The Zhitong Finance App learned that on May 31, Dameng Data (688692.SH) began the subscription. The issuance price was 86.96 yuan/share. The maximum subscription price was 0.45 million shares, with a price-earnings ratio of 24.09 times. It belongs to the Shanghai Stock Exchange. China Merchants Securities is the sponsor and lead underwriter, and Huaying Securities is the co-lead underwriter.

According to the prospectus, Dameng Data is a leading domestic database product development service provider and a key driver for the development of the domestic database basic software industry. The company provides a series of database products and related technical services such as various database software, cluster software, cloud computing and big data products to large and medium-sized companies, enterprises, institutions, party and government organs, and is committed to becoming the top international provider of full-stack data products and solutions.

Depending on the type of business, Dameng Data's main products and services include software product licensing, data and industry solutions, operation and maintenance services, etc. Among them, software product licenses include Dameng database management system, database cluster software, and cloud computing and big data products.

The core team of Dameng Data has more than 40 years of R&D experience and technical accumulation in the database field. The company has taken the lead in undertaking major national science and technology projects during the “11th Five-Year Plan” and “13th Five-Year Plan” periods, achieved a breakthrough of zero localization of key core technologies such as shared storage clusters, and broke the technological monopoly of foreign database vendors.

At present, Dameng Data has mastered core cutting-edge technology in the field of data management and data analysis, and has independent intellectual property rights for all core source codes of major products. It has passed independent original inspection and testing by the China Information Security Assessment Center and the National Network and Information System Security Product Quality Supervision and Inspection Center. It can independently develop various database products and related tools, and has the advantages of rich database product line, high system maturity, high security and good performance.

Since its establishment, Dameng Data has actively participated in product adaptation for upstream and downstream enterprises, and is a national enterprise technology center certified by the Innovation and High-tech Development Department of the National Development and Reform Commission. At present, the company's products fully support various domestic machine platforms, operating systems, chips, application software and other upstream and downstream software and hardware, and have completed mutual recognition of compatibility and compatibility with more than 6,000 software and hardware products or information systems.

Dameng Data serves well-known users including China Construction Bank, Bank of Communications, Everbright Bank, Industrial Development Bank, China Life Insurance, China Development Bank, China Life Insurance, State Grid, China Aviation Communications, China Mobile, China Tobacco, China General Administration of Market Supervision and Administration, people's procuratorates at all levels, people's courts at all levels, the National Development and Reform Commission, the National Immigration Bureau, the Securities Regulatory Commission, the Shanghai Stock Exchange, Shenzhen Stock Exchange, etc., and has been successfully used in dozens of fields such as finance, energy, aviation, communications, party and government agencies. According to reports released by CCD Consultants and IDC, the company's product market share from 2019 to 2022 ranked among the highest among domestic database vendors in the Chinese database management system market.

On the financial side, in 2020, 2021, 2022 and January-June 2023, Dameng Data achieved operating income of approximately RMB 450 million, RMB 743 million, RMB 688 million, and RMB 2.87 million, respectively. Net profit for the same period was approximately RMB 144 million, RMB 438 million, RMB 265 million and RMB 72.2573 million respectively.

It should be noted that in the prospectus, Dameng Data specifically reminds investors to pay attention to market competition risks.

The basic software industry in which the company is located has high technical barriers and market barriers. Currently, international database companies still occupy most of the market share. International giants have rich product lines, deep technical reserves, mature R&D teams, strong financial strength, and a first-mover advantage in entering the domestic market early. Compared with international giants, the company's overall competitiveness is still in a weak position.

At the same time, some leading domestic Internet and communications companies are also gradually entering related markets by relying on products such as cloud databases and open source databases. Among them, cloud database services, which are more suitable for small and micro enterprises, may have an impact on the company's future new market development process. However, although open source databases have disadvantages such as poor product perfection and weak technical service capabilities, they are still relatively widely used in the database market. If open source or free product technology is rapidly iterated in the future, product perfection and performance will be greatly improved, which will also intensify market competition, which in turn will adversely affect the company's performance growth.