From January to December 2013, the company achieved operating income of 290 million yuan, an increase of 8.84% over the same period last year; operating profit of 12.1866 million yuan, a reversal of losses over the same period last year; and net profit belonging to the owner of the parent company was 13.7561 million yuan, an increase of 314.61% over the same period last year, and basic earnings per share was 0.04 yuan. The profit distribution plan is 0.5 yuan (including tax) for every 10 shares.

The company is the professional service provider and network domain name service provider of the overall cloud office solution.

The growth of sales revenue of subsidiaries leads to the growth of overall income. The company's revenue growth is mainly due to the growth of mobile products and mobile e-commerce revenue. Of this total, the operating income of mobile terminal products reached 20.1478 million yuan, an increase of 106.05% over the previous year, and the gross profit margin increased by 42.62% over the same period last year, mainly due to the proper adjustment of the subsidiary's third five-year communication business strategy and sales model, while the mobile e-commerce business income was 62.8195 million yuan, an increase of 49.31% over the previous year, mainly due to the growth of the mobile business business of the subsidiary Central Asia Interconnection.

Subsidiary loss reduction and expense control to improve company performance. The main reasons for the growth of the company's performance are as follows: first, the structure of the third five-year communication products of the holding subsidiary has been adjusted, the sales model has been changed, and the income has increased significantly by 85.25%. The net profit and loss decreased, and the net profit loss of the third five-year communication in 2013 was 2.9097 million yuan (compared with a loss of 23.4504 million yuan in the same period in 2012). Second, the expenses of the company and its subsidiaries were properly controlled, and the sales expenses and management expenses were reduced by 18.16% and 8.87% respectively compared with the same period last year, and the expense rate during the company period was 57.52%, down 16.06 percentage points from the same period last year.

Virtual operators may enhance the competitiveness of the company. The company has obtained the qualification of virtual operator in early 2014, and signed mobile communication resale business contracts with China Telecom Corporation and China Mobile Limited respectively. The company will take this opportunity to master more network resources, through a comprehensive package of "basic communication capabilities + 3-5 cloud office", to develop its own package series for enterprises, so as to enhance the company's competitiveness with differentiated overall solutions. In addition, the arrival of the 4G era will also promote the construction of the cloud application platform project for small and medium-sized enterprises and the implementation and promotion of cloud office.

Earnings forecast and investment rating: we expect the company's earnings per share for 2014-2016 to be 0.05,0.06 and 0.07 yuan. Based on the latest closing price of 9.57 yuan, the corresponding dynamic P / E ratios are 180,154,136 times respectively, maintaining the company's "neutral" investment rating.

Risk hints: (1) the risk of intensified market competition; (2) the risk that the service promotion of virtual operators is not as expected.