The company provides technical solutions and manufacturing services to customers around the world, and its products cover a wide range of areas such as network communications, consumer electronics, and smart hardware. The company is deeply involved in the field of electronics manufacturing and has accumulated a deep background. Since 2015, new product development and market expansion have also been the focus of the company's development. Currently, the company has a wide range of customers, including traditional electronics manufacturers such as Huawei, Samsung, and Lenovo; it also includes mainstream domestic Internet companies such as Xiaomi, Tencent, and 360; and traditional home appliance companies such as Gree and Midea. Due to the adjustment of the business model, the revenue recognition method was adjusted, and the original EMS dominated model of recording parts as revenue changed to a model where ODM/OEM recorded design revenue and processing revenue as revenue, resulting in a slight decline in operating income in the first three quarters of 2016, achieving operating income of 1,995 billion dollars and net profit of 95777 million yuan. Due to the company's business model focusing on ODM and the progress of automated production transformation, the company's gross margin was greatly improved in the first three quarters of 2016. Based on traditional intelligent hardware manufacturing, the company actively expanded IoT product solutions as an extension of future value. The company has a solid foundation in providing intelligent hardware solutions and supporting services. In the past, a wide and diverse product layout has also provided the company with advantages in providing cross-industry technology and manufacturing services. In 2015, the company's communication equipment and consumer electronics sectors already included some products for the Internet of Things and smart hardware. The company takes the Internet of Things of the Internet of Things as an important development direction, complements traditional manufacturers, provides customers with IoT and intelligent transformation solutions, and has gradually formed partial advantages in communication modules. In the future, the Internet of Things and intelligent hardware will provide the company with new profit growth. The company's fixed growth plan has been reviewed by the Development and Review Committee of the Securities Regulatory Commission, and plans to raise 756 million yuan in capital. The capital raised will be invested in two major projects: intelligent manufacturing and innovation support platforms. Intelligent manufacturing helps improve production efficiency, improve product quality, and reduce production costs. The company has continuously accumulated experience in early investment and research and development, and has made progress in the field of intelligent manufacturing. Currently, the company's self-developed special automation equipment and information systems have been widely used in production plants. The innovation support platform project will further enhance the company's technical strength in intelligent product development. This fixed increase will also further increase the shareholding ratio of the controlling shareholders. It is estimated that after the fixed increase, the controlling shareholder's shareholding ratio will be 19.55%, which will help advance the company's future external development. The company attaches importance to R & D and innovation cultivation, and lays out new growth points in the future early. In recent years, the company's R&D investment has continued to rise, and the team of R&D personnel has also continued to expand. The company is already positioned in terms of innovation and entrepreneurship, giving full play to its traditional manufacturing advantages, speeding up hardware delivery for innovative projects, and connecting with international innovation achievements, building a bridge between advanced foreign innovative technology and domestic manufacturing capabilities. Profit forecasts and investment advice. The predicted EPS for 16, 17, and 18 were 0.02, 0.07, and 0.10, respectively. Considering that the company just turned a loss into a profit in '16, and the future development prospects of smart hardware and the Internet of Things are broad, the company has certain transformation expectations. Currently, there is still some uncertainty, so the target price and rating will not be given for the time being. Risk warning. The company's net interest rate level continues to be low; development progress is slow; and market expansion falls short of expectations.