Revenue continued to increase slightly in the first half of the year, and net profit was in line with expectations 1) In the first half of the year, the company achieved operating income of 406 million yuan and operating costs of 307 million yuan, up 10.6% and 10%, respectively; realized net profit of 36 million yuan, a year-on-year decrease of 72.6%, corresponding to a comprehensive dilution of EPS of 0.06 yuan, in line with market and our expectations; of these, Q2 achieved operating income of 221 million yuan, a year-on-year increase of 35.1%, net profit of 19 million yuan, a year-on-year decline of 82.7%. The year-on-year decline in net profit was due to the sale of shares in subsidiaries in the same period in 2016 to obtain investment income. There were no similar events during the reporting period. 2) The company expects net profit of 40 million yuan to 70 million yuan in the first three quarters, a year-on-year increase of -71.52% to -50.16%. The growth rate of non-net profit from January to September 2017 is expected to be 30% -100%. The expense ratio remained stable, and cost control was good. In the first half of the year, the company's sales expenses and management expenses were 145.777 million yuan and 3.16,056 million yuan respectively, up 9.53% and -18.85% from the previous year. The sales expense ratio and management expense ratio were 3.6% and 7.8% respectively. Compared with 3.6% and 10.6% in the same period in 2016, they were flat and decreased by 2.8 percentage points, respectively. Focusing on the SaaS business, internal and external purchasing strengthens sector competitiveness 1) Acquired three digital marketing companies in 2015, followed by Advertising, Whimsical Advertising, and Shanghai Lixuan; invested six times in May 2016 and completed a performance gamble in 2016; 2) In July 2017, the company invested in Beijing Weilianda. Its main business was to provide full life cycle services for customers, including marketing, sales and consulting services, around SaaS products, and was the main value-added distributor in China; 3) On August 9, 2017, the company appointed Mr. Gao Liqiang As the company's president, Mr. Gao Liqiang has served as global vice president of Oracle (China) Software Systems Co., Ltd. and general technical manager in China. He has a deep understanding of the marketing methods, technological development, and industry trends of enterprise-grade SaaS products, and the SaaS business layout continues to unfold. Risks suggest that the SaaS layout is not progressing smoothly, the acquisition target falls short of expectations, integration risks, and the slowdown in industry growth. Investment recommendations We expect the company's fully diluted EPS in 17/18/19 to be 0.19/0.26/0.29, respectively. The current stock price corresponds to 44.4/33.5/29.1 times PE for the same period; we continue to be optimistic about the company's potential for SaaS business development and continue to maintain an “increased holding” rating.