The main results are as follows: 1. Revenue and return net profit show double growth. In the first half of 2017, the company realized operating income of 3.823 billion yuan, an increase of 10.33 percent over the same period last year; the total profit realized was 55 million yuan, an increase of 1.88 percent over the same period last year; and the net profit belonging to shareholders of listed companies was 41 million yuan, an increase of 53.43 percent over the same period last year. The company's operating income and total profits increased slightly, IT sales expansion expanded the cooperation of online platforms such as JD.com and SUNING outside the solid offline distribution channels, and the net profit belonging to the shareholders of the listed company increased significantly over the same period last year, mainly because the company's shareholding in Jiangsu Gaohong Dingheng Information Technology Co., Ltd. changed from 58.23% to 100% since the end of November 2016.

2. The main business is more concentrated, and the business income is growing steadily. According to the product classification, the 3G-IT sales chain business accounted for 74% of the company's total business. In the first half of 2017, the operating income was 2.808 billion yuan, an increase of 13% over the same period last year. The company is actively expanding online and offline sales channels, market share continues to expand. The business's gross profit margin was 2.9 in the first half of 2017, up 17.4% from 2.47 last year.

3. Actively expand the trusted computing market. In the field of trusted computing, by 2016, the company has applied for 19 invention patents, and currently leads and participates in the formulation of 5 standards focusing on expanding trusted servers and trusted cloud model customers in various industries at this stage, the target customers are related to the government, telecommunications, medical, Internet, power and other industries, and preliminary achievements have been made. It is expected that the trusted computing market will continue to expand in the future.

4. Profit forecast

The profit forecast EPS of the company from 2017 to 2019 is 0.15,0.17,0.21 yuan respectively, and the corresponding PE is about 69.19,62.91,49.37 times respectively.

5. Risk tips:

The expenditure on information equipment in the whole society is not as expected; the development of overseas business is blocked, and the development of trusted computing business is not as expected.