Incidents: In the 2018 annual report, the company achieved annual operating income of 994 million yuan, up 29.57% year on year; realized profit attributable to shareholders of listed companies of 136 million yuan, up 11.19% year on year, and basic earnings per share of 0.12 yuan, up 9.09% year on year. Key investment points The company has deployed a wide range of five major business groups for national defense informatization. The company's R&D achievements in various fields are outstanding. The company's business areas cover product development, manufacturing and sales related to the radar system business group, the intelligent ammunition business group, the satellite application business group, the security storage business group, and the intelligent connectivity business group. In 2018, with the exception of the Beidou satellite navigation receiver business revenue, which declined slightly by 0.85% year on year, the company achieved a steady increase in product revenue in all business groups. Among them, the revenue of the high-precision microwave/millimeter wave radar imaging radar business reached 86.7 million yuan, an increase of 146.48% over the same period. In 2018, the company achieved certain R&D results in various business fields, including independently developing China's first in-orbit radar data processing equipment and radiation-resistant image processing chip, completing a real-time processing unit for geosynchronous orbit visible light target detection and tracking; laying out a high-performance localized integrated processing computer system supporting the Longxin processor platform; launching the world's first GEO SAR scene simulation system to ensure satellite load development; and completing the solid state storage controller design. The above results have laid a solid foundation for the company's future business to maintain performance growth. Responding positively to the civil-military integration strategy and launching the civilian millimeter wave automobile anti-collision radar in 2018, the company actively explored the production and development of civilian products, especially in the field of millimeter wave radar for automobiles. In July, the “77 GHz millimeter wave automobile anti-collision radar”, a wholly-owned subsidiary of the company, became the first domestic millimeter wave radar of Baidu Apollo's ecological partner. At present, the product has completed early development and testing, and has reached the technical state of mass production. It is expected to become a new performance growth point for the company's radar business in the future. Also, at the 2018 China Safety Industry Conference, Polytechnic Reike released a 77GHz point cloud radar product that can perform three-dimensional imaging of road surface scenes. Its horizontal angle resolution has broken through the bottleneck of domestic millimeter wave radar and is at the leading level of technology internationally. Risk warning: There is a risk of cyclical fluctuations in military procurement; the expansion of the emerging civilian goods market falls short of expectations.