1. Event

The company announced its quarterly report on April 26th: its operating income was 72702155.35 yuan, up 14.15% from the same period last year; the net profit of shareholders belonging to listed companies was-9422672.06, with a year-on-year loss of 21.69%.

two。 Our analysis and judgment

(1) the growth of operating income is stable, and the seasonal characteristics of business are obvious.

Business income in the first quarter of 2016 increased by 14.15% compared with the same period last year, compared with 92.52% in the same period in 2015. the reason for this gap is that the company just went public in 2014, and Tangdi Technology was listed in the first quarter of 2015. as a result, the growth rate in the first quarter of last year was higher than that of the same period last year. In the first quarter of this year, although the company also listed Beichende, as the company's traditional main business and Beichende customers are mainly bank customers, there are more shipments and relatively less revenue recognition in the first quarter, and Tangdi information customers are banks, third-party payments, and so on. Face the same similar problem. Revenue grew by 14.15% in the first quarter of this year, which clearly reflects the seasonal characteristics of the company's business. The seasonal characteristics of the company's business can also be verified by 2014 data, when revenue grew by 23.08% year-on-year in the first quarter of 2014.

In terms of gross profit margin, the company's gross profit margin in the first quarter of 2016 was 38.28%, compared with 46.25% last year. This year, the gross profit margin of Beichende hardware products, a subsidiary of the consolidated table, is more than 40%, while the gross profit margin of software is even higher. Tangdi Technology should still have a relatively high gross profit margin in the first quarter, compared with that of software. The reason for the gross profit margin of 38.28% in the first quarter of 2016 should be that some of the company's traditional products, such as bookbinding machines, are less affected by seasonal factors, while other products are off-season in the first quarter. Taken together, the gross profit margin of 38.28% in the first quarter is normal, which once again reflects the seasonal characteristics of the company's business.

(2) the increase in expenses and non-operating income is mainly caused by the merger of the holding subsidiary Beichen.

Sales expenses increased by 80.84% in the first quarter, and the quarterly report revealed that the increase in sales expenses was due to the increase in the sales expenses of the consolidated statements due to the increase in the scope of the merger, as well as the company's increased efforts to promote new products. We believe that, according to the scale of Beichengde's business, the increase in sales expenses caused by consolidated statements should be the main reason for the increase in sales expenses. The increase in management expenses by 48.96% is mainly due to the increase in the management costs of consolidated statements as a result of the increase in the scope of consolidation.

Non-operating income increased by 2857.24%. The company's quarterly report revealed that the main reason was that the increase in the scope of consolidation led to an increase in government subsidies (value-added tax collection and refund) in non-operating income in the consolidated statement. We believe that the value-added tax should be returned for Beichende, which has been verified in a tax return data. the tax return increased by 853.28% in the first quarter, mainly because the subsidiary Shenzhen Beichende Science and Technology Co., Ltd. received the VAT as soon as it was collected and refunded.

(3) the traditional main business and Beichende and Tangdi business continue to advance, and the growth is expected to be worry-free for the whole year.

In terms of the company's traditional main business, R & D in 2015 stocked up new products for 2016. In 2015, the company invested in the research and application project of cash logistics management technology and the development project of counter cash business automation equipment. The products of the miniature Cash processing Center completed functional acceptance at the end of 2015, and passed the appraisal of scientific and technological achievements in Hebei Province, and the appraisal result was the leading in China; in 2015, the research and development of two kinds of equipment of multi-coupon fast deposit machine and teller deposit and withdrawal circulation machine had been completed, and had entered the stage of small batch production and sales, the two products had respectively passed the appraisal of scientific and technological achievements in Hebei Province at the end of 2015, and the appraisal results were the leading in China. In view of the company's R & D investment, we are optimistic about the company's ability to launch more new products. Generally speaking, the upgrading of old products and the continuous introduction of new products will lead to the rapid growth of the company's traditional main business.

Tangdi Technology (51%) and Beichengde (55%), the holding subsidiaries of the two major epitaxial mergers and acquisitions, are expected to show explosive growth in 2016. Tangdi Information launches intelligent robots, intelligent community intelligent terminal products and so on. Beichende is the leading enterprise of VTS. At present, the lightweight, intelligent and autonomous transformation of banking outlets is the trend of the times. Big banks such as Agricultural Bank Of China, ICBC, China Construction Bank, as well as many small and medium-sized banks are promoting the transformation of their outlets (especially Agricultural Bank Of China promoted VTS in the whole bank in 2015). Beichende has comprehensive leading advantages in business, technology and other aspects, and we are optimistic about the launch of more new software and hardware products. From a comprehensive point of view of internal and external causes, Beichengde business will show explosive growth in the next few years.

To sum up, the company's traditional business and two major holding subsidiaries Tangdi Technology, Beichende business continued to promote, worry-free growth throughout the year.

3. Investment suggestion

The growth of operating income is stable and the seasonal characteristics of business are obvious; the increase of expenses and non-operating income is mainly caused by Beichen German merger of the holding subsidiary; the traditional main business and Beichende and Tangdi business continue to advance, and the growth is expected to be carefree for the whole year. It is estimated that the company's EPS in 16-18 will be 0.45,0.68 and 0.97 yuan respectively, maintaining the "recommended" rating.

4. Risk hint

Business progress fell short of expectations; competition intensified.