Report guide The company released the 2017 semi-annual report. The lightweight steel ring business is growing steadily, and post-market IoT projects continue to advance: Nisshang Group released the 2017 mid-year report. In the first half of the year, the company achieved operating income of 874 million yuan, up 38.96% year on year; realized net profit attributable to shareholders of listed companies of 32.5642 million yuan, up 40.19% year on year. The company received dividends from the “Belt and Road” policy, and overseas business revenue increased steadily. The lightweight steel ring business grew well. Incident review Under favorable conditions such as the steady increase in overseas operating income, the middle and high-end steel structure business continues to grow with the support of policies such as the three links between the two sides of the Strait, the Belt and Road, etc., the continuous increase in the construction scale and investment level of the West Bank Economic Zone dominated by Fujian Province, and the improvement of the external economic environment. Under favorable conditions, the company has further consolidated and expanded good cooperative relationships with international contractors such as Fukuroku in the US, France's Deshinib, Japan's JGC, Japan's Chiyoda, Italy's Technemont, Taiwan's Zhongding, Sinopec SEG, and CNPC Global, etc., and undertook good cooperative relationships with international contractors such as Taiwan's Zhongding, Sinopec SEG, and CNPC Global. Structural project contracts include: Zhongding/ Ma Oil RAPID-P1 project, Fluor and Deshinib Consortium/Horse Oil RAPID-P14 project, Sinopec SEG/Horse Oil RAPID-P2 project, Technemont and CNPC Global Consortium/Horse Oil RAPID-P7 project, US CB&I and Taiwan Zhongding Association/Oman LIWA project, Japan's JGC/Algeria project, Japan's Mitsubishi Hitachi/Hitachinaka Power Plant Project, Technymount and China Petroleum Global Cooperation/Malaysia Oil RAPID-P27 project, etc. The company signed a steel structure procurement framework agreement with Japan's JGC in May 2017, and a cooperation agreement with Taiwan's Zhongding is also in the process of being actively negotiated. These orders and cooperation agreements have a positive impact on the company's steady growth in the overseas steel structure sector in the future. The lightweight steel ring business has been growing steadily, and has become a new growth point for the company's performance. The company cooperates with Shougang to carry out R&D and production of high-strength lightweight steel rims using a strong and strong joint model. Currently, the product has passed the Smith laboratory tests in the US to meet the requirements for lightweight use of high-end trucks and buses in Europe and the US. During the reporting period, the company's steel wheel business achieved revenue of 396 million yuan, an increase of 39.11% over the previous year. Among them, high-strength lightweight steel rings grew significantly, with an increase of 107%. At present, the company's lightweight steel ring products have been used in new energy vehicles for customers such as Changjiang, BYD, Jinlong Bus, Universiade, Zhongtong, Wulong Automobile, and Hengtong Bus. In the future, with the popularity of new energy vehicles, sales of this series of products are expected to increase further. The replacement of smart steel ring software and hardware products is imminent. The automotive aftermarket indicates that Zhongyuan Company is actively deploying the automotive aftermarket. Currently, all projects are progressing steadily. On the one hand, the company's high-quality strategic projects in the automotive aftermarket and the emerging industry of the Internet of Things are based on smart wheels to provide customers with value-added services to increase product market share and help customers open up resources and save money; on the other hand, through the construction of an O2O platform for auto parts, revitalize inventory, reduce channel levels, and effectively reduce user costs. Furthermore, the company strives to solve the first 50 km collection and final 50 km delivery needs. At present, the company has completed smart steel ring 2.0 software and hardware products and has begun to be applied, and has achieved a good reputation among commercial vehicle drivers. In the Sichuan and Xiamen regions, the company's smart steel ring products have been thoroughly deployed. Profit forecasting and valuation. The company's traditional steel structure and steel ring business is developing steadily overseas. Considering the high growth of the equipment steel structure business and the continued expansion of the steel ring business with the support of policies such as the Belt and Road Initiative and the three cross-strait links, the company's layout of the automotive aftermarket, and the integration of lightweight steel rings for new energy vehicles and integrated green building industries, it is expected to form new profit growth points in the future. We expect the company's EPS in 2017-2019 to be 0.13, 0.17, and 0.31 yuan/share.