1. IPO subscription proposal: According to the Frost & Sullivan report, based on student enrollment as of June 30, 2015, the company is the largest K12 private education service provider in southwest China. The company has established and operated five K12 schools and one university, namely Chengdu Foreign Language School, Chengdu Experimental Foreign Language School, Chengdu Experimental Foreign Language School (West District), Chengdu Foreign Language School Affiliated Primary School, and Chengwai Affiliated Elementary School. As of October, the total number of K12 students was about 18,345. Based on the number of students enrolled, the company is at the forefront of the highly private basic education industry in southwest China, with a market share of 0.43%, and the overall market is scattered. Furthermore, the company operates one university, Chengdu College of Sichuan Foreign Studies University (general colleges, admission batch - three batches of undergraduates). Currently, as of October, the number of students enrolled at this university is about 14,237. The company's teaching feature is to provide students with a bilingual learning environment and exercise students' language skills from an early age. The curriculum mainly consists of learning foreign languages. The company strives to develop students in all aspects with a global perspective and practical knowledge. The company's revenue increased from 500 million yuan in 2012 to 630 million yuan in 2014, a compound annual increase of 12%, and net profit increased from 95.77 million yuan in 2012 to 114 million yuan, a compound annual increase of 9.1%. This level of growth is in line with the characteristics of the traditional education industry. The company has 3142 employees, including 786 English teachers, accounting for about 39.7% of the total number of teachers. There is still a big gap between the company's K12 business tuition fees and peers. Considering the continuous increase in incomes of landlocked people in the future and strong demand for quality education, there is still plenty of room for future growth in tuition fees for the company's K12 business. The company raised its price by 3,000 yuan in 2014, and we expect that there will be no problem in maintaining this rate of growth in the future. From a valuation point of view, the PE corresponding to the 2015 EPS according to the median prospectus price is about 27 to 37 times. The valuation is relatively high. Currently, the market is still very enthusiastic about K12 education companies, so it is recommended to purchase with caution.