Report summary: Annual report summary: During the reporting period, the company achieved operating income of 2558.03 million yuan, an increase of 11.37% over the previous year; the company's assets reached 120,89.60 million yuan, an increase of 37.07%; and the company achieved net profit attributable to shareholders of listed companies 550.28 million yuan, an increase of 15.10% over the previous year. Revenue grew steadily, and the company's annual performance was in line with expectations. During the reporting period, the company's revenue increased 11.37% year on year, achieving steady growth throughout the year, showing a good development pattern. The main reason is that the company's production and sales volume continued to grow, achieving rapid expansion of business scale; second, the company exploited its equipment advantages and technical advantages, and increased the proportion of high-value-added profile products and deep-processed products. The company's product structure was continuously optimized, and sales prices increased, driving sales revenue growth. Financial expenses have risen, and management and sales expenses have declined year over year. The company achieved net profit of 493.77 million yuan after deducting non-attributable net profit, an increase of 6.40% over the previous year. Management expenses and sales expenses decreased by 16.47% and 13.83% year on year, and financial expenses increased by 40.59% year on year. The reason is that the project construction of the company and its subsidiaries did not arrive, and the company used its own capital and bank loans in the early stages, and the financial sector loans obtained by the company increased, so financial expenses increased. Promote rail vehicle manufacturing and aluminum profile deep processing and construction projects, and actively intervene in the rail transit equipment manufacturing industry. The construction of the rail transit equipment manufacturing project is nearing completion. It is expected that the prototype will be produced by the end of 2017. In the future, this field will be the company's key development area. The company completed the non-public stock offering in January 2017, and raised a total capital of 3 billion yuan, of which 2.7 billion yuan was used to implement rail vehicle manufacturing and aluminum profile deep processing and construction projects to provide financial support for the company's strategic transformation and upgrading. The rail transit industry is developing rapidly, and the company is expected to continue to benefit. Profit forecast and investment rating: The company will promote rail vehicle manufacturing projects and actively participate in the rail transit equipment manufacturing industry. We expect the company's 2017-2019 EPS to be 0.57/0.77/1.08 yuan, giving it an “increase in holdings” rating. Risk warning: The progress of rail transit projects falls short of expectations; systemic risks.