Matters: On September 26, 2017, Huasheng Tiancheng and Tailingwei held an IoT strategy conference. Comment: After two fissions, Huasheng Tiancheng entered the intelligent IoT 3.0 era, Huasheng Tiancheng was founded in 1998 to the 1.0 era of Tiancheng in 2006. It cooperated with many well-known domestic and foreign manufacturers to provide comprehensive solutions in various industries, providing a foundation for continuously accumulating users' business needs in the industry. With the continuous evolution of localization, Huasheng Tiancheng continues to create its own software and hardware products in terms of cloud computing and localization to provide overall solutions. In the 2.0 era, Huasheng Tiancheng relied on industry accumulation and product localization to form a series of industry-leading solutions and service levels. Meanwhile, Huasheng Tiancheng's IoT layout relies on its own accumulated industry experience. Through products and technology on cloud+ big data, combined with its own industry accumulation and technical experience in cloud computing and big data, Huasheng Tiancheng will explore the smart IoT in the 3.0 era in the trillion-level market in the smart IoT field, with pioneering layout and strong capital, with focused efforts. Huasheng Tiancheng has entered the smart IoT 3.0 era after two fissions. For Huasheng Tiancheng, from market layout, industry understanding, and industry analysis, in the 3.0 era, Huasheng is an end-to-end IoT solution provider to achieve “connection+platform+intelligence” in the Internet of Things, an intelligent IoT leader in the industry, to build a research institute to provide comprehensive solutions for the intelligent Internet of Things, and set up an IoT industry investment fund to finally build an industrial ecosystem. The number of connections in the global market will triple from 2015 to 2020, while the Chinese market will quadruple, and the number of connections is expected to exceed 10 billion. Compared to the Internet's model where traffic is king, which drives the huge development of applications in various fields, the Internet of Things relies on massive terminal access, and the huge data value brought by the Internet is a foundation for the intelligent industry, which in turn pushes the industry to achieve a new digital transformation from a business perspective and create a new business development model. On August 10, 2017, the partners of the IoT M&A Fund completed investment through the M&A Fund and TailingMicro to build a networking infrastructure platform, with a total paid-in amount of 2.196 billion yuan. Huasheng Tiancheng invested 440 million yuan, accounting for 20.04%. The M&A fund purchased 82.7471% of Tailing Microelectronics's shares for 1.86 billion yuan, and the settlement has already been completed. After the transaction is completed, Tailing Microelectronics's equity structure will be changed to: Huasheng Tiancheng uses a series of mergers and acquisitions and investment in IoT technology to achieve a connection+platform+intelligent industrial layout (1) stable industry customer resources: logistics, retail, environmental protection, tourism, and safety supervision fields (2) Huasheng Tiancheng continues to provide overall solutions for the production and operation processes of the customer's industry in terms of cloud computing and localization. Through the construction of basic software and hardware platforms and the use of terminal connections, the IoT platform realizes one-stop innovative solutions from products and platforms to industry service solutions. First, in the sensing layer, Tailing Microelectronics' core technology in chips and wireless modules is mainly used to achieve full coverage of product applications in the market: consumer market and application market. At the application layer, Huasheng Tiancheng has comprehensive product technology capabilities from cloud computing and big data to basic software and hardware, covering customers in important industries such as retail, government, finance, and enterprises, providing them with localized one-stop solutions. Behind the industrial ecosystem, the most valuable field of the Internet of Things is deep industry applications. The “13th Five-Year Plan for the Internet of Things” focuses on industrial ecological layout and accelerates the deep integration of the Internet of Things with the industry, especially breaking through key core technologies such as operating systems, core chips, smart sensors, low power wide area networks, and big data. Deepen the application of the Internet of Things in industry. Huasheng Tiancheng uses the chip-level core technology of Tailing IoT sensing facilities, combined with years of industry understanding, absorbed service capabilities integrating cloud computing and big data, and developed IoT technology. Through continuous in-depth understanding of industry business processes and industry knowledge, combined with the effective integration and innovation of Huasheng Tiancheng's more than 500 product technology experts and solutions, Huasheng Tiancheng will achieve future applications in key areas such as smart tourism, intelligent logistics, intelligent safety monitoring, smart retail, and intelligent environmental protection. Maintaining performance forecast: Revenue for 2017-2019 was $52.35/59.37/6.867 billion yuan, respectively, up 9.1%/13.4%/15.7% year-on-year respectively. Net profit from 2017 to 2019 was 2.05/2.12/308 million yuan respectively, up 472.4%/3.5%/45.4% year-on-year respectively. Earnings per share from 2017 to 2019 were 0.19/0.19/0.28 yuan, maintaining the “Overweight” rating.