Interpretation of the Chinese Academy of Sciences, one of the four giants in the information and innovation industry: 237 holding companies, incubating 43 listed companies such as the Sunlight and Cambrian

√ The Chinese Academy of Sciences was established in November 1949, integrating scientific research institutes, academic departments and educational institutions. It is the highest academic institution of natural science, the highest consulting institution of science and technology, and the comprehensive research and development center of natural science and high technology in China. Its daily work is guided by the State Council.
√ The Chinese Academy of Sciences has successfully developed the first computer, Dawn Supercomputer, Godson series of general-purpose chips, to single-precision supercomputing system with billions of times, and Cambrian artificial intelligence processor, which has played a key role in China’s independent innovation of computer technology. From the sending of China’s first e-mail to the establishment of China Internet Information Center, China Netcom and Wireless Sensor Test Network, CAS has become a pioneer in network technology and network industry.
√ The Chinese Academy of Sciences has 11 branches and more than 100 scientific research institutes. The three universities are the University of the Chinese Academy of Sciences, the University of Science and Technology of China and the Shanghai University of Science and Technology, and more than 130 State Key Laboratory and engineering centers. They have undertaken the construction and operation of more than 30 major national scientific and technological infrastructures. There are more than 69000 formal employees and more than 79000 graduate students.
√ In the 1980s, the Chinese Academy of Sciences implemented “one academy, two systems”. The major research institutes needed to survive on their own, seek development, adjust the scientific research system, and the operation mode of industrialization of scientific research results came into being. By 2022, the Institute of Computing of the Chinese Academy of Sciences has incubated high-tech enterprises such as China Science Shuguang (603019. SH), Cambrian (688256. SH), Jingshang, Tianji, Ruixin, Wuqi, etc., while China Science Shuguang has incubated enterprises such as Haiguang Information and China Science Star Map (688568. SH).
Produced | Zero One Think Tank
Author | Lin Ruowei
Editor | Li Xin
catalogue
Introduction
1、 Company Profile
（1） Company profile
（2） With the implementation of “one hospital, two systems”, business incubation came into being
（3） In addition to capital investment, we should not forget to focus on R&D technology
2、 Its main companies and core products
（1） Major listed companies
1. Zhongke Dawning
2. Cambrian
3. Sinosoft
4. iFLYTEK
（2） Major unlisted companies
1. China Kefangde
2. Zhongke Red Flag
3. Godson Zhongke
3、 Opportunities and challenges
（1） The impact of multiple enterprises being listed in the “entity list”
（2） Business diversification, and many enterprises maintain prominent position in the industry
（3） Energized by scientific and technological innovation, many enterprises under the Chinese Academy of Sciences have accumulated energy and burst out
Introduction
Since the “Prism Gate” and the ZTE and Huawei events broke out, the Chinese government has issued a series of policies to support the domestic substitution of the information technology industry. During this period, the party and government led the pilot of information technology application innovation (hereinafter referred to as “Xinchuang”). With the deepening of the pilot project and the expansion of the pilot project to finance, telecommunications, transportation and other livelihood industries, Xinchuang has entered the “golden three years”: in 2020, Xinchuang will enter the first year; In 2021, the application of information and innovation industry cases will be implemented; In 2022, the scale of the information and innovation industry will be promoted.
From pilot to promotion, the infrastructure construction of Xinchuang is inseparable from the comprehensive empowerment of manufacturers, especially giants, in the industrial chain. From chips to operating systems to office systems, from basic hardware to basic software to application software, the information and innovation industry giants not only actively develop the ability of independent innovation, but also build an ecological chain from bottom to top. At present, institutions represented by China Electronics, China Electronics Technology, Huawei and the Chinese Academy of Sciences have basically formed a relatively complete information innovation ecosystem through investment, mergers and acquisitions or strategic cooperation. In order to further understand the development process, subsidiaries or cooperative institutions of the four giants in the information and innovation industry, the Zero One Think Tank has launched a series of articles on the four giants in the information and innovation industry. At present, it has published two articles on China Electronics and China Electronics Technology. This issue will interpret the Chinese Academy of Sciences for you.
1、 Company Profile
（1） Company profile
Established in November 1949, the Chinese Academy of Sciences (hereinafter referred to as “CAS”) is the highest academic institution of natural science, the highest advisory body of science and technology, and the comprehensive research and development center of natural science and high technology in China. Its daily work is guided by the State Council. The Chinese Academy of Sciences integrates scientific research institutes, academic departments and educational institutions. At present, it has formed a complete natural science discipline system. The overall level of physics, chemistry, material science, earth science and other disciplines has entered the world’s advanced ranks.
According to the official website of the Chinese Academy of Sciences, as of November 2021, the Academy has 11 branches, more than 100 scientific research institutes, 3 universities (note: the University of the Chinese Academy of Sciences, the University of Science and Technology of China and Shanghai University of Science and Technology jointly built), more than 130 State Key Laboratory and engineering centers, and has undertaken the construction and operation of more than 30 major national science and technology infrastructure. It has more than 69000 formal employees and more than 79000 graduate students.
Manned space flight and manned deep diving, successfully developed the first computer, independently developed chloramphenicol and penicillin, completed the artificial synthesis of bovine insulin for the first time in the world, and initiated the mathematical mechanization proof, finite element method… Since the founding of the Academy, the Chinese Academy of Sciences has always carried out scientific research around the needs of modernization, produced many pioneering scientific and technological achievements, and independently developed a series of strategic high-tech fields.
Holding enterprises of the Chinese Academy of Sciences are spread across all provinces. According to the official website of the company, only its holding Chinese Academy of Sciences Holding Co., Ltd. (hereinafter referred to as “Guoke Holding”) has more than 50 holding enterprises, which are distributed in 13 cities in 11 provinces and municipalities directly under the Central Government. The industry covers new generation information technology, high-end equipment manufacturing, environmental protection and new materials, fund investment, modern services and other fields. There are 39 listed companies invested by the institute, Among them, there are 3 science and technology innovation boards, forming a distinctive capital market “National Science and Technology Department Board” in China.
（2） With the implementation of “one hospital, two systems”, business incubation came into being
In the 1980s, China entered a new era of reform and opening up, and the Chinese Academy of Sciences, in the period of social transformation, was facing major changes. First of all, the research direction of the Institute has changed from serving the national defense construction to the main battlefield of the national economic construction, facing the general market, and making contributions to promoting the transformation of China’s traditional industries and promoting the promotion and application of products.
On the other hand, the era of scientific research tasks assigned by the state and funded by the state has passed. At the beginning of 1988, under the auspices of President Zhou Guangzhao, the Chinese Academy of Sciences implemented the policy of “putting the main force into the main battlefield serving the national economic construction, and at the same time transferring the capable team to engage in basic scientific research and high-tech tracking”, namely “one academy, two systems”. For institutes engaged in applied research, 80% of personnel are required to enter the main battlefield of the national economy, and the investment in their business expenses is reduced by 20% year by year. In the face of the sudden new situation, the major research institutes need to rely on themselves to survive, develop and adjust the scientific research system. To this end, in addition to the scientific and technological personnel who are undertaking scientific research tasks, the Institute encourages other scientific and technological personnel to organize themselves to enter the society, understand the market demand, participate in the competition, and strive for scientific research projects and funds in order to serve the construction of the national economy.
During this period, the Institute has encountered new breakthroughs in its scientific research work. First, in order to retain its status as a national research institute and continue to make contributions to the exploration of scientific and technological frontier topics. The second is to strive for major tasks facing national economic construction and establish companies to realize the transformation of scientific and technological achievements into products and commodities.
In 1984, Liu Chuanzhi and 10 employees of the Institute of Computing of the Chinese Academy of Sciences established a computer company with 200000 yuan, becoming the later Lenovo Group. Inspired by this, the Institute of Computing of the Chinese Academy of Sciences took the lead in coming up with a technology transfer approach for business incubation. Beijing Zhongke Jingyuan Asset Management Co., Ltd., a wholly-owned asset management company established by the Institute in 2007, invested in the Institute’s technologically mature team project in the form of cash contribution. This investment model enables the technology of the Institute of Computing to successfully enter the market through these investment enterprises and truly realize industrialization. After financing, the incubated company can transfer shares according to market valuation, thus forming capital accumulation; At the same time, an industrial fund was established to actively participate in the financing of incubation companies. As of March 2022, the Institute has incubated high-tech enterprises such as Zhongke Shuguang (603019. SH), Cambrian (688256. SH), Jingshang, Tianji, Ruixin and Wuqi, while Zhongke Shuguang has incubated enterprises such as Haiguang Information and Zhongke Xingtu (688568. SH).
Table 1: Some controlled enterprises under the Chinese Academy of Sciences
Data source: Enterprise Inspection, Zero One Think Tank
（3） In addition to capital investment, we should not forget to focus on R&D technology
The Chinese Academy of Sciences has more than 100 research institutes, including Institute of Physics, Institute of Physical and Chemical Technology, Institute of Process Engineering, Institute of Computer Technology and Institute of Software. The following highlights the Institute of Computing Technology of the Chinese Academy of Sciences and Institute of Software of the Chinese Academy of Sciences related to information and innovation industry.
1. Institute of Computing Technology, Chinese Academy of Sciences
The Institute of Computing Technology of the Chinese Academy of Sciences (hereinafter referred to as the Institute), founded in 1956, is the first academic institution specialized in comprehensive research of computer science and technology in China. The Institute of Computing has successfully developed China’s first general-purpose CPU chip and the first general-purpose digital electronic computer, forming a research and development base for high-performance computers in China.
With the development of disciplines and technology, many research institutions, such as the Institute of Microelectronics, the Computing Center, the Software Institute and the Network Center of the Chinese Academy of Sciences, as well as high-tech enterprises such as Lenovo and Dawn, have been separated from the Institute of Computing. Over the past 60 years, the Institute has made remarkable achievements in scientific research and scientific and technological achievements.
According to the official website, by November 2021, 245 national, academy, municipal and ministerial science and technology awards have been obtained, including 55 national science and technology awards and 190 academy, municipal and ministerial science and technology awards. In terms of intellectual property awards, the Institute of Computing attaches great importance to the protection and application of intellectual property rights. In the past decade, the conversion rate of authorized patents has reached 40%. Since 2010, it has won 12 Chinese patent awards and Beijing invention patent awards.
In April 2010, the “Dragon Core Industrial Park” jointly built by the Chinese Academy of Sciences and Beijing started construction in Zhongguancun, and the “Dawn R&D Base” was officially settled in the northern cluster area of Zhongguancun. Subsequently, a number of major industrialization projects such as “Godson CPU technology and series products” and “Dawn Billions of Supercomputers” have begun to be transformed. In August 2002, the Institute of Computing Technology successfully developed China’s first general-purpose CPU chip, Godson-1. With the support of the National 863 Program, Shuguang Company and the Institute of Computing have successively developed Shuguang No. 1 multiprocessor, Shuguang 4000L, Shuguang 4000A and Shuguang 5000. In June 2008, the first home-made mega-computer Dawn 5000A was successfully developed, making China the second country after the United States to develop mega-computers.
Table 2: National Awards of Institute of Computing, Chinese Academy of Sciences from 2015 to 2020
Data source: the official website of the Institute of Computing, and the Zero One Think Tank
2. Software Research Institute of the Chinese Academy of Sciences
The Software Research Institute of the Chinese Academy of Sciences (hereinafter referred to as “the Institute”), founded on March 1, 1985, is a comprehensive base type research institute dedicated to the research and development of computer science theory and software high-tech. Its key disciplines include computer science, computer software, computer application technology and information security. At present, it has incubated enterprises such as Zhongkesoft (603927. SH) and Zhongke Fangde.
On the afternoon of April 26, 2019, at the first International Forum on Intelligent Software hosted by the Institute of Software of the Chinese Academy of Sciences, the Institute of Software released the intelligent operating system FactOS v1.0 and its supporting tools. At present, FactOS has been deeply compatible with Huawei’s Ascension Processor Atlas series and Cambrian smart chips, which shows that FactOS can be used as the basis for the development, deployment and operation and maintenance of autonomous unmanned systems, and can build a bridge between AI applications and underlying chips, drive more human intelligent chips, which can be widely used in smart robots, smart homes, smart medical, smart transportation, smart security and modern agriculture.
According to the official website, as of December 2020, the Institute has 705 employees, including 628 scientific and technological personnel, 77 management support personnel, including 4 academicians of the CAS Member, 1 academician of the Third World Academy of Sciences, 74 senior professional and technical personnel, and 136 deputy senior professional and technical personnel. Five winners of the National Science Fund for Distinguished Young Scholars and one winner of the National Science Fund for Distinguished Young Scholars.
In terms of awards, as of December 2020, software has won 46 achievement awards at or above the level of academy, province and ministry, including one first prize, two second prizes and one third prize of the the State Natural Science Award; There were 9 second prizes and 2 third prizes of the National Science and Technology Progress Award. It is particularly worth mentioning that the first prize of the National Natural Science Award in the computer field came from the Software Institute.