In the first half of 2016, the company achieved operating income of 179 million yuan, an increase of 2.32% over the previous year; the net profit attributable to ordinary shareholders of listed companies was 17.84445 million yuan, an increase of 14.48% over the previous year, and the corresponding EPS was 0.07 yuan. During the reporting period, the company sold more types of musical instrument products (including electroacoustic pianos, guitars, violins, etc.), broadened marketing channels, and operated offline stores and online e-commerce platforms simultaneously, thereby increasing sales revenue. The rapid increase in profit is mainly due to increased revenue, rising foreign currency exchange rates, and an increase in investment income from investing in art education and purchasing wealth management products compared to the same period last year. Key investment points The increase in piano sales volume is the main driver of revenue. During the reporting period, the company achieved sales of 13,846 pianos, an increase of 572 units over the same period last year, an increase of 4.31% over the same period last year. Foreign piano sales accounted for 15.30%, while domestic piano sales accounted for 84.7%. Upright pianos, grand pianos, docks, piano accessories, and electroacoustic pianos account for 80.69%, 10.92%, 3.03%, 5.18%, and 0.10%, respectively. With the parallel online and offline marketing channels, the expansion of the sales network, and the continuous expansion of the art education and training industry chain, it has contributed to an increase in piano sales to a certain extent. At the same time, with the development of smart pianos, the company's new products meet the needs of customers for different pianos, and also provide support for the company's products to seize the market. In terms of increasing piano research and development, smart pianos or traditional pianos driving the explosion of future performance, the company set up four R&D projects during the reporting period, including 2 upright pianos (VD1 and VD6), 1 grand piano (VG180), and 1 electroacoustic piano (DUA 2), with a total investment of 6.915,600 yuan in R&D expenses, accounting for 3.85% of revenue. In terms of smart pianos, the smart display system, Helen's MOOC education network foundation, Helen's autonomous sound source motherboard, and ancillary systems are progressing hand in hand. At the dealer conference in May, the company launched a total of 6 smart piano products: DGI, GUAI, DUAII, DUQII, and DUQIV. Some of the systems that have already been developed have entered the substantive sample testing phase. Actively promote the three directions of business development in terms of industry direction, product structure and sales model: in response to different market environments and conditions, the company mainly expands the art education and training market through participation and franchise; product structure: on the basis of traditional piano manufacturing and sales, increase sales of electroacoustic pianos, guitars, violins, etc.; sales model: Follow the Internet trend, actively promote the simultaneous operation of online e-commerce platforms and expand sales channels on the basis of offline store sales. Continue to be optimistic about the company's future smart piano and music training layout, and maintain purchase ratings. Considering that the company's smart piano and online and offline art education platforms are still in the promotion period, the company's traditional main business is running steadily. It is estimated that in 2016-2018, the company will achieve operating income of 393 million yuan, 465 million yuan and 551 million yuan; net profit of 38.65 million yuan, 56.16 million yuan and 707 million yuan, corresponding to EPS of 0.15 yuan, 0.22 yuan and 0.28 yuan, respectively. It is expected that the company will gradually expand its efforts in art education and have a strong synergy effect with the smart piano developed independently by the company to maintain the buying rating.