Incident: The company issued an announcement on June 21, 2018, that it intends to repurchase some of the company's public shares. The total capital used shall not exceed RMB 500 million (including RMB 500 million) and not less than RMB 200 million (including RMB 200 million). The source of capital is the company's own and self-funded capital. The repurchase price of shares shall not exceed RMB 10.00/share (including RMB 10.00/share). On July 27 and July 31, the company carried out two separate share repurchases. As of August 1, the company's special share repurchase account had repurchased a total of 13,186,491 shares, accounting for 1.24% of the company's total share capital. The highest transaction price was 8.80 yuan/share, the lowest transaction price was 7.83 yuan/share, and the total amount paid was 110,576,231.31 yuan (excluding transaction fees). The share buyback sends a positive signal. On June 21, 2018, in order to stabilize investors' investment expectations and enhance investors' investment confidence in the company, the company announced that it intends to repurchase some of the company's public shares. The total capital used shall not exceed RMB 500 million (including RMB 500 million) and not less than RMB 200 million (including RMB 200 million). The sources of capital are the company's own and self-funded capital. The current share repurchase sends two positive signals: (1) the company has sufficient cash flow, stable operations, and the ability to repurchase shares; (2) Currently, the company's stock price is at a low point, and future growth can be expected. Driven by repurchases, investor confidence in the company's stock increased markedly, and the company's stock price stopped falling and rebounded on June 21. On July 27 and July 31, the company implemented two separate repurchases to drive further stock growth. Fundamentals support continued growth in performance. Stock repurchases can boost market confidence, but fundamentals are the core driving force supporting the company's performance to rise. In 2017, the company's expenses were effectively controlled, so when gross margin remained basically unchanged, net profit after deducting net income increased dramatically. The growth rates of revenue and net profit from net profit were +17.09%/+4.82% respectively, while the growth rate of non-net profit after deducting net profit reached 70.75%. The company's revenue for the first quarter of 2018 was 10.442 billion yuan, up 18.23% year on year, and net profit after deduction of 5.577 million yuan, up 69.78% year on year. More stable fundamentals support the steady rise in the company's performance and are a guarantee of investor confidence. The company's mobile distribution, lottery, liquor, and mobile internet services are booming, collaborating with each other to promote the company's further expansion in the future. Since 2015, the company has established a lottery business, which has now become a new growth point. Profit forecasting and investment ratings: Stock repurchases enhance investor confidence, and sound fundamentals become the core driver of performance growth. The company's various businesses are developing steadily, and the addition of the lottery business has become a new profit growth point for the company. Surprise continues in other businesses such as liquor, and the diversified layout reduces the company's operating risks. The company's 2018-2020 EPS was adjusted to 0.27/0.35/0.45 yuan, and the closing price corresponding to PE on August 20 was 31/24/19 times, respectively, to maintain the “prudent increase in holdings” rating. Risk warning: Lottery business development has fallen short of expectations, competition in mobile phone distribution has intensified, and lottery industry policies have been tightened