Incident Company Announces 2016 Semi-Annual Report. During the reporting period, the company achieved operating income of 281 million yuan, a year-on-year decrease of 16.61%, net profit attributable to shareholders of listed companies of 34.554 million yuan, a year-on-year increase of 127.73%, and earnings per share of 0.12 yuan, an increase of 33.33% over the previous year. The review excluded the influence of Demaco. The company's revenue increased by 16.5% year on year, and the profit increase came from Bohan Weiye and stated: Revenue declined year-on-year, mainly because in November 2015, the company sold 85% of its shares in Shenzhen Demaco Intelligent Machinery Co., Ltd., the former holding subsidiary. The company's performance during the reporting period was no longer included in the scope of the company merger. However, Demaco's revenue for the first half of 2015 was 95.7 million yuan. Excluding Demaco's influence, the company's revenue increased 16.5% year-on-year in the first half of this year. During the reporting period, Bohan Weiye achieved net profit of about 32.6 million yuan after deducting non-return to the mother, completing 24% of this year's profit promise. The main reason is that Bohan Weiye's software development and engineering project-related businesses were mainly completed in the second half of the year. Acquire Bohan Weiye to expand enterprise-level mobile informatization operation services in multiple industries: Bohan Weiye, a wholly-owned subsidiary, is a leading enterprise mobile informatization enterprise, providing integrated IoT operation services for customers in logistics, express delivery and other fields. Bohan Weiye mainly uses terminal charges and software outsourcing to operate nearly 100,000 PDA terminals for the largest customer EMS. EMS contributed more than 60% of Bohan Weiye's revenue. Bohan Weiye promised net profit of 135 million yuan and 156 million yuan for 2016-2017. It is expected that the company will expand in an episodic manner, enter logistics giants such as Three and One Delivery, and actively enter fields such as medicine, FMCG, e-commerce, and agriculture. There is huge room for market expansion. In terms of mobile health care, Bohan Weiye pioneered cooperation with Sichuan Telecom using Sichuan as the first mobile nursing station. Currently, the company has signed contracts with more than 300 hospitals, and the promotion area has expanded from Sichuan to places such as Henan, Hunan, and Shenyang. Actively expanding informatization in the logistics industry, Bohan Weiye plans to acquire 51% of Hongtu Chuangzhan's shares in cash: Recently, Bohan Weiye plans to acquire 51% of the shares of Liaoning Hongtu Chuangzhan Surveying and Surveying Co., Ltd. through cash payment. Hongtu Chuangzhan is a professional surveying, mapping, and geographic information technology enterprise. It will help the company develop in the direction of the Internet of Things, smart cities, smart management, etc., while improving the level of profit. The counterparty promised that Hongtu's net profit after tax in 2016-2018 will not be less than 60 million yuan, 72 million yuan and 86.4 million yuan respectively. The transaction consideration was initially set at no less than 11 times the net profit after tax in 2016 promised by Hongtu Innovation, that is, not less than 660 million yuan. Participate in Saifu Technology to expand supply chain finance business: In 2015, China's supply chain service market exceeded 1.5 trillion US dollars, and will maintain a growth rate of about 15% over the next five years. Through self-operation and shareholding (setting up 2 subsidiaries, Huapengfei Supply Chain and Huafei Supply Chain, and continues to hold 16.43% of Saifu Technology's shares), the company relies on closed management of logistics and trading links to provide supply chain financial services to customers in an orderly manner to upstream and downstream SMEs. The investment suggests that the company's traditional main business develop steadily, acquire Bohan Weiye to expand enterprise-level mobile informatization operation services in multiple industries, plan to acquire 51% of Hongtu's shares in cash, and actively promote the “big logistics” strategy. The 2016-2018 EPS is expected to be 0.54, 0.65, and 0.76 yuan. Risk The development progress of new industries is lower than expected, integration falls short of expectations, etc.