boost supply capacity for intelligent computing hardware and facilitate the deep integration of proprietary chips with mainstream large models. With an emphasis on new storage retrieval and data-model collaboration, the plan aims to achieve breakthroughs in high-precision heterogeneous processing, native multimodal fusion, and dynamic value alignment, and to build automated complex reasoning covering the full life cycle of corpus data. [Foxconn Industrial Internet: H1 2026 net profit up 95.99% YoY; AI computing demand continued to surge during the reporting period] Foxconn Industrial Internet announced on August 11 that its H1 2026 revenue was 557.861 billion yuan, up 54.63% YoY. Net profit attributable to shareholders of the listed company was 23.74 billion yuan, up 95.99% YoY. Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss was 22.984 billion yuan, up 96.99% YoY. Basic earnings per share was 1.2 yuan. The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserve into share capital. The change in operating revenue was mainly due to the benefit from the continued surge in AI computing power demand, steady increase in market share among major clients, and strong performance of cloud service business, driving overall revenue growth. The change in net profit was mainly due to the benefit from the continued surge in AI computing power demand, with the company's main business operations achieving steady improvement in profitability. (Jin10 Data) [CoreWeave Second-Quarter Revenue Doubles, Shares Surge 12% After Hours] CoreWeave (CRWV.O) rose 12% in after-hours trading on Tuesday after reporting second-quarter revenue of $2.58 billion, up 112% YoY and surpassing Wall Street expectations, indicating that demand for AI computing power is still growing rapidly; net loss was $626 million, compared to $290 million in the same period last year; order backlog reached $104 billion, with projects under construction totaling 1.5 gigawatts of capacity. CoreWeave is accelerating the expansion of its data center business, competing with cloud computing giants such as Amazon, Google and Microsoft to capture the market for data centers equipped with chips capable of running generative AI models. However, CoreWeave has yet to achieve profitability. As of the end of the quarter, its debt on the balance sheet reached $35 billion, used to cover NVIDIA GPU and other equipment procurement costs. This quarter, Meta said it would invest an additional $21 billion in CoreWeave. Additionally, CoreWeave announced a multi-year cooperation agreement with Anthropic and received a $6 billion commitment from quantitative trading firm Jane Street. (Jin10 Data) [Axera Next-Generation High-Power AI Chip Completes Tape-Out, Supports Multi-Chip Cascading for Full-Fledged Large Model Inference on the Edge] From the earnings call of Axera's 2026 semi-annual report, it was learned that the company's next-generation high-performance, high-power AI chip has completed tape-out, with a significant increase in computing power specifications, equipped with high bandwidth, and supports two-chip or four-chip cascading, enabling high-performance inference of full-fledged large models on the edge. [Strategic Cooperation Intent Reached, Huawei to Provide Ascend Computing Equipment to Beijing Data Group] According to Beijing Data Group, on August 7, Beijing Data Group and Huawei held working talks and reached a strategic cooperation intent. Next, the two sides will focus on deepening cooperation in computing power clusters and city-level computing infrastructure construction. Beijing Data Group’s subsidiary Tongniu Information will participate in the construction of Beijing's city-level computing infrastructure, coordinating the deployment, daily operations, and computing services of the group's self-innovated computing clusters. Huawei will fully support Beijing Data Group in advancing the city-wide layout of self-innovated computing, providing advanced Ascend computing equipment, comprehensive technical solutions, and service support to jointly build a trusted city-level computing foundation in Beijing, continuously releasing the value of computing engines and offering stable, reliable computing support for the development of “Digital Intelligence Beijing.” [Nvidia Announces Partnership with Six Financial Giants to Arrange $500 Billion AI Infrastructure Financing System] Nvidia (NVDA.O) announced on the 10th local time that it has established a strategic partnership with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to create an independent computing financing platform, aiming to mobilize over $500 billion in third-party capital over the long term for building artificial intelligence infrastructure. Nvidia stated that the new financing platform transforms Nvidia’s computing and full-stack AI infrastructure into an investable asset class for global capital, expands access to AI factories, achieves long-term revenue tied to usage, and supports Nvidia’s ecosystem growth in hardware sales and software applications. [Tesla: Terafab Plan Launches in Texas, Targeting Over 1 Terawatt of Computing Capacity Annually] On August 6, Tesla (TSLA.O) stated that earlier this year, SpaceX and Tesla announced the launch of the “Terafab” project—the world’s largest chip manufacturing initiative, integrating logic chips, memory chips, and advanced packaging technology within a single facility. In April, Tesla broke ground on a new R&D fab at the northern campus of its Texas Gigafactory, which served as the predecessor to Terafab. And today, we officially announced that Terafab will be located in Grimes County, Texas. This facility will be an advanced semiconductor wafer fab, designed to bridge the vast gap between current global chip supply capability and future computing demand. The combined chip demand of SpaceX and Tesla is expected to exceed 1 terawatt (TW) of computing power, far surpassing the current global supply capability. We greatly appreciate our existing chip suppliers and encourage them to expand capacity where possible, but the widening supply-demand gap in the future is the core reason for the Terafab project. Terafab’s goal is to manufacture new computing capacity at unprecedented scale and speed. The project plans to build a vertically integrated factory with a manufacturing area exceeding 100 million square feet. The facility will cover the manufacturing, packaging, and testing of advanced logic chips and memory chips. Concentrating these processes at a single location will facilitate rapid iteration and accelerate the deployment of new computing power. [ZTE Partners With Sky47 to Build Pakistan's Largest Intelligent Computing Data Center] Recently, the inauguration ceremony of Sky47 Karakoram-01, the largest integrated general-purpose and intelligent computing data center in Pakistan, jointly built by ZTE and Pakistan's leading cloud service provider Sky47, was held in Islamabad. As Pakistan's first customized AI-native Tier III data center, Sky47 Karakoram-01 has a total power supply capacity of 8.5 MW. The center will provide robust cloud computing, data hosting, and advanced digital service support across Pakistan, fully meeting the computing power needs of government and enterprises in fields such as artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC). Power Battery Cell Installation Rush and Robust AI Industry Chain Demand Keep Copper Foil Operating Rate Climbing According to SMM, In July, the operating rate of the copper foil industry continued to climb, supported by strong end-use demand from downstream. In the lithium battery sector, production schedules of major Chinese lithium battery companies hit another record high in July. The installation rush for power battery cells boosted production schedules, and demand for lithium battery copper foil remained positive. In the electronic circuit segment, AI industry chain-related demand remained strong; capacity continued to shift toward high-end products, and demand for electronic circuit copper foil across all specifications stayed robust. Voices From All Parties CSC Financial’s research report notes that the scaling of frontier models has entered a stage of parallel multi-path development. Anthropic Mythos 5 and Fable 5 are estimated by the industry to have 8 trillion and 5 trillion parameters respectively; Kimi K3 has a total of 2.8 trillion parameters; and ByteDance is reportedly pretraining a model with up to 10 trillion parameters. Post-training is further extended to million-token agent trajectories, thousands of tool calls, and complex tasks lasting several hours. The RSI review published on July 8 covered 1,250 papers, 74% of which were published in 2026, indicating a clear acceleration in AI R&D automation. We believe that model competition is shifting from single-parameter expansion toward coordinated evolution involving pretraining, reinforcement learning, inference-time computing, RSI, and long-term agent capabilities. Computing power demand will expand from training to inference and agent execution. We remain bullish on the Capex ecosystem of major players, domestic chips and super-nodes, computing services, Pre-AI, B-end AI applications, and local inference. Founder Securities' research report indicates that the market's oversold rebound has entered a critical phase, with divergence unfolding across tech and cyclical growth sectors. Continue to focus on allocation opportunities in three areas. First, tech stocks also require selective positioning by structure. At the index level, the Sci-Tech Innovation Board and ChiNext have rebounded about 10% from their lows, and there remains upside relative to the typical oversold rebound amplitude of major themes. The AI narrative has seen some shifts after US CSP earnings reports, with competitive capex marginally weakening; cloud business and healthy cash flow are decisive factors. Therefore, within AI, hardware and applications will become more balanced. Focus on core overseas computing power names with low crowding, as well as domestic computing power segments with high earnings visibility such as semiconductor equipment and materials; relatively undervalued AI applications and Hang Seng Tech deserve attention. Second, watch for opportunities in HALO assets, as expectations for US Fed interest rate hikes are easing. Beyond core resource-related non-ferrous metals and chemicals, oversold old and new energy, including power grids and electrical equipment, coal and petrochemicals, etc. Third, leading pharmaceutical names with improving fundamentals, low crowding, and abating headwinds. CITIC Securities' research report notes that since 2023, the rapid development of AI has driven the iterative upgrade of optical module technology. New technologies such as optical chip speed upgrades, silicon photonics integration, and CPO architecture are jointly driving the iterative upgrade of optical module testing equipment. Combined with the rapid expansion of AI computing power infrastructure, this is driving a "volume and price increase" for optical module testing equipment. Currently, international players remain relatively ahead in the 1.6T high-end market, but domestic enterprises are accelerating their catch-up, with the gap steadily narrowing. We are bullish on the long-term development of the domestic optical module industry and the trend of import substitution for high-end optical module testing equipment. China Merchants Securities, reviewing nine sharp A-share market corrections since 2015, found that sharp declines were mostly triggered by external shocks or liquidity risks, with stabilization marked by policy responses. The average rebound window after a correction is 34 trading days, with the Wind All A-Share Index rebounding by more than 19% on average, and the larger the prior decline, the greater the subsequent rebound tends to be. Sector performance exhibits "two-phase" rotation: in the first 10 trading days of a rebound, high-beta, oversold sectors such as electronics and computers lead the gains; after 20 to 60 trading days, the market shifts to themes with fundamental support, such as electrical equipment and food & beverage. For the current cycle, a two-step allocation is recommended: initially, prioritize TMT and other oversold, high-beta sectors (with focus on computing power leaders in China and overseas); after 10 to 20 trading days, return to a rebalancing of fundamentals, focusing on electrical equipment, chemical pharmaceuticals, coal, and non-bank financials. Along sector themes, key opportunities to capture are the catch-up potential in the overseas computing power price-hike chain, the elasticity of domestic computing power hardware, and gold's value as a safe-haven and rebalancing asset. The overall allocation revolves around three main themes: technology innovation, enterprises going global, and rebalancing of traditional low-valuation sectors. According to CICC research, since mid-to-late June, global AI chains experienced notable pullbacks, with South Korea—characterized by high leverage, high crowding, and high retail participation—being the most severe. Behind this were the amplifying effects of high crowding and high leverage, disturbances from macro factors (such as rising expectations for US Fed interest rate hikes and the renewed blockade of the Strait of Hormuz driving up oil prices), and market concerns over a re-emerging AI bubble (e.g., Meta renting out computing power, declining token spending). In fact, before the bubble finally burst in March 2000, the tech stock market saw at least four rounds of large-scale, prolonged corrections. The triggers for these declines are highly similar to the current adjustment: short-term setbacks in industry trends, headwinds in the macro environment, and overheated valuation sentiment. The eventual rebound in tech stocks was also due to the easing of these three pressures. Therefore, corresponding to the present, for the market to stabilize and even start a new round of increases, these three factors are needed: the digestion of high crowding and high leverage (largely achieved), the easing of expectations for US Fed interest rate hikes or the actual announcement (watch the July FOMC meeting), and more importantly, new catalysts from earnings reports and industry developments (the July-August earnings season). Recommended reading:

[SMM Analysis: US and Europe Expand Copper Recycling Capacity as Scrap Localisation Takes Shape]The US and Europe are expanding recycling capacity and tightening resource policies to retain more copper scrap locally. Aurubis projects in Hamburg and Georgia will increase complex-feedstock processing, while export controls may further limit trade flows. Asian buyers could face higher payabilities, longer lead times and tighter supply.

On July 27, the stock price of Jintian fell. As of the close on July 31, Jintian was down 1.22%, at 9.7 yuan per share. In terms of news, the Investor Relations Activity Record announced by Jintian (July 22–24, 2026) showed: 1. Company’s industry position and competitive advantages. Jintian responded: The company has been deeply engaged in the non-ferrous metal processing field for 40 years and is one of the largest enterprises with the most complete industry chain in China. In 2025, the company achieved total production of copper and copper alloy materials of 1.9061 million mt, with copper semis production ranking first globally. The company offers a rich variety of copper products, capable of meeting clients’ one‑stop procurement needs for multiple categories such as copper billet, pipe & tube, strip, and wire. The company’s copper products have been widely used in NEVs, AI computing power, clean energy, communication technology, and other fields. Currently, the company has developed a strong cultural foundation and excellent organizational capabilities, boasting significant market size and a globalized industrial layout; possesses leading manufacturing and R&D strengths; has built a specialized product portfolio and established a solid group of top industry clients; and has constructed forward‑looking green recycling technology barriers, laying a solid foundation for becoming a world‑class base for copper products and advanced materials. 2. Company’s capacity construction planning in key emerging fields. Jintian responded: At present, the company’s copper busbar capacity for the chip semiconductor field is 35,000 mt, and for rack busway is 15,000 mt. The company established a liquid cooling technology subsidiary in Guangdong to continuously enhance the capacity and technical level of copper busbar for chip semiconductors and rack busways. At the same time, the company is investing in the construction of a “high‑precision copper busbar production project for liquid cooling and rack busways with an annual output of 30,000 mt” in Vietnam, further promoting the specialization and rapid development of liquid cooling‑related businesses. Detailed capacity planning in other emerging fields can be found in the company’s periodic reports. 3. Company’s construction progress and business situation of electromagnetic flat wire. Jintian responded: In 2025, the company’s electromagnetic flat wire shipments reached 25,000 mt, up 16% YoY, of which flat wire shipments for 800V and above high‑voltage platforms grew 50% YoY, and high‑voltage flat wire shipments accounted for 47%, up 10 percentage points YoY, with market share continuing to lead. The company’s NEV electromagnetic flat wire development project has achieved mass production of over 200 items, with 60 new designated projects for NEV drive motors added throughout the year, of which 36 were for high‑voltage platforms, accounting for 60%, and batch supply has been realized for many. The company’s flat wire product for 1000V drive motors has become the core supporting material for “megawatt flash charging” technology in the NEV field, with some projects having achieved batch supply; meanwhile, client certification for 1200V drive motor flat wire is progressing steadily, and the 1500V platform has completed product design verification and entered the client recommendation stage, securing a first‑mover advantage for mass production of next‑generation high‑voltage platforms. 4. Company’s construction progress and business situation of rare earth permanent magnet products. Jintian responded: The company’s rare earth magnetic material business, after over 20 years of deep cultivation, has become one of the enterprises with high technology and a well‑established product system among domestic peers. Currently, the company has two magnetic material production sites in Ningbo and Baotou. On the basis of an annual capacity of 9,000 mt, it is actively planning the second phase project of the Baotou site to further increase capacity to 13,000 mt. In 2025, the company’s rare earth magnetic material business achieved main business revenue of 1.718 billion yuan, up 32.47% YoY; the gross margin of rare earth magnetic material was 12.61%, up 4.25 percentage points YoY. Against the backdrop of rare earth export control policies, the company became one of the first enterprises approved by the Ministry of Commerce and the General Administration of Customs to obtain the general export license for rare earth permanent magnets; at the same time, by newly establishing a subsidiary in Germany, it accelerates international layout and increases international market share. The company’s rare earth permanent magnet products are now widely used in multiple high‑end fields such as NEVs, wind power generation, high‑efficiency energy‑saving motors, robots, consumer electronics, and medical devices. 5. Company’s position advantages and business results in the secondary copper field. Jintian responded: The company has become one of the enterprises with the largest secondary copper utilization volume and the highest comprehensive utilization rate in China, and also one of the few companies globally in the industry to achieve a closed‑loop across the entire industry chain of secondary copper recycling, purification, and deep processing. The company’s self‑developed low‑carbon secondary copper products, while ensuring product performance, have significant carbon reduction strategic value, providing high‑quality and complete one‑stop green copper semis solutions for cutting‑edge technology and zero‑carbon economy development. In 2025, the sales of the company’s green high‑end low‑carbon secondary copper products grew 54% YoY. At present, the product matrix has covered copper strip, copper wire, electromagnetic wire, copper pipe & tube, copper busbar, copper billet, etc., and is applied in high‑end consumer electronics, automotive industry, power and electrical sectors, specifically including laptop cooling modules, mobile phone vibration motors, wireless charging coils, NEV electric drives, AC/DC power supplies, etc., achieving mass production in products of many world‑renowned clients, forming a new performance driver represented by “green low‑carbon secondary copper products.” On July 24, Jintian responded to investors’ questions on the interactive platform, stating that the company adheres to prudent financial policies, has established standardized financial management systems, implements mature full‑process risk decision‑making and operational mechanisms, and maintains efficient capital utilization efficiency. The company has long enjoyed good credit status, with ample bank credit lines at present. The company will continue to handle various risks effectively, steadily promote business development, optimize financial structure, improve asset liquidity, and enhance the efficiency and turnover speed of capital utilization. For specific information, please refer to the company’s periodic reports. On July 1, Jintian issued an announcement stating that in June 2026, the company repurchased 660,000 shares through centralized price bidding, accounting for 0.04% of the company’s total share capital. The highest transaction price was 10.55 yuan per share, and the lowest was 10.15 yuan per share. The total amount paid was 6,844,400 yuan (excluding transaction costs). In its 2025 annual report, when introducing its business operations during the reporting period, Jintian mentioned: The company has focused on the non‑ferrous metal processing field for 40 years, providing advanced material high‑value comprehensive solutions to various pillar, technology‑based industries and advanced productivity fields, forming a multi‑category segmented product matrix of copper and copper alloy materials, rare earth permanent magnet materials, etc. Currently, the company has become one of the copper and copper alloy material producers with the most complete industry chain, the widest variety, and the largest scale in China, as well as one of the enterprises with high technology and a well‑established product system in the domestic rare earth magnetic material industry. Regarding the business plan, Jintian stated in its 2025 annual report: In 2026, the company will focus on high‑quality development requirements, guided by the strategic goals of the 15th Five‑Year Plan, and formulate specific strategic goals tailored to market demand changes and the company’s actual situation. With an international perspective and concept, it will introduce advanced technologies, improve organizational capabilities, and comprehensively enhance management levels in procurement, production, and sales, striving to build a modern industrial system and make solid progress toward the company’s strategic goals. At the same time, the company has long adhered to an international strategic layout, serving global clients, utilizing high‑quality global resources, and promoting the company’s product leadership, talent leadership, management leadership, and service leadership, providing clients with professional solutions and services. The company will, as always, persist in leading through technological innovation, accelerate the realization of high‑level technological self‑reliance and self‑strengthening, speed up the development of new quality productive forces, open up new fields and new tracks for development, cultivate new development momentum, and enhance new competitive advantages. It will continue to deeply cultivate the NEV industry, clean energy, and chip semiconductor industry to consolidate industry influence; rapidly expand the computing power cooling industry to achieve large‑scale mass production and build a growth engine; focus on the layout of robot and low‑altitude flight cutting‑edge R&D to form future competitiveness; and continuously promote the company’s low‑carbon recycled product innovation to create a core low‑carbon advantage. A research report from Huaxi Securities pointed out: Amid the AI computing power infrastructure boom, the demand logic for copper is expanding from a traditional power metal to an underlying core material for AI hardware. 1) As the speed of AI servers, switches, and high‑speed network equipment continues to increase, copper cables in short‑distance high‑speed interconnects, with advantages of low cost, low power consumption, and low latency, still hold an important position in intra‑rack interconnects, server backplanes, and high‑speed connection scenarios. 2) The demand for high‑performance copper foil from high‑frequency and high‑speed PCBs, AI accelerator cards, and switch motherboards is rising, with low‑profile, high‑ductility, high‑reliability copper foil becoming a key material for high‑speed signal transmission. 3) The increase in power density of AI servers drives the demand for power supply copper busbars, connector copper alloys, liquid cooling plates, cooling modules, and power system copper materials, upgrading copper from a “usage logic” to a dual logic of “usage + material added value.” High‑end copper foil and copper materials end: [Tongguan Copper Foil], [Zhongyi Technology], [Jiayuan Technology], [Nuode], [Defu Technology], [Baoding Technology], [Boway Alloy], [Chujiang New Materials], [Jintian], [Zhejiang Hailiang], [Zhongyuan New Materials], [Diangong Alloy], [Youyan Powder Materials]; high‑speed interconnect and connector peripheral targets: [Woer Heat‑Shrinkable Material], [Shenyu Communication], [Zhaolong Interconnect], [Dingtong Technology], [Huafeng Technology].

In H1 2026, the operating rate of China's wire and cable industry generally showed a trend of "rapid post-holiday recovery, peaking during peak season then gradually pulling back." At the beginning of the year, under pressure from Chinese New Year and high copper prices, the industry's operating rate hit bottom at 27.72%. It then rapidly recovered, driven by concentrated grid delivery and phased copper price pullback. Later, after copper prices rebounded and influenced by the traditional off-season, the operating level gradually pulled back. I. H1 Market Review and Summary: Copper Price Fluctuations Dominate, Power Grid Shines Wild swings in copper prices were the core variable influencing the industry's operating pace in H1. In Q1, the start of the "15th Five-Year Plan" power grid investment formed a demand base. The phased decline in copper prices further stimulated end-users to concentrate on restocking at lows. After copper prices rebounded in Q2, downstream purchase willingness was suppressed. However, structural volume growth in demand from emerging fields such as new energy and AI provided some support at the bottom for the operating rate. From the perspective of various demand ports, the proportion of cables used in traditional power grid infrastructure has declined, while the proportion for new energy supporting applications has risen significantly. Offshore wind power, energy storage, NEVs, and data centers have become the core new growth drivers. However, the power grid remains the core pillar of demand. In Q1, State Grid Corporation of China completed fixed asset investment of over 129 billion yuan, up 37% YoY, directly driving a concentrated release of wire and cable demand. Notably, the demand for cables supporting AI data centers has entered an explosive period. SMM forecasts that the growth rate of copper demand for AI data centers will reach 54.94% for the full year. Demand for high-speed copper cables and power supporting cables is growing steadily, and the operating rates and production schedules of relevant domestic enterprises are staying high. In contrast, in traditional sectors, data on new starts and completions in real estate remained sluggish. Demand for home decoration and civilian building cables also weakened, overall offsetting the growth dividend of emerging tracks. Cost side, industry profitability was notably under pressure. On one hand, the overseas geopolitical conflict in March pushed up prices of cable auxiliary materials. Coupled with high industrial energy costs, enterprises' comprehensive production costs were passively pushed up. On the other hand, during the rapid surge in copper prices in May, enterprises' raw material procurement costs had already risen sharply, but some order settlements were still based on earlier lower monthly average prices, leading to further profit margin compression. Coupled with fierce competition in the ordinary cable track, enterprises basically have no room for price adjustment or premium, ultimately resulting in compressed profits for small and medium-sized wire and cable enterprises in H1, and industry profits concentrated upstream in raw materials. II. Exports Remain Highly Prosperous, Imports Only Serve as High-End Supplement In terms of imports and exports, exports continued to be highly prosperous. From January to May, cumulative exports of wire and cable reached 1.2692 million mt, up 8.12% YoY. Among them, exports of copper wire and cable were 633,700 mt, up 15.6% YoY, with Australia, the Philippines, and Thailand being the top three destinations. The core driving force behind the export boom is the rigid import demand formed by infrastructure expansion and energy transition in Southeast Asia, the Middle East, and Africa. Grid renovation and AI computing power supporting construction in Europe and the US continue to release growth, boosting the willingness of domestic enterprises to go global. Imports are relatively small in scale. From January to May, cumulative imports of wire and cable were 53,400 mt, mainly serving as a supplement for high-end products. III. H2 Market Outlook: Demand Structure Diverges, Emerging Tracks Maintain High Growth Looking ahead to H2, copper price fluctuations remain the core variable throughout the second half. If copper prices continue to fluctuate at highs, they will continue to suppress end-user stockpiling willingness, limiting the room for demand recovery during the peak season. During the traditional consumption off-season, conventional terminal orders from real estate and civilian sectors are weak. The industry operating rate will consolidate at lows, and end-users will maintain a cautious strategy of locking copper based on orders and making just-in-time procurement. It will be relatively difficult for orders to recover. Entering the H2 consumption peak season, the first-year conclusion of the "15th Five-Year Plan" will drive a concentrated sprint in power grid projects. Ultra-high voltage and distribution network tenders are accelerating, and Q4 delivery expectations are sufficient, becoming the core support for H2 demand. The high prosperity of emerging tracks continues. The demand for copper cables supporting AI data centers continues to grow in volume. The growth rates of offshore wind power and energy storage cables are highly certain. The steadily increasing penetration rate of NEVs drives the growth of wiring harness and charging pile cable demand. The traditional construction and real estate sector is unlikely to improve and will continue to drag down overall demand performance. On the export front, the export momentum from H1 is expected to continue into H2. Rigid demand from grid renovation and upgrades in Europe and the US, as well as AI computing power supporting construction, continues to be released. In Southeast Asia, the Middle East, and Africa, infrastructure expansion and energy transition are advancing at a high speed, and import dependence on China's cables remains high. Coupled with the continuous deepening of domestic enterprises' go-global layout and increasingly mature overseas channels, export prosperity will remain at a high level in H2, and full-year cable exports are expected to hit a new high.

I.AI Computing Power Expansion Opens Growth Space for Copper Global computing power infrastructure and data center construction have seen simultaneous explosive growth, with intensive commissioning of intelligent computing and supercomputing projects across regions, generating an entirely new incremental demand curve for copper semis. According to SMM projections, global new installations is expected to achieve a CAGR of 24% from 2025 to 2030, with the fastest pace of new deployment occurring in 2025 and 2026. New installations in 2026 are expected to grow 65% MoM, and by 2027, the growth rate of new installations is projected to pull back to 28.77%, followed by a year-by-year deceleration in 2028-2030. By region, global new installations of computing power are mainly concentrated in two major markets: the US and China. Leveraging its scale-leading cloud operators, highly efficient facility operation systems, and a well-established global AI industry ecosystem, the US continues to lead in deployment scale. In China, leading cloud producers such as Alibaba and Tencent continue to increase capital expenditure on computing power infrastructure, while the national computing power network is formally incorporated into the top-level planning of the "Six Networks" and the "East Data, West Computing" projects are being rolled out and commissioned in batches, leading to a steady rise in the market share of domestic intelligent computing centers. SMM analysis indicates that the CAGR of new copper consumption for global computing power from 2025 to 2030 is 21%, slightly lower than the growth rate of new installations. The core reason is the gradual release of medium and long-term technological effects that reduce copper usage. Looking at individual years, copper consumption growth is 54.94% in 2026, pulling back to 27.58% in 2027, and the growth of new copper consumption is also expected to exhibit a gradual slowdown trend from 2028 to 2030. II. Unit Copper Consumption in Computing Power Centers Shows a Phased Trend of First Increasing then Decreasing SMM's calculation by region shows that the comprehensive copper consumption per unit of global computing power centers will present a characteristic of first increasing then decreasing from 2025 to 2030. In the short term, new computing power is mainly through the construction of entirely new campuses, with supporting power, grounding, and other infrastructure built from scratch, coupled with high-density cabinets driving a rapid rise in the penetration rate of liquid cooling systems. Multiple factors jointly push comprehensive unit consumption upwards in 2025-2026. In the medium and long term, as 800V high-voltage DC power distribution is popularized at scale, the required thickness and cross-section of copper conductors under equivalent power scenarios will decrease significantly.Meanwhile, high-speed NVLink copper cables will face substitution by fiber optic interconnects. Coupled with the iteration of liquid cooling heat dissipation materials and technological breakthroughs in aluminum as a substitute for copper processes, the industry's comprehensive unit consumption will enter a downward trajectory. However, constrained by the pace of industrial technology penetration, SMM's calculations show no significant decline in unit consumption in 2027-2028, as consumption reduction and copper-increase factors offset each other, keeping unit consumption stable. The downward trend will only become significantly prominent after 2029. It is worth noting that comprehensive unit consumption is a weighted average calculated by SMM based on the deployment scale of computing power in the US, China, and the rest of the world. There is clear differentiation in unit consumption among data centers in different regions, with the unit copper consumption ranked as: Rest of the World > China > US, where the scale effect of large clusters effectively lowers unit copper intensity. III. Breakdown of Core Copper Usage in Computing Power Centers Computing centers fall into three categories: general-purpose IDCs, intelligent computing centers, and supercomputing centers. This article uses intelligent computing centers, which currently hold the highest market share and fastest growth rate, as the calculation sample to break down the copper consumption structure: The power supply and distribution system is the largest copper-consuming segment in a computing center, accounting for 66% of total copper consumption according to SMM calculations. It primarily handles medium- and high-voltage power conversion and ensures uninterrupted power supply for equipment rooms. Medium- and low-voltage distribution cabinets, UPS, and busways are the core copper-consuming equipment. In the short term, high-power cabinets continue to boost demand for copper semis in power distribution, while in the medium and long term, after the popularization of lithium battery UPS and high-voltage DC solutions, unit copper consumption in the distribution segment will trend steadily downward. SMM estimates that AI server hardware infrastructure accounts for 18% of copper consumption, undertaking all tasks of computing power, storage, and network interaction. It integrates core components such as GPUs, motherboards, and server power supplies, and the stable operation of the hardware directly determines the computing power output of the cluster. High-end AI server PCBs and internal interconnection copper wires are the main sources of copper consumption in this segment. The liquid cooling system accounts for 11% of copper consumption. The closed-loop liquid cooling cycle meets the heat dissipation demands of high-power AI chips, with cold plates, CDU heat exchange units, and circulating copper pipe & tube serving as the main copper-consuming components. Liquid cooling penetration during 2025-2026 will boost demand for copper pipe & tube and copper plate/sheet and strip, and once copper-aluminum composite heat dissipation materials mature, the copper intensity for heat dissipation will gradually decline. Network communication, grounding protection, and supporting auxiliary systems together occupy the remaining 5% of copper consumption , covering sub-scenarios such as high-speed interconnection cabling and equipment room grounding and lightning protection copper grids. The current optical fiber interconnection industry chain continues to expand production, with optical fiber enterprises seeing simultaneous improvements in orders and profitability, indirectly confirming the overall high prosperity of AI computing power construction. In the long term, optical fiber will also continue to divert demand from high-speed copper cables. IV. Comprehensive Analysis of the Proportions of Different Copper Semis Breaking down the copper consumption structure of computing centers comprehensively by semi-finished copper product category, cables and copper busbars are the core consumables throughout the construction process. SMM analysis shows that cables account for 40% of the total copper consumption in a computing center, acting as the “blood vessels” permeating every link, with core applications in high-voltage access, low-voltage distribution, power transmission, high-speed communication copper cables, building wiring, as well as grounding and lightning protection cables. Copper busbar (24% of total copper consumption), the "backbone" for high-current power distribution in data centers, is mainly used in high- and low-voltage power distribution cabinets, transformer copper busbars, UPS systems, etc.Copper plate/sheet and strip (17%) is mostly used in transformer windings and liquid cooling cold plate substrates, performing dual functions of power transformation and heat dissipation. Copper pipe & tube (11% of total copper consumption) is a dedicated consumable for liquid cooling systems, mostly used in circulation piping, CDU heat exchange units, and precision air conditioning heat exchange pipes. The large-scale expansion of liquid cooling will boost demand for copper pipe & tube in the short term. Copper foil (4%) covers application scenarios including servers, switches, and various PCB circuit boards. Industry demand is concentrated on HVLP ultra-low profile high-end copper foil. Although the copper consumption per GW is relatively small, the incremental elasticity driven by AI computing power expansion is extremely strong. Currently, copper foil enterprises are accelerating the switch of capacity from ordinary electronic copper foil to high-end HVLP capacity, while copper clad laminate (CCL) producers have full order books and processing fees are being raised continuously, indicating that the prosperity of computing hardware demand has been verified across the entire industry chain. In summary, the rapid expansion of computing centers directly drives the growth in demand for related copper semis. At the same time, high-density AI computing clusters significantly raise the requirements for power supply supporting facilities, and the overall electricity consumption scale of the industry surges simultaneously. The demand for power infrastructure construction derived from computing expansion has become a key focus for long-term tracking and research in the future. While computing demand expands, the industry's development also faces external constraints. Currently, the grid connection approval process has a relatively long queuing period, and the market is generally concerned that transmission, distribution, and generation-side capacity bottlenecks may drag down the implementation pace of computing projects. However, according to SMM forecasts, no substantial power supply gap risk is expected for the industry over the next five years. It will still be necessary to closely track the approval progress and commissioning pace of various transmission and distribution supporting projects. SMM will also continue to follow the relevant industry dynamics and copper demand changes. For detailed data, please contact Cynthia Wang of the SMM Copper Research Team at 15762822325.

South Korea’s LS Group recently saw its market value rise to around KRW 64 trillion, driven by growing demand for AI-related power infrastructure. Its subsidiary LS Cable & System, a major global high-voltage cable supplier, continues to benefit from investment in AI data centres, grid upgrades, and energy infrastructure. Public information shows orders for high-voltage transformers, cables, and ESS continue to grow across North America and Asia, with particularly strong expansion in Southeast Asia. Sales from subsidiaries in Vietnam and Indonesia have also accelerated. As AI data centre construction expands, market attention remains on copper demand linked to cables, power equipment, and grid upgrades.

SMM, April 22: The global new energy and AI industries maintained high prosperity, coupled with traditional consumer electronics entering a seasonal peak, driving a comprehensive recovery in demand for copper foil and high-speed connectivity products. In March 2026, China's copper foil exports hit a single-month record high. The power and ESS sectors maintained high prosperity with steadily growing orders; AI-related orders remained robust, with optimistic demand for copper foil across all specifications, and the operating rate of copper foil enterprises rose both YoY and MoM in March. Supported by these fundamentals, copper cable high-speed connectivity, as a core component of AI computing infrastructure, continued to see improving demand expectations. Combined with resonating capital sentiment in the sector, copper cable high-speed connectivity concept stocks strengthened overall on April 22. As of the close on the 22nd, the copper cable high-speed connectivity concept rose 2.29%. Among individual stocks, Far East Holdings hit the daily limit, while Hengtong Optic-Electric, ZTT, Shenlan Technology, Changxin Bochuang, Zhaolonginterconnect, and Kingsinno led the gains. News [State Council: Advancing Computing Power Layout and Edge Computing Power Development in an Orderly Manner, Improving Intelligent Computing Cloud Service System] The State Council issued the "Opinions on Promoting the Expansion and Quality Improvement of the Service Industry." It mentioned deepening the implementation of the Industrial Internet innovation and development project, advancing the industrial data foundation initiative, cultivating data cooperation consortia, and building a number of high-quality industry datasets. It also called for developing professional services such as data annotation and certification, exploring the establishment of classified and graded mechanisms for data rights confirmation, evaluation, and pricing. Computing power layout and edge computing power development will be advanced in an orderly manner, and the intelligent computing cloud service system will be improved. The application of urban information modeling platforms and building information modeling technologies will be accelerated. [China's Intelligent Computing Power Scale Reaches 1882 EFLOPS] Zhang Yunming, Vice Minister of the Ministry of Industry and Information Technology, stated on the 21st that computing power infrastructure has become a key foundation driving the development of artificial intelligence. As of month-end in March, China's intelligent computing power scale reached 1882 EFLOPS. At a press conference held by the State Council Information Office on the same day, Zhang Yunming said that recently, the Ministry of Industry and Information Technology has been making sustained efforts in key areas such as enabling small and medium-sized enterprises with inclusive computing power and computing-electricity coordination, and the computing power industry has shown a positive development trend. Industrial innovation has become stronger, with the in-depth implementation of the computing power foundation "open competition" initiative, the conduct of policy research and standard formulation for computing-electricity coordination, and the promotion of accelerated implementation of generation-grid-load-storage and green electricity direct connection. Network transmission has become smoother, with over 70 computing power corridors built around computing power hubs over the past two years, and the implementation of the metropolitan "millisecond computing" special initiative, among others. [National Advanced Computing Industry Innovation Center Qingdao Base Officially Launched] According to Sugon, on April 22, the National Advanced Computing Industry Innovation Center Qingdao Base was officially launched in Laoshan District, Qingdao. The National Advanced Computing Industry Innovation Center is a national-level industrial innovation platform established in 2018 with the approval of the National Development and Reform Commission (NDRC), aimed at achieving breakthroughs in core technologies in the field of advanced computing and fostering internationally competitive industrial clusters. The Qingdao base launched this time, co-built with the participation of Sugon, will leverage regional industrial advantages to create an advanced computing innovation platform integrating technology R&D, commercialization of research outcomes, and industrial incubation, further pooling industry resources, driving regional industrial intelligent upgrading, and injecting strong "computing power momentum" into the digital economy development of Qingdao and even Shandong Province. [Yuandong Holdings: Q1 2026 Net Profit of 96.6284 Million Yuan, up 110.36% YoY] Yuandong Holdings disclosed its Q1 2026 report on April 22. The company achieved total operating revenue of 5.325 billion yuan, up 9.26% YoY; net profit attributable to the parent company was 96.6284 million yuan, up 110.36% YoY. [Rickda: Achieved Small-Batch Delivery of 400G/800G Products and Is Driving Capacity Ramp-Up] Rickda released an investor relations activity record announcement. The company is a quality supplier capable of simultaneously providing comprehensive solutions for optical, electrical, microwave, high-speed data, and fluid connections. It has also deployed multiple products for AI applications, including power supply, high-speed transmission, and liquid cooling categories. High-speed copper cable connector-related products are primarily led by Suzhou Richuang Connection Technology Co., Ltd., with planned products mainly including AEC, DAC, and ACC high-speed copper cable products, high-speed board-to-board connectors, high-speed I/O connectors, and other product series. Currently, Richuang has achieved small-batch delivery of 400G/800G products and is driving capacity ramp-up, while multiple products with even higher speeds are also progressing as planned. [Tongguan Copper Foil: The Company's High-Frequency High-Speed PCB Copper Foil Can Be Widely Used in 5G Communication Equipment, High-Computing-Power Servers, and Other Network Equipment and Network Connectors] Tongguan Copper Foil stated on the investor interaction platform on March 23 that the company's high-frequency high-speed PCB copper foil can be widely used in 5G communication equipment, high-computing-power servers, data centers, switches, and other network equipment and network connectors. [Xinhongye: Dedicated Technical Research Has Been Conducted in the High-Speed Copper Cable Connection Field for Intelligent Computing Scenarios] Xinhongye stated on the interaction platform on March 17 that the company pays close attention to the development trends of computing power data centers and the computing-power-and-electricity synergy industry, and will leverage its core business and technological advantages to continuously track industry dynamics and prudently evaluate opportunities for penetration and deployment in related fields. The current AI intelligent computing industry is trending toward the parallel development and synergy of optical and copper solutions. Leveraging its core copper cable technology advantages, the company has launched dedicated technical research in the high-speed copper cable connectivity domain for intelligent computing scenarios. Meanwhile, in line with the industry's technological evolution, the company maintains forward-looking technical research and market tracking in fiber optic-related fields, and is expected to steadily advance related deployments based on industry demand, technological development, and its own strategic planning. AI-Related Orders Remain Red-Hot with Optimistic Demand across All Copper Foil Specifications According to SMM, the operating rate of Chinese copper foil enterprises rose both YoY and MoM in March 2026. Downstream demand recovered rapidly after Chinese New Year, with both production and sales of lithium battery copper foil and electronic circuit copper foil climbing in March, bringing the overall industry operating rate close to 90%. End-use demand side, the power and ESS sectors maintained high prosperity with steady order growth. The traditional consumer electronics industry transitioned smoothly into peak season, AI-related orders remained red-hot, and demand across all copper foil specifications performed optimistically . Global New Energy and AI Industries Show High Prosperity — March Copper Foil Exports Hit a Single-Month Record High According to data from the General Administration of Customs, China's copper foil (HS codes: 74101100, 74102190) imports in March 2026 totaled 8,220.04 mt, up 11.88% YoY and up 27.59% MoM. China's copper foil exports in March 2026 totaled 6,663.48 mt, up 56.19% YoY and up 38.23% MoM. Statistics showed that both China's copper foil imports and exports rose to elevated levels in March 2026, with exports hitting a single-month record high. Global new energy and AI industries exhibited high prosperity, coupled with optimistic demand during the seasonal consumption peak. Voices from Various Parties A Huaxi Securities research report stated that external geopolitical risks persist at the current juncture, and market risk appetite may affect short-term market fluctuations. AI remains a key investment theme in the near term, with attention on domestically produced computing power and computing power leasing driven by supply-demand imbalance, as well as optical module and fiber optic cable segments with strong earnings certainty. Computing power supply-demand imbalance is intensifying, with computing power consumption expanding sharply and the three major cloud providers collectively raising prices. On one hand, the current supply-demand imbalance reflects robust demand in upstream chips and computing power leasing industries, with enhanced bargaining power driving price increases, benefiting domestic AI chip and computing power leasing producers. On the other hand, rising AI service costs will be transmitted to downstream application development, potentially accelerating downstream industry consolidation and improving computing power utilization efficiency. Changjiang Securities believed that geopolitical conflicts were accelerating the restructuring of global supply chains, enhancing China's irreplaceability as the "world's factory," and that related export chain and manufacturing leading assets may command a "scarcity premium." In terms of allocation, regardless of whether the Middle East conflict fluctuated, three main themes should be firmly pursued. First, the AI trend that conflicts could hardly alter — focusing on AI infrastructure such as computing power, storage capacity, and power equipment, as well as "HALO" asset opportunities. Second, the urgency of conflicts accelerating the energy revolution — focusing on new energy sectors such as lithium battery and hydrogen energy, as well as resource commodities including non-ferrous metals, oil, and coal. Third, sectors at cyclical bottoms where earnings were expected to gradually improve, such as chemicals, steel, and condiments. Data showed that the CSI A500 Index, closely tracked by A500 ETF South China, covered high-quality large- and mid-cap leading enterprises in A-shares, evenly distributed across core areas such as emerging manufacturing and consumption upgrading, with a focus on new quality productive forces. Investors could gain exposure through A500 ETF South China and its feeder funds in one step. A Huatai Securities research report believed that, with the rapid increase in demand for 800G and 1.6T optical modules in recent years and the approaching 3.2T era, the development opportunities for upstream core materials of optical modules were promising. It systematically reviewed the growth logic of two major industries — InP substrates and thin-film lithium niobate. InP substrates, as upstream core raw materials for optical chips, benefited from the rapid boost in demand from optical chip producers, with the industry showing an undersupply trend. Modulators made from thin-film lithium niobate, leveraging advantages such as low power consumption and high bandwidth, were expected to enter an adoption window in 3.2T pluggable solutions in the future, with broad growth potential across the industry chain. A Shanxi Securities research report indicated that NVIDIA made a $2 billion strategic investment in Marvell to cooperate on expanding the NVLINKFusion ecosystem. On March 31 local time, NVIDIA and Marvell announced a strategic partnership to connect Marvell with NVIDIA's AI factory and AI-RAN ecosystem through NVIDIA NVLINKFusion. Marvell would provide customized XPUs and NVLINKFusion-compatible expansion networks, while NVIDIA would provide supporting technologies, including Vera CPU, ConnectX NICs, Bluefield DPU, NVLINK interconnects, and SpectrumX switches, as well as rack-scale AI computing. Marvell is one of the world's leading ASIC custom service providers, with clients including AWS, Microsoft, and Google. It is a major global supplier of optical module DSP and EIC, and has focused on CPO deployment through the acquisition of CelestialAI. We believe that NVIDIA's strategic investment in Marvell is expected to enhance Marvell's design capabilities in memory semantics, high-speed SERDES, and super-node systems, and to facilitate the expansion of the NVLINKFusion ecosystem. NVIDIA's NVLINK Scaleup technology encompasses an overall solution covering NVLINK SERDES, NVLINK chiplets, NVLINK switches, and rack-scale expansion architecture (including NVLINK SPINE, copper cabling systems, innovative mechanical architecture, power supply, and liquid cooling technologies). NVIDIA unveiled a complete copper-connected rack-scale solution at GTC 2026, including Rubin NVL72, Rubin Ultra NVL144, LPX 256, and ETL 256. Shanxi Securities believed that Marvell's participation is expected to expand the addressable market for copper connectivity. NVIDIA has positioned CPO as one of the most important transformations in Feynman-generation Scaleup technology, and combined with Marvell's silicon photonics technology, we believe the CPO penetration rate is expected to gradually increase. Soochow Securities' research report commenting on Fujida noted: a leading player in China's RF connector industry. The company specializes in the R&D, sales, and services of connectors, cables, cable assemblies, and microwave components, holding a leading position in China and non-China markets. Since its establishment in 1998, the company has been deeply engaged in the RF interconnect field. Backed by AVIC Optronics (its controlling shareholder), it has gradually expanded from traditional general-purpose RF connectors to high-end new product categories, including RF cables (aerospace applications), advanced ceramic products (chip integrated packaging applications), and RF links (active and passive microwave components). In 2025, the company achieved revenue of 881 million yuan and net profit attributable to the parent company of 78 million yuan, up 15.5% and 52.0% YoY, respectively. The company has positioned itself in five core tracks, with broad prospects for high-end connectors: 1) Demand in the defense informatization sector remained strong, with new products showing considerable potential. 2) The civil aerospace satellite sector has become a new growth engine. 3) The semiconductor equipment industry urgently needs high-end RF/electrical connectors. 4) The domestic supply chain for high-end electronic measurement instruments is embracing opportunities. 5) High-speed copper cables and quantum communication cable products are benefiting from the data center construction boom. Large-scale growth in data center infrastructure is boosting high-speed transmission products to gradually evolve toward system-level solutions. The company's high-speed copper cables have achieved product category expansion around 400G components, reaching an internationally leading level; meanwhile, in the quantum communication field, the company has deployed cryogenic superconducting cables, achieved initial small-batch supply, and is expected to gradually achieve commercialization. Recommended Reading: