1. Company profile: The company is a company in China and Hong Kong that is mainly engaged in designing, implementing and maintaining multi-functional application solutions for subway information systems and related software and hardware products for the sale of application solutions. The majority shareholder is Beijing Infrastructure Investment Corporation (Beijing Investment), which is wholly owned by the Beijing Municipal State-owned Assets Administration Commission and is the owner of all subway line assets in Beijing. The company's business segments include 1) subway information system business; 2) subway civil communication business; 3) subway operation business. 2. The Beijing Investment subscription failed: The subscription expired mainly because there were many prerequisites in the placement. One of them was that before December 31, 2015, a joint venture with the Beijing Metro Operation Company had to be registered and established, but due to various reasons, it was not satisfied. In fact, the joint venture was only incorporated on February 15, 2016, so the subscription was not valid. The company cannot guarantee whether Beijing Investment will participate in the placement again after that. 3. Rail Transit Construction Management Company: Currently, a total of four companies in Beijing carry out subway operations, namely the Beijing Metro, the operating company, the Beijing-Hong Kong subway, and the Beijing subway construction management company. The reason construction and management companies are involved in this field is mainly to consider future development needs. Before 2003, there was only one subway group in Beijing, which was later split into three companies and divided into Beijing Investment, Construction Management, and Operation Companies. Beijing Investment is responsible for investment, construction management is mainly involved in the construction of new lines, and the operating company is responsible for operation. According to the plan, after 2020, the Beijing subway line will become saturated; in addition to the PPP model, participation in construction and management will decrease. Therefore, there is an urgent need to find other ways to consider subsequent development. 4. Beijing tendering: Due to the slowdown in Beijing's tenders last year, the company's performance in 2015 declined sharply. At present, there have been bids released one after another, and management expects them to be signed in the third quarter of this year. Part of the company's work has already been completed, and revenue can be confirmed as long as bids are issued. 5. Civil communications business: This year, 37 stations will complete accounts and inject them into the company. Revenue will be confirmed once collected. Management expects the third quarter to be completed. After the acquisition is completed this year, the future civil communications business will be mainly in terms of new lines. The company will issue its own CAPEX and confirm revenue once it is completed. 6. Civil Communications Business CAPEX: In the past, the acquisition of civil communications was more than 10 million yuan per year. In terms of investment in new lines, it is estimated that each station on the new line will cost 1.5 million yuan. 7. The acquisition and merger of the new airport line: Management expects it to be completed by the end of this year. If it goes well, part of the revenue will be included. 8. The gross profit margin in 2012 is 60%-70%: The company was transformed in 2013. Prior to that, the information system business mainly focused on single-line access road networks, operation and maintenance, and mainly provided software, so it had a high gross profit. After the transformation, the company moved to large integrated projects, including cable networks, road networks, hardware, etc., so the gross margin after that was not as high as before the transformation. 9. Summary and suggestions: In the first half of the year, due to the late restart of Beijing subway tenders and the failure of majority shareholders' subscriptions, the company's problems worsened. At present, tendering work has begun one after another, and it is expected that the company's performance will only improve in the second half of the year. Appropriate attention is recommended.