1. Company introduction: The company focuses on payments in the financial sector. The management team is the most stable. The company started making ICBC online banking solutions 15 years ago. Currently, the company feels that the U Shield market is unprofitable, so it is not doing it. It is making third-generation products, such as card machine chat and video cards (dynamic passwords). Jinbangda is the first card data processing agent in China, and the only card merchant that has obtained 6 major certifications. Currently, there are more than a dozen card manufacturers in China, and Jinbangda ranks first. The company began designing smart cards in 2007, such as Hong Kong's EMV card, and established a data processing center in 1999. It is the earliest in Asia. Currently, it has 186 data processing centers in the world. The company is the largest, with 70 machines, and works 365 days a year. 2. Card issuance factors: Product safety, cost, political/policy environment, business model, and cardholders' needs. Currently, banks in China profit from loan interest spreads, and will profit through more intermediary/retail businesses in the future. Private banks such as Citibank are well developed, which is beneficial to the company's business. 3. Payment forms: China currently has 4.27 billion cards, of which an average of 1.25 bank cards per person and an average of 0.29 credit cards per person. The future will have more and more payment methods, and competition will also be more intense. Personal payments include mobile payments (contactless, contactless), cheque/travel payments, bank cards, and credit cards. Every day, China adds 40 new cards, not including ICBC, Agricultural Bank, and CCB. Within ten years, the company couldn't see that mobile payments would replace cash. 4. The company's customer base: The company serves more than 200 banks. The customer base is stable, and the top five are also different every year. A bank accounts for up to 25-30% of a company's revenue. Currently, all cards from small to medium banks are outsourced; CCB and ICBC are still relatively conservative. They have built their own card issuing centers, and there are personnel placement problems with outsourcing, so they won't be outsourced that quickly, and the Agricultural Bank is also likely to outsource them. 5. Introduction to Gemalto: Gemalto is a major shareholder of the company. It provides chip packaging modules, and the chips are all provided by NXP. Currently, domestic chips from China Civil Technology, Huada Huahong, and China Electronics are of good quality. According to the latest documents, the localization of smart card chips will begin in 2015, and full localization will be achieved in 2020. 6. Workshop production capacity: The current daily shipment volume is 50 dual-interface cards, and production capacity is expected to increase to 1 million cards by 2014. 7. Summary and suggestions: Currently, the smart card market in China is developing rapidly, which has led to rapid business growth, but we believe that the current stock price already reflects these positive factors.