1. The interim report performance is in line with expectations, and product upgrades+marketing forces drive endogenous growth. In the first half of the year, the company's operating income increased 15%, attributable net profit increased 147%, and net profit attributable after deduction increased 32%. Among them, the parent company's operating income increased by 25% and operating profit increased by 30%; the operating income of the Harbin subsidiary decreased by 5%, and operating profit decreased by 24%. The positive overall performance was mainly due to the increase in passenger flow driven by the dual wheels of product and marketing. On the product side, the company continues to explore its technical advantages, improve the interactivity and performance effects of core performance products, and the appeal of the venue has been enhanced; on the marketing side, the company takes “marine culture” as the core, promotes special theme events for 7 major festivals; launches special promotions for key customer groups; actively hosts welfare activities; launches the 3rd marine culture season, and works with upstream and downstream agencies to organize cross-border marketing in the three eastern provinces. Intensive marketing promotion has had a positive impact on brand building and passenger flow growth. 2. The Huai'an project contributes service revenue, and off-site expansion is worth looking forward to. Compared with the same period last year, the management output of the Huai'an project increased service revenue, and the positive effects of offsite projects on the company's performance are beginning to show. The company's performance has been under pressure in recent years mainly due to geographical factors. Offsite heavy asset projects have been put into operation one after another, which is expected to open up room for growth. It is expected that the Zhenjiang and Sanya projects will open in the summer of '18, the Yingkou project will be put into operation in the second half of '18, and the Qiandao Lake and Kunming projects will be completed in '19. The Zhenjiang Project Company holds 70% of the shares. The capital required after the fixed increase is terminated will be settled through the fund. After reaching delivery, the estimated annual revenue is 434 million yuan, and the annual net profit is 162 million yuan. Sanya Project Company holds 70% of the shares, reaching estimated annual revenue of 93 million yuan and annual net profit of 10 million yuan after delivery. Yingkou Project Company holds 70% of the shares, reaching estimated annual revenue of 184 million yuan and annual net profit of 16 million yuan after delivery. At the same time, it can also carry out the functions of animal breeding and attracting off-season visitors. 3. Profitability has increased markedly, and loan scale has been expanded to increase financial expenses. In the first half of the year, the company's gross margin reached 50.35%, up 4.62 pct year on year; net profit margin reached 2.64%, up 1.91pct year on year. In terms of period expenses, the sales expense ratio was 9.11%, down 3.4 pct year on year; the management expense ratio was 26.60%, up 4.17 pct year on year, mainly due to an increase in the number of subsidiaries covered by the merger; and the financial expense ratio was 5.49%, up 1.65 pct year on year, mainly due to an increase in loan size. 4. Investment suggestions: The domestic marine theme park market space is vast, the company's performance in the first half of the year improved, and several offsite projects are about to be put into operation. Relying on technical advantages and management experience, it is expected to increase the company's performance and bring new profit advantages to the company. We expect EPS in 17-19 to be 0.55/0.77/0.89 yuan, corresponding to PE valuation of 46x/33x/28x. The current market value is only 2,315 billion yuan, giving it a “prudent recommendation” investment rating. 5. Risk factors: Project opening falls short of expectations; systemic risk in the tourism industry.