Overview of the incident: The company signed a new project contract of 3.6552 million yuan in the second quarter of 2013. The company issued an announcement on June 28. In the second quarter of 2013, more than 6 major project contracts were signed, with a cumulative contract amount of 3.6552 million yuan, won the bid but not signed 4 contracts, with a cumulative amount of 94.8172 million yuan, and a total project amount of 126 million yuan. At the same time, according to the construction schedule requirements of the signed contract, most of the projects will be completed by the end of 2013, and the implementation of the above projects will have a positive impact on this year's business performance. Incident analysis: The amount of newly signed contracts declined markedly in the second quarter, making it difficult to maintain growth in performance in the second half of the year. The total amount of contracts signed and unsigned contracts signed by the company in the second quarter of 2013 was 126 million yuan, a sharp decrease compared with the same period last year (the company signed a new contract of 254 million yuan in the second quarter of 2012, and the winning bid of 107 million yuan was not signed, for a total of 361 million yuan). Therefore, taking into account the revenue situation in the first quarter of 2013, the company's operating income is expected to continue to grow in the first half of the year, but the number of new contracts signed in the second quarter declined markedly, making it difficult for performance in the second half of the year to continue to grow. It is recognized as a high-tech enterprise and enjoys preferential tax policies. In the first quarter of 2013, the company received a high-tech enterprise certificate jointly issued by the Shenzhen Science and Technology Innovation Commission, the Shenzhen Finance Committee, the Shenzhen Municipal State Taxation Bureau, and the Shenzhen Local Taxation Bureau, and successfully passed the review. The company was once again recognized as a high-tech enterprise. From 2012 to 2014, it will continue to enjoy the relevant preferential tax policies of the state for high-tech enterprises and pay corporate income tax at a rate of 15%. Profit forecasting and investment advice: Maintain the company's “overweight” investment rating. Relying on its accumulated technological advantages in intelligent systems for urban buildings, the company has continuously won bids for new projects. In the context of a new type of urbanization, the market space for intelligent construction and intelligent transportation is huge, providing strong conditions for the stable development of the company's business in the next few years. The company's 2013-2014 EPS is expected to be 0.19 yuan and 0.20 yuan, corresponding to the current stock price of 7.22 yuan, corresponding to 38 times and 36 times PE value, respectively. We maintain the company's “increased holdings” investment rating. Risk warning: Some of the winning projects did not sign a contract with the owner, so there are uncertainties; there is an operational risk that the contract did not proceed smoothly