China Software plans to raise 2 billion yuan to increase the layout of the operating system.

On the evening of February 25th, China Software announced that it planned to issue No more than 90.13 million A shares (inclusive) to China Electronics and CLP Gold Investment at a price of 22.19 yuan per share, and the total amount of funds to be raised (inclusive) would not exceed 2 billion yuan.

According to the announcement, the funds raised this time will be used to invest in three major projects of Kirin Software, a subsidiary company: research and development of mobile and fixed integrated terminal operating system products, research and development of cloud-oriented server operating system products, and construction of embedded operating system capability platform. China Software said that after the implementation of the aforementioned projects, it can bring direct economic benefits to the company.

Among them, the total investment in the research and development of mobile-fixed integrated terminal operating system products is 1.5 billion yuan, including 1 billion yuan and 500 million yuan of self-raised funds. China Software invested heavily in this project, in order to meet the new demand of terminal operating system market and create terminal interconnection and diversified application scenarios.

The reporter learned from the announcement that the mobile terminal operating system can expand the terminal operating system from supporting desktops and notebooks to supporting hardware platforms such as tablets, all-in-one notebooks and large screens at the same time. This may mean that the Galaxy Kirin operating system of Kirin Software will support a variety of mobile terminals such as tablets and 1-in-1 notebooks in the future.

It can be said that the overweight layout of China’s software in the field of mobile-solid integration was opened in the long-awaited investors and the industry volume.

In 2023, some investors frequently asked them questions on the interactive platform, whether the company’s operating system products can be applied to mobile phones and other smart wearable devices. China Software responded that "Kirin operating system can be used in many fields such as desktops, servers, workstations and embedded applications, and currently does not support mobile devices."

At the same time, Tongxin software, which is also the leader of domestic operating system, took the lead in realizing the interconnection of domestic desktop systems from mobile to PC at the end of 2023, successfully migrated two applications for data synchronization between mobile and desktop, iTunes and vivo, and started the war of "involution" in the field of migration and integration.

China Software plans to invest 1.2 billion yuan in the research and development project of cloud-oriented server operating system products. According to the company, the project focuses on solving the shortcomings of the server operating system products and ecology, accelerating the integrated development of the server operating system and the cloud platform, strengthening the AI intelligent computing enabling and heterogeneous AI resource scheduling technology of the server operating system, and comprehensively improving the performance of the server operating system.

In addition, China Software plans to invest 300 million yuan in the embedded operating system capability platform construction project.

In addition to the market and policy drive, China Software’s investment is also aimed at developing advantageous industries. According to the company, after the smooth implementation of the project, the company’s overall technical strength will be further improved, its business advantages will be further highlighted, and its overall profitability will be improved in the future.

From the perspective of profitability, Kirin Software is indeed the best among the 22 holding and shareholding companies of China Software, and even needs to support the basic disk of China Software. The reporter looked up the financial report and found that in 2023, China Software suffered its first loss since it landed in the capital market in 2002, with a pre-loss of 200-240 million yuan in net profit attributable to its mother.

However, Kirin software has been relatively stable. In H1, 2023, the net profit of Kirin Software ranked first among 22 companies; In the first three quarters of 2023, Kirin Software achieved an operating income of 661 million yuan, a year-on-year increase of 6.27%; The net profit was 129 million yuan, a year-on-year increase of 152.94%.

Source: Cailian Association