On November 25, 2025, Shanghai Amarsoft Information & Technology Co., Ltd. (Amarsoft) responded to the Shenzhen Stock Exchange's inquiry regarding its 600 million yuan ($84 million) private placement plan. The exchange's scrutiny focused on multiple core aspects including the necessity of fundraising projects, technical feasibility, and financial stability, revealing the practical challenges Amarsoft faces during its strategic upgrade.
According to the updated prospectus, the company plans to raise no more than 600 million yuan, with net proceeds allocated to four projects: an AI-powered smart credit system (350 million yuan), a comprehensive risk intelligence management platform (70 million yuan), an upgrade of its digital finance R&D center (60 million yuan), and working capital supplementation (110 million yuan).
Notably, Amarsoft has a history of regulatory violations. Between 2014 and 2015, the company's chairman Gao Ming and then-board secretary Cao Feng collaborated with Orient Securities analysts to send exaggerated emails to over 100 institutions, portraying Amarsoft as a leader in internet finance when the related business generated only 1.37 million yuan in revenue, accounting for less than 1% of total income.
This scheme attracted 221 mutual funds, driving the stock price from 28.30 yuan per share in April 2014 to 450 yuan per share by May 2015. In 2016, the CSRC issued an administrative penalty decision, after which the stock price plummeted, erasing over 90% of its market value.
Given this history, regulators are paying close attention to Amarsoft's capital moves. The exchange questioned the necessity of a new 60-million-yuan R&D center, asking whether it constitutes redundant construction. Amarsoft responded that the new project represents an upgrade of existing products, "not involving specific R&D products" and primarily consisting of hardware and software purchases, with "clear differentiation" from other R&D centers.
Financially, Amarsoft reported net profit of 13.13 million yuan in the first three quarters of 2025, but its gross margin has steadily declined from over 40% in 2020 to below 30% in recent years. The new projects are expected to add 71.69 million yuan in annual depreciation and amortization, representing 5.08% of projected revenue.
The company had been consistently unprofitable until 2024 when it finally turned a profit. Whether Amarsoft can maintain stable performance under increasing depreciation pressure remains uncertain.
As of December 8, 2025, Amarsoft's stock closed at 43.18 yuan per share, down 7% since the private placement plan was first announced on October 24, suggesting the market remains skeptical about its AI transformation.
Disclaimer: This article incorporates AI-generated content. The views expressed do not constitute investment advice. Market risks exist, and investors should exercise caution.
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