The incident was disclosed on the evening of August 28 by Huafeng Microfiber. In the first half of the year, Huafeng Microfiber achieved revenue of 1,100 million yuan, an increase of 59.75% over the previous year, and net profit of 86 million yuan, an increase of 96.19% over the previous year. Commenting on the release of production capacity from traditional main businesses, revenue and net profit increased dramatically. The sharp increase in revenue and net profit was mainly due to the new commissioning of the Jiangsu subsidiary. Since the commencement of construction in March 2015, Jiangsu Huafeng Microfiber Materials Co., Ltd. has received strong support from various parties. The first phase of the project was completed and put into operation in one year. During the reporting period, the subsidiary completed the second phase of the first phase of the industrial nonwoven microfiber material project with an annual output of 75 million meters and was put into use. Production capacity continued to increase dramatically. In the first half of the year, it achieved revenue of 483 million yuan and net profit of 24 million yuan, accounting for 77.2% and 54.5% of the revenue and net profit for the same period last year, respectively. Weifutong payment transaction flow continues to grow. Weifutong's amount in the first half of the year was 13 times that of the same period last year, and the number of transactions was 7 times that of the same period last year; the average amount of transactions processed per day increased to nearly 3 billion yuan, and the average number of daily transactions rose to more than 20 million. The total number of contracted banks has increased to 90, and the headquarters of the three newly signed joint stock commercial banks, China Merchants Bank, Ping An Bank, and Bohai Bank, and there have been breakthroughs in business cooperation with large state-owned banks such as China Construction Bank and China Post Savings Bank. According to data for the same period last year in the transaction report, the transaction amount for the first half of this year is estimated to be about 250 to 270 billion yuan; if the current average daily transaction volume is calculated at 3 billion yuan and the scale is maintained in the second half of the year, the flow for the second half of the year is about 540 billion yuan, and the total annual turnover is about 80 billion yuan. If we consider that the turnover for the second half of the year will continue to grow month on month, the annual turnover scale is expected to be close to 100 billion yuan. Overseas payment business achieved a breakthrough. During the reporting period, Weifutong opened the first cross-border payment channel; in Hong Kong, Macao and Southeast Asia, major breakthroughs were made in the banking cooperation model, and overseas local payment implementation plans were explored; and Global Blue Union, the world's largest tax refund company, jointly invested in EuroConnect, a French WeChat payment receiver, to launch a comprehensive solution for overseas merchants integrating payment+tax refund+marketing. Joint operations have been carried out with a number of local mobile payment service providers in the Australian region, forming a global business layout in Hong Kong, Macau, South Korea, Japan, Australia, New Zealand, France, the United Kingdom, etc., with an average monthly compound growth rate of more than 50% in transactions from overseas. Value-added business has been promoted one after another, greatly enhancing the stickiness of cooperation. During the reporting period, a mobile mall jointly developed by Weifutong and the supermarket was launched, integrating the product capabilities of suppliers. At the same time, through the accumulation of a large number of merchant transactions and analysis of merchant transaction behavior rules, the company accumulates operation and maintenance service capabilities and advantages from the three channels of WeChat, Alipay, and QQ wallets, and exports various data analysis reports to many banks. The continuous advancement of these value-added businesses has strengthened the stickiness of cooperation between companies and banks. The investment recommendations and valuation estimate that the company will achieve net profit of 450 million yuan, 650 million yuan, and 81 million yuan in 2017, 2018, and 2019. Considering the release of production capacity from the company's traditional microfiber business and the fact that Weifutong will continue to enjoy the growth dividends of the mobile payment industry in the future, we gave the company an “increase in holdings” rating. The growth rate of risky mobile payments has slowed; the progress of cooperation between Weifutong and banks has not met expectations; the release of production capacity in the microfiber business has fallen short of expectations;