Focus on the field of identity authentication and information security. The company's main business is the development and sale of identity authentication information security products such as USB keys, OTP dynamic tokens, and software encryption locks developed with FT-COS technology as the core. The products are used in banking, securities, government and other fields, and customers cover many domestic banks such as Industrial and Commercial Bank, Bank of China, Agricultural Bank, Bank of Communications, Minsheng Bank, and China Merchants Bank. The market share of core products ranked in the top three, and net profit grew rapidly. The market share of the company's dominant products, USB Key and OTP dynamic tokens, ranked in the top three in the industry, with USB Key products accounting for 87% of revenue. With the rapid rise in the number of personal online banking users, demand for USB keys also showed high growth. In 2013, the company achieved revenue of 846 million yuan and net profit of 201 million yuan. The compound growth rate of revenue and net profit in 2010-2013 reached 57.8% and 84.8%, respectively. Downstream demand will grow steadily. As online payments are viewed by more and more users as the first choice for daily consumption, the demand for identity authentication as an important part of information security protection is extremely obvious. Taking online banking as an example, domestic USB key sales are expected to increase from the current 130 million units to about 180 million by 2015, and the market size is between 5 and 6 billion yuan. Judging from the competitive landscape, we believe that the bank's procurement system is relatively stable, and it is more difficult to have a situation where one is the sole owner. Therefore, after obtaining the bank's supplier qualification, each company's share is relatively stable, and once shortlisted in the bank's supplier list, it is usually possible to maintain stable cooperation. Fund-raising projects enhance the company's overall competitiveness. The company plans to publicly issue 23.76 million shares and plans to raise 663 million yuan in capital. The fund-raising projects include seven projects, including USB Key upgrades and identity authentication cloud platforms. The capital raised is mainly invested around the company's current main business to upgrade technology and develop new products. The implementation of the fund-raising project aims to enhance the company's technological research and development capabilities, thereby enhancing the market competitiveness of products; secondly, the construction of a marketing service center will enhance service capabilities to strengthen the expansion of new customers and the deep exploration of the needs of old customers. Investment advice. We expect the company to achieve operating income of 1,184 billion yuan, 1,599 billion yuan and 2,126 billion yuan respectively, and realized net profit of 285 million yuan, 382 million yuan and 509 million yuan respectively. Based on the total share capital after issuance, EPS for 2014-2016 was 3 yuan, 4.02 yuan, and 5.36 yuan respectively. According to the issuance price of 33.13, the corresponding PE is 11 times, 8 times, and 6 times, respectively. Risk warning: Major customers are dependent on risk, downstream demand is shrinking, and gross margin continues to decline.