ZTE (00763) surged over 8% in early trading. As of press time, the stock was up 5.45% to HK$37.12, with a turnover of HK$1.292 billion. On the news front, ZTE is scheduled to release its 2025 interim report on August 28. Additionally, recent market rumors suggested that ByteDance was developing an AI smartphone called "Doubao Phone." In response to these claims, ByteDance stated that the information was inaccurate. Doubao currently has no plans to launch its own smartphone products. Doubao continues to explore opening up its AI capabilities to various hardware manufacturers, including smartphone makers. During this process, the company will collaborate with partners on comprehensive solution trials, but all collaborations do not involve the development or launch of proprietary smartphone products. Huachuang Securities noted that ByteDance is researching AI smartphones, with ZTE potentially serving as an ODM manufacturer. The firm pointed out that ZTE has accumulated deep technical expertise in hardware design, R&D, and production. Meanwhile, AI technologies like the Doubao large language model, as system-level capabilities, can significantly expand the application boundaries of AI models when integrated into smartphones, enabling implementation across more application scenarios. The firm recommends monitoring related smartphone development progress and the potential market value flexibility that such incremental opportunities could bring to cooperation partners like ZTE.