Event: The company released its report for the first quarter of 2018. Operating income for the first quarter of 2018 was 879 million yuan, up 214.22% year on year; net profit attributable to shareholders of listed companies was 54 million yuan, up 962.14% year on year. The company expects net profit attributable to shareholders of listed companies in the first half of 2018 to be 150 million yuan - 175 million yuan, an increase of 198.27% - 247.99% over the previous year. Investment points: The first quarter results of the company with sufficient order reserves in the public safety and military industry and the predicted performance for the first half of 2018 increased significantly compared to the same period last year, mainly because the company's high-precision space-time integrated command and dispatch platform projects in the public safety field and orders for self-organizing network products in the military sector will be gradually confirmed in the first half of 2018. Since May 2017, the company's shareholding company Beidou Navigation and its wholly-owned subsidiary Yuanbozhong have successively signed multiple purchase and sale contracts for self-organized network products with customers. As of the end of April 2018, the total amount of contract processing contracts had exceeded 3.5 billion yuan, of which the total confirmed revenue of the self-organized network business in 2017 was 568 million yuan. Meanwhile, on December 25, 2017, Zhaotong Zhisheng, a wholly-owned subsidiary of the company, signed a general contract for the “Xueliang Project” construction PPP project in Hetian, Xinjiang, with a contract amount of 965 million yuan. Orders from the public safety and military sectors will significantly boost the company's performance in 2018. The high-precision business market is vast. In terms of the high-precision business in Beidou, the three companies acquired by the company's surveying and mapping product line exceeded their performance promises in 2017. The newly launched surveying and mapping products have surpassed and led competitors, and the company will continue to benefit from the increase in market share in this field in the future. In terms of other products in the high-precision business, the company's precision agriculture product line is still in the market introduction period. With the continuous optimization and improvement of product functions and performance, the company is expected to gain a pioneering advantage in this field; in the application fields of high-precision emerging industries such as heavy machinery and robots, the company continues to expand products and solutions, gradually forming its own competitiveness and advantages. Since Beidou satellite navigation and positioning is a basic function used in various communication and information technology applications, the company will fully benefit from the large-scale application of this business. Risk warning: the company's development strategy is advancing, and the expansion of new products falls short of expectations