Significant increase in performance. In the first quarter of 2017, the company achieved operating income of 754.7766 million yuan, an increase of 45.8% over the same period last year; net profit of 6.6954 million yuan, an increase of 106.28% over the same period last year; after deducting non-net profit of 6.5552 million yuan, an increase of 182.85% over the previous year; the main driver of the sharp increase in performance was the four new businesses that the company focused on promoting in 2016: mobile exhibition, banking self-help, computer vision, and convenient payment, which maintained a rapid growth trend in the first quarter of this year. Computer vision, banking self-service, and in-clinic payment businesses have formed a trend of rapid growth in the first quarter. Differentiated terminals and supporting system software for the company's computer vision business segment have received batch orders in real-name management fields such as anti-terrorism, security, real-name tax processing, real-name check-in, real-name testing, etc. in Xinjiang, Hebei, Zhejiang, etc., and are being promoted nationwide through local offices, showing initial full-scale results. The new banking medical self-service and in-clinic payment business continued to grow rapidly in the first quarter of this year on the basis of rapid implementation in the fourth quarter of 2016 and the formation of an industrial scale, and has become an important part of the company's profit contribution. The mobile exhibition industry and convenient payment business are expected to achieve further breakthroughs in the second quarter. On the basis of winning bids from several head offices and provincial agricultural credit cooperatives in the second half of 2016, the company's mobile exhibition industry was newly shortlisted for Bank of Communications Head Office and Hang Fung Bank Head Office in the first quarter; it is expected that the nearly ten projects that have been bidded/shortlisted in the second quarter of 2017 will be delivered in batches, and the company's mobile exhibition sector will enter a stage of rapid development. The company's convenient payment electronic scale and convenient payment embedded module achieved mature mass production in the first quarter and achieved batch delivery at the end of the first quarter through qualification applications, multiple provinces and regions, long-term testing, optimization and upgrading. It is expected that starting in the second quarter, mass supply and sales will begin in accordance with agreements reached with relevant banks, UnionPay, and third party partners. The pace of upgrading from identification to cognitive intelligence (commercial artificial intelligence) is accelerating. In the first quarter, the company accelerated the pace of upgrading from identification to intelligent cognition (commercial artificial intelligence). On the basis of the first introduction of WatsonExplorer, the company further became the first IBM ESA partner in mainland China. The research and development of the company's three commercial artificial intelligence projects also made great progress in the first quarter: the bank branch service robot has achieved functions such as natural language dialogue, VIP face recognition, business consulting, and fun interaction according to the scheduled plan; in terms of intelligent upgrading of banking medical self-service devices, it has obtained certain natural language interaction and multi-wheel drive dialogue functions based on the support of professional knowledge base and historical information, and has a certain ability to guide medical treatment; the company's intelligent customer service system has entered the trial stage for intentional customers. The company clearly stated in its quarterly report: “It will not take long for commercial artificial intelligence to bring revenue and profit to the company and become an important part of the company's main business.” Investment advice: The company has passed through the key year of the 2016 strategic upgrade. Based on the company's original core business advantages of identity authentication, the company has entered a new stage of comprehensive promotion of artificial intelligence development. The recent acquisition of Innovo will further enhance the company's market share and influence in the field of public security and security. In addition, the company has extensive room for further development in the fields of bank exhibition, banking medical self-help, convenient payment, and computer vision. It is expected that EPS will be 0.5 and 0.75 yuan respectively for the 2017-2018 exam preparation. Target price is 40 yuan. Risk warning: Risk of declining gross margin of traditional businesses, risk of falling short of expectations in the new business market.