Highlights of the report Incident Description On December 4, 2015, Hengbao Co., Ltd. issued an announcement stating that Shanghai Hengyu Investment Center (hereinafter referred to as “Industrial Fund”), a subsidiary of the company, plans to use 15 million yuan of its own capital to invest in Hansi Anxin (Beijing) Software Technology Co., Ltd. (hereinafter referred to as “Hansi Anxin”). After the capital increase is completed, the Industrial Fund will hold 8.333% of Hansi Anxin's shares. Incident Review takes a stake in a big data security company to strengthen the company's information security service business: Hansi Anxin is a leading enterprise in the field of big data security in China. With big data collection, processing and analysis technology, it automatically detects internal and external security threats in real time and protects the security of enterprise information assets. Its main products, HanSight DataViewer and HanSight Enterprise, can help enterprises collect, store and analyze large-scale logs efficiently, and provide a system solution to security data analysis problems As a solution, its new product, SECaaS, provides cloud security services to small and medium-sized enterprises in the form of SaaS. This time, the company took a stake in Hansi Anxin with the aim of leveraging Hansianxin's big data analysis and information security technology advantages to exert synergy effects with its own high-end intelligent products and platform systems to strengthen its information security service business capabilities. The smart card industry has maintained a boom, and new business expansion has boosted the company's performance to maintain rapid growth: We reaffirm that the company's main smart card business has maintained a high boom, and the smooth expansion of new products is sufficient to support the continued rapid growth of the company's performance. Specifically: 1. As a leader in the smart card industry, the company will definitely be the biggest beneficiary of the high boom in China's financial IC card and mobile payment card industry; 2. In the context of “business reform and growth”, the company actively developed the tax control business. The company's tax control panel shipments grew rapidly in 2015, providing strong support for the company's annual performance growth; 3, around mobile payments; Industry, the company has developed a comprehensive mobile payment management platform. In addition, Internet financial terminals have also been shipped in batches, and new business expansion has laid the foundation for the company's long-term growth. Laying out internet finance and building a Yunbao Financial Services business ecosystem: In May 2015, the company invested in the establishment of Jiangsu Yunbao Financial Information Service Co., Ltd., and plans to raise 1.2 billion yuan, respectively, to invest 650 million yuan, 150 million yuan, and 200 million yuan respectively in service networks and system construction for small and medium-sized micro merchants, and acquire 51% of Shenzhen E-Card's shares and mPOS overall solution development and industrialization projects to build a Yunbao Financial Services business ecosystem. Currently, the company's small, medium and micro merchant customers continue to expand, and the information security service business is progressing steadily, and the future development prospects are worth looking forward to. Investment advice: Since the company's smart card and tax control business can support the company's continued rapid growth in performance, the company's participation in Hansi Anxin will strengthen its information security service business and help build the Yunbao Financial Services business ecosystem. We are optimistic about the company's future development prospects. We expect the company's EPS to be 0.56 yuan, 0.73 yuan, and 0.95 yuan from 2015 to 2017, reaffirming the “buy” rating.