CMB International released a report stating that the National Development and Reform Commission announced on January 3 the expansion of the national subsidy program to more product categories, including Smart Phones, tablet computers, and smart watches, which was earlier than the market expected. Although some provinces have already begun to expand the subsidy program to Smart Phones/tablet computers since August 2024, it is believed that the announcement of the national subsidy will encourage other provinces to accelerate the implementation of the policy, which will boost the overall replacement demand for Smart Phones in the short term. The bank believes that companies with a higher market share in the China brand/market will benefit, including Xiaomi, SUNNY OPTICAL, Q TECH, BYD Electronics, TONGDA GROUP, AAC TECH, Luxshare Precision Industry, and FIT HON TENG.