Events: The company announced its 2016 annual report, with annual revenue of 1,321 million yuan, up 84% year on year; net profit of 219 million yuan, up 62% year on year; net profit after deduction of 212 million yuan, up 74% year on year. Driven by the collaboration of the four major businesses, the combination of results led to high performance growth. The “Jiuqi+” informatization ecosystem continues to improve in terms of business integration and resource integration. The company's four major businesses (e-government, group control, big data, and digital communication business) all achieved relatively rapid growth, and the overall gross margin increased by 4 percentage points over the same period last year. In 2015, the company divided its business layout in court and acquired Huaxia Dentsu. It also revealed its net profit for December of 7.34 million, which is equivalent to 1/6 of Huaxia Dentsu's net profit of 45.25 million in 2015. In 2016, Huaxia Dentsu completely merged, contributing 65.3 million yuan to the company's net profit. If we directly deduct the contribution from this consolidated statement, the net profit generated by Jiuqi Software in 2016 was about 160 million yuan, an increase of about 20% over the previous year. The foundation of traditional software business has been further consolidated. E-government and group control are the company's traditional business. In 2016, e-government revenue was 539 million yuan, an increase of 101% over the previous year; the group management business achieved revenue of 206 million yuan, an increase of 34% over the previous year. Through the layout of finance, education, civil affairs, transportation, justice, health and other industries, the company has launched leading solutions such as comprehensive budget management, financial sharing service centers, group finance and financial business integration, comprehensive risk management, comprehensive performance management, and group consolidated reporting. The company's products have landed in many large enterprise group customers, and attracted many high-quality customers, including national ministries, departments, and large central enterprises. Focus deeply on big data research and layout in the fields of people's livelihood, finance, and taxation. In terms of traffic big data, applications such as highway maintenance and management, emergency disaster protection, and traffic flow prediction have been implemented; people's livelihood big data has achieved certain results in agriculture and poverty alleviation. The product has been used by government departments such as the State Administration of Foreign Exchange, the China Institute of Popular Science, the State Administration of Letters and Calls, and the Tianjin Local Taxation Bureau. The company joined the Zhongguancun Big Data Industry Alliance and the China Big Data Industry Ecological Alliance, took the lead in establishing the People's Livelihood Big Data Special Committee and the Financial Big Data Special Committee, established the Big Data Research Institute in 2016, and participated in the Big Data Industry Fund to explore outstanding enterprises. We believe that the company's expansion plans in the big data field are expected to accelerate. The digital communications business is growing rapidly. In 2016, the company made a wholly-owned acquisition of social marketing manufacturer Ruiyi Hengdong at a price of 205 million yuan. The company then integrated four of its companies: Ruiyi Hengdong, digital marketing manufacturer Yiqilian, overseas integrated marketing platform PandaMobo, and media and marketing big data service provider Jiuqitong to create a digital communication brand driven by big data. In 2016, the digital communication business achieved a total revenue of 563 million yuan, an increase of 91% over the previous year. Mainly, due to the sharp increase in the performance of the 100 million yuan mergers and acquisitions in 2015, the impact of boosting the digital communication sector was remarkable. Investment advice: The company maintains a leading position in the traditional reporting business, closely follows the development trend of software cloud and intelligence, upgrades traditional software products with big data technology, and invigorates the field of digital communication at the same time. The company has sufficient internal vitality, and extended mergers and acquisitions can be expected. Net profit growth in 2017-2019 is expected to be 54%, 30%, and 29%, respectively, and EPS is 0.62, 0.81 and 1.05 yuan, respectively. For the first time, coverage was given an “increase in holdings” rating. Risk warning: New business development falls short of expectations.