The company released its 2016 semi-annual report, achieving operating income of 692 million yuan, up 24.43% year on year, including stationery industry revenue of 392 million yuan, down 6.69% year on year, Internet and related services industry of 235 million yuan, up 167.96% year on year, cross-border e-commerce 61.885 million yuan; net profit attributable to shareholders of listed companies was 38.4847 million yuan, up 55.08% year on year. The business is actively transforming and building a cross-border service business chain based on the Internet: the company's traditional business is stable, actively innovates fashion stationery projects, improves sales channels, and creates a stable competitive advantage in the market. At the same time, the company is actively seeking integration and innovation between traditional industries and emerging industries to enter the Internet field through epitaxial mergers and acquisitions. The company achieved integration with Lingyun Media in 2015. The Internet marketing business helped the company's original business grow and provided a high-quality cross-border marketing and service platform for the company's cross-border trade; in June 2016, the company announced its participation in Huiyuantong to seize the cross-border payment field, which can form a synergy effect with the company's original business and improve the cross-border service business chain. The new business opens up space for the company's imagination and provides a stable driving force for the rapid growth of the company's performance. Facing the blockchain trend, there is great potential for cross-border payments in the future: Currently, the circulation of virtual currency, or electronic money, is mainly peer-to-peer. Blockchain technology is of great significance to decentralization and many-to-many connections. At the same time, blockchain technology can automate, save intermediate costs, reduce financial risks such as fraud, etc., and has huge application potential. Multinational transactions and consumption will grow rapidly in the future, and demand for domestic cross-border payments and settlements will continue to expand. The company is currently actively exploring blockchain technology. Huiyuantong is in talks with two US blockchain technology companies and is optimistic about the space for cooperation. At the same time, the company has also set up a special research team to specialize in blockchain research, and may introduce technology into the company's e-wallet and mobile wallet systems in the future. Diversified marketing strategies to promote market development: The company vigorously develops e-commerce business and improves product channel construction. The traditional stationery e-commerce business is positioned with “group procurement, personalized service, and precise marketing” as the core, and lays out major domestic B2C and C2C e-commerce platforms. At the same time, seize export opportunities, set up a professional large customer team, increase the expansion of core major customers and projects, and ensure the stable development of traditional business. Investment advice: The company has made frequent external mergers and acquisitions, and has smoothly transitioned from traditional manufacturing to Internet business and services. At the same time, the company has launched an equity incentive plan. We are optimistic about the long-term development of the company in the future. Without considering the impact of Huiyuantong's mergers and acquisitions, we forecast the company's earnings per share from 2016 to 2018 to be 0.29, 0.37, and 0.46 yuan, respectively. Given the -A recommendation to increase holdings, the target price is 24.05 yuan, which is equivalent to a dynamic price-earnings ratio of 65 times that of 2017. Risk warning: Risk of changes in cross-border payment policies; corporate transformation falls short of expectations.