The Unity Operating System (UOS), made by China-based firms to take on Windows, has recently attracted widespread attention. Although it hasn't been publicly released, it has already brought huge benefits to its developer’s parent company.
ArcherMind Technology, the parent firm of UOS developer Union Tech, stated in its 2019 financial results preview released on Monday evening that it expects to achieve a net profit of 164 million to 169 million in 2019, a year-on-year increase of 930% -960%.
ArcherMind said that the main reason for the sharp increase in net profit over the same period last year was that the company completed the sale of 100% equity of Wuhan ArcherMind, a wholly-owned subsidiary in 2019, and expected to obtain a one-time investment income of 157 million yuan.
Excluding the one-time investment income, ArcherMind's net profit will decrease year-on-year compared with 2018. The company said that the reasons for the decline include the company's provision of impairment of goodwill on subsidiaries, R&D investment and labor costs increased compared to the same period last year.
How did this happen?
At the end of last year, the company increased the capital of Union Tech with 100% shares of Wuhan Deepin Tech and Wuhan ArcherMind that worth 459 million yuan.
After the capital increase was completed, the company held a 44.44% stake in Union Tech and no longer directly held Wuhan ArcherMind's equity. Wuhan ArcherMind and Wuhan Deepin Tech becomes wholly-owned subsidiaries of Union Tech.
Union Tech and China Electronics, ZTE and other companies jointly created the UOS operating system, but UOS is essentially a deeply developed Deepin system, which is one of the various Linux distributions.
ArcherMind's 10x net profit is mainly a one-time income from the establishment of the joint venture. The profit in 2018 was only 15.92 million yuan, and the total revenue in 2018 was only 530 million yuan.
Not only because the establishment of UOS benefited, ArcherMind's recent stock price also rocketed because of the popularity of the UOS. The stock price has reached a daily limit of 10% several times. The current market value has reached 19.7 billion yuan.
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