The competitive pressure for homogenization in the securities information service market has increased, and profits from the main business have declined. From January to December 2014, the company achieved total revenue of 820.45 million yuan, an increase of -8.25%; among them, revenue from other businesses such as Hong Kong stock service systems, financial information and data PC terminal service systems, securities market and basic information services and financial information and data mobile terminal service systems increased by 176.98%, 25.40%, -70.32%, 60.79% and 25.39%, respectively; the corresponding revenue components were 44.32%, 21.35%, 19.90%, and 11.72 % and 2.03%. Compared with the same period last year, there were changes of 29.64, 5.73, -41.60, 5.03, and 0.55 percentage points, respectively. Judging from the situation in the single quarter from October to December, the company achieved total revenue of 205.92 million yuan, a year-on-year increase of -41.70%, slower than the January-December revenue growth, accounting for 25.10% of the total revenue in January-December. The sharp increase in the company's other types of revenue was mainly due to the merger of newly acquired companies. From January to December 2014, the company achieved gross profit of 422.77 million yuan, a year-on-year increase of -41.17%, slower than revenue growth. Among them, gross profit from other businesses such as Hong Kong stock service systems, financial information and data PC terminal service systems, securities sales department securities market and basic information services, and financial information and data mobile terminal service systems increased by 42.30%, 40.14%, -88.15%, 54.53% and 25.85%, respectively. The corresponding gross profit components were 44.02%, 26.23%, and 12.96% Compared with the same period last year, 12.89%, and 3.17% changed 25.82, 15.22, -51.40, 7.98, and 0.30 percentage points, respectively. The company achieved a gross operating margin of 51.53%, down from 28.82 percentage points in the same period last year (80.35%). Among them, gross margins for businesses such as other, Hong Kong stock service systems, financial information and data PC terminal service systems, securities sales department securities market and basic information services, and financial information and data mobile terminal service systems were 51.19%, 63.31%, 33.57%, 56.71% and 80.20%, respectively. Compared with the same period last year, there were changes of -48.45, 6.66, -50.53, -2.30 and 0.30 respectively. Percentage points. From January to December 2014, the company achieved a main operating profit of -782.20 million yuan, a year-on-year increase of -241.59%, slower than the increase in gross operating profit; the company's main operating profit margin was -95.34%, down 69.73 percentage points from the same period last year (-25.61%). Among them, the total expenses for the corresponding period were 1204.97 million yuan, up 27.17% year on year. Among them, operating taxes and surcharges, sales expenses, management expenses, financial expenses, and asset impairment losses increased by -32.90%, 29.41%, 14.77%, 27.24%, and 4167.39%, respectively; the total cost rate for the period was 146.87%, higher than the same period last year (105.96%) by 40.91 percentage points, including operating taxes and surcharges, sales expenses, management expenses, financial expenses, and asset impairment losses. The rates were 2.29%, 71.89%, 73.53%, -5.40%, and 4.56%, respectively. Compared with the same period last year, changes were -0.84, 20.92, 14.75, 1.41, and 4.66 percentage points, respectively. Looking at the situation in the single quarter from October to December, the company achieved a main operating profit of 184.67 million yuan, a year-on-year increase of -851.42%, accounting for 23.61% of the main operating profit from January to December 2014, and the main operating profit margin of -89.68%, which is higher than the main operating profit margin level for January-December. There was a significant increase in net profit, mainly due to the processing of investment income from subsidiaries. From January to December 2014, the company achieved net profit attributable to the owner of the parent company of 106.93 million yuan, an increase of 817.07% over the previous year, faster than the main operating profit growth. The net profit margin was 13.03%, up 11.73 percentage points from the same period of the previous year (1.30%). Among them, from January to December 2014, the company achieved year-on-year increases of -241.59%, 297.85%, -9.41%, 122.21%, and 151.80% of total profit, respectively. The relative proportion of total profit was -434.31%, 514.75%, 19.56%, 23.11% and 17.52%, respectively. Compared with the same period last year, these shares changed by 99.21, -28.16, -71.05, -20.53, and- 11.68 percentage points. Among them, there was a significant increase in other operating income, mainly from processing the investment income of subsidiaries. Looking at the situation in the single quarter from October to December, the company achieved net profit of 19.84 million yuan, a year-on-year increase of -90.41%, accounting for 18.55% of net profit attributable to owners of the parent company from January to December 2014, and a net profit margin of 9.63%, which is lower than the net profit margin level for January-December. Strive to achieve a major platform for “Internet Information Services and Internet Financial Services”. Recently, Dazhi announced that the company plans to issue shares to 16 shareholders of Xiangcai Securities at a price of 6.05 yuan/share to acquire 96.5% of their shares in Xiangcai Securities. Caihui Technology, a subsidiary of Dazhi, acquired the remaining 3.5% of the shares of Xiangcai Securities held by Xinhu Holdings in cash, so that Xiangcai Securities became a wholly-owned subsidiary of Dazhi, and Zhang Changhong's position as the largest shareholder remained unchanged. At the same time, Dazhi will also raise 2.7 billion yuan of capital to supplement Xiangcai Securities with no less than 5.45 yuan per share. In this acquisition, the assessed value of Xiangcai Securities was 8,503.58 million yuan. The company has also made major adjustments to its business layout, mainly starting with the following three lines: 1. Building an international financial platform based on new media, cloud transactions, big data, and big users; 2. Building internet finance based on big users and big platforms; 3. Exploring interaction models between internet platforms and securities business. After the completion of this acquisition, DaWisdom can use the brokerage platform of Xiangcai Securities to explore the interactive development of the Internet platform and securities business, which not only enables the company to use the brokerage platform of Xiangcai Securities to transform from an Internet company to an “Internet information service and Internet financial service” company, but also provides a channel for Xiangcai Securities to expand its business online. n Investment advice: Considering the company's stable core business, rapidly developing new business and professional service markets, and the company's current expectations for the development of the company's international financial platforms, internet finance, and brokerage business, the estimated earnings per share for 2014-2016 (simulating consolidated income after successful acquisitions and increases in share capital) after the merger and acquisition are: 0.22, 0.28, and 0.41. It is expected that within the next 6 months, the corresponding dynamic price-earnings ratio for 2015 will reach 50-60 times, and the corresponding reasonable valuation is 14-17 yuan/share. Therefore, maintaining the investment rating for the company is “increase in holdings” for the next 6 months, and it is recommended to increase holdings. At the same time, be aware of potential future corporate business mergers and regulatory risks.