Key investment points: The merger and acquisition of Hong Kong Yisheng Securities will further expand the financial layout. On November 12, 2015, the company announced that its wholly-owned subsidiary Keybridge Investment (Hong Kong) acquired 100% of the shares in Brilliant Finance held by Brilliant Finance for HK$24 million. Yisheng Securities can engage in Class 1 (trading securities) and Class 4 (advising on futures) under the Securities and Futures Ordinance, and is a trading rights holder for the Hong Kong Stock Exchange Limited (hereinafter referred to as the “Hong Kong Stock Exchange”). Whether the transaction can be completed is subject to the completion of the prerequisites. According to the agreement, HK$12 million will be paid first within 10 working days after signing. If no prerequisites have been reached or waived, HK$4.5 million will be paid on the first working day three months after the date of the agreement, and HK$4.5 million will be paid on the first working day after six months. The above amounts are all refundable deposits, and the remaining amount will be paid upon completion. If the preconditions are not met or waived by the final deadline, the agreement will be terminated and the seller will be able to return the deposit back to the buyer. The final deadline is 12 months after the date of agreement (or other date agreed by the parties). The prerequisites for completion of the agreement include: the buyer's change of shares in Yisheng Securities and the nominated directors are approved by the Hong Kong Securities Regulatory Commission and the Hong Kong Stock Exchange; Yisheng Securities's license is still issued and remains active; Yisheng Securities holds trading rights on the Hong Kong Stock Exchange and participates in the central settlement system as a broker participant; Yisheng Securities must facilitate the appointment of 2 persons nominated by the buyer as licensees of Yisheng Securities. The merger and acquisition of Yisheng Securities not only obtained a relevant business license, but also used the various resources and geographical advantages already accumulated by Yisheng Securities in Hong Kong to broaden the scope of business and gain experience in other securities in the future. The financial sector layout is gradually improving, and the synergy between industry and finance is strong. The company has previously established a presence in the fields of microfinance, funds, investment, mutual insurance, etc. Some of the company's targeted additional capital will also be invested in the fintech cloud and the merger and acquisition of Yinghua Leasing. Pioneer Finance, the majority shareholder, is even more powerful in the financial sector. By arranging the financial sector to provide financial services to customers in the industrial chain, the company can establish close ties between upstream and downstream companies and form a competitive advantage in the industrial chain. Active interaction between industry and finance, and the combination of fiction and reality will help the company open up a wider space for growth in the future. The endogenous epitaxial dual-drive layout of the big data industry chain provides strong support for the integration of industry and finance. The company's Internet of Thing+ and medical robots and wearable devices that cooperate with Imperial College and Pioneer Finance are expected to become the entry point for big data collection. At the same time, the company established Huaihai Data Company to develop big data trading, cleaning, and modeling technology, and obtain research support from Imperial College in the field of big data science through epitaxial cooperation. The company's current layout of the entire industry chain of big data collection-transaction, processing-modeling analysis will provide strong support for the company to develop supply chain finance, credit reporting and other services in the future. Maintain an “gain” rating and maintain profit forecasts. The company's 15-17 EPS is estimated to be 0.10/0.17/0.21 yuan, respectively, and the corresponding PE is 177/104/84 times. The company has sufficient orders in hand, and short-term performance is supported. With the gradual implementation of the company's Internet of Thing+ and finance layouts, there is plenty of room for development. Maintain an “Overweight” rating. Risk warning: There is a risk that mergers and acquisitions will not pass.