Events:

Jin Bangda Bogart Holdings Limited, which ranks first in China and fourth in the world in payment solutions industry, announced for the first time the number of payment card shipments for the four months ended January 1 to April 30, 2016 (the first four months of 2016).

During this period, the overall situation of China's economy is not optimistic, and the importance of maintaining financial stability is prominent. as a result, the central government rectifies the field of Internet finance represented by P2P and third-party payments, in order to strengthen the risk prevention awareness of financial innovation and ensure the safe, healthy and sustainable development of national financial payments. Bank of China Ltd. 's industry actively cooperated with the central government to strengthen compliance supervision and risk control, while the resources and efforts invested in promoting the financial payment card business were temporarily mitigated, resulting in a significant decline in China's overall financial payment card shipments in the first four months of 2016.

Jin Bangda, as a leader in China's financial payment industry, its sales performance in the first four months of 2016 was also affected. During the period, the group shipped a total of about 68.95 million payment cards (same period in 2015: 92.72 million). Of this total, chip card shipments were about 54.26 million (2015 same period: 70.46 million), down about 23% from the same period last year, but still ranked first in China in terms of market share.

Comments:

The company's chip card shipments fell 23% from January to April 2016 compared with the same period last year, from 70.46 million to 54.26 million, far below market expectations. The company's 2016 chip card shipments expected at the 2015 results meeting increased by 10-20% compared with the same period last year. The chip card price is stable, the gross profit margin is steadily rising, slightly better than expected, this is also the first time the company has released operating data, and the company's transparency is further improving. At the end of 2015, the company has a net cash of 1.5 billion yuan and a current market capitalization of 2.5 billion Hong Kong dollars. The future of the industry is still uncertain. We need to continue to pay attention to overseas business development and acquisition progress in the future.