Tianfeng Securities observes a promising dual resonance between model advancements and application implementations within China's AI sector. Firstly, domestic AI models are witnessing continuous enhancement in capabilities. Notably, DeepSeek has launched its V3.1 version, emphasizing improvements in code comprehension and Agent task execution. These dual breakthroughs in model capabilities and hardware adaptability signify that domestic AI firms are establishing an industrial paradigm centered on collaborative optimization across 'models, chips, and applications.' Secondly, the commercialization of AI applications in Hong Kong stocks has notably accelerated, as evidenced by internet company financial reports showcasing substantial returns from AI investments. The global and domestic resonance in the AI sphere is anticipated to catalyze rapid iteration within China's AI application ecosystem and further propel the commercialization of AI technologies in the country.