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Zhongwang goes public, industrial design software company gives birth to a couple of billionaires

Zhongwang Software, a domestic industrial design software supplier, was officially listed on the Shanghai Stock Exchange today. By the end of the afternoon, the company's stock price was sealed to 409 yuan per share, a sharp increase of 171.6% . Chairman Du Yulin (36.47%), Li Hong (6.4%) and his wife hold 42.87% of the shares, with a market value of 10.86 billion yuan.

Image source: company official website

 

Zhongwang Software was established in 1998, focusing on the development and sales of 2D CAD software in the early years. With deep cultivation in this field, the company gradually broke the monopoly of European and American companies in the domestic market. In 2010, Zhongwang acquired VX Corporation of the United States, and officially launched the first 3D CAD software the following year. With the continuous development of the high-end equipment manufacturing industry in recent years, the demand for CAE technology applied to high-end manufacturing design scenarios has grown rapidly. ZWSoft set up the CAE R&D center in 2018 and launched its own full-wave 3D electromagnetic simulation software ZWSim-EM . At present, the downstream customers of ZW are mainly industrial manufacturing, construction and school education. In 2020, the company's total revenue and net profit attributable to the parent will be 460 million yuan and 130 million yuan, an increase of 27% and 41%. In this public offering, ZWSoft has raised 233 million yuan and plans to invest in “2D CAD and 3D CAD platform research and development projects”, “General CAE pre-processing platform research and development projects”, “a new generation of 3D CAD graphics platform R&D and construction projects” etc.

Zhongwang Software’s prospectus shows that the total revenue of my country's industrial software products in 2019 was 172 billion yuan, an increase of 16.45% from 2018. From 2012 to 2019, the compound annual growth rate of my country's industrial software product revenue was 20.34%, and the growth rate continued to lead the global industrial software market. According to the forecast data of the China Commercial Industry Research Institute, in 2021, my country's industrial software product revenue will exceed 200 billion yuan. From the perspective of the competitive landscape, foreign-funded companies dominated by Dassault, Autodesk, Siemens, and ANSYS still have advantages in technology and the market, but domestic companies are gradually gaining market recognition in some areas. Under the trend of localization and legalization, the potential market for domestic industrial design software suppliers is huge.

Du Yulin graduated from Wuhan Technical University of Surveying and Mapping (later merged into Wuhan University), and later joined Zhongwang Business as a system engineer. Since 1998, he has served as chairman and general manager of Zhongwang Software.