Guide to this report: In 2017, H1 strengthened the interactivity and marketing of core products, the export of asset-light projects drove revenue growth, and the cost-side effective control profitability improved; the pace of offsite replication of the Zhenjiang project construction progressed steadily at a steady pace. Key investment points: The company's 2017 H1 performance was in line with the forecast and increased its holdings. ① The company strengthened product innovation and marketing promotion, and asset-light export projects led to revenue growth; ② the cost-side effectively controlled gross margin and net margin increased; ③ determined to speed up the construction of the Zhenjiang Project, promote the “Big Beluga Plan” to build a full cultural industry chain, maintain EPS of 0.65/0.76 yuan in 2017/18, and maintain a target price of 47.60 yuan. Performance summary: The company's 2017 H1 revenue was 130 million yuan/ 15.2%, net profit due to mother was 61.09 million yuan/ +147.05%, and non-net profit deducted from mother was 61.84 million yuan/ +32.39%. The corresponding EPS was 0.07 yuan, which is in line with previous performance forecasts. The company has strengthened the interactivity and marketing of core products. In addition, the export of asset-light projects drives revenue growth, and the ability to effectively control profitability on the cost side has improved. ① In the first half of the year, the company continued to build “marine culture” as the core product and increase marketing and promotion efforts. In addition, the company's technology exported the Huai'an Longgong Beluga Water World project to achieve a year-on-year increase in service revenue. Among them, the Harbin subsidiary achieved revenue of 32.71 million yuan (accounting for 25% of revenue) and operating profit of 6.01 million yuan; ② The company strengthened cost-side control and improved profitability, and gross sales margin/net margin increased 4.62 pct/1.91pct to 50.35%/2.64% respectively; ③ management/sales expenses increased 4.17/ 1.65pct was due to an increase in consolidated subsidiaries compared to the previous period and an increase in loan size. The construction of the Zhenjiang project is set to increase, the interests of core executives are bound, and the pace of offsite replication is progressing steadily. ① The company plans to raise 790 million yuan in capital for the Zhenjiang project to promote offsite replication; core executives will hold shares after the issuance, and the interests are fully tied; ② The Zhenjiang project is scheduled to begin construction in early 2016 and be completed and put into use at the end of 2017. After delivery, the project is expected to generate annual revenue of 430 million yuan and net profit of 160 million yuan (the company enjoys 70% revenue), which is expected to increase the company's performance. ③ The company actively reserves high-quality project resources in Hangzhou, Ningbo, Shenzhen, Xiamen, Sanya and other cities through management and technology export models, and promotes the “Big Beluga Plan” to build a full cultural industry chain.