The company is a leading provider of financial cards (magnetic stripe cards or smart cards), card personalization services and on-site card issuance system solutions in Greater China (including China, Hong Kong and Macau). According to Frost-Sullivan's report, in the year ended December 31, 2012, the company was the largest financial card provider in terms of sales value in Greater China, and the third largest financial card provider in terms of sales volume. The company is the only financial card manufacturer and card personalization service provider in China that has simultaneously obtained certification from six of the world's leading payment card organizations (Visa, Mastercard, American Express, UnionPay, JCB and Dalai). The company produces and personalizes financial cards for a wide range of uses, including debit cards, credit cards, debit cards, and social security cards. Investors are advised to make speculative subscriptions. The company's advantages (1) are renowned for high-quality products and services in the Chinese and global industry; (2) have a comprehensive product portfolio and integrated solutions for customers; (3) strong research, design and development capabilities lay a solid foundation for the company to innovate and adopt advanced technology; (4) have a stable and strong diversified customer base; (5) have a well-qualified management team with rich industry experience. Industry Overview The financial card, personalized services, and on-site card issuance system solutions market is divided into three market segments, forming a value chain, which includes the design, manufacture, personalization, issuance and delivery of financial cards for end users to carry out various types of transactions, including cash withdrawals, cashless electronic transactions, and provision of social benefits. According to Frost-Sullivan reports, the relevant market has already taken shape in Greater China, including pre-production operations (such as card consulting services and card design innovation), production operations (such as card production and card personalization), and post-production operations (such as on-site card issuance system solutions and card reader terminals). In Greater China, financial cards are issued by state-owned banks, joint stock banks, foreign banks, commercial banks, and rural credit cooperatives for customers to use. Financial cards can be used as a source of customer identification and other data for various financial services, such as withdrawing cash or making other bank transactions through ATMs, and cashless payments through point-of-sale terminals. According to technical classification, financial cards can generally be divided into two types, divided into magnetic stripe cards and smart cards. In terms of sales volume, the financial card market in Greater China grew steadily from 2008 to 2012, from 557,700,000 to 922,800,000, with a compound annual growth rate of 13.4%. As China's economy continues to develop and urbanization progresses, financial card sales are expected to continue to rise in the short term, reaching about 1.6 billion cards by 2017, or 8.5% per annum. In terms of sales value, the financial card market in Greater China grew steadily from 2008 to 2012, from RMB 665,200,000 to approximately RMB 2.4 billion, with a compound annual growth rate of 37.5%. Driven mainly by the shift to the use of smart cards, the expected sales amount will continue to increase due to the higher average price of expected smart cards. As a result, Frost-Sullivan predicts that sales in the Greater China financial card market will increase from RMB 3.8 billion in 2013 to RMB 10.9 billion in 2017, with a compound annual growth rate of 30.1%. The financial card industry in China is very concentrated. Major manufacturers include Hengbao, Jinbangda, Giesecke & Devrient (“G&D”), China India and Dongxin Peace. Among them, G&D is a multinational company, and China India is a subsidiary of China Printing and Minting Corporation, a Chinese state-owned enterprise. In terms of major customer types, large state-owned banks and joint stock banks are the main customers of such financial card manufacturers in Greater China. Furthermore, since the company operated in Hong Kong and Macau earlier than its peers, the company also has a number of financial institution customers located outside of China. For the year ended December 31, 2012, the company was the largest financial card supplier in the Greater China market (19.2%) in terms of sales value, and the third largest financial card provider in terms of sales volume (18.9%). In the same period, the top five financial card providers accounted for about 68.4% of total sales in the Greater China market. In the year ended December 31, 2012, according to sales volume, the five major financial card providers together accounted for 79.9% of the total market in the Greater China region. There was little difference in market share between the three major suppliers. The profitability and financial numerical operating value increased from RMB 275,700,000 for the six months ended June 30, 2012, to RMB 264,700,000 (or 96.0%) to RMB 540,400,000 for the six months ended June 30, 2013. The increase in operating value was mainly due to the increase in sales of magnetic stripe cards and smart cards (from RMB 187,900,000 for the six months ended June 30, 2012 to RMB 435,800,000 for the six months ended June 30, 2013), and the increase in sales of personalized services (from RMB 38,000,000 for the six months ended June 30, 2012 to RMB 55,700,000 for the six months ended June 30, 2013), both of which were mainly due to the continuous increase in China and Hong Kong The government encouraged adjustments to the smart card conversion policy, which increased customer demand for smart cards in the first half of 2013, which led to an increase in smart card sales. Gross profit increased from RMB 91,600,000 for the six months ended June 30, 2012, to RMB 64,300,000 (or 70.2%) to RMB 155,900,000 for the six months ended June 30, 2013. The gross margin fell from 33.2% for the six months ended June 30, 2012 to 28.9% for the six months ended June 30, 2013, mainly due to the company's customers speeding up the use of smart cards, continuing changes in the product mix, and the company faced fierce competition during the public tender process to maintain its market position in the financial card industry, which limited the company's ability to increase the price of several products by the same margin due to the increase in the cost of the products already sold. Profit for the period increased from RMB 43,000,000 for the six months ended June 30, 2012, to RMB 38,100,000 (or 88.6%) to RMB 81,100,000 for the six months ended June 30, 2013. The purpose of the capital raised is that the net proceeds of the fund-raising of HK$950.7 million (calculated at HK$5.10 per share at the median sale price), or HK$332,700,000 will be mainly used to develop new products and services, such as security features, smart card applications, new payment platforms and applications and personalized services, and to establish the company's integrated R&D center; it is estimated that approximately 35.0%, or HK$332,700,000, will mainly be used to expand the company's production facilities, upgrade and upgrade existing company cards Production and personalized service equipment; expectations Approximately 10.0%, or HK$95,100,000, will be used to pay the funds required for future strategic alliances with complementary companies in the form of joint ventures or acquisitions; approximately 10.0%, or HK$95,100,000, will be used to further strengthen the company's share of the existing market outside of China; approximately 10.0%, or HK$95,100,000, will be used as working capital and other general corporate purposes. The valuation is based on the prospectus price of HK$4.52 to 5.67. Jinbangda's price-earnings ratio in 2012 was 23.8 to 29.8 times, and the price-earnings ratio was 2.7 to 2.9 times. As the industry is growing, demand for financial cards is strong in China, Hong Kong and Macau, but the company's price-earnings ratio is high, and the industry is affected by policies, so speculative subscriptions are being made. Risk factors (1) The company's business depends on the growth of financial institutions and government agencies and the use of more outsourced services. If the growth of relevant institutions and institutions is relaxed or the use of outsourced services is reduced, it may adversely affect the company's financial performance; (2) the company may not be able to expand the types of products or services, so it is unable to effectively respond to market trends and changes in customer preferences; (3) Relying on a small number of major customers to obtain most of the business; (4) Being a supplier to financial institutions and government agencies, the company complies with the requirements Stringent industry standards and/or government regulations; (5) security The vulnerability may damage the company's information, make the company responsible, and damage the company's business and reputation; (6) the company supplies products and services for customers according to individual item standards; (7) most of the company's operating value comes from customers that require the company to participate in tenders and auctions to purchase products and services. If the company fails to win the bid, it may have a significant adverse impact on the company's business, financial situation and operating performance; (8) the company depends on the company's main supplier; (9) the market price of IC chips and other production materials may fluctuate Adverse effects on the company's profitability structure ;( 10) The company's future operating performance may depend on the results of the company's expansion plans and the company's ability to maintain and enhance the efficiency and output of existing manufacturing facilities.