Guide to this report: 2016H1 performance is in line with expectations, the company's revenue has steadily increased, and net profit has increased dramatically; in the future, the outdoor furniture+air travel business will go hand in hand, continuously improving the company's profitability. Investment points: Performance is in line with expectations, maintaining an increase in holdings rating. ① The company's revenue increased steadily, and net profit after deducting non-profit increased significantly. ② Our own brands join forces to expand channels to seize the leading position in outdoor leisure furniture in China. ③ Accumulate a marketing network, acquire China Airlines Tesco, comprehensively upgrade the air travel business, and enhance the company's profitability. Considering the reduction in the contribution of the investment business to the company's profit, the 2016/17 EPS was lowered to 0.20/0.26 yuan (-0.15/-0.15 yuan), and the target price was lowered to 9.82 yuan. Performance summary: In the year of 2016H1, the company's revenue was 2,202 million yuan/ +11.26%, net profit of 227 million yuan/ -50.18%, net profit of net income from net income of 285 million yuan/ +28.58%, and EPS of 0.1 yuan. The performance was in line with expectations. Revenue increased steadily, and net profit after deducting non-profit increased significantly. ① The company's outdoor leisure furniture and supplies achieved revenue of 2.107 billion yuan/ +10.18%, mainly due to the increase in overall order volume and the impact of RMB depreciation; air ticket travel services achieved revenue of 34.078 million yuan and gross profit of 11.6361 million yuan. ② The gross profit margin was 31%/+7.42%, mainly due to the decline in raw material prices and the devaluation of the RMB; the period fee rate increased by 3.68%, mainly due to the increase in sales and management expenses in the current phase of the acquisition of Beijing Liantuo and the increase in the cost of developing the domestic market due to the increase in sales and management expenses of the current phase of the acquisition of Beijing Liantuo and the addition of after-sales service outlets by overseas companies. ③ Net profit of 227 million yuan/ -50.18%, net profit after deduction of net profit of 285 million yuan/ +28.58%, mainly due to the reduction in the contribution of the company's investment business to the company's profit. The outdoor furniture+air travel business went hand in hand, and the extension upgraded the air travel business. ① In terms of outdoor furniture business, the company will continue to promote its own brands and make joint efforts to expand channels to seize the leading position of outdoor leisure furniture in China. ② In the air ticket travel business, the company continues to accumulate a marketing network and initially establish an operation service system, which will further increase its popularity as transaction volume increases. ③ 51book will acquire China Airlines E-Buy, expand B-side channel distribution for the online travel business, and at the same time add a series of value-added services. In the future, it will continue to expand traffic entry and comprehensively upgrade the air travel business. Risk warning: The progress of e-commerce platforms has fallen short of expectations; the overall air ticket agency market has shrunk.