Yilida released its semi-annual report, with operating income of 606 million yuan, up 40.8% year on year, realized net profit of 64.52 million yuan, up 6.4% year on year (mainly due to more non-recurring profit and loss last year), deducted non-net profit of 62.81 million yuan, up 33% year on year, and released a performance forecast for January-September. Net profit is expected to be 131-169 million yuan, up 40-80% year on year. At the same time, the company announced that it plans to transfer 51% of Qingdao Ocean's shares. The gross margin of air conditioning fans was reduced to 30%, and the net operating cash flow was reduced. Due to rising upstream steel costs and failure to raise prices for major downstream customers such as York and Turlingville in a short period of time, the gross margin of Yilida's air conditioning fan business declined sharply in the first half of 2017, down about 5 percentage points from the same period last year to about 30%, the lowest in recent years. The company is currently actively communicating with downstream customers on price increases. If the price increase is successful, gross margin is expected to be repaired. At the same time, due to a large increase in accounts receivable after April, from 300 million yuan in the same period last year to 487 million yuan, net cash flow from operating activities also declined sharply, from 78.76 million yuan in the same period last year to -15.85 million yuan. Tiecheng Information's net profit for the first half of the year was 21.93 million yuan, and the performance in the second half of the year will increase dramatically. In the first half of the year, Tiecheng Information achieved operating income of 82.33 million yuan and net profit of 21.93 million yuan. Starting in February, Tiecheng's overall sales of new energy vehicles were relatively weak in the first half of this year, which also affected sales of Tiecheng information chargers. It is expected that orders for new energy will improve significantly in the second half of the year. Tiecheng's performance in the second half of the year will be significantly better than in the first half of the year. We expect Tiecheng's net profit for the whole year to reach 90 million yuan. Transferred 51% of Qingdao Ocean's shares. The company announced that it plans to transfer 51% of its shares in Qingdao Ocean New Materials to Nanjing Chongyue at a provisional price of 128 million yuan. Qingdao Marine's main products are noise-reducing materials such as polyimides. The technical content of the products is high, but revenue has not increased significantly due to restrictions in application areas. Moreover, there is a big difference between Qingdao Ocean's military products sector and the company's current main strategic direction, fans and new energy, so the company decided to transfer the shares it holds in Qingdao Ocean. Performance forecasts and investment recommendations. We expect Yilida to have annual revenue of 1.5 billion yuan and net profit of 200 million yuan, including 90 million yuan for Tiecheng and 110 million yuan for traditional fans and building ventilators in the headquarters. On the basis of doing a good job in its existing business, Yilida will expand epitaxial in the two directions of fans and new energy. In 2017, PE was 28 times higher, giving it a “prudent recommendation” investment rating. Risk warning: Steel prices continue to rise, and the growth rate of new energy charger sales is lower than expected.