Incident on July 22, Huicong Network announced the signing of an agreement to acquire about 2.49% of the shares of the Hohhot Jingu Rural Cooperative Bank (an Inner Mongolia commercial bank) for 57.9 million yuan. The consideration will be paid in cash. Comment that the target company has a reasonable valuation. The bank's net assets for 2013/14/15 (ending June 30, 2015) were $21/24/2.6 billion, respectively, and profit after tax in 2014/15 of $488/49 million. The transaction corresponds to a bank value of 2,325 billion yuan, corresponding to 0.89x 2015 P/B or 5.2x 2014 P/E. We think the commercial bank's valuation is reasonable. It is expected that there will be a synergy effect in the B2B field of internet finance. To facilitate B2B online transactions, Wiscom is involved in various value-added services, including microfinance for small and medium-sized enterprises. Currently, the company provides trading loans (financial products developed by the Huicong Network/Shenzhou Digital Joint Venture) and other products developed in cooperation with financial institutions. The products and services provided by target banks mainly include bank deposits, short/medium/long-term loans and prepayments; settlement services within China; and other services approved by the Banking Regulatory Commission. By investing in this bank, Wiscom can explore opportunities to cooperate with banks and provide users with Internet microfinance products. Another step to strengthen B2B2.0 business. The transaction is in line with management's commitment to better develop vertical fields and Internet finance B2B platforms; it is also after acquiring ZOL Zhongguancun's online and apparel industry vertical companies, management has once again carried out that promise. Wiscom will continue to deliver on its promises to cover more verticals, so we expect the company to carry out more acquisitions in the future.