On August 13, Longji Machinery released its 2015 semi-annual report: the company achieved operating income of 715,474,841.39 yuan in the first half of the year, an increase of 17.04% over the previous year, and realized net profit attributable to shareholders of listed companies of 37,259,682.94 yuan, an increase of 20.98% over the previous year, and EPS of 0.12 yuan, an increase of 20% over the previous year. The company's performance slightly exceeded expectations: the increase in operating income mainly came from the brake disc business, which achieved business revenue of 532 million in the first half of the year, an increase of 49.1% over the previous year. The brake disc business is currently the company's largest business, accounting for 74% of total revenue. It mainly supplies foreign AM and domestic independent brand OEM markets. The relatively rapid growth of China's own-brand passenger cars in 2015 provided some support for the company's brake disc business growth. The company's truck brake hub business achieved revenue of 89 million yuan, a year-on-year decrease of 40.93%, mainly due to the decline in domestic commercial vehicle sales. However, through measures such as improving the product structure and increasing the export ratio, the gross margin of the truck brake hub business increased significantly, from 12.63% in 2014 to 17.0%. The product structure is continuously optimized, and there is still room for improvement in profitability: 1) The 3.5-ton high-performance brake disc project was officially put into operation on March 31, 2015, and achieved benefits of 115 million yuan during the reporting period. The project products were mainly supplied to high-end markets, and volume continued in the later stages, raising the company's overall gross profit level. 2) The 800,000-piece caliper project was also officially put into operation on June 30, 2015. The products are mainly supplied to the European and American markets. The caliper product structure is complicated, and the gross margin is higher than that of the company's existing products. As later products are released and fixed costs are further spread evenly, the gross margin will increase markedly. 3) The joint venture with Germany's SHW is progressing smoothly, which is expected to boost the company's entry into high-end markets such as foreign OEM and domestic joint venture brand OEM, and enhance the company's product premium capability. By increasing its holdings of Auto Easy, the company is expected to be the first to benefit from the aftermarket: during the reporting period, the company once again increased its holdings of Car Easy. Currently, it holds 37.008% of the shares, further strengthening the relationship between Longji Machinery and Car Easy. Che Easy's business model is in line with the characteristics of the automotive aftermarket industry, and it continues to focus on the small B-side. In the O2O model of the automotive aftermarket, we are more optimistic about Che Easy's business model. We judge that the company will intervene in the aftermarket through the B2b Easy Fit System in Cheyi Safety to provide brake component products for Xiaob. Che Yi An is currently progressing smoothly, and the company is expected to take the lead in benefiting from China's vast automotive aftermarket. Risk warning: Automobile sales have declined further, the development of Auto Easy has fallen short of expectations, and the progress of cooperation between the company and foreign companies has fallen short of expectations.