Events: The semi-annual report achieved revenue of 307 million yuan, an increase of 56.81% over the previous year; realized net profit of 75.69 million yuan, an increase of 51.08% over the previous year, within the median value previously forecast (7013.85 to 80,1582 million yuan). Key investment points Financial institutions continue to invest in information system construction and core product upgrades, and the company's performance continues to grow rapidly: as business reform in the financial industry continues to advance and financial supervision policies are adjusted, a series of new financial policies and financial supervision regulations, such as the introduction of value-added tax on asset management products, new valuation regulations for restricted stocks, new liquidity risk management regulations, new asset management regulations, etc., have effectively promoted the continuous increase in financial institutions' corresponding information system construction requirements; at the same time, due to the upgrading of core product asset management systems and asset custody systems to accelerate customer product replacement needs, The company's revenue continued to grow rapidly in the first half of the year. Among them, custom software development and sales revenue was 209 million yuan, up 79.06% year on year; software technology service revenue was 72 million yuan, up 22.42% year on year. In terms of gross margin, custom software development and sales reached 88.76%, up 5.23pct year on year, continuing the upward trend; software technology services were 60.44%, down 13.83% year on year; overall gross profit margin was 81.44%, basically the same year on year; and net profit margin was 25.23%, down 1.73 pct year on year. Operating cash flow inflows were $204 million, and net operating cash flow was -$133 million, a slight improvement over the same period last year. As of the first half of the year, the company's accounts receivable were 490 million yuan, an increase of 99.32% over the same period last year. Technology helps financial supervision, and product expansion covers all assets and businesses: With the advancement of the three tasks of preventing and controlling financial risks, serving the real economy, and deepening financial reform, the financial industry has entered a new era of unified and coordinated supervision, and financial supervision and technology are becoming more and more closely integrated. At the same time, fintech, which is mainly characterized by applications such as microservices, cloud computing, big data, artificial intelligence, and blockchain, is developing rapidly. The trend of internetization, cloud, data, and intelligence in the financial industry's informatization construction is very obvious. In this context, the company adheres to the two-way parallel development of product innovation and technological innovation, and solidly promotes the continuous expansion of the company's product service scope and customer application implementation of new technologies. The company's products and services are further extended to OTC transactions, non-standard assets, TA fund settlement, intelligent asset management, intelligent operation of asset management, intelligent management, management, supervision, settlement, accounting and valuation, performance evaluation, storage and management, data integration, customer service, etc., and gradually achieve the “full asset, full business, full data, full industry” product service goals. The synergistic effect of subsidiaries is obvious, and unicorns have significant potential: the company's holding and participating subsidiaries include Dongwu Fintech, Dongfang Jinxin (big data platform), Chainshi (blockchain), Shanghai Huairuo (artificial intelligence), and Shanghai Yingliang (supply chain finance). On the one hand, the existing business collaboration between the subsidiary and the parent company is obvious. Dongwu Fintech's front-end decision-making and trading system is expected to connect with the company's back-end asset management, custody, and valuation systems. Based on the intelligent technology of subsidiaries such as Chainshi, Dongfang Jinxin, and Shanghai Huairuo, it provides customers with one-stop front, middle, and post-transaction support and collaborative development. On the other hand, various subsidiaries are gradually scaling up, and the potential for unicorns is remarkable. Profit forecast and investment rating: The company's net profit for 2018-2020 is estimated to be 287, 3.85, and 497 million yuan respectively, corresponding to PE of 38, 29, and 22 times, respectively. The company's leading position in the middle and back office fields has been established, and the fintech landscape has taken shape, maintaining a “buy” rating. Risk warning: New asset management regulations are being implemented slowly; accounts receivable are growing too fast