Key investment events: Company announcement 2017 three-quarter report: In the first three quarters, the company achieved operating income of 3.8 billion yuan, a year-on-year increase of 2.37%, net profit of 250 million yuan, a year-on-year decrease of 7.51%; in the third quarter, it achieved revenue of 1,115 million dollars, a year-on-year decrease of 11.5%, and net profit of 66 million yuan, a year-on-year decrease of 28.9%. The company expects net profit of 360 to 480 million yuan for the full year of 2017, with negative Q3 revenue growth of -19.0% to +7.61% year-on-year. Gross margin declined, and profit declined significantly in a single quarter. The company's Q3 revenue fell 11.5%. It is estimated that mainly some customers of air conditioning international will change models, causing air conditioning international revenue to decline significantly in the single quarter. The company's Q3 gross profit margin was 6.6%, down 4.6 percentage points from the previous year, mainly because of this year's declining industry growth rate and increased competition. Prices of the company's traditional compressors and electric compressors have all been reduced. Furthermore, raw material prices have risen, and the company's production costs have increased. The decline in revenue and gross margin caused the company's Q3 net profit to fall 28.9% in a single quarter. The short-term performance of the company is under pressure, and the medium to long term depends on the volume of new projects. In the short term, industry growth is slowing, raw material prices are rising, and air conditioning system revenue is declining. The company expects a profit of 360 to 480 million yuan for 2017, -19.0% to +7.61% year-on-year, and the annual performance is under pressure. In the medium to long term, the company's compressors and systems are internationally competitive. It has received orders from high-end customers such as Jaguar Land Rover (air conditioning systems, expected to begin supply in 2019), NIO (air conditioning system and cooling modules, expected to begin supply in December 2017), PSA (compressors, expected to begin supply in 2018), FAW-Volkswagen (MQB platform, electric compressors, expected to begin supply in 2018), and German Volkswagen (MEB platform, expected to begin supply in 2019), etc., and the company's performance is expected to improve as new projects are put into production from high-end customers. Automobile compressor leaders are under pressure in the short term, depending on the volume of new projects in the medium to long term, and maintain an “increase in ownership” rating. The company is a leading automobile compressor company. Its traditional scroll compressors, new energy compressors, and compressor systems have an international competitive advantage. At the same time, the company is also actively deploying new energy thermal management related products to further expand the new energy business. The company has a deep accumulation of traditional compressors, and the new energy business is expected to benefit from the global new energy cycle. Although short-term performance is under pressure, the company is optimistic about the company's long-term development. It is estimated that the company's net profit from 17-19 was 4.32/4.69/582 million yuan, corresponding to EPS of 0.14/0.15/0.19 yuan, maintaining the “increase in holdings” rating. Risk warning: The extension of new energy sources falls short of expectations; the company's new product market expansion falls short of expectations.