In the first half of the year, the company achieved operating income of 2,333 million yuan, up 14.37% year on year; net profit attributable to shareholders of listed companies was 350 million yuan, up 24.62% year on year. Six million tons of optical bars are fully put into production, and there is room for further improvement in gross margin. The revenue of the fiber optic cable sector was 1,227 billion yuan, up 30.57% year on year, and gross margin increased 7.36% to 32.89%. Mainly due to a breakthrough in the company's optical rod production process, the current production capacity of 600 tons of optical bars has reached production, and the self-sufficiency rate of optical rods has increased significantly. In addition, Corning supplies about 700 tons of light bars every year, and the equivalent optical fiber production capacity reached 42 million core kilometers by the end of the year. The number of self-sufficient light bars is gradually increasing, and there is still room for further improvement in gross margin. Overall market demand is stable, but due to the large domestic market capacity, the current market can fully absorb the additional production capacity of major manufacturers. Prices have risen from 40 yuan/core kilometer to 60-65 yuan/core kilometer in recent years. Currently, prices are stable and in a rational state. Focus on the main business, long-term development, and optimize the governance structure with a new management level in place. After the new management team is in place, the company's strategy is sorted out and a “focus on the main business, focus on the long term” development strategy is established, and all future shares that do not match the company's main business will firmly choose to exit. Focus on developing core businesses such as optical transmission materials, communication equipment, and network security, increasing investment in technology research and development and expanding market channels. The products and solutions in the cybersecurity business segment mainly cover the three major fields of backbone network network security, public safety, and urban safety. It achieved revenue of 189 million yuan in the first half of the year, an increase of 67.32% over the previous year, and is expected to maintain rapid growth in the future. Traffic and data operations revenue for the first half of the year was 147 million yuan, a year-on-year decrease of 24.61%. The successful launch of the mobile precision marketing business for the financial, gaming and other industries and its rapid growth will promote the mobile precision marketing business based on big data analysis to serve customers in more industries. On the basis of the original ODN preparation, the company launched products such as SDN gateways and big data collection equipment. Baizhuo Network won the bid for China Telecom's SDN equipment collection to stimulate performance. Baizhuo's performance promised 132 million yuan in 2018, and continued to maintain rapid growth. Profit forecast: According to the progress of construction in the communications sector, the profit forecast was lowered. Revenue for 2018-2020 is expected to be 50.11, 59.73, and 7.122 billion yuan respectively; EPS is 0.63, 0.85, and 1.08 yuan/share, corresponding to the current stock price PE 15.41, 11.46, and 9.09 times, maintaining the “increased holdings” rating. Risk warning: The risk of impairment of goodwill.