The performance in the first half of the year was impressive, and profitability improved. The company released its 2016 semi-annual report and achieved significant growth in performance. In the first half of 2016, we achieved operating income of about 423 million yuan, an increase of 89.12% over the previous year, and realized net profit of about 36.29 million yuan, an increase of 234.60% over the previous year. Among them, Huaxin Electromechanical, which increased the scope of the merger, contributed 19.52 million yuan in net profit in the first half of the year, accounting for 53.80% of the net profit from the merger, which brought about significant gains. Meanwhile, due to fluctuations in raw materials and increased cost control, the gross margin of the company's main products reached 29.92% in the first half of the year, an increase of 7.33% over the same period in 2015. The development of lifting equipment is stable. With the gradual implementation of the national capacity removal policy, demand in the steel and non-ferrous industries is sluggish, making competition in the lifting equipment industry more intense. In the first half of the year, the company's steel smelting and lifting equipment revenue fell 53.15% year on year, but only 1.68% of total revenue, and the impact was relatively limited; aluminum smelting and lifting equipment revenue was about 117 million yuan, up 12.07% year on year. The increase in power handling equipment and port handling equipment due to the acquisition of Huaxin Electromechanical achieved revenue of about 89.75 million and 57.38 million, respectively, and the development was stable. In the first half of the year, Huaxin Electromechanical achieved revenue of 202 million yuan and net profit of 19.52449 million, accounting for about 29% of the promised net profit of 67.6 million in 2016. Through the merger and acquisition of Huaxin Electromechanical, the company broadened the application fields of its products and enhanced its technology and brand strength. It achieved good development in the first half of the year and is expected to remain stable throughout the year. Strategic layout in multiple fields to accelerate transformation and upgrading. In the first half of the year, the company obtained the qualification of a qualified supplier from CNNC, signed the first domestic sales and manufacturing contract for a complete automatic zinc stripping production line, completed the installation and commissioning of remote monitoring and maintenance systems for the first batch of products, and established new companies such as Teltin and Tianhashi Liheng to carry out electric hoist and three-dimensional intelligent parking garage business separately. The company also participated in investing in the establishment of the Yipo New Energy Industry Investment Fund, focusing on investment in fields related to power batteries for new energy vehicles. We continue to be optimistic about the company's high-end equipment layout. The integrated intelligent parking building is progressing smoothly. On July 22, the company announced the winning bid announcement for the Tianqiao Liheng Project. It will build the first intelligent three-dimensional garage project in Zhuzhou. The parking building has about 400 parking spaces, and the project amount has reached 44.987 million, verifying the company's ability to undertake and design projects. Currently, the project is progressing smoothly. According to news reports on the company's official website, a commencement ceremony was held on July 26. The company designed the parking project as a comprehensive building integrating parking, advertising media, and commercial services. We believe that with the development of policies, intelligent parking equipment will continue to gain strength in the field of public parking, and the company's project is expected to become a model plan for urban public parking. Profit forecast. The company's performance in the first half of the year was relatively good, the main business was stable, the strategic layout continued to advance, and the transformation and upgrading were gradually verified. We expect the company's net profit to reach 122, 150, and 169 million yuan in 16-18, corresponding to fully diluted EPS of 0.15, 0.18, and 0.20 yuan. According to the valuation level of comparable companies, we gave the company a price-earnings ratio of 50 times in 2016, corresponding to the target price of 7.50 yuan, and gave it an increase in holdings rating. Risk warning: The risk of market fluctuations, the decline in the lifting equipment business, and the transformation and upgrading are lower than expected.