Summary of the Conference Call on the Xinchuang and Industrial Software Industry Industry Overview - The Xinchuang industry in China is set to achieve complete replacement goals for party and government systems by 2027, with a target to narrow the gap in basic software and hardware levels with international standards to within two years [1][4] - The industry is expected to establish domestic production capabilities for Anke CPU chips [1] - In 2025, state-owned enterprises are required to procure over 80% of new infrastructure from domestic sources, with clear indicators for replacing existing systems [1] Key Points and Arguments - The Xinchuang industry faces challenges due to the diversity of technology paths, including multiple operating systems and CPUs, leading to resource wastage [1][5] - A potential unification of operating systems is proposed, with Euler for servers and Harmony for non-server applications [6] - The U.S. industrial software market holds a monopoly globally, and any supply disruptions could severely impact Chinese manufacturing [7] - The next phase of the Xinchuang industry will focus on promoting self-controllable and AI-integrated manufacturing, with a clear emphasis on domestic production rates [7][8] Progress and Achievements - Significant progress has been made in the Xinchuang industry, with notable achievements in domestic software market share exceeding 50% in certain areas, such as DCS and small PLCs [22] - Companies like Zhongsoft, Dameng, and Taiji have reported impressive revenue and profit growth, indicating a strong growth trajectory for the industry [4] Challenges and Solutions - The primary challenge remains the technical diversity, which leads to inefficiencies in adaptation processes [5] - A unified operating system approach is suggested to streamline processes and enhance productivity [6] Industrial Software Importance - The importance of industrial software is underscored by the U.S. restrictions, which highlight the need for China to maintain its manufacturing edge [7] - The promotion of AI in manufacturing is seen as a critical step for the Xinchuang industry, with a focus on establishing clear domestic production rates [7][9] Policy and Strategic Directions - China is leveraging policy guidance to support domestic AI frameworks and promote the use of local operating systems [8] - The "14th Five-Year Plan" may include significant projects for lighthouse factories, presenting major opportunities for service providers [9] Company Performances - Nengke Technology is positioned as a leader in the industrial software sector, with a low valuation and significant growth potential [10] - Dongtu Technology is recognized as a key player in the industrial operating system space, recently securing large orders [11] - Rongzhixing excels in the PHM field, showcasing strong market positioning [12] - Zhongwang, as a leader in the CAD industry, is expected to benefit from policy support [14] Cloud Computing and Software Development - Domestic cloud computing foundational software is crucial for resource management and virtualization, with major players including Alibaba, Tencent, and Huawei [15] - U.S. restrictions on key software exports are anticipated to accelerate the domestic software development process [16] Industrial AI Development - Industrial AI is gaining traction, with significant advancements in large models and intelligent agents, emphasizing customization and automation in production processes [19] - The global market for industrial AI is projected to reach $150 billion by 2030, with applications in various sectors [17] Conclusion - The Xinchuang and industrial software sectors in China are poised for significant growth, driven by domestic policy support, technological advancements, and a focus on self-sufficiency in the face of external pressures [20][21]

Market Overview - Market sentiment regarding trade issues has eased, leading to a rise in US stock futures, with S&P 500 and Nasdaq futures up over 1% [1] - Bitcoin rebounded to over $115,000, gaining more than 6% from its daily low, while Ethereum approached $4,200, rebounding over 10% [1] Key News - The Chinese Ministry of Commerce responded to the US's 301 investigation into Chinese shipbuilding, stating that China's export controls on rare earths are not prohibitions and urging the US to correct its mistakes [10][11] - Qualcomm is under investigation by China's market regulator for alleged antitrust violations related to its acquisition of Autotalks [12] - The Dutch government has taken action against the semiconductor company Nexperia, limiting Chinese ownership and control [18] Market Performance - US stock markets saw significant declines, with the S&P 500 down 2.71% and the Nasdaq down 3.56% for the week [5] - In the commodities market, WTI crude oil futures fell 4.24% to $58.90 per barrel, while Brent crude dropped 3.82% to $62.73 per barrel [5] Company Developments - HashKey Group, Hong Kong's largest licensed cryptocurrency exchange, is considering an IPO with a valuation of up to $500 million [20] - Figure 03, a robot capable of performing various household tasks, aims to produce 100,000 units in four years, leveraging advanced AI technology [21] Industry Trends - Shanghai is accelerating the development of industries such as silicon photonics, 6G, and fourth-generation semiconductors [12] - The Chinese government is promoting the deployment of AI models in the public sector to enhance service capabilities and data governance [19]

Market Overview - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The US stock market opened high but closed lower, with the Dow Jones dropping 243 points or 0.5% to 46,358 points [2] - The market saw a decrease in trading volume, with Hong Kong's total turnover falling to 82.799 billion [1] Sector Performance - In the Hong Kong market, local real estate, software, and 5G sectors faced significant declines, while gold stocks performed well [1] - The semiconductor industry saw notable declines, with companies like Hua Hong Semiconductor and SMIC both dropping over 6% [1] - The pharmaceutical sector experienced a major pullback, with notable declines in stocks such as Innovent Biologics and Crystal International, both falling over 10% [1] Investment Opportunities - The report highlights the potential of domestic GPU chips as a mainstream application in computing power, suggesting a sustained positive outlook for the related industry chain [3] - It recommends focusing on sectors such as artificial intelligence, semiconductors, and industrial software, which are seen as new productivity drivers [3] - The report also suggests investing in state-owned enterprises with relatively low valuations and high dividends, as well as upstream non-ferrous metals benefiting from expectations of interest rate cuts by the Federal Reserve [3] Company Highlights - ZTE Corporation saw a significant increase of 12.4% in its stock price following the overseas launch of its Co-Sight super intelligent system [3] - The report emphasizes the valuation attractiveness of ZTE as a leading technology company amidst market volatility [3] Economic Indicators - The report notes that the global copper production is expected to grow by 1.4% in 2025, with refined copper consumption projected to increase by approximately 3% [9] - The real estate market in Shenzhen has shown signs of recovery, with new residential sales increasing by 23.48% year-on-year [9]

Core Insights - Jinan is emerging as a significant player in China's software industry, with software business revenue accounting for 4.2% of the national total and 40.5% of Shandong province's total in 2024, highlighting its growing influence in the digital economy [1] - The city has established a robust industrial structure focusing on high-end software, with 18.61% of its software revenue coming from this sector, and aims to enhance its software capabilities through innovation and collaboration [1] Group 1: Basic Software - Basic software serves as the foundation for information systems, with middleware acting as a crucial link between operating systems and applications [2] - Zhongchuang Software has become a leading domestic provider of basic software services, having developed middleware since 1998 and recently listed on the STAR Market in 2024 [2] - The company holds 168 national invention patents and has played a significant role in setting national standards, demonstrating its commitment to innovation in the basic software sector [2][3] Group 2: Industrial Software - Industrial software is identified as the core engine for the digital transformation of manufacturing, with Jinan's industrial software revenue projected to account for 11.9% of the national total in 2024 [4] - Companies like Huatiansoft have made significant advancements in 3D CAD software, breaking foreign monopolies and developing proprietary technologies that support various high-end manufacturing sectors [4] - The establishment of the Jinan Industrial Software Research Institute aims to foster collaboration among major enterprises and accelerate the application of domestic industrial software in key industries [5] Group 3: Emerging Software - Emerging software is gaining traction in the digital economy, with Shandong Expressway Information Group developing a smart traffic management system that predicts congestion events with 90% accuracy [6][7] - The company has created over 200 software and hardware products, receiving recognition for its high-end software solutions and contributing to the development of a collaborative industrial chain [7] - Other companies like Inspur Cloud and Jin Modern are leveraging cutting-edge technologies such as AI and cloud computing to drive innovation in the emerging software sector [7] Group 4: Future Development - Jinan's high-end software industry is structured around a "core-led, multi-park support" model, with key districts identified for focused development [8] - The city plans to enhance its software industry over the next three years by optimizing its ecosystem through talent services, open-source development, and promoting excellent products [8]

Core Insights - The article highlights the emergence of the software and gaming industry in Guangzhou's Keyun Road area, which has become a hub for over 20 well-known gaming companies and is referred to as the "Huangpu Military Academy" of China's gaming industry [1][2] - The establishment of the "Keyun Bay" software talent home aims to support the software industry and enhance talent services in the region, contributing to the high-quality development of Tianhe District [2][3] Group 1: Industry Development - Keyun Road has produced a significant number of gaming industry leaders, with over 75% of gaming company founders or executives originating from this area [1] - The software industry in Tianhe District is projected to generate over 235 billion yuan in revenue by 2024, ranking fifth among urban districts in China [2] - The digital cultural and creative industry in the region has surpassed 111.6 billion yuan, forming a comprehensive industry chain from research and development to international expansion [2] Group 2: Talent and Policy Initiatives - The "Keyun Bay" software talent home is part of a broader initiative to create a supportive environment for software talent, enhancing the integration of talent and industry [2][3] - Tianhe District has introduced the "12126" modern industrial system, which includes software and internet industries as strategic emerging sectors [3] - The district plans to invest 500 million yuan over three years to support talent and industry development through targeted policies [3] Group 3: Community and Service Enhancements - The "Keyun Bay" initiative aims to create a "harbor-style" service matrix that addresses the comprehensive needs of talent in areas such as living, working, and personal development [3][4] - Activities like the "Keyun Road Spirit Citywalk" are designed to promote local culture and community engagement, enhancing the area's appeal [4]

Group 1 - The core point of the article is that Suochen Technology (688507.SH) plans to acquire 60% equity of Likong Technology from 10 shareholders, marking a significant asset restructuring with a transaction price of 192 million yuan [1] - The acquisition will allow Suochen Technology to enhance its capabilities in providing comprehensive lifecycle solutions from research and design to production manufacturing [1] - Likong Technology has over 20 years of experience in the SCADA software field, contributing to the digital and intelligent transformation of key manufacturing sectors [1] Group 2 - The acquisition is expected to drive innovation breakthroughs in physical AI and contribute to the high-quality development of China's industrial software sector [1] - The transaction will result in Likong Technology becoming a secondary holding subsidiary of Suochen Technology [1] - The deal emphasizes the importance of stable processes, efficient operations, precise control, and safety assurance in intelligent production management systems for manufacturing clients [1]

Core Viewpoint - 华大九天's stock price has shown fluctuations, with a slight increase year-to-date but a notable decline over the past 20 days, indicating potential volatility in investor sentiment and market performance [1][2]. Financial Performance - For the first half of 2025, 华大九天 reported revenue of 5.02 billion yuan, reflecting a year-on-year growth of 13.01%. However, the net profit attributable to shareholders was only 306.79 million yuan, a significant decrease of 91.90% compared to the previous period [2]. - Cumulative cash dividends since the A-share listing amount to 2.44 billion yuan, indicating a commitment to returning value to shareholders [3]. Shareholder and Market Activity - As of June 30, 2025, the number of shareholders decreased by 8.11% to 37,700, while the average number of circulating shares per person increased by 8.82% to 6,948 shares [2]. - The stock experienced a net outflow of 28.04 million yuan in principal funds, with significant selling pressure observed [1]. Company Overview - 华大九天, established on May 26, 2009, and listed on July 29, 2022, specializes in the development and sales of EDA tools for integrated circuit design and manufacturing, with 82.57% of its revenue coming from EDA software sales [1]. - The company operates within the computer software development sector, focusing on vertical application software, and is associated with several concepts including EDA,信创, and advanced packaging [1].

Core Viewpoint - Zhongkong Technology's stock has shown a positive trend with a year-to-date increase of 8.96%, reflecting strong market interest and performance in the automation and smart manufacturing sector [1][2]. Company Overview - Zhongkong Technology Co., Ltd. is based in Hangzhou, Zhejiang Province, and was established on December 7, 1999. It was listed on November 24, 2020. The company specializes in providing automation control systems and solutions for process industries, focusing on enhancing automation, digitalization, and intelligent management in industrial production [1]. Financial Performance - For the first half of 2025, Zhongkong Technology reported a revenue of 3.83 billion yuan, a year-on-year decrease of 9.92%. The net profit attributable to shareholders was 354 million yuan, down 31.46% compared to the previous year [2]. - The company has distributed a total of 1.82 billion yuan in dividends since its A-share listing, with 1.52 billion yuan distributed over the last three years [3]. Stock Market Activity - As of September 29, Zhongkong Technology's stock price was 53.35 yuan per share, with a market capitalization of 42.21 billion yuan. The stock experienced a net inflow of 32.40 million yuan from major funds [1]. - The stock has seen a 5.37% increase over the last five trading days and a 20.54% increase over the last 60 days [1]. Shareholder Structure - As of June 30, 2025, the number of shareholders increased to 39,900, with an average of 19,609 shares held per shareholder, a decrease of 1.21% from the previous period. Major shareholders include Hong Kong Central Clearing Limited and various ETFs [2][3].

Core Viewpoint - The article discusses the emergence of an industrial software company in Shanghai that is set to go public, with significant backing from major players like Huawei and BYD, and highlights the appointment of a former Microsoft employee as the chairman [2] Group 1: Company Overview - The industrial software company is preparing for an IPO, indicating a growing trend in the tech sector within China [2] - The involvement of Huawei and BYD suggests strong confidence in the company's potential and the industrial software market [2] Group 2: Leadership and Management - A former Microsoft employee has been appointed as the chairman, which may bring valuable experience and insights from a leading global tech company [2]

Core Viewpoint - The article discusses the IPO of an industrial software company in Shanghai, backed by Huawei and BYD, with a former Microsoft employee appointed as chairman [1] Group 1: Company Overview - The industrial software company is positioned to leverage the growing demand for digital transformation in various industries [1] - The involvement of major players like Huawei and BYD indicates strong market confidence and potential for growth [1] Group 2: Leadership and Management - The new chairman, a former Microsoft employee, brings significant experience and expertise in technology and management [1] - This leadership change is expected to enhance the company's strategic direction and operational efficiency [1] Group 3: Market Context - The article highlights the increasing trend of industrial software solutions in China, driven by advancements in technology and the need for automation [1] - The IPO is seen as a reflection of the robust investment climate in the tech sector, particularly in software development [1]