Event: The company released the 2017 interim report. In the first half of 2017, the company achieved operating income of 1,087 billion yuan, a year-on-year increase of 49.77%, net profit attributable to shareholders of listed companies of 32 million yuan, a year-on-year decrease of 27.13%, and a basic earnings per share of 0.04 yuan/share, a year-on-year decrease of comments: The screw compressor business brought stable performance growth to the company. In the first half of 2017, the company achieved operating income of 1,087 million yuan, a year-on-year increase of 49.77%, and realized net profit attributable to shareholders of listed companies of 32 million yuan, a year-on-year decrease of 27.13%. During the reporting period, although the company's traditional business compressor sales revenue increased significantly compared to the same period last year, net profit attributable to shareholders of listed companies fell 27.13% compared to the previous year. The main reason was that the company invested heavily in overseas geothermal development and had not yet contributed revenue. The technical level and energy efficiency level of the company's screw compressor products have always been in a leading position in the industry. With technical advantages, scale advantages, brand advantages, channel advantages, and cost advantages obtained based on the complete industrial chain, the domestic market share has always been at the forefront, and it has the ability to participate in international competition and gradually increase its sales share in the international market. In the first half of the year, the company's screw machine business achieved revenue of 886 million yuan, an increase of 59.62% over the previous year, and gross margin of 26.78%, an increase of 3.85 percentage points over the previous year. The revenue of the screw machine business accounted for 84.33% of the total revenue, bringing steady growth in the company's performance. Actively expanding the global geothermal power plant market, the new business is expected to help the company's performance take off in the future. The company's screw expansion power generation technology and complete equipment have core independent intellectual property rights and a world-leading technical level. Combined with the company's transformation strategy to a world-leading multinational corporation operating renewable energy, the company has vigorously recruited senior professionals in the field of geothermal power generation from around the world and formed Singapore KSORKARENEWABLESPTE.LTD. The US OpenMountainEnergy, LLC geothermal development platform, and global geothermal development and operation team combine the company's technical team's world-leading geothermal power generation technology with the geothermal development team's world-class geothermal exploration engineering capabilities and application capabilities, providing a favorable guarantee for the company to develop the global geothermal market and implement transformation strategies. During the reporting period, the company adhered to the innovation drive, closely focused on the goal of strategic transformation to a globally influential renewable energy operator and geothermal power generation complete equipment provider, increased R&D investment and team building efforts, and launched a new “one well, one station” geothermal power generation technology path with screw expansion power plants as the core equipment of distributed power plants, which was recognized by overseas geothermal power generation markets. In the first half of 2017, the company acquired HomeRetchGeothermal2010, LLC, the right to develop a geothermal power plant near Wabuska, Nevada, USA. This acquisition is of great significance to the company's entry into the US geothermal market company, the development of the South American geothermal market, and the smooth transformation into a renewable energy equipment manufacturing and operation company. At present, the company has obtained the 240MW Sorikmarapi geothermal project in Indonesia and the 30MW Sokoria geothermal project, and the 30MW (initial 2.7MW) geothermal power generation project of the Budapest Geothermal Company in Hungary. At the same time, the company will continue to develop geothermal projects in Indonesia, the United States, Kenya, Turkey and other places. The company hopes to have the right to develop more than 1,000 MW of geothermal resources within the next 3 to 5 years. We expect that the company's geothermal power plant business will soon enter the implementation period, which is expected to help the company's performance take off in the future. The company adheres to the drive of innovation, and R & D investment is increasing year by year. The company adheres to the drive of innovation and increases R&D investment. The company's R&D expenses during the reporting period were 25.6 million yuan, an increase of 26.58% over the previous year, and the company's R&D investment maintained a trend of increasing year by year. The company attaches great importance to the management and protection of intellectual property rights, and has 111 patents as of June 2017. Profit forecast and rating: We expect the company's operating income for 2017-2019 to be 2.159 billion yuan, 3.449 billion yuan, and 5.597 billion yuan, respectively, an increase of 25.00%, 62.27% over the previous year, and net profit of 181 million yuan, 344 million yuan and 603 million yuan respectively, an increase of 82.18%, 89.66%, and 75.47% over the previous year. According to the company's current share capital, the 2017-2019 EPS is expected to be 0.21 yuan, 0.40 yuan, and 0.70 yuan respectively. The price-earnings ratio corresponding to the closing price on September 5 is 92 and 28 times, respectively, maintaining the “buy” rating. Stock price catalysts: Indonesian project implementation; geothermal industry development exceeds expectations; “Belt and Road” policy alignment. Risk factors: 1. Investment implementation of overseas geothermal projects falls short of expectations; 2. Risk of loss of core technical personnel; 3. Increased financial costs