【Top Story】China's AI Power Consumption Set to Soar, Spotlight on Computing-Power Synergy With the official implementation of the "Action Plan for Promoting Mutual Empowerment of Artificial Intelligence and Energy," policy and market forces are creating a powerful synergy, accelerating the shift of computing-power synergy from an industrial concept to tangible reality. Leveraging the opportunity presented by the "East Data, West Computing" project, the country's first large-scale green power direct supply project for computing-power synergy—the 500,000-kilowatt photovoltaic power station at Datang Zhongwei Cloud Base—has been successfully put into operation. This project has successfully established a channel for delivering clean wind and solar energy directly to computing parks, achieving multiple benefits including traceable green power sourcing, reduced electricity costs for computing power, and lower grid transformation costs. Computing power has become a significant future consumer of electricity. A UBS research report indicates that China's AI and data center electricity consumption in 2025 is projected to be 235 TWh (terawatt-hours), accounting for 2.25% of the nation's total electricity consumption. This proportion is expected to begin a gradual increase thereafter. (Note: 1 TWh = 1 billion kWh) UBS forecasts that over the five-year period from 2026 to 2030, AI and data center electricity consumption is projected to be 279 TWh, 336 TWh, 587 TWh, 881 TWh, and 1233 TWh, respectively, representing 2.52%, 2.86%, 4.63%, 6.42%, and 8.28% of total societal electricity consumption. The UBS report highlights that in 2028 specifically, AI power consumption is expected to surge by 75% year-on-year compared to 2027, marking a significant leap. Although the growth rates for 2029 and 2030 are expected to moderate, they are still projected to be 50% and 40%, respectively. Based on comprehensive institutional research, the focus of computing-power synergy primarily lies in power equipment, grid upgrades, direct green power connections, supporting energy storage, and IDC operation and services.
【Market Outlook】Overnight U.S. Stocks Mixed, Major Tech Stocks Mostly Higher At the close of overnight U.S. trading, the Dow Jones Industrial Average fell 67.36 points to 49,693.2, a decline of 0.14%. The S&P 500 index gained 43.29 points to 7,444.25, up 0.58%. The Nasdaq Composite Index rose 314.14 points to 26,402.34, an increase of 1.2%. Major technology stocks were mostly higher, with Alphabet up nearly 4%, and Meta, Tesla, and NVIDIA all gaining over 2%. The optical communications sector also saw broad gains, with Coherent up nearly 8%, Corning up over 4%, and Lumentum rising more than 3%. Most popular Chinese concept stocks advanced, with the Nasdaq Golden Dragon China Index climbing 3.89%. 21Vianet surged over 25%, Kingsoft Cloud jumped more than 17%, Hesai Group gained over 12%, and Meihua Chuangfu rose over 9%. Alibaba and Maishi Zhineng both increased over 8%, while Baidu, NIO, and JD.com all advanced more than 7%. Tencent ADRs rose nearly 5%. The Hang Seng Index ADR also rose. On a proportional basis, it closed at 26,901.14 points, up 512.70 points or 1.94% from the Hong Kong close. The front-month WTI crude oil futures contract on the New York Mercantile Exchange fell $1.18 to $101.0 per barrel, a drop of 1.15%. The front-month COMEX gold futures contract rose $10.40, or 0.22%, to $4,697.1 per ounce. The front-month COMEX silver futures contract gained $2.56, or 3.00%, to $88.155 per ounce.
【Hotspot Preview】 CTF SERVICES (00659) Plans to Sell 100% Stake in Hunan CTF Services Highway Co., Ltd. for 1.61 Billion Yuan CTF SERVICES (00659) announced that on May 13, 2026, its indirect wholly-owned subsidiary, CTF Services Investment Co., Ltd., intends to sell a 60% and a 40% stake in Hunan CTF Services Highway Co., Ltd. to Shanghai Infrastructure Construction Development (Group) Co., Ltd. and Shanghai Urban Construction (Guangdong) Construction Development Co., Ltd., respectively, for a total consideration of approximately 1.61 billion yuan. Upon completion of the sale, the existing bank borrowings of the target company remain outstanding and will continue to be borne by the target company. As of the date of the announcement, the outstanding principal amount of these bank borrowings is approximately 2.11 billion yuan.
FOSUN PHARMA (02196) Wholly-Owned Subsidiary Granted Exclusive Option for Alzheimer's Drug by AriBio On May 13, 2026, Fosun Pharma Industrial signed an "Exclusive Option Agreement" with AriBio, granting Fosun Pharma Industrial an exclusive option. According to the agreement, AriBio shall provide all topline data to Fosun Pharma Industrial upon completion of the global multi-center Phase III clinical trial (POLARIS-AD study) for the licensed product (for the treatment of early Alzheimer's disease). Fosun Pharma Industrial has the right to decide whether to exercise this exclusive option no later than 90 natural days after the provision of such topline data.
S.F.Holding Co.,Ltd. (002352) Adjusts Conversion Price for 2026 Convertible Bonds to HK$47.43 S.F.Holding Co.,Ltd. announced that due to the distribution of the 2025 interim and final dividends, the conversion price for the HK$2.95 billion zero-coupon guaranteed convertible bonds due 2026 will be adjusted from HK$48.47 per H-share to HK$47.43 per H-share, effective May 19, 2026. After the adjustment, upon full conversion of the unconverted bonds at the adjusted conversion price, the maximum number of conversion shares to be issued will be 62,196,900 H-shares, an increase of 1,337,700 shares compared to the initial conversion price. The company will apply for the listing and trading of the additional conversion shares on the Hong Kong Stock Exchange.
HASH DIGITAL INVESTMENT LIMITED Increases Stake in INKEVERSE (03700) by Approximately 290 Million Shares at Average Price of HK$0.72 Latest data from the Hong Kong Stock Exchange shows that on May 7, HASH DIGITAL INVESTMENT LIMITED increased its stake in INKEVERSE (03700) by 290.06 million shares at an average price of HK$0.72 per share, with a total consideration of approximately HK$209 million. After the increase, the latest shareholding stands at 290.06 million shares, representing a 14.97% stake.
BABA-W (09988) Releases Annual Results: Revenue of 1,023.67 Billion Yuan, Up 3% Year-on-Year BABA-W (09988) announced its results for the quarter ended March 31, 2026. The group achieved revenue of 243.38 billion yuan, a year-on-year increase of 3%. Excluding revenue from disposed businesses such as RT-Mart and Intime, revenue on a like-for-like basis would have grown 11% year-on-year. Profit attributable to ordinary shareholders was 25.476 billion yuan. Net profit was 23.502 billion yuan, up 96% year-on-year. Diluted earnings per American Depositary Share were 10.36 yuan. For the financial year ended March 31, 2026, the group achieved revenue of 1,023.67 billion yuan, a year-on-year increase of 3%. Excluding revenue from disposed businesses, revenue on a like-for-like basis would have grown 11% year-on-year. Profit attributable to ordinary shareholders was 105.904 billion yuan. Net profit was 102.127 billion yuan, down 19% year-on-year. Diluted earnings per American Depositary Share were 44.00 yuan. An Alibaba executive stated that due to accelerated investment in expanding computing capacity, the company will exceed its initial capital expenditure plan of 380 billion yuan. By 2033, the required computing power scale is expected to be 10 times that of 2022.
TENCENT (00700) Reports Steady Growth in Q1 Revenue and Profit; Non-IFRS Profit Attributable to Equity Holders at 67.905 Billion Yuan, Up 11% Year-on-Year TENCENT (00700) announced its first-quarter 2026 results, with revenue reaching approximately 196.458 billion yuan, a year-on-year increase of 9% and a sequential increase of 1%. Gross profit was 111.265 billion yuan, up 11% year-on-year and 3% sequentially. Profit attributable to equity holders was 58.093 billion yuan, an increase of 21% year-on-year but a slight sequential decrease of 0.3%. Non-IFRS profit attributable to equity holders was 67.905 billion yuan, up 11% year-on-year and 5% sequentially. Basic earnings per share were 6.431 yuan.
POU SHENG INT'L (03813) Reports Q1 Profit Attributable to Shareholders of 183 Million Yuan, Up 32.5% Year-on-Year POU SHENG INT'L (03813) released its results for the three months ended March 31, 2026. Operating revenue was 5.051 billion yuan, down 1.1% year-on-year. Profit attributable to owners of the company was 183 million yuan, an increase of 32.5% year-on-year.
【Stock Spotlight】 TCL ELECTRONICS (01070) Q1 Adjusted Net Profit Attributable to Parent Reaches 384 Million HKD, Up 140.0% Year-on-Year TCL ELECTRONICS (01070) announced its results for the three months ended March 31, 2026. In the first quarter of 2026, the group achieved total revenue of 29.225 billion HKD, a 15.3% increase compared to the same period in 2025. Domestic and overseas revenue accounted for 39.0% and 61.0%, respectively. Benefiting from the continuous improvement in the product mix of the TCL TV business and the accelerated expansion of the highly profitable overseas internet business, the group's gross profit increased by 27.6% year-on-year to approximately 4.719 billion HKD. The gross profit margin improved by 1.5 percentage points year-on-year to 16.1%. In the first quarter of 2026, the group's post-tax profit surged 236.0% year-on-year to 392 million HKD, while adjusted net profit attributable to the parent company jumped 140.0% year-on-year to 384 million HKD, indicating significantly enhanced profitability. Additionally, the group announced after the trading session on March 31, 2026, that it had signed a legally binding final agreement with Sony for strategic cooperation in the home entertainment field. In the future, the two parties will jointly build a new global home entertainment ecosystem through a joint venture, further deepening the group's strategic layout in the global mid-to-high-end market.
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