Investment points: maintain the “increase in holdings” rating and adjust the target price to 20 yuan. The company's losses narrowed sharply in the first half of the year, and performance continued to improve; the release of the performance of the network optimization industry in the second half of the year will benefit the company's main business. The company has entered the field of mobile Internet operations through the acquisition of snow carp and increased military communications into the national defense informatization industry, which is expected to become a new engine for performance growth. The 2015-17 EPS was maintained at 0.19/0.23/0.27 yuan (if the snow carp table is completed, the EPS preparation for the exam is 0.33/0.42/0.52 yuan). Considering the sharp decline in the market valuation center, the target price was adjusted to 20 yuan to maintain the “increase in holdings” rating. Losses have narrowed sharply, and the main business performance is expected to be released in the second half of the year. The company's revenue for the first half of the year was 97 million yuan, a year-on-year decrease of 15%, and a net loss of 9 million yuan, a sharp decline of 46% year-on-year (corresponding to a 21% year-on-year increase in Q2 revenue and a 59% year-on-year reduction in net loss). Performance continued to improve, in line with expectations. The reason for the sharp decline in Q1 revenue was the delay in operator network optimization collection. As the operator traffic management strategy, 4G network construction, and “speeding up and reducing fees” continues to advance, we judge that the Internet boom will increase dramatically in the second half of the year, and performance is expected to be released quickly. Furthermore, by streamlining the organization and strengthening management, the company drastically reduced management and financial expenses (-35%/-58%) and effectively improved the loss situation. Mobile Internet+military communications have added two wings to performance growth. The company has entered the mobile Internet game platform business through the acquisition of snow carp, which is the target of scarce mobile game platforms. By providing services such as application publishing and agent payments to CP, the company has accumulated massive user data, laying a solid foundation for future game distribution and precision marketing business. The company also fully cooperated with a military academy, and was shortlisted as a supplier of materials for a military region, and received its first military order. Efforts to develop the military communications market are beginning to bear fruit and will become a new performance growth point. In the next few years, defense informatization will become an important outlet for the communications industry, and military communication systems will play an important role in the future battlefield. As a scarce military quality communication high-tech enterprise in the three northeast provinces, the company is expected to become a key local support enterprise. Catalysts: Cooperate with military academies to carry out military projects; increase mobile Internet and industrial communications. Risk warning: Competition in the main business, the online optimization market, is intensifying; the pension business is a drag on performance.