Summary of Guorui Technology Conference Call Company Overview - Guorui Technology's core business includes radar systems and subsystems, with revenue of 2.673 billion yuan in 2024, accounting for 79% of total revenue, where military products contribute 75% and 82% of gross profit [2][6][7]. Financial Performance - Guorui Defense is the main profit source, with a net profit of 561 million yuan in 2024, representing 89% of total profits and an increase in net profit margin from 18.91% in 2020 to 28.12% in 2024, indicating significant improvement in profitability [2][6][9]. - Overall revenue for 2024 is projected at 3.4 billion yuan, a 36% increase year-on-year, with a net profit of 630 million yuan, up 5.1% [6][20]. Business Segments - **Radar Systems and Subsystems**: Contributes 2.673 billion yuan in revenue, with military products accounting for 75% of this segment [2][7]. - **Industrial Software**: Managed by Guorui Xinwei, expected revenue of approximately 400 million yuan and net profit of 60 million yuan in 2024 [2][5]. - **Rail Transit**: Revenue projected at 800 million yuan with a net profit of 27 million yuan in 2024, but facing a contraction due to industry cycles [2][17]. Market Expansion and Orders - Expansion into Middle Eastern markets is expected to enhance product pricing and profitability due to improved customer structure [2][10]. - A significant military trade order with Electric Science International is anticipated to generate 3 billion yuan in sales in 2025, a 33% increase year-on-year [2][19]. Future Outlook - The company is expected to achieve a net profit of around 1 billion yuan by 2027, with a mid-term market value target of 50 billion yuan, indicating a potential upside of approximately 30% [3][20]. - The improvement in customer structure and global military demand is expected to drive further growth in revenue and profitability [10]. Industry Context - The radar industry in China has reached the fourth generation, with Guorui Technology benefiting from strong technical capabilities and a diverse product range, including military and civilian applications [11]. - Radar products are crucial for air defense systems, with various types of radar contributing to a multi-layered defense structure [12]. Competitive Landscape - Guorui Technology differentiates itself from competitors like Sichuan Aerospace and Four Creation Electronics by covering a broader range of military and civilian applications without direct competition [15][16]. Additional Insights - The industrial software segment is being actively developed, with partnerships with leading companies in the industry to drive growth [18]. - The rail transit business, while stable, lacks future growth potential due to the end of the capital expenditure phase in the industry [17].

Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Insights - The company is a leading provider of data and intelligent solutions in the industrial software sector, focusing on digital transformation services for manufacturing and distribution industries. It has a comprehensive product matrix covering key industrial software areas, including PLM, MES, and ERP, with a strong emphasis on AI integration [5][12]. - The company has experienced steady revenue growth, with a reported revenue of 1.614 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 2.63%. The net profit attributable to shareholders was 51 million yuan, up 2.40% year-on-year [21][24]. - The company is positioned to benefit from the acceleration of domestic industrial software localization due to external pressures, such as U.S. technology restrictions, which have highlighted the urgency for self-sufficiency in industrial software [42][43]. Summary by Sections 1. Leading Provider of Intelligent Solutions - The company has over 40 years of experience and has become a leading provider of intelligent solutions in China, serving over 50,000 clients across various industries, including equipment manufacturing and automotive parts [5][12]. - The company has expanded its operations to regions such as Taiwan, Vietnam, and Thailand, and has developed a robust product offering that integrates AI and cloud computing technologies [12][15]. 2. Acceleration of Domestic Software Localization - The report highlights significant opportunities for domestic industrial software localization, driven by external disruptions and the need for self-sufficiency in critical software areas [32][42]. - The company has developed a complete product matrix with fully controllable source code and core algorithms, addressing the urgent demand for supply chain security and software autonomy in manufacturing [48]. 3. AI-Driven Demand in Industrial Software - The integration of AI into industrial software is accelerating, with the company actively exploring AI applications and launching innovative AI Agent solutions that enhance operational efficiency for clients [3][5]. - The company's AI-related business revenue grew by 125.91% year-on-year as of mid-2025, indicating successful commercialization of AI applications [5][21]. 4. Investment Strategy - The report suggests that the company is well-positioned to benefit from the ongoing trends in industrial software localization and the integration of AI technologies, with projected earnings per share (EPS) of 0.63, 0.75, and 0.93 yuan for 2025, 2026, and 2027, respectively [5][21].

Group 1 - The company plans to issue convertible bonds to raise funds not exceeding RMB 115,121.30 million, with an intended investment of RMB 82,766.42 million in various projects [1] - The company will initially use self-raised funds for investment projects before the raised funds are available, and will adjust the investment projects based on the actual amount raised [1] Group 2 - The software and information technology service industry in China is experiencing stable growth, with software business revenue reaching RMB 137,276 billion in 2024 and RMB 31,479 billion in the first quarter of 2025 [2] - The global industrial software market is also growing steadily, driven by the manufacturing sector, with significant contributions from North America and Europe [2] Group 3 - The Chinese industrial software market is expected to grow rapidly due to supportive policies, industrial upgrades, and the trend of domestic substitution [2][7] - The government has issued multiple policies to support the development of the industrial software industry, creating a favorable environment for growth [5][15] Group 4 - The company is developing a Digiwin Intelligent Empowerment Platform with a total investment of RMB 101,121.30 million, aimed at enhancing digital capabilities for enterprises [11] - The project aligns with national strategies for digital transformation and aims to meet market demands by providing a comprehensive digital ecosystem [12][19] Group 5 - The project will enhance the company's core competitiveness by focusing on customer needs and developing intelligent solutions for the manufacturing sector [12][13] - The establishment of a training base will improve customer service and product application, thereby increasing market share and brand influence [14][19] Group 6 - The company plans to allocate RMB 14,000 million from the raised funds to supplement working capital, which is essential for supporting business expansion and R&D investments [17][18] - This funding will enhance the company's financial structure and improve its ability to sustain growth in a competitive market [18][19]

Core Viewpoint - The article discusses the significant rise of China's industrial software sector, highlighting its transition from reliance on foreign imports to a growing domestic market with increasing innovation and market share [2][11]. Group 1: Current State of Industrial Software - In 2019, 95% of R&D design industrial software in China relied on imports, indicating a significant dependency on foreign technology [2]. - As of 2024, domestic software's market share in the PLM sector has reached 30%, with plans to replace 200,000 sets of industrial software with domestic alternatives by 2027 [3][12]. - The industrial software market is crucial for enhancing product development, production efficiency, and resource optimization in various sectors, including manufacturing and aerospace [7]. Group 2: Historical Context - China's industrial software industry faced a decline over the past 20 years due to competition from foreign giants and the prevalence of pirated software [9][10]. - The 1990s saw the emergence of several domestic software companies, but the market share of domestic software continued to decrease, with EDA software's domestic rate at only 5% by 2020 [9][10]. Group 3: Recent Developments and Opportunities - The demand for domestic software has surged due to geopolitical factors and government policies promoting local innovation [12]. - Many state-owned and private enterprises are increasingly willing to collaborate with domestic software providers, creating new opportunities for growth [12][13]. - The rise of AI technologies is accelerating the development and adoption of domestic industrial software, allowing for more flexible and efficient solutions [30]. Group 4: Investment Strategies - Companies like 汇川技术 (Inovance Technology) are actively investing in the industrial software sector, having invested in eight companies since 2021 [3][18]. - The investment strategy focuses on long-term growth, with a typical industrial software company requiring 5-10 years to establish a sustainable business model [19][21]. - Successful investments are characterized by teams with deep industry knowledge and a commitment to long-term development [21][23]. Group 5: Future Outlook - The integration of AI into industrial software is expected to enhance product development processes and improve operational efficiency [30][31]. - The article emphasizes that the future of China's industrial software industry will be shaped by its ability to innovate and adapt to new technologies, positioning it as a key driver of the manufacturing sector's transformation [37].

本次发行股票拟在科创板上市，科创板公司具有研发投入大、经营风险高、业绩不稳定、退市风 险高等特点，投资者面临较大的市场风险。投资者应充分了解科创板的投资风险及本公司所披露 的风险因素，审慎作出投资决定。 苏州浩辰软件股份有限公司 Gstarsoft Co., Ltd. （苏州工业园区东平街 286 号） 首次公开发行股票并在科创板上市 招股说明书 （注册稿） 本公司的发行上市申请尚需经上海证券交易所和中国证监会履行相应程序。本招股说明书不具有 据以发行股票的法律效力，仅供预先披露之用。投资者应当以正式公告的招股说明书全文作为作 出投资决定的依据。 保荐人（主承销商） （北京市朝阳区安立路 66 号 4 号楼） 苏州浩辰软件股份有限公司 招股说明书 中国证监会、交易所对本次发行所作的任何决定或意见，均不表明其对发行人 注册申请文件及所披露信息的真实性、准确性、完整性作出保证，也不表明其对发 行人的盈利能力、投资价值或者对投资者的收益作出实质性判断或保证。任何与之 相反的声明均属虚假不实陈述。 根据《证券法》的规定，股票依法发行后，发行人经营与收益的变化，由发行 人自行负责；投资者自主判断发行人的投资价值，自主作 ...