1. The incident company released a semi-annual report, achieving operating income of 97.37 million yuan, a year-on-year decrease of 31%; net profit of 6.57 million yuan, a year-on-year decrease of 61%; a decrease of 44% year-on-year after deducting non-performance; and EPS of 0.03 yuan. 2. Our analysis and judgment (1) Mainly engaged in large screen splicing screen display systems, the traditional main business of intelligent robot companies, large screen splicing display systems have declined, and are vigorously entering the intelligent robot industry, forming an industrial model with equal emphasis on large screen splicing screen display systems and intelligent robots. The future may be dominated by the intelligent robot industry. Due to the delayed implementation of some large screen splicing orders and the divestment of subsidiaries, 2015 H1 sales revenue and net profit both declined year-on-year. The company's orders were still sufficient in the first half of the year, and it is expected that the company's traditional main business will maintain steady development. The company previously budgeted revenue of 306.46 million yuan in 2015, up 16% year on year, and net profit of 31.53 million yuan, up 61% year on year. (2) The proposed name change reflects the “main business characteristics of intelligent robots” The company issued an announcement on July 28, 2015 to change its name to “GQY**” to better reflect the company's overall strategic transformation and layout of the intelligent robot industry in the future. Since announcing the three-year transformation plan in early 2014, the company has continued to expand the layout of the intelligent robot business: ① It has established a wholly-owned New Era Robotics subsidiary. ② The technical team introduced the first “vehicle-mounted self-balancing rescue platform” testing machine. ③ Set up a GQY investment and financing center, and set up an investment subsidiary Tianzhu Investment to pay close attention to epitaxial expansion targets. ④ Cooperate with New Century Robotics to distribute mobile police platform products, etc. Currently, the company's cash on book exceeds 600 million yuan. We believe that in the future, the company will not rule out the possibility of increasing its intelligent robot business through epitaxial mergers and acquisitions. (3) Intelligent robot technology reserves are sufficient, and new products are being implemented at an accelerated pace. Currently, the company has sufficient technical reserves. Through strong alliances with overseas teams, universities, and research institutes, it has robots in: ① intelligent robot driving mechanisms; ② low voltage servo drives; ③ inertial sensor technology; ④ motion planning and control of multi-axis robots; ⑤ robot navigation and positioning; ⑥ based on IoT cloud robot platforms and other core technologies in the robot industry. A prototype of a special robot product, mainly a vehicle-mounted self-balancing ambulance platform, is expected to be launched in the second half of the year. On August 15, 2014, the company invested in the establishment of Shanghai New Era Robotics Co., Ltd., a wholly-owned subsidiary of special robots, focusing on R&D, production and sales of vehicle-mounted self-balancing ambulance platforms. Its main robot project is “the first prototype development of a vehicle-mounted self-balancing ambulance platform”. This product uses key technologies for service robots such as a novel parallel robot technology platform, sensing technology, and human-computer interaction technology. It can actively counteract the effects of inertial movements such as road surface bumps, vehicle body shaking, and vehicle body acceleration and deceleration, and ensure that medical personnel can simply rescue critically ill patients in ambulances and avoid secondary damage during transportation. A prototype of this product will be launched in the second half of 2015. In the service robot industry, the company's main robot project is still “the first prototype development of a vehicle-mounted self-balancing ambulance platform”. After full cooperation with Professor Gao Feng's team from the School of Mechanical and Power Engineering at Shanghai Jiao Tong University, the company comprehensively developed special robot core technology (including parallel robot mechanisms, inertial sensors, servo control, and self-balancing control) around the core technology of special robots, including parallel robot design, mobile platforms, sensing systems and control systems, and the vehicle self-balancing ambulance platform as the main development goal. Research and development of technology. (4) Innovate the sales model. The robot business is expected to contribute more performance in the second half of the year. As a sales agent for mobile policing platform series products, in 2014, GQY Video signed a business cooperation agreement with the related party New Century Robotics to gradually launch agent sales activities for mobile policing platform products. In the first half of 2015, the company's mobile police platform series achieved revenue of 3.88 million yuan and a gross margin of 51%. In July 2015, the company signed a “procurement contract” with Zhejiang Tongshang Financial Leasing Co., Ltd. Zhejiang Tongshang purchased a total of 1,000 “anti-terrorist robot” intelligent single police and mobile police platform products from the company due to its main business needs, with a total contract value of 65 million yuan. It is expected to boost the company's performance in the second half of 2015. (5) Shareholder Yao International, who holds 5% or more of the shares: Promises that the stock price will not be reduced by 50 yuan in the next June-12 months. The company received a “Letter on the Promise to Increase Holdings and Not Reduce the Company's Shares” from Mr. Yao International, a shareholder holding 5% or more of the company's shares on July 16, 2015. Based on full confidence in the company's development strategy to transform into an internationally leading intelligent robot company, Yao International continued to increase its holdings by 2.57 million shares from June 29, June 30, July 1, and July 15, 2015, and it is not ruled out that it will continue to increase its holdings in the future according to market conditions. Yao International promised that from July 16, 2015, it will not reduce its holdings of the company's shares for the next 6 months; in the next 6 to 12 months, if the company's stock price does not reach 50 yuan, it will not reduce its holdings of the company's shares; in the next 12-24 months, if the company's stock price does not reach 80 yuan, it will not reduce its holdings of the company's shares. As of July 15, 2015, Mr. Yao International held 2.57 million shares of the company through an ordinary securities account, accounting for 1.21% of the company's total share capital; held 10618888 shares of the company through the China Galaxy Securities Co., Ltd. customer credit transaction guarantee account, accounting for 5.01% of the company's total share capital; in total, he held 1318888 shares of the company, accounting for 6.22% of the company's total share capital, and is a shareholder holding more than 5% of the company's shares. According to the company announcement, due to optimism about the company's future development prospects and the growth space of the intelligent robot industry, Yao International increased its holdings of 10618888 shares through centralized transactions through China Galaxy Securities Co., Ltd. customer credit trading guarantee accounts from April 7, 2015 to May 21, 2015, accounting for 5.01% of the total shares. The details are as follows: From April 7 to April 30, 2015, it purchased 748,800 shares, and the increase price range was 17.99 yuan to 21.06 yuan, between May 4, 2015 and May 21, 2015 When 31,388 shares were purchased, the price range for the increase in holdings was 18.01 to 26.16 yuan. We note that Zhongyuan Xiehe Cytogenetic Engineering Co., Ltd. (600645) became GQY Video's fourth largest tradable shareholder in GQY Video's 2015 interim report, holding 2.08 million shares, accounting for 0.98% of the total share capital. At the same time, we note that the listed company Zhongyuan Xiehe (600645) received a voluntary donation of RMB 1 million from Mr. Yao International on May 5, 2015, specifically for the company's R&D expenses in the field of next-generation CAR-T immune cell therapy technology. According to the 2014 annual report of Zhongyuan Concord (600645), at the end of 2014, Yao International held 5.07 million shares of Zhongyuan Concord, accounting for 1.44% of the shares. It is also the fourth largest tradable shareholder of Zhongyuan Concord and the only individual investor among the top ten tradable shareholders, holding a market value of about 200 million yuan. (6) China will become the largest market for robots. The service robot market prospects are optimistic that China will become the largest market for robots, and the service robot market prospects are promising. The national “12th Five-Year Plan for the Development of Service Robotics Technology” states that the service robot industry will be cultivated into a strategic emerging industry in China in the future. The special project will focus on deployment around “one goal, three breakthroughs, and four major tasks.” The four major tasks refer to focusing on the development of public safety robots, medical rehabilitation robots, bionic robot platforms, and modular core components. The global service robot industry is divided into professional service robots (special robots) and personal and household service robots. According to IFR statistics, the total number of professional service robots sold in 2013 was 21,000 units, an increase of 4% over 2012, with total sales of 3.57 billion US dollars. Over the next three years, it is estimated that the cumulative sales volume will be around 134,500 units, with sales of 18.9 billion US dollars. Personal and home service robots sold around 4 million in 2013, an increase of 28% over 2012. Sales increased to $1.7 billion. Over the next three years, cumulative sales are estimated to be around 31.4 million units, with sales of 11 billion US dollars. In the future, service robots in the fields of military, agriculture, logistics, medical care, mobile platforms, rescue and security, tour guides, and professional cleaning are the main types of demand in the future market. 3. Investment proposal The company strives to build a leading intelligent robot enterprise with an annual output of 10 billion dollars, focusing on special robots, service robots, and medical robots. The company has a market value of 5.2 billion yuan and 600 million yuan in cash. It is expected that in the future, the company will increase its intelligent robot business through endogenous and epitaxial methods. We are optimistic about the development prospects of the intelligent robot industry. We will keep a close track and not rate them for the time being.