[CITIC Securities: AI Applications Still Have Significant Growth Potential] CITIC Securities' research report pointed out that the AI application sector has become the main theme at the start of 2026, with a 19% increase since the beginning of the year, ranking first in the A-share market. We believe that there are still many catalysts for AI applications in the future, and the trend of accelerated implementation of AI applications is expected to continue. The CES 2026 held at the beginning of the year provided an important window to observe the direction of future AI application implementation. On the hardware side, AI is gradually penetrating daily life, with hardware entry forms becoming increasingly diverse, covering major terminals such as automobiles, robots, glasses, and smart home devices, as well as wearable devices and niche categories like smart glasses, rings, headphones, and smart toys. On the software side, advancements in model inference capabilities are driving the accelerated implementation of enterprise-level Agentic AI. Next-generation hardware platforms like Rubin are significantly reducing token and inference costs, which is expected to further accelerate application implementation. Overall, China has advantages in terms of application implementation pace and user scale, and AI applications still have significant growth potential.