1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The total issuance scale of PULIAN Convertible Bonds is RMB 243 million, and the net proceeds after deducting issuance fees will be used for domestic ERP function expansion construction projects, digital intelligent financial risk control series product construction projects, and Yunhu platform R & D upgrade projects [4]. - The current bond - floor valuation is RMB 83.52, and the YTM is 2.97%. The conversion parity is RMB 103.8, and the parity premium rate is - 3.74%. The bond - floor protection is average, and the dilution pressure on equity is small [4]. - It is expected that the listing price of PULIAN Convertible Bonds on the first day will be between RMB 122.94 and RMB 136.97, and the subscription rate is expected to be 0.0011%. It is recommended to actively subscribe [4]. - PULIAN Software is a comprehensive service provider focusing on energy industry management software development. Since 2020, its revenue has fluctuated and increased, with a compound growth rate of 18.64% from 2020 - 2024. The net profit attributable to the parent has also fluctuated, with a compound growth rate of 9.81% from 2020 - 2024 [4]. - The company's sales net profit margin and gross profit margin have fluctuated and declined, the sales expense ratio has fluctuated and increased, the financial expense ratio has decreased steadily, and the management expense ratio has shown an "inverted U - shaped" fluctuation [5]. 3. Summary According to the Directory 3.1. Convertible Bond Basic Information - The issuance schedule of PULIAN Convertible Bonds is from December 3, 2025 (T - 2) to December 11, 2025 (T + 4), including steps such as publishing prospectuses, online roadshows, and determining subscription results [11]. - The convertible bond has a code of 123261.SZ, a face value of RMB 100, a term of 6 years, a rating of A +/A +, and an initial conversion price of RMB 18.26 per share. The conversion period is from June 11, 2026, to December 4, 2031 [12]. - The funds raised will be used for three projects, with a total investment of RMB 242.9326 million, all funded by the raised funds [13]. - The bond - floor value is RMB 83.52, the pure - bond premium rate is 19.73%, the conversion parity is RMB 103.89, and the parity premium rate is - 3.74%. The pure - bond YTM is 2.97% [13]. 3.2. Investment Subscription Suggestion - By referring to comparable convertible bonds and an empirical model, it is expected that the conversion premium rate of PULIAN Convertible Bonds on the first - day of listing will be around 25%, and the listing price will be between RMB 122.94 and RMB 136.97 [16][17]. - It is expected that the priority subscription ratio of original shareholders will be 59.95%, and the online subscription rate will be 0.0011% [18]. 3.3. Fundamental Analysis of the Underlying Stock 3.3.1. Financial Data Analysis - PULIAN Software is mainly engaged in providing informatization solutions and IT comprehensive services for large - scale group enterprises, with its business covering multiple aspects. It is expanding into the financial and other industries while deepening its traditional advantageous fields [19]. - From 2020 to 2024, the company's revenue had a compound growth rate of 18.64%, and the net profit attributable to the parent had a compound growth rate of 9.81%. In 2025 Q3, the revenue was RMB 300 million, and the net profit attributable to the parent was RMB 1 million [20]. - The company's revenue mainly comes from industries such as petroleum and petrochemical, construction and real estate, coal and power, etc., and the product structure changes annually. The sales net profit margin and gross profit margin have declined, while the sales expense ratio has increased, and the financial expense ratio has decreased [22][24]. 3.3.2. Company Highlights - The company has long - term cooperation with large central enterprises, has strong innovation and delivery capabilities, and has a high brand reputation and industry status in the field of large - scale group enterprise informatization [31]. - It is an early software manufacturer in China to master the XBRL standard system and key technologies. Its XBRL - related systems and products have been widely applied in many customers [31].

Core Insights - The company reported a revenue of 300 million yuan for the first three quarters of 2025, representing a year-on-year increase of 2.17% [1] - The net profit attributable to shareholders decreased significantly by 90.07% to 1.48 million yuan [1] - The net profit after deducting non-recurring gains and losses was -6.80 million yuan, a decline of 190.41% year-on-year [1] - The net cash flow from operating activities was -149.15 million yuan, down 21.05% compared to the previous year [1] Financial Performance - Revenue for the current reporting period was 90,023,375.81 yuan, showing a decrease of 11.58% compared to the same period last year [2] - The net profit attributable to shareholders for the current period was 275,676.70 yuan, down 82.07% year-on-year [2] - The net profit after excluding non-recurring items was -2,350,099.40 yuan, reflecting a decline of 521.51% [2] - The net cash flow from operating activities showed a decrease of 21.05% year-on-year [2] Fundraising and Financial Activities - The company raised a total of 459.90 million yuan through its initial public offering, with a net amount of 398.36 million yuan after expenses [3] - The funds raised are intended for projects related to intelligent group management products, R&D center construction, and working capital [3] - In 2022, the company issued shares to specific investors, raising 85.67 million yuan, with a net amount of 81.93 million yuan after expenses [4] - The company plans to use the proceeds from its convertible bond issuance for various projects, including ERP functionality expansion and financial risk management product development [4]

Core Viewpoint - The company, Puliang Software, plans to raise a total of no more than 243 million RMB through a convertible bond issuance, which has been approved by the Shenzhen Stock Exchange and is currently in the "registration submission" phase [1] Fundraising Details - The total amount to be raised from the convertible bond issuance is capped at 243 million RMB [1] - The bond has a maturity period of 6 years [1] - After deducting issuance costs, the funds will be allocated to three main projects: - Expansion of domestic ERP functionalities - Development of intelligent financial risk control products - Upgrading of the Yunhu platform [1]

Financial Performance - In Q3 2025, the company achieved a revenue of 300.17 million CNY, a 2.17% increase from 293.81 million CNY in the same period of 2024 [2] - The net profit attributable to shareholders was 1.48 million CNY, a significant decrease of 90.07% compared to 14.93 million CNY in Q3 2024 [2] - Revenue for the first three quarters of 2025 accounted for a lower proportion of total annual revenue, with historical data showing 2024 at 35.14% and 2023 at 37.04% [2] Industry Breakdown - In the first three quarters of 2025, the revenue distribution by industry was approximately: - Petrochemical: 49% - Real Estate: 17% - Financial Insurance: 10% - Coal and Power: 14% - Others: 10% [3] R&D and Investment - R&D expenses increased by 19.53 million CNY in Q3 2025, contributing to the decline in net profit [2] - Total R&D investment from January to September 2025 was 81.22 million CNY, with 55.48 million CNY in expense and 25.73 million CNY in capitalized costs [2] Product Development and Market Expansion - The company has successfully implemented its EPM product in a major central enterprise and is expanding its EAM product in both domestic and overseas markets [4] - The ERP product is in full promotion phase within a large financial group, with positive client feedback on project delivery quality [4] AI Capabilities - The company's AI platform focuses on intelligent management scenarios, offering capabilities such as document analysis, data prediction, and process automation [5][6] - AI intelligent agents are designed to integrate industry-specific knowledge and improve efficiency in enterprise management applications [6] Convertible Bonds - The company plans to raise up to 243 million CNY through convertible bonds, intended for ERP expansion, financial risk management products, and cloud platform upgrades [7] Personnel Planning - For 2025, the company aims to control total personnel while adjusting the structure, with a focus on increasing professionals with business and technical leadership capabilities [8] - In 2026, the company plans to maintain stable personnel numbers while making adjustments based on business progress [8]

Summary of the Conference Call for Puliang Software Industry Overview - The company operates primarily in the software sector, focusing on various industries including petrochemicals, construction, finance, and coal power. The revenue distribution for the first three quarters is as follows: petrochemicals 49%, construction 17%, finance 10%, coal power 14%, and other industries approximately 10% [2][8]. Financial Performance - For the third quarter of 2025, the company reported total revenue of 300 million yuan, representing a year-on-year growth of 2.17%. However, the net profit attributable to shareholders was 1.4824 million yuan, a significant decline of 90% compared to 14.9 million yuan in the same period last year. This profit drop was primarily due to increased expenses, particularly a rise in R&D costs by over 5 million yuan, which accounted for a 7% increase [3][18]. Key Business Segments - The treasury business remains a significant segment with a large volume of transactions, having been deployed in several provincial state-owned enterprises. The financial shared services and data application segments are also performing well, particularly in the financial sector with projects focused on replacing traditional accounting systems [2][5]. - The company is developing several key products: - **信创 ERP** is currently in a pilot phase with a major financial group, showing high customer satisfaction and strong adaptability to the financial sector. - **信创 EAM** is in the final stages of replacing IBM Maximo and has expanded into equipment management projects for coal mining enterprises. - **EPM** has completed most of its revenue recognition in a comprehensive budget management project for CNOOC [5][12]. Strategic Initiatives - The company has initiated three projects for its convertible bond issuance: enhancing domestic ERP systems, increasing supply chain modules, and deepening product offerings to replace Oracle in the financial sector. These projects aim to improve delivery quality and efficiency [4][11]. - The cloud platform, known as 云湖, has been modularized to provide customized services based on client needs, including PaaS development and big data platforms, which have been sold to central enterprises [13]. Future Goals and Challenges - The company aims for a profit growth of 150% by 2025, needing to increase profits from 60 million yuan in 2023 to over 150 million yuan [9]. - The addition of new strategic clients, such as Sinochem Group and China Coal Energy, is expected to enhance order volumes, particularly in financial shared services projects [10]. - The company anticipates that revenue growth will need to accelerate to offset the negative impact of increased R&D spending on profits [18]. R&D and Personnel Plans - R&D investments are projected to continue at a high level, with 240 million yuan raised through convertible bonds for three key projects, indicating a focus on core development in 2026 [19]. - The workforce is expected to increase by about 100 employees by the end of 2025, with a focus on adjusting personnel structure to attract high-level talent [20]. Business Focus for the Next Two Years - The primary focus for the next two years will be on innovation and intelligence, particularly in financial management and comprehensive budget management, alongside the development of 信创 ERP and data analytics [21]. This summary encapsulates the key points from the conference call, highlighting the company's financial performance, strategic initiatives, and future outlook within the software industry.

Core Viewpoint - Puliang Software Co., Ltd. has successfully passed the issuance application for convertible bonds, aiming to enhance its core competitiveness and sustainable development capabilities through strategic investments in various projects [1][3]. Group 1: Company Overview - Puliang Software specializes in providing information technology solutions and comprehensive IT services for large group enterprises, with over 20 years of experience [1]. - The company has developed strong capabilities in integrated information services, covering areas such as solution provision, consulting, application software products, platform software products, and custom software development [1]. Group 2: Business Strategy - The company focuses on large group clients and leverages its competitive advantages in group management to expand its market through customized software solutions [2]. - Puliang Software aims to integrate new technologies and management innovations with client business practices, continuously providing system upgrade services and expanding into new business areas [2]. - The company emphasizes specialized products and services in traditional segments like group treasury management and intelligent financial sharing, while also investing in ERP systems that meet domestic innovation standards [2]. Group 3: Fundraising and Investment - The total amount to be raised from the refinancing is not to exceed 243 million yuan, primarily directed towards projects such as the expansion of domestic ERP functions, the development of intelligent financial risk control products, and upgrades to the Yunhu platform [3]. - The investment projects align with national industrial policies and technological trends, enhancing the company's ability to seize industry opportunities and expand its business scale [3]. - The successful fundraising is expected to further improve the company's comprehensive competitiveness and align with the long-term development needs of the company and its shareholders [3].

Core Viewpoint - Puling Software (300996) has responded to the Shenzhen Stock Exchange's inquiry regarding its application for issuing convertible bonds, providing detailed explanations on key issues such as the capitalization of R&D expenses for its fundraising projects [1][4]. Group 1: Capitalization of R&D Expenses - The capitalization rate for the current fundraising project's R&D expenses is 83.33%, which is higher than the company's existing similar projects' capitalization rate of 64.94% [1]. - The company attributes the high capitalization rate to the solid foundation laid by previous fundraising projects and ongoing technological accumulation, resulting in a lower proportion of expenses being capitalized [1][2]. - The estimated capitalized expenses amount to 12,985.20 million yuan, while the expensed amount is 2,597.04 million yuan, indicating a significant investment in R&D [1]. Group 2: Project Characteristics and Comparisons - The current fundraising project differs from existing similar projects in several aspects, including increased site investment due to the company's office space rental adjustments [2]. - The project requires different personnel positions and levels, leading to variations in average monthly salaries among staff [2]. - The project has a shorter capitalization timeline compared to similar projects, benefiting from sufficient technical reserves and favorable conditions such as customer prospects and policy support [2][3]. Group 3: Product Application and Market Potential - The domestic ERP functional expansion project aims to achieve a smooth migration from Oracle EBS, focusing on financial and energy sectors for domestic replacements and supply chain management [3]. - The project includes a series of products for intelligent financial risk control, leveraging the latest regulatory policies and AI models to enhance existing XBRL products for financial institutions [3]. - The cloud platform upgrade project aims to enhance the existing platform's intelligence, serving as a technical foundation for the company's software product development [3]. Group 4: Validation and Compliance - The sponsor and the issuer's accountant have verified that the basis for the capitalization rate calculation is reasonable and compliant with relevant requirements [4]. - The project conditions, including technology, customer base, talent, and policy support, are considered favorable, justifying the higher capitalization rate compared to existing similar projects [4].

Financial Performance - The company achieved operating revenue of 210 million yuan, a year-on-year increase of 9.45% [2] - Operating income from the petroleum and petrochemical sector was 101.45 million yuan, up 7.95%, accounting for 48.28% of total revenue [3] - Revenue from the coal and electricity sector grew significantly by 50.73% to 24.90 million yuan, representing 11.85% of total revenue [3] - The overall gross profit margin decreased to 35.05%, down 3.5 percentage points from the previous year [5] Cost Structure - Total operating costs amounted to 136 million yuan, an increase of 15.69% year-on-year [5] - Employee compensation accounted for 72.63% of total costs, totaling 99.12 million yuan, with a year-on-year increase of 11.25% [5] - Other expenses, including travel, rent, and external services, totaled 37.37 million yuan, making up 27.37% of total costs, with a significant increase of 29.36% [5] R&D and Innovation - R&D expenses reached 43.63 million yuan, a 77.50% increase year-on-year, reflecting a strong focus on innovation [6] - The company plans to enhance R&D investment in key areas such as ERP, cloud platforms, and AI applications [14] Strategic Developments - The company is focusing on deepening relationships with six traditional strategic clients while expanding to new clients [9] - Significant progress has been made in the financial sector, with successful implementations of financial shared platforms and treasury management systems [10][17] - The company aims to leverage AI and digital transformation to enhance service offerings and operational efficiency [19] Future Outlook - The second half of the year is critical for project delivery and revenue recognition, with expectations for increased contract signings and cash flow [7] - The company is optimistic about achieving its 2025 operational goals, focusing on market expansion and technological innovation [16]

Core Viewpoint - The announcement reveals that certain directors and senior management of Puliang Software plan to reduce their shareholdings, which is a normal behavior and will not significantly impact the company's governance or control structure [1][3]. Shareholding Reduction Plan - Directors and senior management, including Chairman Ling Guoqiang, General Manager Feng Xuewei, and Deputy General Manager Zhang Tingbing, plan to reduce their holdings by up to 1,957,500 shares, representing 0.70% of the total share capital [1]. - Specifically, Chairman Ling Guoqiang intends to reduce his holdings by up to 1,705,200 shares (0.61%), General Manager Feng Xuewei by up to 149,940 shares (0.05%), and Deputy General Manager Zhang Tingbing by up to 102,312 shares (0.04%) [1]. Current Shareholding Status - As of the announcement date, Chairman Ling Guoqiang holds 31,269,286 shares (11.13%), General Manager Feng Xuewei holds 2,888,845 shares (1.03%), and Deputy General Manager Zhang Tingbing holds 5,174,513 shares (1.84%), totaling 39,332,644 shares (14.00%) [2][3]. Background Information - Puliang Software was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on June 3, 2021, with an initial issuance of 22,100,000 shares at a price of 20.81 yuan per share, raising a total of 459.90 million yuan [4]. - The company has conducted two fundraising activities since its listing, raising a total of 545.57 million yuan [5].

Group 1: Financial Performance - The company reported a revenue of 58.76 million yuan in Q1 2025, a decrease of 24.20% compared to the same period last year, and a decline of 2.4% compared to the average revenue of 60.22 million yuan from 2022 to 2024 [2][3] - The revenue from customized software is significantly high, with Q1 revenue historically accounting for a low percentage of annual revenue: 7.0% in 2022, 7.2% in 2023, and 9.3% in 2024 [2][3] - The company had an order backlog of 378 million yuan at the end of 2024, representing a year-on-year growth of 27.7% [3] Group 2: R&D and Product Development - In Q1 2025, the company increased its R&D investment in core products, with R&D expenses amounting to 26.18 million yuan, significantly impacting profits [3] - The company aims to continue promoting the development of core products, including the Xinchang ERP project and intelligent applications [4][5] Group 3: Strategic Development Goals - The company emphasizes the importance of intelligent and innovative opportunities for sustainable development, focusing on high-quality product development and service capabilities [4] - The strategy includes maintaining a focus on two key areas: deepening cooperation with strategic clients and expanding new group clients through high-quality delivery [4] - The company plans to adopt a "product + market" strategy to enhance the scale and quality of its specialized business areas, particularly in the Xinchang ERP series software [4][5] Group 4: Organizational Efficiency - The company intends to optimize resource allocation and enhance organizational collaboration to improve efficiency and cost control [6] - There will be a focus on improving the quality and structure of human resources to meet the demands of the intelligent era [6]