The company released its semi-annual report. In the first half of 2017, revenue increased by 130.3% to 846 million yuan, net profit attributable to shareholders of the parent company increased by 303% to 109 million yuan, and EPS per share was 0.21 yuan. The core view results are in line with the scope of the previous forecast: the company's announced results are in line with the scope of the previous forecast, that is, the profit range for the first half of 2017 was 102-110 million yuan. The sharp rise in the company's performance during the reporting period was mainly due to the combined contributions of Qiji Intelligence. In addition, the company's original resin lens business performance also maintained steady growth, from 26.99 million yuan in the same period last year to 30.44 million yuan. The performance of Qiji Intelligence was slightly lower than expected, but various businesses progressed steadily: during the reporting period, Qiji Intelligence achieved revenue of 440 million yuan, and both revenue and profit were slightly lower than our previous expectations. This was mainly due to the fact that new customer connections were slower than expected. Looking at business lines, during the reporting period, the company added 2 large cooperative banks to the 3 new bank customers added in 2016, laying a good foundation for subsequent business volume growth; the credit card instalment business not only added many new customers, but also discussed and innovated cooperation models; in terms of service rights instalment business, the company not only cooperated with more large institutions on the original cooperation platform, but also innovated and developed multiple cooperation channels and various cooperation models. In the future, Qiji Intelligence will continue to follow the horizontal and vertical layout: We believe that Qiji Intelligence has outstanding advantages in big data analysis applications and bank cooperation. In the future, the company will continue to expand its business along two dimensions: horizontally, the company will continue to expand the number of partner banks and more industry customers, so that the precision marketing business based on big data continues to grow, and on the vertical side, the company will use the platform characteristics of its own business model to continuously deepen the product service system. Financial forecasting and investment recommendations Since the Qiji Intelligence business was slightly lower than our previous expectations, we adjusted the 2017-2019 EPS of 0.65 yuan, 0.83 yuan, and 0.97 yuan respectively (previous forecasts: 0.70 yuan, 0.95 yuan, and 1.13 yuan). We believe that the current reasonable valuation level of the company is 28 times the price-earnings ratio of 2018, corresponding to a reasonable stock price of 23.24 yuan, maintaining the purchase rating. Risk warning: the risk that the performance of Qi Smart will not meet expectations, that the new business expansion of Qiji Intelligence falls short of expectations, and that the Conet glasses business is affected by the global trade environment;