The company achieved revenue of 4347.655 million yuan in the third quarter, up 86.20% year on year, net profit of 306.112 million yuan, up 175.83% year on year; from the beginning of the year to the end of the reporting period, it achieved revenue of 1109.388 million yuan, an increase of 125.35% year on year, and net profit to mother of 103.4976 million yuan, an increase of 412.67% year on year. Smart cities became high growth engines, and the company continued to maintain a high growth trend in the third quarter. On the one hand, because the subsidiary CLP Xingfa merged in September of last year, leading to a low comparison base; on the other hand, because anti-terrorism, public safety, and smart city businesses continued to grow, and the parent company's original power transmission and distribution business growth also changed from negative to positive. The ratio of the company's three-fee expenses to revenue in the third quarter was effectively improved, falling from 25.24% in the same period last year to 17.59%. Among them, sales expenses and management expenses dropped significantly. Smart cities - Consolidating advantages while achieving in-depth development The company has the “top nine” qualifications in the smart city construction industry, covering the planning, design, construction, investment and operation of smart cities, providing overall smart city solutions, covering major cities across the country, undertaking more than 1,500 information system integration projects, and winning the trust of the government, the military and high-end customers in the industry. In the first half of the year, the company successively won bids for projects totaling 398 million yuan in Nanjing, Hohhot, and Chuzhou. It participated in security work at the G20 summit in Hangzhou, providing them with explosion-proof equipment and various other high-tech anti-terrorist equipment and systems. Currently, the tracking order is about 20 billion yuan. During the reporting period, CLP Xingfa acquired Nenjiang Huaqi Smart Network Technology Co., Ltd., and developed deep smart city fields such as smart agriculture, rural e-commerce, and “Internet+regional economy”, creating new profit growth points for the company. The fixed increase completed strengthening the company's strength. The company achieved a non-public offering of shares in October, raising 1.05 billion yuan in capital. The funds raised are mainly used for robot and drone industrialization projects in the field of public safety and anti-terrorism, electric vehicle adaptive intelligent charging pile construction projects based on wired/wireless transmission, and intelligent remote (high-speed rail signal) power guarantee system production line construction projects to seize the development opportunities of the public safety and anti-terrorism equipment industry, as well as the country vigorously develops power industry development opportunities such as high-speed rail, urban rail transit, and NEV charging piles. The internal rate of return is expected to be 19.91%, 20.93%, and 15.48%. The investment proposal company focuses on anti-terrorism, public safety and smart cities, and also provides a package of solutions for smart new energy, intelligent transmission and distribution equipment and components, power design and power services to achieve intelligent urban management. We expect net profit to be 1.44/1.60/174 million yuan for 2016/17/18, with earnings of 0.20/0.23/0.25 yuan per share, giving it an “increase in holdings” rating.