Investment highlights: Incident 1: On June 22, 2016, Xinyada announced that “the submission of major asset restructuring application materials to the China Securities Regulatory Commission has been postponed”. Investors may have concerns. Xinyada is one of the few companies in the industry with a complete form of financial technology business. The company has been deeply involved in the financial IT industry for more than 20 years, has rich business levels, and has formed products including supply chain financial platforms, risk control platforms, and regional payment platforms. It is worth noting that the company has abundant customer resources. Nearly 80% of banks and 50% of insurance companies in the country have carried out business cooperation with Xinyada. These have provided a good foundation for listed companies to further explore the field of supply chain finance informatization. The extension may only relate to the use of the funds raised. The announcement stated, “The Securities Regulatory Commission recently issued “Questions and Answers on Listed Companies Issuing Shares to Purchase Assets while Raising Supporting Funds”, and the company's board of directors is carefully studying the relevant regulatory spirit.” According to the rules of the document issued on the official website of the Securities Regulatory Commission on June 17, “The funds raised can only be used to: pay cash consideration in this merger and acquisition transaction; pay merger integration expenses such as taxes and personnel placement fees for this merger and acquisition transaction... cannot be used to supplement the working capital of the listed company and underlying assets or repay debts.” In the transaction plan disclosed by Xinyada on June 14, 100 million yuan was raised to supplement working capital. The delay in filing may be related to the company's concerns about the use of funds raised. The pace of deferred submission essentially reflects prudence. The revised draft transaction was disclosed on June 14. The policy was signed by the Securities Regulatory Commission on June 17, and the date of the deferred submission announcement was June 22. The company is prudent in responding to the new policy in a timely manner. Investors don't have to worry about acquisition plans. There are three reasons to be optimistic about the acquisition plan. First, the shareholders of the target Jinwang Antai are 5 natural persons, and there are no PE investors. Second, according to the target public information, it is estimated that the five-year net profit compound growth rate is over 70%, and the inspection period is long. Again, the announcement of the acquisition of Science and Technology in December 2014 has marked the first attempt from a financial IT provider to a financial IT Internet value-added service. This draft acquisition does not involve any cross-industry, but it is also the company's second acquisition of a larger asset volume. The deferred submission episode further highlighted investment opportunities, maintained the “buy” rating, and lowered the profit forecast. Since the company's net profit in 2015 was lower than our expectations, the company's net profit for 2016-2017 was lowered by 19% and 13% from 1.95 million and 236 million dollars, respectively, to 1.58 million and 206 million yuan, and revenue was reduced 14% and 13% from 16.30 million and 1,956 million to 1401 million and 1,693 million respectively. The company's net profit for 2016-2018 is estimated at $1.58, $2.06 and $252 million, with revenue of $1,401, $16.93 and $1,989 million, respectively, and earnings per share of $0.72, 0.94 and $1.15. Considering that the company issued 45.85 million additional shares after announcing 10 and sending 10, the total share capital became 531 million shares, corresponding to EPS of 0.30, 0.39, and 0.49 yuan. In 2016, 2017, and 2018, Jinwang Tai'an promised net profit of 80 million yuan, 104 million yuan and 135.2 million yuan, respectively. More conservatively, the company's 2016-2018 exam preparation net profit is estimated at $2.14, 2.82, and $360 million, respectively. If Jinwang Antai's software sales or collaboration with the main business (supply chain finance, etc.) creates more collaboration, the profit forecast will also be revised. Maintain a “buy” rating.