On November 21, Huawei officially unveiled and open-sourced its groundbreaking AI container technology, Flex:ai. As per reports, Flex:ai leverages computing power division technology to partition a single GPU (Graphics Processing Unit)/NPU (Neural Processing Unit) computing card into multiple virtual computing units, achieving a precise division granularity of up to 10%.

Container technology, a lightweight virtualization solution, can encapsulate model code, runtime environments, and other essential components into an independent, lightweight image. This enables seamless cross-platform migration and addresses the challenge of inconsistent environmental configurations during model deployment.

A Deep Dive into Huawei's AI Container Ecosystem

Hardware Support Layer: This foundational layer provides the computing power and hardware infrastructure essential for AI containers. For instance, the AI inference server from Xiangjiang Kunpeng, a subsidiary of Topwise Information, supports Huawei's CANN architecture. Powerleader Computing, poised for acquisition by Fullshare Development, ranks among Huawei's top three partners in the Ascend AI server domain. Additionally, Digital China supplies hardware equipment, including servers and switches, for Huawei's AI containers and handles integration and debugging tasks.

Container Cloud Platform Layer: Serving as the backbone for AI container operations, this layer offers platform adaptation and resource management capabilities. QingCloud's KubeSphere container platform seamlessly interfaces with Huawei Cloud's Kubernetes clusters. SED Information Technology has developed an enterprise-level container cloud platform that supports Serverless mode. Meanwhile, CapOnline's intelligent cloud container provides fully managed cluster services tailored to the lightweight needs of small and medium-sized enterprises.

Middleware and Architecture Adaptation Layer: This critical layer bridges the gap between hardware and software, ensuring architecture compatibility. CETC Xindragon's magneto-optical hybrid storage solution compensates for Huawei AI container's limitations in hot data storage. Tongtech's jointly developed domestic middleware is optimized for Huawei Kunpeng and other hardware platforms. Companies like JHSoft and Eastcom have deeply adapted to Huawei's CANN heterogeneous computing architecture, facilitating containerized deployment.

Technical Service Layer: This layer aids in deploying AI containers across diverse industry scenarios, offering customized services such as deployment, operation, and maintenance. iSoftStone has established 20 technical service centers nationwide, serving over 300 enterprises. Yusys Technologies focuses on the financial sector, catering to over 120 financial institutions. China National Software & Services Co.'s computing power scheduling platform enables one-click deployment of container clusters, lowering the entry barrier for enterprises.

Ecosystem and Industry Application Layer: This layer drives technology implementation and expansion into regional and industry-specific scenarios. SinoNet operates offline computing power nodes for Huawei's AI containers, covering 15 provinces. Guizhou Broadcasting Network Co. promotes the integration of Huawei's AI containers with broadcasting 5G and other services in Guizhou. Cloudwalk Technology develops native large models based on Huawei's architecture, driving technology implementation across multiple scenarios.

Profitability Analysis of Enterprises in Huawei's AI Container Ecosystem

Enterprise profitability is typically gauged by the amount and level of earnings over a specific period. Profitability analysis entails a thorough examination of a company's profit margins.

This article, part of the 'Enterprise Value Series' focusing on 'Profitability,' selects 23 enterprises from Huawei's AI container ecosystem as research samples, employing metrics such as return on equity (ROE), gross profit margin, and net profit margin as evaluation criteria.

The data is based on historical performance and does not predict future trends; it is intended for static analysis only and does not constitute investment advice.

No. 10 Topwise Information

Industry Segment: Vertical Application Software

Profitability: ROE -3.96%, Gross Profit Margin 13.95%, Net Profit Margin -2.73%

Performance Forecast: No institutional performance forecasts for the current year

Main Products: Intelligent computing products are the primary revenue source, accounting for 50.44% of revenue, with a gross profit margin of 6.76%

Company Highlights: Topwise Information is a leading provider of integrated software and hardware products and solutions in China. It is one of HUAWEI Cloud's首批紧密合作伙伴 (first batch of closely collaborating partners).

No. 9 JHSoft

Industry Segment: IT Services

Profitability: ROE 4.72%, Gross Profit Margin 23.68%, Net Profit Margin 4.87%

Performance Forecast: ROE has fluctuated between 3%-5% over the past three years, with the latest forecast averaging 5.30%

Main Products: Financial technology services are the primary revenue source, accounting for 53.75% of revenue, with a gross profit margin of 23.01%

Company Highlights: JHSoft's core business is providing comprehensive technology services based on digital solutions to domestic and international clients. The company has launched the HopeContainer container cloud platform software.

No. 8 China National Software & Services Co.

Industry Segment: IT Services

Profitability: ROE -18.94%, Gross Profit Margin 37.42%, Net Profit Margin -5.94%

Performance Forecast: The highest ROE in the past three years was 1.84%, with the latest forecast averaging 3.14%

Main Products: Industry solutions are the primary revenue source, accounting for 42.43% of revenue, with a gross profit margin of 2.25%

Company Highlights: China National Software & Services Co.'s subsidiary, Kylin Software, has ventured into the cloud infrastructure and container cloud operating system domains. Kylin Software is an important partner in Huawei's ecosystem.

No. 7 SuperMap Software

Industry Segment: Vertical Application Software

Profitability: ROE -6.05%, Gross Profit Margin 52.57%, Net Profit Margin -12.03%

Performance Forecast: The highest ROE in the past three years was 5.21%, with the latest forecast averaging 4.75%

Main Products: GIS software is the primary revenue source, accounting for 98.76% of revenue, with a gross profit margin of 52.40%

Company Highlights: SuperMap Software possesses cloud-native GIS technology, providing universal automated orchestration based on Kubernetes and enabling real-time monitoring of all microservice resources.

No. 6 Teamsun Technology Co.

Industry Segment: IT Services

Profitability: ROE 0.56%, Gross Profit Margin 13.08%, Net Profit Margin 1.12%

Performance Forecast: The highest ROE in the past three years was 0.56%, with the latest forecast averaging 5.43%

Main Products: Enterprise IT system solutions are the primary revenue source, accounting for 77.45% of revenue, with a gross profit margin of 9.62%

Company Highlights: Teamsun Technology Co. is a certified software partner and cloud service partner of Huawei Cloud.

No. 5 Guangdong Aofei Data Technology

Industry Segment: Communication Application Value-Added Services

Profitability: ROE 3.92%, Gross Profit Margin 26.40%, Net Profit Margin 5.88%

Performance Forecast: ROE has continuously declined to 3.92% over the past three years, with the latest forecast averaging 5.18%

Main Products: IDC services are the primary revenue source, accounting for 64.05% of revenue, with a gross profit margin of 29.70%

Company Highlights: Guangdong Aofei Data Technology's core business is providing comprehensive solutions for internet cloud computing and big data infrastructure services. Its software copyrights include an AI container storage application platform.

No. 4 Fullshare Development

Industry Segment: IT Services

Profitability: ROE 6.41%, Gross Profit Margin 23.81%, Net Profit Margin 4.04%

Performance Forecast: ROE has continuously declined to 6.41% over the past three years, with the latest forecast averaging 8.86%

Main Products: Software technology services are the primary revenue source, accounting for 61.62% of revenue, with a gross profit margin of 22.99%

Company Highlights: Fullshare Development's main business encompasses software technology services, professional technology services, and product and solution services. The company has completed the development of a container cloud platform system.

No. 3 Digital China

Industry Segment: IT Services

Profitability: ROE 8.47%, Gross Profit Margin 4.21%, Net Profit Margin 0.61%

Performance Forecast: ROE has continuously declined to 8.47% over the past three years, with the latest forecast averaging 10.54%

Main Products: The consumer electronics business is the primary revenue source, accounting for 65.49% of revenue, with a gross profit margin of 1.86%

Company Highlights: Digital China's main business includes IT distribution and value-added services, sales of own-brand products, digital cloud services, and software. The company has launched the first open-source container cloud distribution based on the Kunpeng environment.

No. 2 CETC Digital

Industry Segment: IT Services

Profitability: ROE 11.98%, Gross Profit Margin 19.19%, Net Profit Margin 5.10%

Performance Forecast: ROE has fluctuated between 11%-14% over the past three years, with the latest forecast averaging 11.61%

Main Products: Industry digitization is the primary revenue source, accounting for 85.67% of revenue, with a gross profit margin of 16.89%

Company Highlights: CETC Digital operates the Huaxun Container Cloud Platform, and its wholly-owned subsidiary, Huaxun Network, has obtained high-level partner qualifications from Huawei Cloud.

No. 1 Bee Assistant

Industry Segment: Communication Application Value-Added Services

Profitability: ROE 7.77%, Gross Profit Margin 21.58%, Net Profit Margin 8.66%

Performance Forecast: ROE has continuously declined to 7.77% over the past three years, with the latest forecast averaging 10.63%

Main Products: Digital commodity integrated operations are the primary revenue source, accounting for 86.61% of revenue, with a gross profit margin of 18.67%

Company Highlights: Container virtualization is one of Bee Assistant's core technologies. In the future, the company will strengthen its product-level technology cooperation with HUAWEI.