Financial Update: INESA Intelligent Tech Inc. and Market Trends
Market Overview
On April 25, 2025, the A-share market experienced a significant surge, with indices such as the ChiNext 50, ChiNext Growth, ChiNext Index, and the Northern 50 leading the charge. The telecommunications and real estate sectors were among the top performers, with the optical communication and optical module (CPO) concepts showing notable activity. The Cloud Computing 50 ETF (516630) saw a rise of over 2% in the afternoon, driven by increased demand for AI computing power.
Key Performers
Among the ETF’s holdings, companies like Tewoo Information, Yunsei Zhilian, Xindao Software, Xin Yisheng, and Zhongji Xuchuang stood out with significant gains. Zhongji Xuchuang reported a 37.82% year-over-year increase in revenue, reaching 66.74 billion yuan for the first quarter of 2025, while net profit surged by 56.83%. Xin Yisheng’s revenue for the same period was 40.52 billion yuan, marking a 264.13% increase, with net profit rising by 384.54%.
Industry Insights
Mingsheng Securities highlighted that Zhongji Xuchuang’s impressive growth was largely due to increased capital expenditures by key clients, boosting investments in high-end computing infrastructure. This led to a significant rise in shipments of 400G/800G products. Similarly, Xin Yisheng’s revenue growth in 2024 and the first quarter of 2025 was driven by AI-driven investments from downstream clients, enhancing demand for high-end optical modules.
ETF Composition and Performance
The Cloud Computing 50 ETF (516630) is noted for its high AI computing power content, covering sectors such as optical modules & devices, power leasing (IDC), data storage, servers, and liquid cooling. The ETF also has a substantial presence of DeepSeek concept stocks, with a 42.9% inclusion rate according to Huachuang Securities. The ETF’s management fee is 0.15%, with a custody fee of 0.05%, totaling a competitive 0.2% fee rate.
Power Leasing Concept
The power leasing concept continued to gain traction, with Tewoo Information hitting a price limit. Prior to this, companies like Hongbo Stock, Tianyu Science, Hengbo, Yunsei Zhilian, Maixinlin, Parallel Technology, Tongniu Information, and Youke De also saw significant gains.
Conclusion
The market’s focus on AI and computing power has driven substantial growth in related sectors, with companies like INESA Intelligent Tech Inc. benefiting from increased demand for their IT services and electronic components. The Cloud Computing 50 ETF remains a key player, reflecting the broader market trends and investor interest in AI-driven technologies.