The company is mainly engaged in R&D, production, sales and service of information security products with identity authentication as the core. The main products include ePass series USB keys, OTP series dynamic tokens, ROCKEY series software encryption locks, Flying smart cards, and readers. The products are mainly used in banks, other enterprises and institutions, e-commerce, e-government, etc., and the market share of the main products ranks among the top three in the industry. The company has a broad customer base, and bank customer coverage ranks high; it has strong R&D capabilities and is ranked high in the number of invention patents; its products have obtained many certifications, and the product line is rich. In 2011-2013, the company's operating income increased by 57.95%, 78.18% and 39.79% respectively, and net profit increased by 52.38%, 75.43% and 94.67% respectively, maintaining a relatively rapid growth rate. The company's profits mainly come from USB keys, OTP dynamic tokens, and cryptographic locks. In 2011-2013, the total gross profit ratio of these three types of products was 95.98%, 99.01%, and 97.83%, respectively. Among them, the USB Key product contributed the most to performance. The company has raised a net capital of 6184.9 million yuan, and will invest in seven projects in order of priority, including technology upgrade of USB Key security products, new product development and industrialization projects; development and industrialization projects of dynamic token authentication systems; and development and industrialization of general Java card platforms and smart cards. We expect the company's net profit to increase by 37% and 27% respectively from 2014 to 2015. The earnings per share diluted with the total share capital after issuance are 2.89 yuan and 3.68 yuan. There are no completely comparable companies in A-shares. We believe that the company's reasonable valuation range is 53-62 yuan, corresponding to a price-earnings ratio of 18-22 times in 2014. Risk warning: There is a risk of high dependency on major customers; major products are at risk of technology replacement.