China Securities Co., Ltd.: Deep sea technology will bring new opportunities for the development of the ocean observation network and ocean optical communication.

China Securities Co., Ltd. released a research report stating that the "Government Work Report 2025" put forward the cultivation and expansion of emerging industries and future industries; deepening the integration and cluster development of strategic emerging industries; carrying out large-scale demonstration actions of new technologies, new products, and new scenarios to promote the safe and healthy development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology. At present, there is no official definition of deep-sea technology, and the company believes that deep-sea technology can be seen as an extension of the marine economy, with the country emphasizing the marine economy in a series of important documents. From the perspective of the telecommunications industry, the company recommends paying attention to the ocean observation network and ocean optical communication. The main points of China Securities Co., Ltd. are as follows: The "Government Work Report 2025" proposes to promote the safe and healthy development of emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology. Currently, there is no clear official definition of deep-sea technology, and the company expects that there may be official documents in the future to provide clarity and deploy strategies for the development of deep-sea technology. The company believes that deep-sea technology can be seen as an extension of the marine economy, with the country emphasizing the marine economy in a series of important documents. From the perspective of the telecommunications industry, the company suggests focusing on the ocean observation network and ocean optical communication. Ocean observation network: The core network for collecting and processing deep-sea information The ocean observation network refers to the grid-like laying of optical-electrical composite cables on the seafloor, connecting different scientific instruments to collect and analyze physical, chemical, biological, and other parameters of the seafloor, thereby achieving long-term real-time continuous measurement of specific marine parameters in a particular sea area, providing reference for the development and utilization of marine resources, disaster warning, scientific research, etc. The ocean observation network consists of coastal stations, sea cables, junction boxes, and seafloor scientific instruments. The construction of ocean observation networks in countries such as the United States, Japan, and Europe is more mature, while China's construction of ocean observation networks started later but has now formed a basic framework covering coastal, offshore, oceanic, and polar ocean observation systems through continuous advancement. Ocean optical communication: Plays a key role in information transmission in deep-sea technology Ocean optical communication systems are important communication infrastructures connecting various countries and regions. They can support international telephone communication, internet access, data transmission, etc. It is mainly divided into land equipment and underwater equipment. Land equipment mainly includes transmission equipment (wave division equipment), network management equipment (system access equipment), power supply equipment, line operation monitoring equipment, etc.; underwater equipment mainly includes submarine optical cables, repeaters, branch devices, etc. As of early 2025, there are over 395 operational submarine communication lines worldwide, with the increasing demand for international connectivity and the replacement peak of the earliest batch of submarine communication cables. It is expected that a new round of high investment and construction of submarine communication cables will enter in the coming years.