Incident: The company issued an announcement to issue shares to 26 counterparties including Chen Jianhui and pay cash to purchase 100% of their shares in Jiabo Technology. The initial value of the assets underlying this transaction was RMB 815 million. Among them, the listed companies paid a total of RMB 489 million in consideration in shares and a total of RMB 326 million in consideration paid in cash. The issue price of the shares issued this time was determined to be 15.00 yuan/share. Supporting capital is raised through inquiry and issuance. The pricing reference date is the first day of the current non-public stock issuance period, and the issue price is not less than 90% of the average stock trading price of the company in the first 20 trading days of the issuance period. A leading manufacturer in the field of PDA and smart POS, the company's business is in a period of rapid development. The company ranked first in the domestic PDA field, was highly recognized by customers in the traditional logistics industry, and actively expanded into emerging industries such as retail, aviation, railways, law enforcement, and medical care. In addition, smart POS machines are in high demand overseas, and the competitiveness of the company's products is outstanding. Taking India as an example, its huge market population means that it may have a market comparable to China in the future, yet compared to China's highly developed mobile payment market, the Indian market is just getting started. Through this merger and acquisition, the company's product line has been extended to the field of special printers. As a leading comprehensive service provider for special printer equipment in China, Jiabo Technology is mainly engaged in R&D, production, sales and service of label printers, bill printers, movement modules, and intelligent printing terminals. Its main products include four series of label printers, bill printers, engine modules, and intelligent printing terminals. The acquisition target is structured to guarantee long-term performance, and the synergy effect is remarkable. Jiabo Technology promises that its performance in 2019, 2020, 2021, and 2022 will not be less than 80 million yuan, 10,000 million yuan, 120 million yuan and 135 million yuan respectively. Performance compensation and performance rewards have been stipulated for the next four years. Jiabo Technology's downstream industry involves retail, logistics, industrial manufacturing, etc., and has a high degree of overlap with the downstream industry of the company's products. In the future, the two sides are expected to fully share channel resources within the industry, which will have a positive synergistic effect on cross-sales with their respective customers. Investment advice: We are optimistic about the synergy this merger will bring to the company's business. The explosion of the overseas POS machine market has brought huge growth to the company's business. Strong logistics demand and PDA entering a replacement and upgrade cycle are beneficial to the development of its PDA business. Assuming that Jiabo Technology is consolidated throughout 2019, the price of issuing shares to purchase assets and supporting capital raised is the same. The company's EPS for 2018-2019 is expected to be 0.47 yuan and 0.83 yuan respectively, giving it a “buy-A” rating, and the target price for 6 months is 25 yuan. Risk warning: Overseas POS demand falls short of expectations; PDA demand falls short of expectations.