Core Viewpoint - Lingzhi Software aims to reduce reliance on overseas markets and enhance performance stability through the acquisition of 100% equity in Kaimiride [1][3] Group 1: Acquisition Details - Lingzhi Software plans to acquire Kaimiride through a combination of issuing shares and cash payments, with the goal of making Kaimiride a wholly-owned subsidiary [1][3] - The acquisition is expected to constitute a major asset restructuring, with some transaction parties likely to hold over 5% of the company's shares post-transaction [3] - Kaimiride is a leading financial IT supplier in China, providing integrated solutions for capital markets to over 100 domestic and international financial institutions [3][4] Group 2: Financial Performance - Kaimiride's revenue from 2023 to the first nine months of 2025 has shown a decline, with revenues of 2.92 billion, 2.29 billion, and 1.17 billion respectively, and a net profit of 294.93 million, 263.86 million, and a loss of 2.64 million [2][8] - Lingzhi Software's revenue from Japan accounted for 92.44% of its total revenue in the first half of 2025, indicating a high dependency on the Japanese market [1][7] - Lingzhi Software's financial performance has been under pressure, with a revenue decline of 5.57% year-on-year in the first three quarters of 2025, and a net profit decrease of 21.87% [9][10] Group 3: Market Position and Strategy - The acquisition is intended to enhance Lingzhi Software's domestic revenue share and reduce risks associated with reliance on the Japanese market, thereby improving overall business stability [1][7] - Lingzhi Software's primary revenue source is its software development services for Japan, which accounted for 89.23% of its revenue in 2024 [5][7] - The financial IT market is facing pricing pressures and reduced profit margins due to increased competition, which may impact both Lingzhi Software and Kaimiride [9]

Group 1: Nantong Technology IPO - Nantong Technology has launched its IPO today (November 11), with an issue price of 8.66 yuan and a price-to-earnings ratio of 13.60 times [1] - The company is engaged in the research, production, and sales of precision mechanical components, with a complete production process from mold design to precision machining [1] - Nantong Technology has established stable partnerships with four out of the top five air conditioning compressor manufacturers, including Midea Group and Gree Electric, supplying approximately 13% and 30% of their compressor components, respectively [1] Group 2: Major Asset Restructuring Announcements - Two companies have disclosed major asset restructuring plans and resumed trading, with Victory Co. opening at a limit-up and Lingzhi Software rising over 12% [2][4] - Victory Co. plans to acquire gas-related assets controlled by its major shareholder through a combination of issuing shares and cash payments, which is expected to constitute a significant asset restructuring [2] - Lingzhi Software intends to purchase 100% of the shares of Kaimiride from 20 counterparties, enhancing its capabilities in responding to domestic financial institutions' needs for core system localization and data security [4] Group 3: Margin Financing Trends - As of November 10, the total market margin balance reached 2.48 trillion yuan, an increase of 76.28 billion yuan from the previous trading day [6] - The power equipment sector saw the largest increase in margin financing, up by 31.67 billion yuan, followed by basic chemicals and non-ferrous metals [6] - A total of 568 stocks recorded net margin purchases exceeding 10 million yuan, with 46 stocks having net purchases over 100 million yuan, led by Tianfu Communication with a net purchase of 440 million yuan [6][7]

Summary of the Conference Call on Lingzhi Software's Acquisition of Kaimiride Company and Industry Overview - **Company**: Lingzhi Software - **Target Company**: Kaimiride - **Industry**: Financial Technology (FinTech) Key Points and Arguments 1. **Acquisition Purpose**: Lingzhi Software plans to acquire Kaimiride to deepen its domestic FinTech layout and achieve dual-driven growth in domestic and international markets, aligning with national strategies for financial autonomy and RMB internationalization [2][3] 2. **Kaimiride's Market Position**: Kaimiride specializes in core trading management systems for capital markets, serving nearly 100 financial institutions with an asset management scale exceeding 70 trillion and processing daily fund flows over 1.4 trillion [2][4][5] 3. **Viva System**: Kaimiride's proprietary Viva system is a comprehensive trading, risk control, and settlement management system, recognized as the first domestically developed integrated solution in this field [2][7] 4. **Full Lifecycle Service**: Kaimiride offers full lifecycle services covering all aspects of financial transactions, particularly excelling in complex cross-border payments, ensuring high security and reliability for major financial institutions [2][9] 5. **Market Expansion Potential**: The acquisition is expected to significantly increase Lingzhi Software's domestic revenue share, reducing reliance on the Japanese market and enhancing collaborative development in products, clients, and technology [4][26] 6. **Strategic Importance**: The acquisition is seen as a crucial step in enhancing Lingzhi Software's core competitiveness in the FinTech sector, especially in the context of increasing demand for domestic solutions and the need for digital transformation among financial institutions [3][12] 7. **Competitive Landscape**: The domestic FinTech market is highly competitive, with Kaimiride maintaining a 100% market share in new product selections over the past four years, despite competition from other firms [17][29] 8. **Future Development Plans**: Kaimiride aims to focus on three key areas: achieving financial autonomy, advancing digital transformation, and supporting RMB internationalization, leveraging the growing demand for domestic solutions [19][24][35] Additional Important Insights 1. **Challenges in Market Positioning**: Kaimiride faces challenges in meeting the increasing qualification requirements of banks, which are becoming more stringent as the demand for domestic solutions rises [19][22] 2. **Collaboration Synergies**: The partnership between Lingzhi Software and Kaimiride is expected to create synergies in market reach, customer base, product offerings, and technological innovation [18][30] 3. **Technological Barriers**: Kaimiride's Viva product has significant technological barriers to entry, requiring deep understanding of global financial products and extensive practical experience, which positions it favorably against competitors [27][28] 4. **Employee Structure**: Kaimiride employs over 500 staff, with a significant portion being expert consultants, which enhances its project delivery capabilities [31] 5. **International Strategy**: Kaimiride is not limited to the Japanese market but is also exploring opportunities in Hong Kong, Southeast Asia, and along the Belt and Road Initiative, aligning with the RMB internationalization strategy [35] This summary encapsulates the essential aspects of the conference call regarding Lingzhi Software's strategic acquisition of Kaimiride, highlighting the implications for both companies and the broader FinTech industry.

Market Dynamics - The State Council has issued measures to enhance support for private investment projects that meet certain criteria, emphasizing the use of new policy financial tools to support key industries and projects [1] - The State Council encourages private capital to participate in low-altitude economy infrastructure construction, ensuring equal treatment for private investment projects in commercial space activities [1] Industry Developments - By 2035, a new power system compatible with a high proportion of renewable energy is expected to be established, with a focus on improving the renewable energy consumption and regulation system [2] - The National Development and Reform Commission and the National Energy Administration are pushing for breakthroughs in large-capacity long-duration energy storage technologies, including liquid flow batteries and compressed air storage [3] Company News - TSMC reported a sales figure of NT$367.47 billion for October, reflecting an 11.0% month-on-month increase and a 16.9% year-on-year increase, with cumulative sales for the first ten months reaching NT$3.13 trillion, up 33.8% year-on-year [5] - Lingzhi Software plans to acquire 100% of the shares of Kaimiride, a leading financial IT supplier in China, through a combination of stock issuance and cash payment, with the transaction expected to constitute a major asset restructuring [7] - Maiwei Biotech has received approval for a Phase II clinical trial of its innovative drug 9MW3811 for pathological scars, positioning it as a leader in the global competitive landscape for similar targets [6]

Core Viewpoint - Lingzhi Software is planning a significant acquisition of 100% equity in Kaimiride (Suzhou) Information Technology Co., Ltd. to reduce its reliance on the Japanese market and enhance its domestic revenue [1][2]. Group 1: Acquisition Details - The acquisition will be executed through a combination of issuing shares and cash payments to 20 transaction parties [1][3]. - The share issuance price is set at 15.31 yuan per share, approximately 14% lower than the pre-suspension price of 17.77 yuan [4]. - The transaction is expected to constitute a related party transaction, with some transaction parties potentially holding over 5% of Lingzhi Software's shares post-acquisition [3][4]. Group 2: Financial Performance - Lingzhi Software reported a revenue decline of 5.57% year-on-year for the first three quarters, totaling 763 million yuan, with a net profit decrease of 21.87% to approximately 96.74 million yuan [4][5]. - The company experienced a significant loss in the third quarter, with revenue dropping over 10% to 247 million yuan and a net loss exceeding 15 million yuan [4][5]. - The decline in profits is attributed to increased R&D expenses and fluctuations in the Japanese yen exchange rate, which led to increased foreign exchange losses [4][5]. Group 3: Kaimiride's Market Position - Kaimiride is recognized as a leading IT solutions provider in the financial sector, holding the top market share in the banking capital market IT solutions segment, with a projected market share of 14.20% for 2024 [7][9]. - The company has served over 100 domestic and international financial institutions, including major state-owned banks and securities firms [9]. - Despite its strong market position, Kaimiride has faced financial challenges, reporting a revenue of 11.7 million yuan and a net loss of 2.64 million yuan in the first three quarters of the year [9].

Group 1 - The core point of the article is that Lingzhi Software plans to acquire 100% equity of Kaimiride (Suzhou) Information Technology Co., Ltd. to enhance its capabilities in the financial technology sector [1][2] - The acquisition will be executed through a combination of issuing shares and cash payments to 20 transaction parties, with the company's stock resuming trading on November 11 [1] - Kaimiride is a financial IT supplier that provides solutions for capital trading, risk management, liquidity management, and digital transformation to over 100 domestic and international financial institutions [1][2] Group 2 - Kaimiride's "VIVA-TCM Capital Trading and Risk Management System" has been recognized by the Ministry of Industry and Information Technology as a key recommended solution for 2024 [1] - The company maintains a leading position in the niche market of capital trading systems and solutions, as indicated by data from CCID Consulting and IDC [2] - The acquisition is expected to enrich Lingzhi Software's financial technology product offerings and enhance its overall competitiveness and sustainability [2]

Core Viewpoint - Lingzhi Software plans to acquire 100% equity of Kaimiride through a share issuance and cash payment, aiming to enhance its position in the financial IT sector and reduce reliance on the Japanese market [1][2]. Group 1: Acquisition Details - The acquisition involves 20 counterparties, including Summer Red and Rao Xi, with the transaction price yet to be finalized [1]. - Kaimiride is a leading financial IT supplier in China, providing software products and services to over 100 domestic and international financial institutions [1]. Group 2: Market Position and Technology - Kaimiride holds a leading position in the capital market IT sector, ranking first in the banking capital transaction system market for two consecutive years (2023-2024) [1]. - The VIVA-TCM system developed by Kaimiride has been recognized as a key recommended solution by the Ministry of Industry and Information Technology for 2024, showcasing its full-stack self-controllable technology [2]. Group 3: Strategic Development - The acquisition will help Lingzhi Software penetrate the core trading system market and diversify its client base in the domestic financial IT sector [3]. - The company aims to implement a dual-driven strategy of "domestic + international" to enhance revenue stability and reduce dependence on the Japanese market [2][3]. Group 4: AI Integration - Lingzhi Software is exploring "AI+" applications, and Kaimiride is advancing AI integration in its vertical business scenarios, which is expected to enrich the company's AI ecosystem and drive future growth [3].

Group 1 - Lingzhi Software announced the acquisition of 100% equity in Kaimiride (Suzhou) Information Technology Co., Ltd, marking a significant consolidation project in the domestic fintech sector [1] - The acquisition will be executed through a combination of share issuance and cash payment to 20 transaction parties, with trading resuming on November 11 [1] - This move aligns with the national policy wave for financial innovation and transformation, injecting strong momentum for high-quality development in the sector [1] Group 2 - The financial innovation strategy is a core support for national financial security, entering a rapid development phase driven by policy guidance and market demand [2] - The Chinese financial innovation market is projected to reach 1.2 trillion yuan by 2025, with a compound annual growth rate exceeding 35% for the financial innovation sector [2] - The construction of a self-controllable RMB cross-border payment system is emphasized as a key policy direction in the 14th Five-Year Plan [2] Group 3 - Kaimiride is a leading financial IT supplier in the domestic capital market, known for its "self-controllable + overseas compatible" capabilities [3] - The company has provided comprehensive solutions and services to over 100 domestic and foreign financial institutions, establishing benchmark projects for major banks [3] - Kaimiride has maintained a leading position in the market, ranking first in the banking capital trading system market for two consecutive years [3] Group 4 - The acquisition positions Kaimiride's self-controllable technology system as a key anchor for integration value [4] - Kaimiride's VIVA-TCM system has been recognized as a key recommended solution in the fintech sector, showcasing its core advantages in building a fully self-controllable technology system [4] - The collaboration is expected to enhance the technological strength and sustainable operational capacity of the listed company, supporting the safe and controllable development of the national financial system [4]

Group 1 - The company, Lingzhi Software (688588.SH), plans to acquire 100% equity of Kaimiride from 20 counterparties through a combination of issuing shares and cash payment, while also raising supporting funds [1] - Kaimiride is a leading financial IT supplier in China's capital market, providing integrated solutions and services for banks and securities firms in areas such as fund trading, risk management, liquidity management, digital transformation, and AIGC [1] - Post-transaction, Kaimiride will become a wholly-owned subsidiary of Lingzhi Software, which is expected to enhance the company's revenue and net profit attributable to shareholders, while increasing the domestic revenue share and reducing reliance on the Japanese market [1] Group 2 - The transaction will improve the company's responsiveness to domestic financial institutions' needs for core system localization and data security, thereby enhancing its comprehensive service capabilities and market competitiveness in the financial information technology sector [1]

Group 1 - The company, Lingzhi Software (688588.SH), plans to acquire 100% equity of Kaimiride from 20 counterparties through a combination of issuing shares and cash payments, while also raising supporting funds [1] - Kaimiride is a leading financial IT supplier in China's capital market, providing integrated solutions and services for banks and securities firms in areas such as transaction management, risk management, liquidity management, digital transformation, and AIGC [1] - Upon completion of the transaction, Kaimiride will become a wholly-owned subsidiary of Lingzhi Software, which is expected to enhance the company's revenue and net profit attributable to shareholders [1] Group 2 - The acquisition will increase the domestic revenue share of Lingzhi Software and reduce its reliance on the Japanese market, thereby mitigating associated risks [1] - The transaction will improve the company's responsiveness to the domestic financial institutions' needs for core system localization and data security, enhancing its comprehensive service capabilities and market competitiveness in the financial technology sector [1] - The company's stock is scheduled to resume trading on November 11, 2025 [1]