Event: October 24 Three Quarterly Report Announcement: The first three quarters achieved revenue of 648 million yuan, an increase of 61.32% over the previous year, and net profit of 50.37 million, a year-on-year increase of 22.96%. Key investment points: The company's performance achieved relatively rapid growth in the first three quarters. Among them, in the third quarter of 2016, the company achieved operating income of 278 million yuan, an increase of 55.32% over the same period last year; and realized net profit attributable to owners of the parent company of 35.1 million yuan, an increase of 14.81% over the same period last year. Due to the company's large profit base in the third quarter of '15, the year-on-year growth rate in the third quarter of '16 was slower than in the first half of the year. The main business is developing well. The financial information technology business saw a sharp increase in revenue, driven by a sharp increase in sales of intelligent printing and control machine products. The mobile commerce business of Yimei Softcom and the cross-border e-commerce business of home security products operated digitally by Ke'an all showed year-on-year growth in revenue. Internet property insurance is showing an accelerated growth trend, and life insurance can be expected to be implemented in the future. Internet insurance: Easy Insurance (15% of the company's shares) achieved a total of 18.33 million original premiums from January to July this year, and 51.44 million yuan of original premiums in August in a single month, showing an accelerated growth trend. Easy Security Insurance invigorates the types of insurance, such as financial insurance, fund account security insurance, registration insurance, movie viewing insurance, and rain insurance for commuting to work. Furthermore, Anke Life Insurance Co., Ltd. (15% of the company's shares), which the company plans to initiate and establish, has received a letter of acceptance from the Insurance Regulatory Commission, and it is anticipated that the business layout will be implemented. In the future, property insurance and life insurance will follow a two-wheel drive trend. There has been progress in credit reporting and big data. The company uses credit information as a basis and big data as a tool to comprehensively lay out comprehensive financial services such as banks, internet insurance, life insurance, and securities. In terms of credit reporting, Huadao Credit Reporting (40% of the company's shares) is one of the first batch of 8 personal credit reporting license agencies announced by the central bank. It has developed and promoted credit reporting products targeting specific fields and scenarios, such as pig points, Kore points, and car and car credits. In terms of big data, Yimei Softcom has a rich business foundation for more than 10 years in the field of marketing services. In September, it reached a cooperation agreement with FICO, the world's largest personal consumer credit evaluation company, to dig deeper into the value potential of big data. The securities license application and the plan for the non-public offering of shares have progressed smoothly. The proposed plan to participate in the initiation of the establishment of East Asia Qianhai Securities Co., Ltd. (the company holds 26.10% of the shares) has received a notice of acceptance from the Securities Regulatory Commission, and it is expected that the license will be implemented. The initiation of the establishment of the Shanghai Stock Exchange was completed during the reporting period. The company's non-public stock offering plan is currently awaiting approval by the Securities Regulatory Commission. It plans to raise no more than 685 million dollars, invest in the construction of a bank data analysis application system and supplement liquidity, give full play to the advantages of financial talent and big data technology, promote the upgrading of financial informatization products, and seize the bank's big data service market. Profit forecast. The prospects for upgrading the company's financial information service products and building a comprehensive financial platform are promising. Without considering the impact of additional issuance on the company's performance and share capital, net profit for 2016-2018 is estimated to be 127 million, 288 million, and 393 million yuan, and EPS of 0.19, 0.42, and 0.58 yuan. Maintain the buy rating. Risk warning: There are changes in relevant business regulation policies and license acquisition conditions, the risk that the company's innovation business progress will not meet expectations, the risk that the non-public offering will not be successfully completed, and market competition will increase the risk.