Acquired Jiaxing Wangu. Feitian Chengxin issued a board announcement to acquire 57% of the shares of Jiaxing Wangu Intelligent Technology Co., Ltd. (“Jiaxing Wangu”) with its own capital of 22.8 million yuan and increase its capital by 3 million yuan. In total, it obtained 60% of Jiaxing Wangu's shares. The company also increased its capital in the same proportion as Huang Jianliang, another shareholder of Jiaxing Wangu. Among them, the company increased its capital by 30 million yuan, bringing the registered capital of Jiaxing Wangu to 82.25 million yuan. This transaction is neither a related transaction nor a major asset restructuring, and there is no need to submit it to the shareholders' meeting for consideration and approval. The company also announced that it has appointed Mr. Huang Jianliang as the company's deputy general manager. Jiaxing Wangu is a major smart card manufacturer in Zhejiang Province. Jiaxing Wangu was founded in 2011, formerly known as Zhejiang Wangu Technology Co., Ltd. It already has a production capacity of 50 million IC cards, 25 million RF cards, and 100 million printed cards of all kinds and packaging prints. Jiaxing Wangu already has major qualifications in the field of smart cards, including UnionPay IC card production qualifications, national industrial production licenses, commercial cryptographic product production and sales licenses, and Ministry of Housing and Construction CPU card certificates. IC cards are expected to become a new driving force for growth. Feitian Chengxin is a software company. At the end of 2013, half of the company's employees were R&D personnel. The company's JAVA card operating system is globally competitive and is entering the European market. Jiaxing Wangu has an IC card production line and financial IC card business qualifications. After acquiring Jiaxing Wangu, the company can immediately enter the IC card market and seize the opportunity of the financial IC card market's explosive growth in 2013-2015. Although Jiaxing Wangu was unprofitable in 2013 and the first half of this year, the combined effects of the two sides are worth looking forward to. Set up an information security industry investment fund. The company also announced a joint initiative with Kunwu Jiuding Investment Management Co., Ltd. to establish the Feitian Jiuding Information Security Industry Investment Fund in the Shanghai Free Trade Zone. The first level of an information security system when authenticating an identity. Judging from the scale of profits, Feitian Chengxin is the largest A-share information security company. Feitian Integrity's business will be further extended in the information security industry chain. Maintain profit forecasts and ratings. The estimated revenue for 2014-2016 will be $11.4, 1.49 billion, and $1.92 billion, with net profit of $3.1, 4.0 and 530 million, respectively, and earnings per share of $3.22, 4.19 and 5.60, respectively. Maintain an “increase in holdings” investment rating.