Initial transformation of Bao-Xin software for large data service of Pathfinder

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Baosteel Group and China Telecom Group signed a 2.6 billion-yuan business cooperation Agreement to jointly provide Internet Data Center service for Alibaba, and promote the cloud computing business field cooperation, which is regarded as the practice of industrialization and information integration in the industry. "This is also the signal of the business transformation of Bao Xin Software (600845.SH), is the attempt of Baosteel's transition and upgrade strategy," Baosteel Group insiders briefed the economic observer. In the view of Baosteel Group Chairman Xu, cooperation with China Telecom will help Baosteel realize the transition from manufacturing to service.

The determination of steel companies to change is not just the immediate profit growth. "Baosteel must apply good information and Internet technology in order to continue to maintain the best in the industry," Xu pointed out.

Bao Xin software for the Baosteel Stock (600019.SH) holding company, its transformation path is supported by "digital Baosteel", providing steel industry services, upgrading to a more comprehensive IT service areas, the layout of large Internet data centers and SME informatization.

Path

Baosteel's cooperation with China Telecom was planned a few years ago. "This is a collaboration that strengthens collaboration in the cloud computing sector and further expands the data center business," said Baosteel insiders, "since the steel industry has been in a slump a few years ago, the company is no longer satisfied with the identity of traditional industrial software and service providers." ”

February 2010, Baosteel Group and China Telecom Group signed a strategic framework cooperation agreement. The cooperation content extends from the basic communication business to the information system field. Mainly to explore the field of wireless communications and emerging things networking, to build a steel trading E-commerce system, the construction of high-speed Internet network and call center platform, and China Telecom as the preferred steel and extension products suppliers, in China Telecom's infrastructure projects priority to use Baosteel products.

It can be seen that the agreement between the two sides was considered as an important step to promote industrialization and information integration, but did not implement Yu Baoxin software company level.

Baosteel Group, a department head to this newspaper, Bao letter software predecessor is the group's internal supporting a department, 2000 development as an independent company, by Baosteel Group's Baosteel Holdings, the main business for software development, system integration, intelligent transportation, service outsourcing and engineering design five parts.

At Baosteel Group and China Telecom signed the strategic framework of cooperation, Bao Xin Software is committed to fully support the "digital Baosteel" strategy implementation. In the annual development plan mentioned, we should cultivate new economic growth point, improve service ability, and mention "continue to implement advanced technology research strategy, promote the cloud computing, the Internet of things and other fields of tracking research and form the demonstration application". 2010, Bao Xin software revenue 2.58 billion yuan, net profit of 230 million yuan.

2011, Bao Xin software system integration and engineering design business revenue year-on-year growth of more than 51%, other businesses have varying degrees of growth.

2012, the steel industry into the era of meager profit, engineering technical transformation investment significantly reduced, but the enterprise information demand for rapid growth. This year, Bao Xin Software proposed, the overall promotion of "engineering + Services + Products" business model, that is, to consolidate mature business, vigorously develop new business.

It is noteworthy that this year, the Treasure letter software began to enter the resource industry, expanding the equipment manufacturing, non-ferrous, track and other areas of new services, and initially built cloud service capabilities. In the annual business plan, "continue to promote cloud computing and IoT project."

The cost of the cloud project began to appear in the debt of the year of the Treasure Letter software. According to earnings, 2012, Bao Xin software mainly due to cloud computing project base construction, resulting in a debt of about 22.41 million yuan, mainly due to the cloud computing project research and development expenditure capitalization, resulting in a debt of about 48.45 million yuan.

At the end of 2012, Bao Xin software in the core competitiveness of the analysis mentioned, "Baosteel private cloud construction initially completed, has the cloud computing services capabilities and core technology practical experience, will be based on this as the basis for the gradual output of capacity to social applications, for the future strategic objectives to achieve a positive role." That year, Bao Xin software revenue 3.64 billion yuan, net profit of 260 million yuan.

In the first half of 2013, Bao-Shin Software continued to invest 25.98 million yuan in the "Cloud Computing Industrialization Project".

October 18, 2013, Bao Xin Software and the Shanghai branch of China Telecom signed the Internet Data Center (IDC), Integrated Communications business Cooperation Agreement. In the data center business cooperation, Shanghai Telecom will rent the Treasure letter Software "Treasure cloud IDC" Phase one project data center resources, for Alibaba to provide green exclusive data center services. In addition, the two sides will jointly promote the cloud computing business areas of overall synergy.

It is reported that "Treasure cloud IDC" Project Phase I plan to invest 540 million yuan, Bao Xin software will use idle industrial plants, building 4,000 large data center cabinets, Shanghai Telecom will lease at least 3,752 19-inch standard cabinet. The plan starts from February 1, 2014, the Bao Xin software will be in accordance with the computer room in actual use of the cabinet number, to Shanghai telecom charging cabinet custody service fee, the agreement period of ten years, the total amount of about 25 to 2.6 billion yuan.

The two sides in the integration of communications business cooperation, including the exploration of industrial production information applications, E-commerce platform, intelligent Office business and other fields.

Wang, chairman of China Telecom Group, said China Telecom has built the largest cloud processing center in the country, and will seek more cooperation with Baosteel in the future in addition to data business cooperation. In his view, this cooperation is also China Telecom to market high value model transformation signal.

Transition

"With the steel industry into the era of meager profit, treasure letter software gradually transform and cut into the Internet large data business, IDC is its tentative step forward, Guotai researcher Zhangxiaowei estimated that the overall net interest rate of IDC project is around 20%, will become an important profit growth point of 2014, thickening the net profit of about 50 million yuan. "With the rise of software stocks this year, Bao Xin software shares in the two-tier market has experienced a rapid rise in 2 waves, and then into the transverse arc finishing, in this major agreement under the stimulus, once again jump empty trading, creating a New Year," Heng Tai securities researcher Wang Dragon believes that the cooperation agreement for the next decade's performance of Bao-Xin software to provide a guarantee. "

This July, Bao Xin software non-public offerings 650 million yuan, used for "Treasure cloud IDC" Phase I Project and SME information Software PRODUCT project. "Treasure of the Cloud IDC" project will build a large-scale intensive IDC industrialization base, within 12 months of completion of the construction.

SME informatization Software PRODUCT project is mainly used for research and development equipment acquisition and research and development of the environment, for the iron and steel industry chain enterprises and related extended industry SMEs, to provide coverage of major manufacturing process management and enterprise resource management of the overall information solutions. The project plan is completed within 36 months and the total investment is 115 million yuan.

In the fund-raising, Bao-Shin software obtained the support of large shareholder Baosteel, Baosteel shares of 55.5% of the actual issue. "Baosteel Group is advancing the ' one Wings ' strategic pattern, to steel as the main body, to treasure Letter software representative of it for the left wing, to Shanghai steel trading market Platform for the right to E-commerce, Baosteel's chairman He Wenbo earlier in the interview with this newspaper," These three years is the best time for information and E-commerce field. "

Sources said that the next step in Shanghai will be around the FTA construction software and information services details. "Software and information technology services have been identified as one of the areas where the FTA has been promoted," said the Shanghai Business Council. "At present, the cloud computing project all-round advancement, began to provide services, will form the cloud computing business model, the company to explore the IDC Project operation mode, is expected to become a new business growth point." In addition, the matter networking and vehicle networking related work to make progress. Treasure Letter software company Personage pointed out. In the second half of the software work plan, "strengthen the business transformation, strengthen the cloud services market development and explore the IDC business model, accelerate the work of product" is highlighted.