The performance was in line with expectations. The company achieved revenue of 1,225 million yuan in the first half of 2017, a year-on-year decrease of 23.02%; net profit was 169 million yuan, an increase of 369% over the previous year. The reason for the sharp increase in performance was that the company achieved an investment income of nearly 190 million in the first half of the year, mainly due to the sale of 12.44 million shares of Zhonghe Technology shares. In a period of transformation under the auspices, Huatong Cloud's completion of asset transfers will help the company consolidate its business. The company completed the asset transfer of Huatong Cloud Data on August 18, 2017, and Huatong Cloud Data became a wholly-owned subsidiary of the company. Huatong Cloud promised not less than 158 million yuan, 197.5 million yuan, and 246.875 million yuan in 2017, 2018, and 2019 respectively. After the acquisition of Huatong Cloud is completed, the restructuring of the company's business will come to an end, and the performance will be further consolidated. It should be emphasized that in addition to the IDC business, Huatong Cloud has strong technical strength in the field of cloud computing services. It is a provider of cloud services exclusive to the Zhejiang Provincial Government, Hangzhou Municipal Government, and Lishui Municipal Government. At the same time, it has also developed cloud application service platforms such as “secure cloud, database cloud, enterprise cloud, media cloud, and insurance service cloud” for enterprises. A major breakthrough has been made in the social security innovation business. The company's mobile medical insurance payment app, Medical Express Pay, continues to explore the market. It has been launched at Zhejiang Tongde Hospital and Zhejiang Hospital and officially launched services. In addition, the company has successively established strategic partnerships with Ant Financial and Ping An Healthcare, which highlights the strategic value of the social security information technology business and is also conducive to the accelerated implementation of innovative businesses. Investment proposal: After the acquisition of Huatong Cloud is completed, the company's business restructuring will come to an end, and its performance will be further consolidated, eliminating the worries of transformation and laying a good foundation for subsequent development of artificial intelligence. The company's 2017 and 2018 exam preparation EPS is expected to be 0.50 yuan, maintaining a buy-A rating, and the target price for 6 months is 17 yuan. Risk warning: AI transformation is falling short of expectations.