Incident: The company announced that it plans to study and launch an employee stock ownership plan. The launch of an employee stock ownership plan highlights confidence in long-term development: according to the announcement, the cumulative number of shares held by the company to launch an employee stock ownership plan does not exceed 10% of the company's total share capital, and the number of shares corresponding to the employee stock ownership plan share held by any holder does not exceed 1% of the company's total share capital. The employee stock ownership plan is intended to be obtained through secondary market purchases (including major transactions) or other methods permitted by laws and regulations. Participants mainly include the company's incumbent directors (excluding independent directors), supervisors, senior managers, middle managers of the company or subsidiaries, and core employees. We believe that the launch of the employee stock ownership plan will, on the one hand, highlight the company's confidence in development. On the other hand, it will effectively promote employee enthusiasm and resolve incentive issues, ensure the stability of the acquisition of the company's senior staff, and lay the foundation for subsequent development. The integration and sharing of government information systems is advancing at an accelerated pace, and the advantages of Philips are obvious: the General Office of the State Council issued the “Implementation Plan for Integration and Sharing of Government Information Systems” on 5.18. The plan provides specific ten events to promote implementation of the plan, and also provides clear time limits and clear responsible subjects, which is expected to promote the efficient implementation of government data interconnection. We estimate that the government system platform construction and subsequent operation and maintenance market alone will reach 10 billion dollars. In the future, it is even more likely that value-added data services will be realized through Internet+ government services such as personal payments, corporate credit, and personal credit. In 2015, Philips established a joint venture with the National Information Center under the Development and Reform Commission, Guoxin Lixin, to participate in the construction of an integrated data exchange platform to provide big data analysis related services to the government industry, and directly build a unified, interconnected, secure and controllable data open website (www.data.kov.cn) as mentioned in this guidance document. In addition, the company has built information resource centers in Beijing's Shijingshan District, Liuzhou City, Tianjin Sino-Singapore Ecological City, etc., and public information platforms in Ningbo and Luohe, and has many examples of data platform construction. Valuation and investment recommendations: The company's 2017-2019 EPS is expected to be 0.42, 0.54 and 0.71 yuan respectively, and the corresponding PE is 23/18/14 times, respectively, maintaining the “buy” rating. Risk warning: The advancement of employee stock ownership plans is blocked; the integration of government information falls short of expectations