Net profit increased by 106% over the same period last year, and the performance was in line with expectations.

2017H1 achieved revenue of 484 million, + 50.08% year-on-year, and net profit belonging to shareholders of listed companies was 208 million, up 106.07% from the same period last year.

Profitability has improved significantly, and operating cash flow has improved significantly

2017H1's operating income mainly comes from Jinchuan II, Guangxi Jinglong, Shandong Nikel, Indonesia Dahe and other projects. Compared with the same period last year, Jinchuan II, Guangxi Jinglong and Shandong Nikel projects contributed to the performance.

At present, the Indonesian project is in the stage of design and equipment supply; the Shandong Nickel project is changed from the Jiangsu Nicole project and is currently in the design stage; the design phase of the Guangxi Jingyulong project has been completed and is currently in the equipment procurement stage; Jinchuan Phase II project is also in steady progress. Revenue from general contracting and engineering consulting and design business declined compared with the same period last year, mainly because the project entered the equipment procurement stage one after another, and the income from the equipment sales sector accounted for a significant increase in the total revenue.

2017H1 accounts receivable 384 million, year-on-year-38.56%, mainly due to Q1 recovery of 493 million accounts receivable from Dahe project. Short-term loans of 285 million, + 128% compared with the same period last year, mainly due to the company's increase in short-term bank loans in order to ensure the capital reserves of the upcoming EPC project and proprietary projects. The net interest rate was 42.98%, year-on-year + 11.92pct, mainly due to the increase in the proportion of equipment sales business with a higher net profit level in revenue. The rate of management expenses is 10.74%, which is-1.37pct compared with the same period last year. The company has achieved obvious results in strengthening cost control. The sharp decline in the rate of financial expenses is mainly due to the increase in US dollars receivable by the company due to the export of Indonesia's Great River project in the second half of 2016 and a sharp increase in US dollar exchange earnings in the first half of this year. The amount of operating cash flow was 340 million, which was + 2770.28% compared with the same period last year, mainly due to the collection of accounts receivable from the Indonesian River Project.

Increase your holdings twice in half a year to show confidence

In February this year, the company's substantive controllers and senior executives increased their holdings by 4.13 million shares, with an average price of 32.13 yuan per share and an increase of 133 million yuan. In June this year, the company's senior executives increased their holdings again, with a total increase of 297 million shares, with a total increase of 7.92 million shares, with an average price of 37.488 yuan per share. The company's senior executives increased their holdings twice in half a year, demonstrating the management's firm confidence in the development of the company. The senior management of the company twice increased the holdings of 12.05 million shares, with a total amount of 430 million, with an average price of 35.68 yuan per share.

Profit forecast and investment rating:

It is estimated that the company's net profit for 17-19 years is 1.558 million yuan, corresponding to PE 27X/17X/11X, respectively. The company had previously been questioned by the market, the stock price adjustment is larger. At present, the misgivings of the market have not been completely resolved, and there are great differences. The company is currently suspending trading and actively planning asset restructuring and other issues to restore market confidence. After the company resumes trading and the stock price stabilizes, the long-term logic still holds, pay attention to the short-term risk.