Core Viewpoint - The launch of the new generation of the Chinese operating system, Galaxy Kirin V11, has catalyzed a significant surge in domestic software stocks, indicating a robust growth potential in the domestic operating system market driven by supportive policies [1][2][6]. Market Performance - On August 26, A-share domestic software concept stocks experienced a collective surge, with the domestic software index reaching a nearly 10-year high. Notable stocks such as Kaipu Cloud, Zhengyuan Wisdom, and Junyi Digital achieved a 20% limit-up, while several others rose over 10% [2][6]. - The "2025 China Operating System Industry Conference" showcased the latest applications of Chinese operating systems across various sectors, including energy, finance, and healthcare [2]. Product Highlights - Galaxy Kirin V11 is the first domestic operating system to exceed one million ecosystems, demonstrating compatibility with major domestic CPUs, GPUs, and boards, and has been deployed in over 16 million sets [3][4]. - Key features of Galaxy Kirin V11 include: 1. Based on Linux Kernel 6.6, accelerating updates for domestic operating systems [4]. 2. Enhanced security measures to protect user privacy [4]. 3. Improved user experience with faster response times and AI upgrades [4]. 4. Collaborative ecosystem development with partners [4]. 5. User-driven product development [4]. Industry Growth Potential - The Chinese operating system market is projected to reach 58.6 billion yuan by 2025, with the software industry expected to maintain a compound annual growth rate of 12%-15% over the next 5-10 years [1][6]. - The software industry in China is anticipated to exceed 15 trillion yuan by 2025 and 20 trillion yuan by 2028 [6]. - The industrial software sector is crucial for the high-quality development of intelligent manufacturing and is expected to experience rapid growth as core technologies advance [6][7]. Policy Support - The Chinese government has emphasized the importance of self-controlled operating systems in national information and cybersecurity strategies, with policies encouraging the procurement of domestic software and hardware [5][6][7]. - The State-owned Assets Supervision and Administration Commission has mandated that by 2027, state-owned enterprises must achieve 100% domestic replacement across the entire industry chain, including chips and operating systems [6].