1. The incident company issued a semi-annual report, achieving operating income of 97.37 million yuan, a year-on-year decrease of 31%; net profit of 6.57 million yuan, a year-on-year decrease of 61%; net profit of 6.57 million yuan, a year-on-year decrease of 44%; and EPS of 0.03 yuan. 2. Our analysis and judgment (1) The main business of large-screen splicing screen display systems, and the traditional main business of intelligent robot companies, has declined, and has vigorously entered the intelligent robot industry, forming an industrial model that places equal emphasis on large-screen splicing screen display systems and intelligent robots. The future may be dominated by the intelligent robot industry. Affected by delays in implementation of some large screen splicing orders and the divestment of subsidiaries, 2015 H1 sales revenue and net profit both declined year-on-year. The company's orders in the first half of the year were still sufficient, and it is expected that the company's traditional main business will maintain steady development. The company previously budgeted operating income of 306.46 million yuan for 2015, an increase of 16% over the previous year, and net profit of 31.53 million yuan, an increase of 61% over the previous year. (2) The proposed name change reflects the “main business characteristics of intelligent robots” The company issued an announcement on July 28, 2015 to change the name of the company to “GQY**” to better reflect the company's overall strategic transformation and the layout of the intelligent robot industry in the future. Since announcing the three-year transformation plan in early 2014, the company has continued to increase the layout of the intelligent robot business: ① It has established a wholly-owned new era robotics subsidiary. ② The technical team introduced the first “vehicle self-balancing rescue platform” testing machine. ③ Set up the GQY Investment and Financing Center and set up an investment subsidiary Tianzhu Investment to pay close attention to the targets of epitaxial expansion. ④ Cooperate with New Century Robotics to distribute mobile police platform products, etc. Currently, the company has more than 600 million yuan in cash on its books. We believe that the company will not rule out the possibility of increasing the intelligent robot business through external mergers and acquisitions in the future. (3) The company has sufficient reserves of intelligent robot technology and accelerated implementation of new products. Currently, the company has sufficient technical reserves. Through strong alliances with overseas teams, institutions of higher learning, and research institutes, it has robots in: ① intelligent robot driving mechanisms; ② low voltage servo drives; ③ inertial sensor technology; ④ motion planning and control of multi-axis robots; ⑤ robot navigation and positioning; ⑥ based on IoT cloud robot platforms and other core technologies in the robot industry. Prototypes of special robot products, mainly vehicle self-balancing rescue platforms, are expected to be launched in the second half of the year. On August 15, 2014, the company invested in the establishment of Shanghai New Era Robotics Co., Ltd., a wholly-owned subsidiary of special robots, focusing on R&D, production and sales of vehicle self-balancing rescue platforms. Its main robot project is “Development of the first prototype of a vehicle self-balancing rescue platform”. This product uses a new parallel robot technology platform, sensing technology, human-computer interaction technology, and other key technologies to serve robots. It can actively counteract the effects of inertial motion such as road bumps, vehicle body shaking, and vehicle acceleration and deceleration, and ensure that medical personnel can provide simple care for critically ill patients on ambulances and avoid secondary damage during transportation. A prototype of this product will be launched in the second half of 2015. In terms of the service robot industry, the company's main robot project is still “development of the first prototype of a vehicle self-balancing rescue platform”. After full cooperation with Professor Gao Feng's team from the School of Mechanical and Power Engineering of Shanghai Jiao Tong University, the company focused on the core technology of special robots, including parallel robot design, mobile platforms, sensing systems and control systems, on the basis of existing core technologies for self-balancing robots (including parallel robot mechanisms, inertial sensors, servo control, and self-balancing control), and developed a comprehensive range of special robot products and Research and development of technology. (4) Innovate the sales model. The robot business is expected to contribute more performance in the second half of the year. In terms of sales agents for mobile police platform series products, in 2014, GQY Video signed a business cooperation agreement with the related party, New Century Robotics, to gradually launch agency sales activities for mobile policing platform products. In the first half of 2015, the company's mobile policing platform series achieved revenue of 3.88 million yuan and gross margin of 51%. In July 2015, the company signed a “procurement contract” with Zhejiang Commerce Financial Leasing Co., Ltd., and Zhejiang Commerce purchased a total of 1,000 “anti-terrorist robot” intelligent single-alarm and mobile police platform products from the company due to its main business needs, with a total contract value of 65 million yuan. It is expected to contribute to the company's performance in the second half of 2015. (5) Shareholder Yao International, holding 5% or more of the shares: Promising that the stock price will not be reduced by less than 50 yuan in the next 6-12 months, the company received a “Letter on the increase in holdings and commitment not to reduce the company's stock holdings” from Mr. Yao International, a shareholder holding 5% or more of the company's shares on July 16, 2015. Based on full confidence in the development strategy of the company's transformation into an internationally leading intelligent robot company, Yao International continued to increase its holdings by 2.57 million shares from June 29, June 30, July 1, and July 15, 2015, and it is not ruled out that it will continue to increase its holdings in the future according to market conditions. Yao International promised that from July 16, 2015, it will not reduce its holdings of the company within the next 6 months; in the next 6-12 months, if the company's stock price does not reach 50 yuan, it will not reduce its holdings of the company's shares; in the next 12-24 months, if the company's stock price does not reach 80 yuan, it will not reduce its holdings in the company's shares. As of July 15, 2015, Mr. Yao International held 2.57 million shares of the company through his general securities account, accounting for 1.21% of the company's total share capital; held 10618888 shares of the company through the China Galaxy Securities Co., Ltd. customer credit trading guarantee securities account, accounting for 5.01% of the company's total share capital; and held a total of 131,888 shares of the company, accounting for 6.22% of the company's total share capital, and is a shareholder holding 5% or more of the company's shares. According to the company announcement, because Yao International is optimistic about the future development prospects of the company and the growth space of the intelligent robot industry, from April 7, 2015 to May 21, 2015, through the China Galaxy Securities Co., Ltd. customer credit trading guarantee securities account, increased its holdings by 106,18888 shares through centralized transactions, accounting for 5.01% of the total shares. The details are as follows: From April 7 to April 30, 2015, 748,8800 shares were purchased. The price range for the increase was 17.99 yuan to 21.06 yuan. 3130088 shares were purchased from May 4 to May 21, 2015, and the price range for increased holdings was 18.01 to 26.16 yuan. We are concerned that Zhongyuan Xiehe Cell Genetic Engineering Co., Ltd. (600645) became GQY Video's fourth largest tradable shareholder in GQY Video's 2015 interim report, holding 2.08 million shares, accounting for 0.98% of the total share capital. At the same time, we are concerned that the listed company Zhongyuan Xiehe (600645) received a voluntary donation of RMB 1 million from Mr. Yao International to the company on May 5, 2015, specifically for the company's R&D expenses in the field of next-generation CAR-T immune cell therapy technology. According to the 2014 annual report of Zhongyuan Xiehe (600645), at the end of 2014, Yao International held 5.07 million shares of Zhongyuan Xiehe, accounting for 1.44% of the shares. It is the fourth largest tradable shareholder of Zhongyuan Xiehe, and the only individual investor among the top ten tradable shareholders, holding a market value of about 200 million yuan. (6) China will become the largest market for robots. The prospects for the service robot market are promising that China will become the largest market for robots, and the prospects for the service robot market are promising. The national “12th Five-Year Plan for the Development of Service Robotics Technology” states: Cultivate the service robot industry into a strategic emerging industry in China's future. The project will focus on deploying “one goal, three breakthroughs, and four major tasks.” The four major tasks refer to focusing on the development of public safety robots, medical rehabilitation robots, bionic robot platforms, and modular core components. The global service robot industry is divided into professional service robots (special robots) and personal and household service robots. According to IFR statistics, professional service robots sold a total of 21,000 units in 2013, a 4% increase over 2012, with total sales of $3.57 billion. Over the next three years, it is predicted that the cumulative sales volume will be about 134,500 units, with sales volume of 18.9 billion US dollars. Personal and home service robots sold approximately 4 million in 2013, up 28% from 2012. Sales increased to $1.7 billion. Over the next three years, cumulative sales of about 31.4 million units are predicted, with sales volume of 11 billion US dollars. Future service robots in the fields of military, agriculture, logistics, medical care, mobile platforms, rescue and security, tour guides, and professional cleaning are the main types of demand in the future market. 3. Investment advice The company strives to build a leading intelligent robot enterprise with an annual output of 10 billion dollars, focusing on special robots, service robots, and medical robots. The company has a market value of 5.2 billion yuan and has 600 million yuan in cash. It is expected that in the future, the company will increase the intelligent robot business through endogenous and epitaxial methods. We are optimistic about the development prospects of the intelligent robot industry. We will keep a close eye on it and not rate it yet.