The company released its 2017 annual report: During the reporting period, the company's revenue, net profit, and net profit after deducting non-net profit increased by 27.1%, 77.5%, and 15.8% year-on-year respectively. In 2017, the company's financial expenses of 360 million yuan and asset impairment losses of 210 million yuan all increased significantly, which had a significant impact on performance. Revenue from the company's materials and automation sectors is growing rapidly, and major subsidiaries are doing well. Maintain the “Highly Recommended - A” rating and adjust the target price to 20-22 yuan. Revenue grew rapidly, and performance was basically compounded: the company released its 2017 annual report. During the reporting period, the company achieved total operating income of 7.43 billion yuan, an increase of 27.1% over the previous year; realized net profit of 1.14 billion yuan, an increase of 77.5% over the previous year; net profit after deduction went back to 640 million yuan, an increase of 15.8% over the previous year. The company's performance is in line with market expectations. Financial expenses and asset impairment losses had a significant impact: the company's financial expenses in 2017 were 360 million yuan, an increase of 256% over the previous year, and the financial expense ratio increased 3.1 percentage points over the same period last year, mainly due to the increase in the company's interest-bearing liabilities and changes in exchange profit and loss. The company's asset impairment losses in 2017 were 210 million yuan, up 225.2% from the previous year, mainly due to bad debt losses, long-term equity impairment, and increased goodwill impairment calculated by the company. The increase in financial expenses and asset impairment losses affects current profit growth; if the impact of these two factors is not taken into account, the company's total profit increased by about 80% year on year. The main subsidiaries are doing well, the traditional sector is growing steadily, and the equipment and new energy industry is growing rapidly: in 2017, the company's power grid equipment business achieved revenue of 2.89 billion yuan, an increase of 11.9% over the previous year, the intelligent engineering equipment business achieved revenue of 2,431 billion yuan, an increase of 43.1% year on year, and the materials business related to electric vehicles achieved revenue of 2.04 billion yuan, an increase of 36.1% year on year. In terms of major subsidiaries, Zhuhai Yuntaili's revenue and net profit increased 26% and 17% year on year respectively; Changyuan Huasheng's revenue increased 24.29%, net profit fell slightly by 9.81% due to asset consolidation and environmental investment in exchange; Hunan China Lithium's 2017 revenue and net profit increased 27.15% and 52.03% year on year, and gross margin remained around 60%; Shanghai Heying benefited from downstream garment industry digitization and automation trends. The high growth trend was remarkable. 2017 revenue and net profit increased 57.11% and 49.86% year on year. The company's subsequent operations are steady and sustainable. Investment advice: The company's revenue is expected to maintain a moderate or higher growth rate. The equity dispute is being settled, but in the short term, it will still be affected by financial expenses and asset impairment. Maintain a strong recommendation rating, and adjust the target price to 20-22 yuan. Risk warning: Equity disputes cannot be resolved well; goodwill and bad debt impairment risks.