Investment points: Broker licenses can be expected to be implemented, and Fintech+ licenses form the layout of the technology finance ecosystem: The company announced in the early stages that it plans to invest 131 million yuan in a joint venture with the Bank of East Asia to establish East Asia Qianhai Securities (holding 26.1% of shares). It has now progressed smoothly. It has received the first feedback from the Securities Regulatory Commission on August 16. It is progressing rapidly among the joint venture brokerage firms awaiting review, and it is expected that the brokerage license will be implemented. Furthermore, the company plans to invest 150 million yuan to participate in the establishment of Anke Life Insurance (holding 15% of shares), which is also in the normal approval process of the Insurance Regulatory Commission, and has also completed the initiation of the establishment of the Shanghai Insurance Exchange. In the future, the company will rely on existing credit reporting, IT, and big data business resources to achieve strong collaboration with securities, insurance, and payment businesses, and improve the layout of the technology finance ecosystem based on scarce financial licenses. The premium scale of Yi An Financial Insurance has increased, and the credit reporting and payment business is progressing in an orderly manner: 1) Easy Insurance has officially started operations in February and achieved a cumulative original premium of 69.77 million yuan from January to August (only 9.91 million yuan in January-June). The scale of premiums showed a trend of increase in volume, and is significantly higher than the safety insurance that started earlier. At the same time, it has developed innovative types of insurance such as family financial insurance, capital account security insurance, registration insurance, movie viewing insurance, and commuting rainfall insurance. 2) Under the supervision of the central bank, the subsidiary Huadao Credit Information is actively carrying out personal credit reporting business preparations, including connecting with various data sources to develop and promote credit reporting products targeting specific fields and scenarios, such as pig points, Kore points, and car car points. 3) Ticket Union Financial Services continues to develop new types of payment services based on the Internet, including self-service for bill clearing and payment, a new generation of mobile-based public and personal payment platforms, and interbank Internet fast payment platforms. Yimei Softcom's performance has exploded, and financial information+mobile commerce businesses have both grown rapidly: 1) Financial informatization business revenue has increased dramatically. Key new products, intelligent printing and control machines, won the bid for the Bank of China headquarters, and have now achieved sales in many provincial branches, ranking at the top of the shortlisted manufacturers. At present, it has become a trend for domestic banks to use printing machines to control risks in business and administration. The company's market share of bank intelligent printing machines is also in a leading position, and the market sales situation is good. 2) Yimei Softcom, a mobile commerce subsidiary, promises no less than 60 million yuan in 2016, which will effectively support the company's annual performance, and its services such as big data risk control and precision marketing have significant synergistic effects with the company's main business. Investment advice: The company's brokerage license can be expected to be implemented, and the life insurance license is also in the approval process. In the Fintech 3.0 era, the company relied on licence+technology to continuously improve the comprehensive technology finance ecosystem. Subsidiary Yimei Softcom's performance exploded and a breakthrough was achieved in promoting key innovative products, intelligent stamping machines, effectively supporting performance growth in 2016. It is estimated that the company's net profit in 2016 and 17 will be 0.89 million yuan and 115 million yuan respectively, and the company's reasonable market value is 20 billion yuan, corresponding to the target price of 29.2 yuan/share, maintaining the company's “increased holdings” rating. Risk warning: 1) Competitors are stepping up competition; 2) New business promotion falls short of expectations.