Key investment points: Company announcement: Company disclosure announcement on progress in the implementation of employee stock ownership plans. As of October 24, 2017, the second phase of the company's employee stock ownership plan has purchased a total of about 13 million shares of Jinfu Technology shares through second-level market bidding transactions, with a transaction amount of about RMB 148 million and an average transaction price of RMB 11.408 per share. The number of shares purchased accounts for about 1.54% of the company's total share capital. No more than 147 employees participated in the current employee stock ownership plan, including 7 directors and supervisors; the total scale is no more than 222 million yuan, and about 67% of the capital has been used so far. The employee stock ownership plan is progressing steadily, demonstrating the company's confidence. The average purchase price was 11.408 yuan/share, which is very close to the company's latest closing price of 11.92 yuan/share. The actual controller of the company promises that if a loss occurs due to the employee's shareholding plan to increase the company's stock holdings, the actual controller of the company will be compensated for the loss. Considering the recent significant increase in the company's stock price (up 18% since this month), the employee stock ownership plan is actively buying stocks at this time, highlighting that the company's internal employees are optimistic about the company's development for a long time. Smart home products were officially launched, and the IoT business began commercialization. The company has officially released its revolutionary smart home solutions, including two core products: smart information box (control center, integrating multiple skills such as wireless network management, private cloud storage, and intelligent home control to achieve centralized and unified management of home devices, seize key entrances in the IoT era, and work in the same way as Google Home) and smart 4-in-1 AP (smart access point, compatible with various terminal devices). Through cooperation with developers and home improvement companies, the company's smart home products are expected to be rapidly deployed. At the same time, the IDC value-added business (software development and service) of the company's subsidiary, Nantong Qiyun, achieved a breakthrough of zero. Currently, it has contributed some profits, and will become an important part of the company's IoT ecosystem in the future. Furthermore, the company recently acquired 30% of the shares of Zhongke Tianji, a big data industrialization platform owned by the Institute of Computing of the Chinese Academy of Sciences, and has developed in-depth cooperation with the Institute of Computing of the Chinese Academy of Sciences to integrate advanced big data technology into the company's IoT ecosystem. The new management team made a group appearance, the old business picked up, and the new business was ready to go. On October 24, the company held an IoT intelligent server presentation in Suzhou. The new management team made a group appearance and explained the future development strategy. The company relies on five major business groups (film cutting and processing, LCD devices, automatic inspection equipment, smart cloud, clean energy) to form a new strategic framework of “high-end manufacturing+IoT terminal+intelligent cloud”, so that new and old businesses support each other and form a positive feedback cycle. Maintain profit forecasts and maintain a “buy” rating. The company's board of directors and executive team changed hands in June of this year. The company's various businesses made phased progress, and the overall appearance was new. The old business is being revitalized, and the commercialization of the new business is under way. We have long been optimistic about the company's IoT layout and the recovery in the old business sector. Maintaining the profit forecast, EPS is expected to be 0.10/0.25/0.38 yuan in 17-19, and the corresponding PE is 119/48/31 times. Risk warning: The results of the launch of new IoT products fell short of expectations, and the revenue of the original business fell short of expectations.