Incident: The company announced that it won the bid for the “Smart Jiangxia” One Center and Two Platforms Project in Wuhan, with a bid amount of 110 million yuan. The city's lifeline “Wuhan Phase II” was officially launched. Following winning the bid for the 131 million yuan Wuhan Urban Lifeline Project in December 2018, the “Smart Jiangxia” Center and two platforms are a continuation of the second phase of the Wuhan Urban Lifeline Project. This time, the second phase of Wuhan mainly realized the “seven hearts in one” construction of urban situation perception and operation monitoring, urban signature analysis and auxiliary decision-making, multi-party collaboration and emergency command, data management and integrated operation, urban data openness and innovation research, experience and display of smart city construction achievements, and urban network security and operation and maintenance centers. If the project is successfully implemented, it is expected to have a positive impact on future results. The urban lifeline offsite replication logic has been further strengthened. According to a report from the Anhui Network, the first two phases of Hefei City Lifeline achieved good results, and there is still room for an additional investment of 2 billion dollars in the third phase. Wuhan is the first city to implement the Urban Lifeline Phase II project after Hefei, which fully proves that the urban lifeline not only successfully achieved offsite replication, but can also continue to expand construction content on the basis of achieving good results after offsite replication, and the offsite replication logic of the urban lifeline has been further strengthened. Deeply bind key interests to fully stimulate combat effectiveness. The second phase of the company's employee stock ownership plan was purchased at the end of June this year, totaling 3.27 million shares, accounting for 2.11% of the total share capital. The average transaction price was 33.99 yuan/share. In May of this year, it was announced that the executive team would accept 5.50% of the company's shares through the asset management plan. Deeply binding the interests of executives and core employees through equity helps to continuously stimulate the fighting power of key personnel. Investment advice: As a highly commercialized public safety software company, the establishment of the Ministry of Emergency Management has established the company's medium- to long-term growth logic, and the positive impact is gradually showing; the three new businesses, typified by industrial safety, are expected to open up a full new market for the company. EPS is expected to be 0.99 yuan and 1.51 yuan respectively in 2019-2020, maintaining a “buy-A” rating, with a target price of 50 yuan for 6 months. Risk warning: New business development falls short of expectations; performance conversion progress of ongoing orders falls short of expectations.