A：The management of the company will share three things: first, what kind of report card did we hand over in the first half of the year; second, what kind of company is Guangdong Harbor Wisdom and where is our moat; third, where are we going in the next three years. The company achieved three key growth indicators: revenue increased tenfold, net profit reached five times last year, and orders on hand exceeded 37 billion.

A：In the first half of this year, Guangdong Harbour Smart's AI business accounted for 93.1 per cent of revenue and AI core business gross margin of 35.5 per cent, showing that it has maintained a good quality of earnings and a rising trend in volume and price while growing in scale.

A：As of the end of August this year, the order size of Guangdong Harbor Smart Calculation has exceeded 37 billion yuan, of which more than 95% are long contracts, locking in revenue and profits for the next 3 to 5 years. More than 95% of the new orders have customer advance payment clauses, and the contract unit price is still rising significantly.

A：The continued increase of state-owned assets means that they are not only financial investors, but also industrial capital's high recognition of the strategic direction of the AI power race and Guangdong Harbor Smart Calculation. State-owned shareholders bring not only financial support, but also credit endorsement and industrial resources, optimizing the company's shareholder structure and enhancing competitiveness.

A：Guangdong Harbour Smart Computing invested 24 million yuan in research and development in the first half of the year, focusing on the self-developed quantum computing cloud platform, reasoning optimization engine and domestic chip ecological docking, aiming to realize the transformation from 10,000 card billing to token billing, and to improve the supply efficiency and pricing power of AI computing power.

A：After 12 years of development, Guangdong Harbour Smart Computing has gone through 7 milestones and 4 strategic transitions. From IDC to today's computing operators, it has successfully built four core business layouts of high-performance computing clusters, open cloud computing services, global AIDC construction and operation services and AIGC-related application incubation investment, and has become a dual-main business pattern of AIDC construction and operation in China and overseas.

A：The strategic focus of the next phase of Guangdong Harbour Computing includes strengthening the development and application of the Quantum School platform. Quantum School is a self-developed quantum state computing platform, with GPU computing market, one-stop AI platform and large model community three core functions, designed to achieve from computing infrastructure to industry applications of the whole station landing service.

A：Guangdong Harbour Computing has built a full-link service capability from computing power supply to maximizing value. We operate six IDC data centers in China, with a total capacity of more than 800 MW, more than 30000 cabinets, and a server occupancy rate of 98%. At the same time, we have also deployed computing centers in Thailand, Malaysia and China, and planned a global computing network framework.

A：The core competitiveness of Guangdong Harbor Computing is reflected in the four aspects of "early, full, large and multiple. As early as 12 years ago, we began to deeply cultivate IDC industry and took the lead in laying out computing power business in the industry. All, from facilities and equipment to technology flow, to provide one-stop solutions; Large, reflected in our 800 MW capacity, 50000 horsepower and more than 50 billion credit scale; More means that we have realized multi-point layout at home and abroad to support the globalization strategy.

A：The arrival of the AI era is deterministic. The rapid development and wide application of AI technology can be seen from landmark events such as GPT and Sora. With the outbreak of agent, the number of AI applications will increase on a large scale, and the call intensity will increase significantly. The demand for computing power will exceed that of traditional reasoning, which will be converted into token consumption and form the basic demand of the industry. China's intelligent computing power is expected to grow at a compound annual rate of more than 46%, the scale of the AI industry is expected to exceed 10 trillion in 2030, and the imbalance between supply and demand is obvious, the head players will be the first to enjoy the scale of dividends. The industry boom will last for at least a decade, and the demand for computing power will continue to grow as technology advances and applications expand.

A：The future strategic direction is to build a solid super power factory business form, including the construction of 100000-class card super power cluster, combined with its own million card cluster AIDC and green energy, as well as the platform layer quantum school flexible power scheduling platform and application layer AI vertical application incubation. In addition, the development of globalization is very important. We should base ourselves on the Greater Bay Area, open up the markets in Southeast Asia, Northeast Asia and the Middle East, build a cross-border computing power scheduling network, and promote the development of innovative businesses through precise incubation investment, such as high-quality comics, innovative drug research and development, and end-side chips.

A：The biggest change in the first half of the year is that the company has moved from proving that it can make money to proving that it can make money on a large scale and sustainably. It is embodied in three aspects: the quality of newly signed orders is improved, more than 95% of which have prepayment clauses, improving cash flow and enhancing financing bargaining power; The financing capacity has been enhanced, the financing cost has continued to fall, and the total amount of unused bank credit exceeds 50 billion yuan, providing sufficient financial guarantee for subsequent development. The company's identity has undergone a fundamental change, successfully incorporated into MSCI, renamed Guangdong Harbor, and successfully completed the classification and conversion of Hang Seng Industry, the market is starting to really use the logic of computing companies to price companies. On the whole, the results in the first half of the year were in line with strategic expectations, and the speed of implementation was faster than expected at the beginning of the year.

A：The company's strategic consideration in the token factory is pragmatic and large-scale operation. The reason for choosing to establish the Guangdong Harbor Resource Base in Helinger is that the local area has abundant and low-cost green power resources, obvious electricity price advantages, and good ecology. Conditions, rich human resources, the local government has a deeper understanding of the development of the industry. By deploying a million card cluster, large-scale, low-cost, and stable token production can be realized. Compared with other companies in the industry, Guangdong Harbour is the absolute head of the Hong Kong stock market in the field of computing power, with different development paths, but the company firmly believes that its own practice and achievements in the field of general factories are not significantly different from other companies in terms of technology and model.

A：In the matter of delivery, we have a very simple and hard principle internally, that is, we must be able to deliver after signing the contract. We evaluate supply chain capabilities, capital matching, and whether we can actually achieve an integrated delivery solution to our customers. On the financial side, more than 95 per cent of new orders this year come with large advances, providing basic financial support for delivery. At the same time, we have more than 50 billion yuan of bank credit and financial leasing credit, and the new financing cost in the first half of the year is as low as 3.5, which is very competitive. In addition, since 2023, the clusters we have delivered have generated significant positive net operating cash flow, which provides a good financial guarantee for new accounting orders and strategic expansion.

A：The quantum-based platform is becoming more and more important in the company's strategy, and its technical content is not only reflected in software development, but also in solving practical problems such as the unified scheduling model of multiple heterogeneous computing power, rapid deployment and optimization of inference-side efficiency. Through the quantum pie platform, we can achieve token transactions in a more competitive way. Although the investment in research and development is large, the company's positioning has not changed, because the technical capabilities include not only software research and development, but also hard-core technical strength such as large-scale cluster deployment, network tuning and cluster daily operation and maintenance.

A：Our ultimate focus is on whether we can improve the efficiency of computing power utilization and generate sustainable income.

A：The company expects its business to maintain rapid growth throughout the year, supported by solid orders, including full-year revenue from cluster orders delivered last year and new 22 billion orders. At present, the order reserve is sufficient, and the second half of the year will form revenue and profit. Regarding the inclusion of Hong Kong stocks, it is expected to be realized in the first quarter of next year, but the final progress depends on the rules and review procedures of the Hang Seng Index companies.

A：The company's supply chain capability is one of the core thresholds, with long-term accumulation and stable resource security and organizational capabilities. In the face of external control, not only will not rely on a single model, brand or source, multi-heterogeneous computing power adaptation and scheduling capabilities are also core competencies. At the same time, the company adheres to the bottom line of compliance, conducts business under the local legal framework, ensures that procurement and services comply with regulations, and effectively responds to supply chain shocks.

A：The company holds a positive and open attitude towards cooperation with state-owned local governments and industrial capital, based on three aspects of logic: first, computing power as a new productivity infrastructure is highly compatible with local digital economy and other fields; second, the credit endorsement, industrial resources and government coordination brought by state-owned assets are beneficial to the development of enterprises; third, flexible business cooperation methods and placement strategies are adopted to optimize the shareholder structure, introduce more high-quality shareholders to participate in major industrial projects, forming a virtuous circle.