[Matters] Dier Hanyu issued a progress announcement on plans for controlling shareholders and actual controllers to increase their holdings of the company's shares. As of December 27, 2017, Mr. Shi Huashan, the actual controller and controlling shareholder of the company, directly and indirectly held a total of 171,856,281 shares, accounting for 51.3% of the company's total share capital. The additional holders and their co-actors held a total of 174,569,875 shares of the company's total shares, accounting for 52.11% of the company's total shares. This is the fourth time since April 2017 that the company's actual controllers have increased their holdings in the company. The increase in the company's shares by the actual controller of the company shows confidence in the future development of the company. On April 25 of this year, the company also issued an announcement to increase the actual controller's shareholding. The total number of shares held directly and indirectly by Mr. Shi Huashan, the actual controller and controlling shareholder of the company before the increase at the beginning of the year, accounted for 50.10% of the company's total share capital. With the steady growth of the company's main business, the drain pump, spa toilet, robot business, and new energy business, it is expected that the company's various businesses will enter the fast track next year. [Comment] The main business is steady, and profitability has improved. The gross margin of the company's 2017-H1 overall pump products reached 40.88% and YOY +2.06%, mainly due to the fact that the high-efficiency integrated pump launched by the company last year replaced some of the original special pumps, thus driving up the gross margin of the overall pump products. At the same time, the company locked down some raw materials at the end of last year and the beginning of this year to minimize the impact of fluctuations in raw material prices on costs. In addition to traditional pump products, the company is also actively developing the rapidly growing dishwasher market. In 2017, the company's washing pump production and sales increased significantly. As the company advances in both directions at home and abroad in the future, the company will seek more opportunities by making full use of customer resources such as Fangtai, Whirlpool, and Samsung. We expect that in 2017, the growth rate of the company's washing pump products will exceed 15%, which is expected to become a new growth point for pump products. Increase the layout of the health sector and promote the establishment of new product channels. In 2017, H1's spa toilet production and sales volume continued to grow year on year. The subsidiary Dier Health achieved a net profit of 150,000 yuan during the same period, turning a loss into a profit. Differentiation in the positioning function of spa toilets is more conducive to product marketing and promotion. Currently, the company is mainly promoting the establishment of offline channels, regional agent development and channel promotion for hotels, hospitals, clubs, etc., and spa toilets are expected to be released next year. At the same time, the industrial robot market is gradually advancing. As sales of robots in the three categories of stamping, six-axis, and SCARA make breakthroughs, the annual sales revenue of this business is expected to exceed 30 million yuan. We are optimistic that in an environment where the trend of upgrading domestic home appliance consumption continues to strengthen and national health demand continues to rise, the company's main business and downstream industries corresponding to emerging categories will experience explosive growth, and the company's main business and new products are expected to accelerate development next year. The company's earnings per share in 17-19 are expected to be 0.58, 0.66, and 0.72 yuan, respectively, and the corresponding PE is 26, 23, and 21 times, respectively, covering the “increased holdings” rating for the first time. [Risk Warning] New product promotion falls short of expectations; risk of exchange rate fluctuations; raw material prices rise.