Investment highlights: The performance of the first quarter report increased significantly. In line with expectations, the company recently released the first quarter report of 2019. The announcement shows that in the first quarter of this year, the company achieved revenue of 262 million yuan, an increase of 30.95% over the previous year; net profit attributable to shareholders of listed companies was 369.2449 million yuan, an increase of 165.85% over the previous year. Net assets attributable to shareholders of listed companies were $1,988 million, up 4.48% from the end of the previous year; total liabilities were $559 million, and net cash flow from operating activities was $41.0785 million, up 574.8% from the end of the previous year. The quarterly report was in line with market expectations. The merger and acquisition effect was evident. The performance growth rate was obvious. The company's operating income increased by 30.95% and costs increased by 57.18% in the first quarter of this year, mainly because the company's IDC business began to generate revenue, while at the same time rising technology and I-ACCESS revenue; the sharp year-on-year decrease in financial expenses was due to a decrease in exchange losses; management expenses, R&D expenses, and sales expenses remained the same year on year, showing that the company's business conditions were stable; development expenses increased by 116.65% during the same period, mainly for the company's future business development. The project is also one of the main directions of the company's future business development. 。 The 574.80% net increase in cash flow from operating activities during the same period was mainly due to cash inflows from IDC operations and the recovery of accounts receivable from China Unicom of US$2,9583 million (equivalent to approximately RMB 19.79 million). In addition, continuing the effects of a quarterly report, combined with amortization of Zandong Technology's self-developed software and parent company's confirmation of deferred income tax assets, the company's net profit for the first half of this year reached 64 million to 76 million yuan, an increase of 60%-90% over the same period last year. Therefore, on the basis of cost control, the company's overall performance growth rate is obvious. The construction of the three major business lines has been completed, and the level of enterprise communication products has improved markedly. In the last three years, the company has been adjusting its own business according to the technological evolution of the communications industry, focusing on improving mobile technology and service capabilities, and shifting its business focus to business areas such as enterprise mobile and the Internet of Things to further meet the full range of communication needs of enterprise customers. At present, the company has formed three major divisions: the Enterprise Communications Division, the International Communications Division, and the North American Internet Integrated Service Division. The division system is conducive to specialized production and internal collaboration among enterprises, marking that the company has entered a stage of stable and rapid development. Over the past 18 years, the quality, business scale and service level of the company's enterprise communication products have been steadily improving. “Mobile” and “video” are the two key aspects of the company's R&D investment. Not only has a video conferencing mobile app been launched to enable users to conduct video conferences and watch shared content on mobile phones, enhancing the competitiveness of enterprise customer service and marketing; furthermore, improving audio and video quality across generations. Through PaaS, enterprises can integrate video capabilities into their core business processes to form a new generation of enterprise communication models. In addition, the company has also signed strategic cooperation agreements with hardware manufacturers such as Polycom and Huawei to provide customers with complete “cloud plus end” solutions and expand hardware “end” capabilities. In the new business field, the company develops IDC, cloud computing and other businesses through strategic cooperation with NTT, and uses NTT's high-quality customer resources and global marketing capabilities to achieve IDC+VPN networking products and solutions, expanding the company's own business scale. Demand for cross-border data services has increased and regulations have been strengthened to enhance the competitiveness of companies. In recent years, there has been a continuous increase in the number of foreign companies operating in China that have set up domestic business entities or branches, thus bringing about a large number of international communication requirements such as voice, data, conferences, and video across borders. At the same time, the demand for international communications from overseas Chinese companies is also growing rapidly. The international communications market has entered a cycle of rapid growth. However, last year, the Ministry of Industry and Information Technology carried out special clean-up and regulation work on cross-border data communication services, established the “China Cross-border Data Communication Industry Alliance,” and the cross-border data communication market was regulated to a certain extent. The company joined the alliance as one of the first official members and has an advantageous position to expand cross-border communication services. Therefore, on the basis of the continuous growth of the cross-border data business market and the continuous deepening of special clean-up standards, the company is expected to gain a first-mover advantage in entering the data communication market, introduce international business through the rise of Shenzhen and Hong Kong I-Access, expand inbound cooperation channels for cross-border communication services, accelerate outbound business capacity building, achieve the construction of international business capabilities in key countries and regions, establish a “direct sales+channel” sales system for outbound services, and create a “direct sales+channel” sales system for outbound services to meet the needs of cross-border and overseas local communication to serve domestic enterprises to “go global” The ability to enhance the company's competitiveness in the international communications market. Profit predicts that in 2019, the company will further consolidate the existing business and consolidate the three major business product lines, promote the steady growth of enterprise video communication services through the development of 5G technology and the company's mobile communication capabilities, and actively carry out strategic cooperation with international operators to further explore the international communication needs of enterprises and enhance enterprise cross-border communication services and overseas local communication services. We are optimistic about the company's future development trends. In addition, the company also holds 6.49% of Zhiyuan Internet's shares and 3.27% of Capital Online's shares. Among them, Zhiyuan Internet is applying for listing on the Science and Technology Innovation Board and Capital Online is applying for listing on the GEM. Once these two companies are successfully listed, the company's internal value will be greatly enhanced. Without considering the listing of these two companies, we expect the company's revenue from 2019 to 2021 to reach 1,142 billion yuan, 1,394 billion yuan, and 1,672 million yuan, and the corresponding net profit of the mother's net profit is 163 million yuan, 216 million yuan, and 274 million yuan, giving the company an “increase in holdings” rating. Risk warning: The expansion of cross-border communications business falls short of expectations, and the growth of the domestic enterprise communications market falls short of expectations.