Chengmai Technology increased capital to Tongxin Software and indirectly held a deep 45% stake. Chengmai Technology plans to use 100% of the shares of Wuhan Chengmai, a wholly-owned subsidiary of Chengmai, for RMB 204 million; 100% of Wuhan Shenzhidu, a subsidiary of Beijing World Starlight and others, for a total price of RMB 255 million; and jointly use equity to increase the capital of Tongxin Software. After the transaction is completed, the registered capital of Tongxin Software will increase to 459 million yuan. Chengmai Technology will hold 44.44% of the shares after the capital increase of Tongxin Software. Tongxin Software will continue to be a shareholding company of Chengmai Technology, and Wuhan Chengmai and Wuhan Shenzhidu will become wholly-owned subsidiaries of Tongxin Software. Deepin's operating system is already in the top eight in the world. Established in 2011, Wuhan Shenzhidu is a commercial company focusing on the development and service of Linux-based operating systems. As the core product of Deepin Technology, Deepin Operating System Software has achieved many outstanding results among domestic Linux operating system products, and has been widely recognized worldwide. In the future, Deepin Technology will use operating systems and autonomous and controllable replacement as an opportunity to make every effort to build an ecological environment for domestic operating systems and strive to become a leading supplier of basic software products and solutions. At present, the Deep Operations series of products has covered desktop version, server version, security department, high availability clusters, desktop virtualization (cloud desktop), and legalization. The Huawei notebook is equipped with a deep operating system, and the domestic operating system has officially entered commercial use on the C side. On September 15, Deepin Operating System's official WeChat announced that the Honor Magicbook Pro Ryzen Edition will be equipped with the desktop version of Deepin Operating System. The reason why Huawei is equipped with this operating system is, on the one hand, because the “Entity List” cannot be equipped with a genuine Windows system. On the other hand, Huawei has cooperated with Deepin Technology for many years, and Deepin Technology's operating system level has reached a world-class level. For the first time coverage, a “buy” rating is given. Assuming the capital increase is successful, the target market value is 15 billion yuan. Chengmai Technology's net profit for 2019-2021 is estimated to be 21 million yuan, 27 million yuan, and 33 million yuan, respectively. Leading domestic operating systems are manufacturers such as Kirin, Tianjin Kirin, and Deepin. Under the mainstream trend of being autonomous and controllable as domestic alternatives, winning the bid for Kirin, Tianjin Kirin, and Deepin are expected to replace foreign manufacturers as mainstream operating systems in the domestic security field. Referring to the current total market value of Chinese software is 33.5 billion yuan. Assuming that the winning Kirin, Tianjin Kirin, and Deepin have the same market share in the Encore field, the target market value of Chengmai Technology is 15 billion yuan. Risk warning: The capital increase of Tongxin Software falls short of expectations, the development and customer development of Tongxin Software falls short of expectations, and competition in the operating system market intensifies.