Jinya Technology (300028.CH/RMB 17.95, unrated) was originally a radio and television equipment supplier, and is currently in a transition period. In 2013, operating revenue increased 28% year over year to 610 million yuan, and net profit attributable to shareholders of listed companies fell sharply to a loss of 122 million yuan. The reasons include: 1) full accrual impairment of accounts receivable of 62.09 million yuan for the Nanchong project; 2) Harvard International losses and proposed impairment of goodwill of about 20 million yuan; 3) sharp decline in gross margin of major products such as set-top boxes. In 2013, a group structure was established with a joint stock company as the parent company to focus on expanding the “smart digital home” consumer electronics market, launch products such as game boxes one after another, and establish a “platform+terminal+content” pan-home Internet ecosystem. The company has proposed stock options and restricted stock incentive plans. The exercise conditions include net profit growth rates of not less than 15%, 34%, and 60% from 2014 to 2016, respectively; return on net assets of 6-8%; exercise price of 10.16 yuan/share of options; and grant price of 4.92 yuan/share for restricted stocks. We acknowledge the growing market demand for smart home terminals and interactive entertainment terminals. At this stage, we will pay close attention to whether the company is properly prepared for this in terms of market outlook, external cooperation, and talent team building.