Zheshang: Hongmeng NEXT system is about to be installed on a large scale, and Hongmeng PC and AI assistant are about to debut.

Zheshang released a research report stating that, according to the "Science and Technology Innovation Board Daily", the Huawei Mate 70 series is in urgent production. Previously, at the Huawei Developer Conference in June, Huawei had already revealed that HarmonyOS NEXT will be officially launched in the fourth quarter with the launch of the Mate 70 series. In addition, PCs with HarmonyOS desktop OS may be coming soon. On September 20th, Yu Chengdong, the executive director of Huawei, stated in a CCTV live broadcast that current Huawei PCs may be the last batch of laptops loaded with Windows. Currently, the HarmonyOS ecosystem has more than 15,000 applications and meta-services, which has grown more than ten times since April, far exceeding Huawei's initial target of supporting 5,000 applications. WeChat, TikTok, DingTalk, Taobao, Xiaohongshu, Weibo, and WPS have all released HarmonyOS native versions that can be used in HarmonyOS NEXT. Zheshang's main points are as follows: Mate 70 is expected to drive large-scale installation of HarmonyOS NEXT, HarmonyOS PC is coming soon Huawei's executive director Yu Chengdong stated on Weibo that the strongest Mate in history will be launched in November 2024. The "Science and Technology Innovation Board Daily" learned that the Huawei Mate 70 series is currently in urgent production. At the Huawei Developer Conference in June, Huawei had already revealed that HarmonyOS NEXT will be officially launched in the fourth quarter with the launch of the Mate 70 series. Since October, HarmonyOS NEXT has entered the public testing phase, and users of devices such as Mate 60, Pura 70, Mate X5, and MatePad Pro 13.2 inches can apply to participate. In addition, PCs loaded with HarmonyOS desktop OS may be coming soon, Yu Chengdong stated on September 20th in a CCTV live broadcast that current Huawei PCs may be the last batch of laptops loaded with Windows. HarmonyOS NEXT: Base Refactoring, Performance Improvement HarmonyOS NEXT is the first HarmonyOS system that removes the Linux kernel and AOSP code. From the bottom-level system kernel, compiler to the upper-level AI big models, all are self-developed. Compared to HarmonyOS 4.0 on the same model, Harmony NEXT performance has improved: equipped with the Ark engine, the overall smoothness has improved by 30%, battery life has increased by 56 minutes, and running memory has increased by 1.5GB. Xiaoyi has become a system-level intelligent entity, the assistant is equipped with a large model, more intelligent; equipped with self-developed Xingdun security architecture, prohibiting 9 unreasonable permissions, reducing the risk of privacy leakage from the source; through distributed software bus technology, achieving native interconnection, data and applications can be freely switched between different types of terminals. Xiaoyi intelligent assistant has been upgraded to an intelligent entity, equipped with Panggu large model In HarmonyOS NEXT, Xiaoyi intelligent entity is equipped with Panggu large model, becoming a system-level resident intelligent entity, users can summon Xiaoyi anytime through voice or navigation bar. After becoming a system-level intelligent entity, Xiaoyi's use will be more intelligent and convenient than general AI applications: Screen dialogue recognition, Xiaoyi can answer user questions based on the understanding of the context of the screen content; Drag to Xiaoyi, users can drag items or documents in the application down to the navigation bar, and Xiaoyi can recognize and analyze the text and images; Xiaoyi helps remember, Xiaoyi can record information such as dates, addresses, events, cards, orders, etc., and later Xiaoyi can issue reminders for expiration and use memory information to fill in forms automatically. Native application adaptation exceeds expectations, HarmonyOS ecosystem is basically formed On the application side, head APPs have achieved HarmonyOS native support. The HarmonyOS ecosystem already has more than 15,000 applications and meta-services, which have grown more than ten times since April, far exceeding Huawei's initial target of supporting 5,000 applications. WeChat, TikTok, DingTalk, Taobao, Xiaohongshu, Weibo, and WPS have all released HarmonyOS native versions that can be used in HarmonyOS NEXT. On the user side, HarmonyOS ranks among the top two in the Chinese operating system market, and the number of users in the HarmonyOS ecosystem has already exceeded 1 billion, with the prospect of migrating to HarmonyOS NEXT in the future. On the developer side, the number of HarmonyOS developers has reached 6.75 million. Overall, the HarmonyOS ecosystem is basically formed, and in the mobile end, it is likely to stand alongside iOS, and Android. The formation of the HarmonyOS ecosystem will mean the success of domestically developed operating systems in consumer-level operating systems, marking an important milestone in the information creation industry. In the future, HarmonyOS will become self-sufficient, with various possibilities during the transition period Due to the removal of the Linux kernel and AOSP in HarmonyOS NEXT, it is difficult to run Android applications directly. During the transition period, in order to run Android applications and enrich the application ecosystem, there are several possible approaches: Introducing a virtual machine may simulate the Android environment in the HarmonyOS NEXT system, with the disadvantage of reduced efficiency. In addition, whether the use of virtual machines is allowed depends on Huawei's official attitude. Converting mini-programs into Harmony applications with one click, such as FinClip can integrate WeChat mini-programs into HarmonyOS apps, which can be used for transformation. Open side loading, allowing users to install applications through unofficial channels, bypassing official app store reviews and download restrictions, also depends on the official attitude and laws and regulations (such as Apple being required to allow users in the EU region to install apps through side loading). In the medium to long term, due to differences in underlying technologies such as operating systems and the concept of HarmonyOS multi-terminal interconnection, along with the improvement of the HarmonyOS developer support system, HarmonyOS will become self-sufficient and give birth to more original native applications. The Operating System Conference is held, and the commercial release of the openEuler AI native version is imminent From November 15-16, 2024, the "Intelligent to the World" Operating System Conference & openEuler Summit 2024 will be held in Beijing. openEuler has been open source for 5 years, and by 2023, its market share in China's server operating system has reached 36.8%, with a cumulative installation base of over 10 million sets. At this conference, 8 partners will launch commercial releases based on the openEuler 24.03 LTS (the first AI-native open-source operating system version released in June 2024). Recommended Focus HarmonyOS related: iSoftStone InformatIon Technology (301236.SZ), Jiangsu Hoperun Software (300339.SZ), Shijiazhuang ChangShan BeiMing Technology (000158.SZ), Unionman Technology Co., Ltd. (688609.SH), Beijing Oriental Jicheng (002819.SZ), Talkweb Information System (002261.SZ), Shenzhen Farben Information Technology (300925.SZ), Chipsea Technologies (Shenzhen) Corp., Ltd (688595.SH), Jwipc Technology (001339.SZ), Beyondsoft Corporation (002649.SZ).Euler-related: Hunan Kylinsec Technology (688152.SH), CHINASOFT INT'L (600536.SH), ArcherMind Technology (Nanjing) Co., Ltd. (300598.SZ), and NSFOCUS Information Technology (300369.SZ). Intelligent assistant-related: Iflytek Co., Ltd. (002230.SZ), Edifier Technology (002351.SZ), Kunlun Tech (300418.SZ), CloudWalk Technology (688327.SH), and Shenzhen Transsion Holdings Co., Ltd. (688036.SH). Risk Advisory Technical risks, unexpected application compatibility issues, unforeseen developer ecosystem challenges, supply chain security risks, competitive risks, unexpected product releases, and security and privacy risks.