The performance exceeded expectations. The company announced that in 2017, the company achieved operating income of 251,1827,700 yuan, an increase of 173.01% over the same period last year, and realized net profit of 26,95612 million yuan, an increase of 58.44% over the same period last year. Among them, the intelligent safety and transportation business performed brilliantly. The wholly-owned subsidiary Xinzhi Cognitive achieved operating income of 998.551 million yuan and net profit of 150,1511 million yuan during the reporting period, showing explosive growth over the previous year. Favorable policies and strong demand create new industry awareness solutions. The digital economy era has arrived with favorable policies, and demand in the security industry remains strong. New intelligence is based on long-term deep cultivation of experience accumulation and data accumulation in the two major fields of smart security and smart transportation, and actively lays out artificial intelligence and is in a leading position in the industry; the company led the Reform Commission to establish a national laboratory to lead integrated command and dispatch; participated in security tasks for many large-scale events such as the “Belt and Road” International Cooperation Summit Forum safety and security tasks, and gained a deeper level of trust from customers; Launched new solutions such as integrated public security command and dispatch solutions, command center unified communication solutions, and human network platforms Plan and improve the solution system; establish laboratories with various universities and scientific research institutes to promote a high degree of integration between industry, education, research and use; in the era of big data and artificial intelligence, the company continues to accumulate industry experience and deepen the strategic layout in the two major fields to create more personalized, extreme and intelligent industry awareness solutions for customers. Accelerate the layout of the industrial Internet and enter into smart enterprise business. Xinao Group's business covers energy, tourism, energy and chemicals, etc., and has a strong government background; Xinzhi has core technologies such as image analysis and data mining. It has been deeply involved in the two major fields of smart security and smart transportation for a long time, and has a rich technological accumulation. The two powers work together to advance together. On the one hand, Xinao's government resources can help Xinzhi enter the industrial Internet of Things field and develop smart enterprise business; on the other hand, Xinao, with the company's leading technology, can accelerate the integration of the three major businesses of smart tourism, smart security, and smart transportation, help the traditional industry upgrade “Internet +” and deepen the industrial Internet layout. Investment suggestions: The company is deeply involved in the two major fields of smart security and smart transportation, leads national laboratories, occupies a high point in industrial strategy, leads integrated dispatch and command, and actively enters the field of smart enterprises; connects with leading technology, connects with Xinao Group government resources, and works together to accelerate the construction of a smart ecosystem and lay out the industrial Internet. It is estimated that the company's 2018-2019 EPS will be 1.17 yuan and 1.64 yuan respectively, maintaining the “buy-A” rating, and the target price for 6 months is 29 yuan. Risk warning: social security prevention and control policies fall short of expectations; industry competition increases risk.