Policy Background - In October 2025, the U.S. will include "critical software" in its export control list, covering areas such as database management systems and industrial design tools [1] - Following this, Chinese authorities updated the "Xinchuang Product Catalog," mandating that new IT procurement projects prioritize domestically developed software that has passed national security reviews [1] Correspondence Between SUNDB and Control List - The SUNDB database from Kela Software is categorized as "Database Management Software" under the U.S. control list [2] - The self-developed source code rate is 98.31%, and it does not utilize U.S. open-source codes like MySQL or PostgreSQL, mitigating "U.S. technology" licensing risks [2] - SUNDB has passed dual security certifications from domestic and international standards [2] Quantitative Impact from Demand Changes - As of June 2025, the domestic software adoption rate in core trading systems of state-owned and joint-stock banks is below 25% [3] - Major banks are accelerating their migration plans from Oracle to 2026, originally set for 2027 [3] - For a single bank with assets over 5 trillion yuan, the database licensing fees are estimated at 120-150 million yuan; if all 12 major banks initiate replacements, the market size could reach 1.4-1.8 billion yuan [3] Key Infrastructure Industries - By September 2025, the Ministry of Industry and Information Technology mandated that the database localization rate in critical infrastructure sectors must reach 50% by the end of 2026 [4] - The existing Oracle and DB2 systems in telecommunications, energy, and transportation sectors total approximately 3,800, with a theoretical market space of 11.4-19 billion yuan based on a unit cost of 3-5 million yuan each [4] Government Procurement List - Kela Software's SUNDB has been included in the centralized procurement list for central government agencies and state-owned enterprises [5] - Following the control measures, 68 new database segments were added to the central procurement center's list in Q4 2025, with 42 explicitly stating "no U.S. technology" products [5] Supply-Side Exclusivity - The closed-source architecture of SUNDB avoids U.S. "open-source license" jurisdiction [6] - Kela Software holds 126 authorized patents covering core modules, creating a technological barrier against similar domestic open-source products [6] - Collaboration with Tsinghua University to establish a joint research institute will utilize national funding from 2025 to 2027 to further develop the next-generation fully in-memory distributed version of SUNDB [6] Market Share Changes - As of Q3 2025, the market share for distributed databases in China is as follows: Dameng 18.4%, SUNDB 16.7%, Nanda General 11.2%, and Oracle 14.9%, with Oracle experiencing a year-on-year decline of 6.8 percentage points [7][8] Conclusion - Kela Software's SUNDB is positioned to benefit directly from the concentrated replacement demand in the financial, telecommunications, and energy sectors due to the U.S. export control measures and tightening domestic regulations on "U.S. technology" procurement [9]

Core Insights - The U.S. government has tightened export controls on foundational software technologies to China, including core database management systems and middleware, creating unprecedented opportunities for domestic software companies in China [1] - The export restrictions are expected to accelerate the shift towards domestic database solutions, as industries move from merely using to actively adopting and trusting Chinese databases [2] - Companies like Kylin Software's SUNDB are positioned to benefit significantly from this shift, as they offer fully autonomous databases that meet high performance and security standards [3] Industry Impact - The tightening of U.S. export controls is seen as a "stress test" for China's information technology supply chain, prompting a reevaluation of security standards across various sectors [3][4] - Key industries such as finance, government, and military are expected to increase their budgets and prioritize the procurement of domestic software solutions due to heightened security concerns [3] - The move away from reliance on foreign database products, particularly Oracle, is anticipated to create substantial market opportunities for domestic players like SUNDB [3][4] Company Opportunities - Kylin Software's SUNDB has established a significant first-mover advantage in the domestic database market, supported by years of technical accumulation and industry experience [3] - The company is expected to leverage favorable policies and market demand to expand its market share and deepen its industry presence [4] - SUNDB's architecture supports high availability and scalability, making it suitable for critical applications in sectors that require zero data loss and high service continuity [2]

Core Insights - The article discusses the impact of U.S. software export controls on China's software industry, highlighting how these restrictions have catalyzed the growth of domestic software solutions like科蓝软件's SUNDB database [1][2][3] - It emphasizes the shift from reliance on open-source software to self-developed solutions, showcasing the advantages of high self-research rates and closed-source models in enhancing security and performance [2][3][4] Group 1: U.S. Export Controls and Their Impact - U.S. export controls have significantly affected various software sectors, including operating systems, databases, AI algorithms, and cloud computing tools, leading to a realization in China that diversification is essential [1] - The restrictions have inadvertently promoted domestic software, with SUNDB emerging as a leading solution, demonstrating high self-research rates and independence from foreign code [2][3] Group 2: Advantages of SUNDB Database - SUNDB boasts a 98.31% self-research rate, meaning it does not incorporate any foreign open-source code, which positions it as a robust alternative to existing solutions [2] - The database has proven its reliability by handling billions of transactions daily for major clients like China Mobile and China Unicom, showcasing its capability in high-demand environments [2][3] Group 3: Industry Collaboration and Development - The rise of domestic software is supported by collaborations between companies and academic institutions, such as科蓝软件's partnership with Tsinghua University, fostering innovation through a "产学研" model [3] - The current environment, characterized by supportive policies and market opportunities, has created a favorable landscape for the growth of domestic software solutions [3][4] Group 4: Future of the Software Industry - The software industry landscape is shifting from dominance by foreign giants to a more diversified domestic market, with Chinese brands expected to become synonymous with core technologies like databases and operating systems [4] - The article concludes that the focus on self-reliance and innovation will strengthen China's position in the global software market, making domestic solutions more prominent [4]

Core Insights - Huawei officially launched the HarmonyOS 5-powered Harmony PC on May 19, marking a significant milestone in the development of domestic operating systems for PCs, filling a 30-year gap in fully self-developed domestic operating systems [1][4] - The introduction of Harmony PC is not just a new product but a symbol of the advancement of domestic operating systems, potentially improving the "strong outside, weak inside" structure of China's database market [1][4] - The trend towards self-control and independence in technology is evident, with domestic database solutions like Kylin Software's SUNDB emerging to meet the demand for data security and self-reliance [1][4] Domestic Database Market Dynamics - According to IDC 2023 data, the top three players in China's relational database software market are Alibaba, Tencent, and Huawei, with market shares of 26.2%, 14.9%, and 11.1% respectively, indicating a strong presence of domestic companies [1][4] - The domestic database replacement rate in key sectors is increasing, with the party and government sectors achieving an 80% replacement rate, while the banking and insurance sectors are at 40% [5][6] Security and Performance Advantages - The TEE microkernel security architecture of Harmony PC has achieved CC EAL5+ certification, providing robust data security [6] - In the financial sector, the collaboration between the domestic database and Harmony OS has significantly reduced data encryption loss rates from 12% on Windows to below 3% [7] - A provincial government cloud platform reported an 82% reduction in vulnerability discovery after adapting Harmony PC with a domestic database [7] Industry Trends and Future Outlook - The push for domestic database solutions is expected to accelerate, with a target for 100% domestic replacement in key sectors by 2027 as outlined by the State-owned Assets Supervision and Administration Commission [8] - The data ETF (516000) is positioned to benefit from the domestic data industry growth, tracking the China Securities Big Data Industry Index and including key players across the data value chain [9][12] - The development of domestic databases is anticipated to enhance the overall competitiveness of the big data industry, leading to a policy and industry resonance that could favor data ETFs [12]