Investment Highlights The company released a semi-annual performance forecast, and the main business picked up: the company expects net profit attributable to shareholders of the parent company to increase by 40%-50% in the first half of 2016 compared to the same period last year, with profit of about 1.18-127 million yuan. Demand for shoe lining machines exploded in the first half of the year, which led to a recovery in the company's main computer flat machine business. In the past, the company used a buyer's credit method for sales. After the industry was in a downward phase in 2012, the company's loan guarantee balance for customers continued to rise, asset impairment losses and non-operating expenses continued to increase, greatly hampering the company's performance. In the past two years, the company drastically reduced the sales scale of the buyer's credit model and stopped this business model this year. As a result, it was able to drastically reduce the calculation of asset impairment losses, and net profit increased rapidly. The development of the service robot field is progressing smoothly: the company and Hangzhou Ayou Culture Co., Ltd. jointly established the Pistachio Robot Company to explore the field of service robots, and held a new product launch conference on April 9 this year to officially launch two new products: A U Tuzhi (children's robot) and A U Magic Mirror (AR smart product for children). The company signed a purchase intention agreement with Zhejiang Tianzhi Communications. It was agreed that within 1 year of the purchase validity period, Tianzhi Communications would purchase 60,000 AU Mirrors and 15,000 AU Tuzhi units, with an order amount of about 102 million yuan. The release of new products and the signing of purchase intention agreements will strongly promote the sale of pistachio robots and cultivate new growth points for the company. Investment of 1 billion yuan to enter the mobile Internet sector: The company announced in April that it will invest 400 million yuan to acquire 100% of Hangzhou Duoyile Network Technology Co., Ltd.'s shares and 600 million yuan to acquire 100% of Hangzhou Youtou Technology Co., Ltd. Hangzhou Duoyile's main business is mobile internet regulated frequency content distribution and mobile regular frequency advertising platform. Hangzhou Youtou is a leading mobile internet advertising service platform in China. The acquisition helped the company quickly enter the mobile Internet industry. The two companies promised a total net profit of 70 million yuan to prepare for the exam in 2016, which is expected to significantly increase 2016 results. Investment advice: We forecast the company's earnings per share for 2016 to 2017 of $0.24, $0.30, and $0.38, respectively. We gave a recommendation to increase holdings. The target price for 6 months is 17 yuan, which is equivalent to a dynamic price-earnings ratio of 57 times that of 2017. Risk warning: New product market development falls short of expectations; sufficient acquisition performance falls short of expectations.