Event: 2016 Semi-Annual Report: In the first half of 2016, the company achieved operating income of 123 million yuan, down 4.92% from the same period last year; the company realized net profit of 895,000 yuan, down 94.43% from the same period last year. Key investment points: Traditional main business expands new customers in the communications industry. The company's net profit for the first half of the year fell by 94.43% year on year (net profit amount decreased by 15.19 million yuan) mainly due to a decrease in operating profit of nearly 10 million and a decrease in software tax rebate revenue of nearly 4.7 million. By industry, the railway industry's product revenue was 82.72 million, down 19.75% year on year, and gross margin was 47.73%, down 12.67% year on year. Product revenue in the communications industry was 39.1 million, up 640.49% year on year, and gross margin was 29.74%, up 21.23% year on year. We believe that the company's railway industry products are cyclical after railway investment. This year is a bidding year, and next year will be effectively expanded, so the revenue and profit of the railway industry will not continue to decline. Furthermore, under the trend of strengthening anti-terrorism measures, high-definition railway video surveillance, nighttime infrared supplementation, and full coverage of surveillance areas will become new construction standards. Demand for surveillance products in the railway industry will be further released, and the company will benefit as a leader in the railway video surveillance field. This year, the company is actively expanding new customers in the communications industry, which is expected to effectively increase profits throughout the year. Shares in Huatai Nuoan and Boyuan Rongtian, and eWeiXun's mergers and acquisitions continued to advance. Huatai Nuoan specializes in a full range of nuclear, biological and chemical explosives detection and alarm instruments. It can detect nearly 7,000 kinds of substances based on material spectral analysis. It is at the world's advanced level. It is expected that in the future, it will benefit from the explosive growth of localization and replacement of detection instruments in military, anti-terrorism and other fields. Boyuan Rongtian's core product passenger service integrated management platform system has a coverage rate of 86% in the travel service systems of 18 railway bureaus across the country. It has real-time data from high-speed rail stations, which has become an important beginning for the company's post-railway service market strategy C-end market development. As the merger and acquisition of the remaining 66.5% equity of eWeixun continues to advance, profits are mainly concentrated in the fourth quarter. A smooth merger will effectively increase the company's profits this year. The construction of Everbright Consumer Finance is progressing smoothly. The company is actively preparing to participate in 20% of Everbright Consumer Finance. License applications, customer pre-acquisition, market pre-development, and technical preparations are all progressing simultaneously. Consumer finance licenses are of great value, effectively reduce capital acquisition costs, directly connect to the People's Bank of China's credit reporting system, and reduce risk. It is expected that Everbright Consumer Finance will open this year and contribute considerable profits to the company next year. Profit forecast and investment rating: Without considering the impact of possible future mergers and acquisitions and equity participation on performance, the estimated net profit for 2016-2018 is $160 million, $195 million, $248 million, and EPS of $0.30, $0.36, and $0.46. Maintain the buy rating. Risk warning: Order confirmation in the railway industry fell short of expectations, extension progress fell short of expectations, and consumer finance progress fell short of expectations.