In the first quarter of 2011, the company achieved operating income of 50 million yuan, a year-on-year increase of 45.92%; operating profit of 80 million yuan, a year-on-year decrease of 26.75%; net profit attributable to owners of the parent company of 70 million yuan, a year-on-year decrease of 29.06%; and basic earnings per share of 0.04 yuan. Revenue continued to grow at a relatively rapid pace. During the reporting period, the company's operating income maintained relatively rapid growth, which is generally in line with expectations. On the one hand, it is due to the fact that the original business continued to grow at a relatively rapid pace, and on the other hand, thanks to the company's acquisition of 70% of the shares of China Post Information Technology Co., Ltd. in 2010. Considering the progress of the company's fund-raising projects and the acquisition of 100 million yuan of China Post and Central Asia Internet, we expect that the company's operating income will continue to grow rapidly in the next few years. At the same time, epitaxial development is also expected to be a booster for the company's performance growth. Costs are rising rapidly during this period, so there is no need to worry too much. In the first quarter, the company's period expense ratio increased 15.4 percentage points year-on-year to 59.27%. Among them, the sales expense ratio and management expense ratio increased by 13.66 and 5.33 percentage points to 45.15% and 18.2%, respectively. The company's sales expenses increased by 109.22% year on year, mainly due to the increase in remuneration expenses and advertising expenses due to the expansion of sales scale. At the same time, the merger of China Post Company of 100 million yuan increased sales expenses by 1,926,800 yuan. However, management expenses increased by 106.4% year on year, mainly due to increases in remuneration expenses, R&D expenses, and intangible asset amortization. At the same time, the merger of China Post Company and China Asia Internet Technology Development Co., Ltd. added 1,724,700 yuan and 519,600 yuan in management expenses, respectively. The company's new management expenses and sales expenses are mainly used to increase investment in business expansion, which will have a good supporting effect on the company's future performance growth. Therefore, we believe that the cost rate will decline in the future period, so investors need not worry too much. Internal extension and epitaxial bimodal drive. Internal extension development is the foundation for the company's continuous and stable development. Taking advantage of cloud computing and the advent of the SME informatization era, the company is actively promoting fund-raising projects and improving independent innovation capabilities. While securing the leading position of the original business in the market, the company is speeding up the launch of new products and seizing the SME SaaS market. The company's newly launched mobile terminal product, the 35phone, incorporates existing corporate email and application software on the mobile terminal, takes advantage of the 35phone's mobile network advantages, and focuses on integrating the SaaS management software product chain, which will further consolidate and strengthen the company's market position in SaaS software applications and services. And epitaxial development will be a strong booster for the company's future development. In 2010, the company went public, and received a net capital of 415 million yuan and overraised capital of 268 million yuan, greatly improving the company's financial strength. The company used overfunded capital to acquire 70% of the shares of China Post Information Technology Co., Ltd. and 60% of the shares of Central Asia Internet, actively promoting epitaxial development, marking the company's expansion from the traditional Internet field to the mobile Internet field. At the same time, in the 2011 business plan, the company clearly proposed increasing capital operations and mergers and acquisitions in related fields to achieve integration into the industrial chain. We believe that access to the capital market provides strong support for the company's epitaxial development, and that external development will be an important part of the company's future development, and investors should pay active attention to it. Valuation and investment advice. We expect the company's EPS for 2011, 2012, and 2013 to be 0.75 yuan, 0.93 yuan, and 1.12 yuan respectively. Based on the closing price of 26.69 yuan on April 20, the corresponding dynamic price-earnings ratios are 35 times, 29 times, and 24 times, respectively. The valuation advantage is beginning to gradually show. Considering the company's good future growth, we maintain the company's “increase in holdings” investment rating. Risk warning: 1. New business uncertainty risk; 2. Extended development uncertainty risk; 3. Short-term stock prices are affected by the overall decline in the GEM market.