incident. Recently, the company announced that Xu Yusuo, the actual controller and former chairman of the company, has returned to China. The company also recently adjusted its board of directors, elected Mr. Wang Binsheng as the company's independent director, and served as the convener of the board's strategic investment committee. reviews. First, the actual controller returned to China to obtain bail awaiting trial, and the company regained its development beliefs: the company's controlling shareholder, actual controller, and former chairman Xu Yusuo voluntarily surrendered to China on November 28 last year and actively cooperated with the procuratorial authorities in handling the case. The procuratorial authorities took measures to obtain bail awaiting trial against Xu Yusuo. On August 28, 2012, the Zhengzhou Railway Inspection Branch decided, in accordance with the law, to open an investigation against Xu Yusuo on the alleged bribery of the unit due to the alleged bribery of Liu Ruiyang, the former deputy director of the Vehicle Department of the Transportation Bureau of the Ministry of Railways. According to the spirit of the “Notice on Urging Fugitive Overseas Economic Criminals to Surrender Voluntary Surrender” issued jointly by the Supreme People's Procuratorate, the Supreme People's Court and other departments, fugitive foreign economic criminals automatically surrender before December 1, 2014. If they confess their crimes truthfully and return home voluntarily, their punishment may be reduced or mitigated according to law. “Where there is significant meritorious performance, the punishment may be reduced or exempted from punishment in accordance with law.” Over the past 2 years, the company's development has generally remained stable, and revenue has been rising steadily. Especially in library radio frequency identification, the trade and logistics industry has developed, but from a profit point of view, overall, the company has been in the fitness stage in recent years, and its gross margin and net profit margin have declined. After the actual controller returns home, the company is expected to achieve key breakthroughs in the three core fields based on the original six major target markets of railways, libraries, international markets, tobacco and alcohol, agriculture and animal husbandry, and domestic markets, that is, it is expected that it may achieve key breakthroughs in the fields of railways, libraries, and logistics. Furthermore, in terms of the profit model, we also hope to evolve from the previous model of selling products and integrating systems to a platform-based model. Second, the strategic investment committee changed hands and expanded overseas; recently, the company's board of directors by-elected Mr. Wang Binsheng as the convener of the Strategic Investment Committee. Before becoming an independent director of Yuanwang Valley, Mr. Wang worked at the Taiyuan Satellite Launch Center and other organizations (where the former chairman worked before starting a business), with the rank of major general. Furthermore, the company's overseas expansion has accelerated since last year, and branches in Europe and Singapore were set up in February and June 2014, respectively. These measures show that the company intends to further accelerate the pace of internationalization of the company, develop the company's international market business, better meet the customized needs of customers, and increase the competitiveness and market share of the company's products in the international market. In the first half of 2014, Yuanwanggu's overseas revenue reached 24 million, an increase of 50% over the previous year, accounting for 9% of total revenue. Combining the company's overseas layout and emphasis on strategic investment, it indicates that a new round of export-oriented development of the company is expected to begin. Third, investment income may significantly increase the company's performance: in August 2011, the company invested 112 million yuan in Henan Siwei Automation Equipment Co., Ltd., accounting for 20% of the shares. Henan Siwei specializes in R&D, production and service of train monitoring systems and products. Undertook the development of a number of train safety monitoring systems and research projects on key technologies for railway transportation safety. The company's LKJ series train operation control system has covered customers such as 18 railway bureaus, 7 locomotive manufacturers, and local railway companies across the country, and has been widely used in more than 20,000 locomotives and 200 kilometers per hour speed class EMUs across the country. According to the prospectus disclosed by Henan Siwei in May 2014, its net profit in 2013 was 153 million yuan. If Henan Siwei is successfully listed and Yuanwanggu is successfully implemented, the company is expected to obtain an investment income of 1 billion dollars or more. Investment advice. Give it an “Overweight” rating.