Huaping Co., Ltd. participated in online classroom bidding. 2014 Anhui Online Classroom System Procurement Project (bidding will close on June 11, 2014, and open at the same time. The project is divided into five packages: the first package is the key equipment for online classrooms, the second package is the LCD television for the main lecture classroom, the third package is for receiving classroom audio equipment, the fourth package is for receiving classroom cameras, and the fifth package is system integration. Online classrooms are an innovation that uses information technology to solve the problem of opening up full courses at rural teaching sites. Its model is to set up main lecture classrooms in central schools, set up reception classrooms at teaching sites, and equip the main lecture classrooms and receiving classrooms with equipment such as cameras, sound pickup, audio and video transmission, etc., respectively, to form a real-time interactive teaching system. The market size of special equipment for online classrooms in Anhui Province is about 320 million yuan, and the total investment in this tender project is about 48 million yuan. According to the construction cost of 70,000 yuan for one main lecture classroom and 35,000 yuan for one receiving classroom, calculated using the “one delay two” model, the one-time construction cost is about 140,000 yuan, plus the total cost of daily maintenance for five years is less than 180,000 yuan. There are 4,600 teaching sites in Anhui Province. The tender project includes 339 lecture classrooms and 727 receiving classrooms. Huaping Co., Ltd. is fully prepared, and the probability of winning the bid is high. We believe that the audio and video coding and decoding algorithms and network communication technology mastered by Huaping Co., Ltd., targeted online education products, and early active intervention in the pilot of online classes in Anhui Province put it in a very favorable position in this tender competition. Even if they don't win the bid this time, it won't affect this year's results. By cooperating with the winning bidder or developing markets in other provinces, the company will also gain considerable market share in the field of online classrooms. Maintain revenue and profit forecasts until the winning bid results are clear. It is estimated that the revenue of Huaping Co., Ltd. in 2014-2016 will be 3.8, 4.4 and 720 million yuan, net profit of 1.4, 1.6 and 230 million yuan respectively, and earnings per share of 0.42, 0, 47 and 0.71 yuan respectively. Maintain an investment rating of “excess holdings.” If it wins the bid, then it will open up a new market at the level of 5 billion yuan (the value of subsequent value-added services has not been calculated), and there is plenty of momentum for future growth.