On June 22, 2016 CEC Huada Electronic Design Co., Ltd. (hereinafter referred to as "Huada Electronic Design") attended the 2016 China UnionPay certification enterprise annual meeting held in Jinan, Shandong. Mr. Liu Yuegang, general manager of marketing shared the exploration and achievements of industrial development in the financial IC card security chip under the new situation with the industrial peers at the annual meeting.

Mr. Liu Yuegang pointed out: "After the development stages of technical tackling, industrial breaking in, pilot applications and mass shipments, domestic financial IC card chip has fully reached international standards in the process level and security technology, and met needs of commercial banks." As the leading enterprise in the smart card chip industry, Huada Electronic Design and its affiliated holding companies have developed a total of 10 chips, and 17 operating systems with China UnionPay safety certification has been developed by card manufacturers based on these chips.

A large amount of human, material and financial resources have been invested in the development of the domestic chips during its process of breakthrough in the financial sector. According to the incomplete statistics, the accumulated investment of domestic chip manufacturers in the financial IC card security chip and mobile payment SE chip has reached RMB20 billion, of which technological and product development costs accounted for RMB1.6 billion, and testing and certification fees accounted for up to RMB150 million. In sharp contrast to the huge investment, the application of China chip in financial IC card is lower than expected. " In 2015 the volume of the domestic financial IC card issuance was close to 900 million, and the shipments of domestic pure financial IC card chips was about 6 million, which was less than 1% of the total shipments of the domestic pure financial chips," Mr. Liu Yuegang explained. The real market performance is alert, but also inspiring. In recent years, domestic chip manufacturers have been vigorously promoting the application of financial IC card chip, and has shortlisted for a number of bank projects. "Huada Electronic Design has now become the financial IC card chip supplier for more than 20 banks such as the Construction Bank, Bank of China, Agricultural Bank, Postal Savings Bank and Minsheng Bank," Mr. Liu Yuegang added, "Not only that, in order to provide users with rich business expansion services, Huada Electronic Design also introduced a video card, IC card Internet terminal, mobile payment, Bluetooth Key, Bluetooth SIM, financial multi-purpose card and other various solutions.

There is a long way to go for the domestication of financial IC card chips. Upholding the indomitable spirit, and under the guidance of the People’s Bank of China, Development and Reform Commission, Ministry of Industry and China and China UnionPay, Huada Electronic Design will lead the peers of domestic chip and other sectors in the industry to tackle problems and overcome difficulties, and strive for the early realization of the revitalization of "National Chip" in financial IC cards.