The half-year performance maintained steady growth, and the cash flow in the second quarter increased sharply. In the first half of 2016, the company achieved operating income of 924 million yuan, YOY +10.66%; realized net profit attributable to shareholders of the parent company of 78.81 million yuan, YOY +4.59%; net cash flow from operating activities - 137 million yuan, YOY -8.31%; and EPS was 0.05 yuan, in line with the same period last year. In the second quarter, the company achieved operating income of 494 million yuan, YOY +4.03%; realized net profit attributable to shareholders of the parent company of 43.88 million yuan, YOY +0.15%; net cash flow from operating activities of RMB 21.27 million, YOY +120%; and EPS of 0.03 yuan, YOY -25%. The company maintained steady and rapid growth in revenue and net profit, in line with our previous expectations. As the company's key projects continue to advance, it is expected that the company's performance will continue to improve in the second half of the year. The media sector contributed to the performance. The gross margin of all main businesses increased in the first half of 2016, and the revenue of the company's various businesses, continuous underground walls, pile foundations, deep foundation pit support and other businesses was 1.61/2.29/2.02/1.77/155 million yuan, respectively. YOY -42%/-17%/+171%/-9%/+1296%, the company invested in the TV drama “Sea Animal Husbandry” produced by Kyushu Dreamworks on May 27 and brought in 100 million yuan in revenue. The gross margins of each sector of the company were 34.40%, 25.20%, 14.02%, 28.29% and 14.89%, respectively. The gross margin of all businesses increased. Among them, the largest increase in gross margin of the dynamic business was 5.79%. Sales expenses, management expenses, and financial expenses were 7.98 million yuan, 9061, and 23.38 million yuan, respectively, YOY -1.40%/21.48%/40.09%. The sharp increase in financial expenses was due to the strong strength of the two subsidiaries and the increase in interest expenses on loans from afar. Engineering services are growing steadily, and investing in media cultivates new growth points. In 2011-2015, the company's operating income rose from 264 million yuan to 1,931 million yuan, CAGR 64%; net profit from net profit increased from 50 million yuan to 227 million yuan, and CAGR 46%. Strong mergers and acquisitions targets in 2014 and distant sources contributed 66.57 million yuan and 64.65 million yuan in net profit last year, respectively. The geotechnical industry concentration is low, and the company's market share as a leading enterprise is still less than 1%. In the future, it is not ruled out that it will continue to exert scale effects through mergers and acquisitions to increase profit space. Investments in Kyushu in 2015 confirmed investment income of 1,868,500 yuan. This year, it is expected that they will significantly benefit from the screening of “Animal Husbandry at Sea”. It is still worth looking forward to the revenue from subsequent IP operations and investments. Profit Forecast and Investment Advising Company's main geotechnical business profit in 2016 is estimated to be 345 million yuan and IP media business profit is estimated to be 25 million yuan. The total market value of the two is 16.5-18.4 billion yuan, the reasonable secondary market price range is 9.46-10.52 yuan (corresponding to 33-38 times PE in '17), and the first target price is 10 yuan, maintaining the “buy” rating. Risk warning: General aviation business expansion falls short of expectations; integrated acquisitions in the geotechnical industry fall short of expectations; accounts receivable cannot be recovered risk.