In 2016, revenue increased 79.65% year on year, and net profit increased 94.45% year on year. In the first three quarters of 2016, the company's revenue was 1,038 million yuan, up 79.65% year on year; net profit was 168 million yuan, up 94.45% year on year; earnings per share were 0.27 yuan; and comprehensive gross profit margin was 39.25% /- 4.55pct. Revenue growth stemmed from business growth such as Guanzhi Automation & Huaxiao Precision Merger and Power Automation; the higher net profit growth rate than revenue was mainly due to the decline in expenses during the period. Revenue increases such as Guanzhi & Huaxiao mergers and power automation drive rapid revenue growth. During the reporting period, the company completed the acquisition of Guanzhi Automation and Huaxiao Precision, and began merging in May 2016, significantly increasing the performance of the first three quarters; the company's power automation business expanded into Guizhou, Guangxi and other places in the South Grid region, and the promotion of new products such as power inspection robots also achieved good results. Continuously improve the layout of the intelligent manufacturing industry. Through the acquisition of Guanzhi and Huaxiao, the company created a complete industrial chain layout integrating “intelligent mobile robot arm (hand) - AGV (foot) - flexible production line (body)”; through increased capital investment in Shenzhen Lizi Robotics, investment in the establishment of intelligent logistics in Anhui University of Science and Technology, and the establishment of Sanqu Intelligent Technology Company, the company further strengthened its layout in the fields of intelligent logistics systems, warehousing automation and intelligent packaging. At the same time, the company also has R&D incubation in the fields of service, medical care and special robots, and may further expand its industrial layout in the future. There was a decline in gross margin, and the cost ratio improved significantly during the period. The company's comprehensive gross profit margin for the first three quarters was 39.25%, down 4.55 pct from the previous year. The period fee rate was 20.50%, a sharp decrease of 4.03 pct over the previous year, mainly due to revenue growth faster than cost growth; among them, the sales expense ratio was 8.27% /-1.51pct; the management expense rate was 13.77%/-3.03pct; and the financial expense ratio was -0.28% /+0.52pct. Q3 Significant improvement in performance. In Q3 2016, the company's revenue increased sharply by 186.02%, and net profit increased by 275.38%, mainly due to merger factors. On a month-on-month basis, the period's expense ratio and net profit margin increased sharply, and the gross margin remained around 40%. Profit forecasts and investment advice. It is estimated that in 2016-2018, the company's operating income will reach 1,583 billion yuan, 1,918 billion yuan, and 2,330 million yuan; net profit will reach 258 million yuan, 327 million yuan and 401 million yuan, up 88.77%, 26.85%, and 22.40% respectively over the previous year. After additional dilution, earnings per share were $0.35, $0.45, and $0.55. Considering the high overall valuation of the industry and the significant synergy effect of the company after completing the acquisition, the company was given a valuation of 50-55 times that of 2017. The company's reasonable valuation range was 22.5-24.75 yuan/share, increasing its holdings rating. risk factors. The risk of industrial integration falling short of expectations.