The industrial chain integrates and absorbs high-quality brands, and the cooperative merger and acquisition model promotes rapid growth in performance. In 2016, the company achieved operating income and net profit of 4.222 billion yuan and 201 million yuan respectively, an increase of 138.35% and 435.50%, respectively, over the previous year. The main business is distribution of electronic components, software R&D, sales and maintenance, and R&D, production and sales of electronic intelligent controllers. During the reporting period, with the merger of Huashanglong Company, the company expanded and optimized its component product line and customers, strengthened the layout of customers in industries such as smart chips, new energy vehicles, security, intelligent rail transit, etc., absorbed many high-quality brands in the horizontal integration of the industrial chain, improved the overall layout of the component product line, enhanced the depth of technical support and cooperation with industry customers, enhanced the company's own industry leadership position, and greatly increased the company's revenue. The company set up a dedicated investment department to proactively attack and adopt an innovative cooperative merger and acquisition model: join forces with Baijian Electronics, SKY, etc. to achieve strong alliances; increase capital in the field of human-computer interaction and fingerprint recognition; invest in Shanghai Titanium Chain Electric and Huashang Weitai to seize the smart car market; and acquire Co-Chuangtai to complete the IC industry pyramid layout. With the active advancement of the company's outreach strategy, related benefits are gradually showing. Strengthen cost management, reduce costs and increase efficiency, and optimize the asset structure. On the one hand, the company's risk control center actively promotes scientific control of the enterprise's production supply chain, and comprehensively controls process flow, production progress, process quality, material consumption, inventory management, etc., effectively improving production efficiency and product quality and reducing sluggish inventory. On the other hand, the company has further improved the cost management system and management process, and has achieved positive results. During the reporting period, the company's sales expenses were 997.643 million yuan, an increase of 106.56% year on year; however, due to increased cost control in the sales process, the ratio of sales expenses to turnover decreased by 13.55 percentage points year on year; management expenses were 88,009 million yuan, an increase of 24.64% year on year; however, due to the company's increased cost control, internal management, and optimized organization structure, the ratio of management expenses to turnover decreased by 47.76 percentage points year on year. At the same time, in order to optimize the asset structure, the company divested the businesses of Yingtang Digital and Yingtang Electric. The company's scientific cost management and asset allocation plan will effectively improve the quality of the company's business and future profit margin. Release the industrial connectivity platform YouSoft Cloud to accelerate the construction of a vertical ecosystem for the electronic information industry. During the reporting period, the company released YouSoft Cloud, an Internet platform for the electronic information industry. Currently, Usoft Cloud mainly includes six major modules: B2B commerce, Usoft Mall, Youqi Cloud Service, financial services, public services, and membership services. Among them, Youqi Cloud Service is a UAS system built in the cloud to provide low-cost access to enterprise management information systems. The system integrates a project management system and initiated the development of the MES-Manufacturing Execution System. Youqi Cloud Service fully supports mobile office. Up to now, the mobile mobile app UU Internet has also been integrated into YouSoft Cloud. By the end of the reporting period, there were nearly 5,000 users on the Usoft Cloud platform, and the standard device library of Usoft Mall had more than 3 million types of devices. The enterprise used the creation of an excellent soft cloud as an opportunity to accelerate the construction of a vertical ecosystem for the electronic information industry and accelerate the achievement of full industrial coverage. Profit forecast. Future highlights of the company: 1) Strong reversal in performance, strong expectations for continued growth in the future. 2) The construction of the Internet platform “Yousoft Cloud” for the electronic information industry has been completed. I am optimistic about the company's vertical “S2S” strategic layout for the electronics industry. As the number of enterprise users gradually increases, it is expected to become a new performance growth point in the future. 3) In the context of the integration of the electronic components distribution industry, the company's foreign investment strategy has achieved remarkable results, the product structure has been further optimized, competitiveness has been greatly improved, and its leading position in the industry has been consolidated. We expect the company's 2017-2019 EPS to be 0.29 yuan, 0.37 yuan, and 0.46 yuan, respectively. Referring to the same industry, Aimu Co., Ltd., Heltai, and Hejing Technology's 2017 PE agreed to be 53.12 times, 38.48 times, and 31.26 times, respectively. We gave the company 40 times PE in 17 years, and the target price was 11.60 yuan, giving it a “buy” rating. Risk warning. The company's transformation falls short of expectations; downside risks to the economy.