Adequate orders for key investment points help improve performance. Tianbao Group's performance for the first half of 2017: revenue increased 20.5% year over year to HK$1.376 billion; gross profit increased 21.4% year over year to HK$0.269 billion; gross margin increased 0.1 percentage point year over year to 19.5% year on year; net profit increased 22.2% year over year to HK$0.093 billion, with earnings per share of 9 HK cents (HK8 HK cents in the same period last year). The Board of Directors recommended an interim dividend of HK$2.5 (HK2 cents in the same period last year). The improvement in business performance in the current period was mainly due to the continued expansion of the scale of product sales. Orders from old customers are growing steadily, and demand for orders from new customers is strong. In the first half of 2017, benefiting from the overall increase in orders from new and old customers, the company's media and entertainment equipment and home appliances business division received strong growth of 65.08% and 106.42%; the company actively developed charging power supply technology for wireless power tools, driving a sharp increase in orders from old customers while expanding the company's new customer resources. New products take the lead and introduce new technology. The flexible intelligent automated production line and workshop developed by the company in cooperation with the Hong Kong Productivity Council is expected to complete the installation and upgrade of some production lines in the fourth quarter of this year. At that time, the company's production efficiency will be greatly improved, able to quickly respond to changes in market demand, and maintain a leading position on the supply side of the market. Our view: Tianbao Group is a leading one-stop smart power solution supplier in China. The penetration rate of the company's products into existing customer product portfolios continues to increase, and product orders continue to increase. We believe there are several highlights of the company's future development: 1. Wireless charging technology must be one of the hot spots in the future market, and the company can apply previous wireless power tool technology to other fields. 2. The product is expected to expand into the industrial chain of domestic home appliance giants, and we expect the customer to be Midea Group. 3. Intelligent and automated production lines bring continuous improvement in production efficiency. 4. The advance overseas production capacity layout has laid the foundation for performance growth. We believe that the company is in a leading position in the power supply manufacturing industry. It is initially predicted that the current stock price corresponds to the company's 2017 performance PE about 10 times, and investors are advised to pay active attention. Risk warning: Product orders have declined; industry competition is fierce, and gross margin has declined.