The performance was in line with expectations, and the main business continued to lose money. In the first half of 2016, the company achieved operating income of 0.129 billion yuan, a year-on-year increase of 38.44%. Net profit attributable to shareholders of listed companies was -4.215 million yuan, a year-on-year decrease of 1.16 million yuan, and net profit from recurring profit and loss was -5.149 million yuan, a year-on-year decrease of 2.11 million yuan. Investment in postal informatization construction has increased, leading to an increase in application software development and product sales in the company's industry. The gross margin has increased but is still low, resulting in overall losses. Based on the Post Office, we are steadily advancing various businesses. The smart package cabinet business participated in the group's package cabinet bidding process and has been successfully shortlisted. It has now entered Guangdong, Chongqing, Sichuan, Shaanxi, Hebei, Hubei, Guangxi and other provinces; the application software business focuses on promoting the supporting development of China Post ERP system engineering philatelic business, the development of a national postal machine management system QR code digital postage machine, new business superposition of Hunan e-commerce platform and system access transformation in the first half of the year; the financial intelligent security application business mainly completed projects such as Hunan Post Treasury Management System Operation and Maintenance, Post Security and Yiyang Pilot Project, and TV Surveillance and TV Implementation work. Continue to promote technology research and independent innovation. The company's GIS Beidou application business mainly revolves around the application of command, scheduling and monitoring services in the logistics industry, combined with the GIS Beidou application platform and accurate distribution system to develop an integrated integrated logistics monitoring and management platform for industry customers, focusing on projects such as Beijing Suwu Beidou terminal equipment leasing, GPS vehicle management system supporting transformation, and Dongfeng and Auman Post vehicle terminal procurement. China Post's major transformation has brought historic development opportunities to the company. According to the announcement, the company, as the actual controller, is a core enterprise in the software sector of China Post Group Corporation, and has received strong support in various areas such as policies, capital, industrial resources, markets, and major projects. The company is currently implementing a major customer strategy with Post Group Corporation, Poststore Head Office, and Fast World Headquarters as the core, using the Beijing market as its main position, enhancing the strength of the Beijing market, strengthening business research and technical exchanges, and digging deeper into the projects of Post Group Corporation, Postbank and Express Headquarters. Investment proposal: After the controlling shareholder of the company changed from Hunan Post to China Post Asset, and many of the Group's executives airlifted the board of directors for a new term, as the only listed company platform under China Post, as the Group's transformation and upgrading path gradually approached, its future growth path gradually became clear, and there is plenty of room for asset injection and integration. The 2016-2017 EPS is expected to be 0.01 or 0.06 yuan, maintaining the “Buy-A” rating, and the target price for 6 months is 35 yuan. Risk warning: The progress of the company's business development and asset injection fell short of expectations.