Investment highlights Cybex continues to boost revenue growth, and blue-chip business revenue rebounds: 2018H1 achieved revenue of HK$4.426 billion, up 34% year over year, thanks to strong revenue growth from strategic brands and revenue from integration into new retail channels. First, the Cybex brand saw significant revenue growth. Driven by new products and channel expansion, Cybex's revenue in the first half of the year increased by nearly 25% year on year, effectively driving revenue growth; second, after acquiring retail channels, GB non-durable goods gradually gained strength in the Chinese market. In the first half of the year, China's GB non-durable goods business revenue was about HK$83 million, an increase of nearly 28% over the previous year; third, GB's durable goods performance in the international market grew rapidly. In the first half of the year, GB durable goods revenue in the international market was about HK$170 million, up 68% year on year; fourth, the blue-chip business picked up. The blue-chip business grew nearly 9% year over year in the first half of the year, becoming one of the driving factors for 1H18's revenue growth. Gross profit margin +5.7 ppt year on year, net profit margin -0.8 ppt year on year: 1H18 achieved gross profit of HK$1.86 billion, +56% year on year. The gross profit margin was 42%, +5.74ppt year on year, and the gross profit margin increased significantly. Mainly due to the increase in revenue from the company's main strategic brands, its consolidated gross profit acquisition business of 100 million yuan and continued to improve cost efficiency. 1H18's net profit was HK$133 million, +7% yoy, net profit margin was 3%, y-0.78ppt, net profit margin decreased slightly. Intangible assets and inventories arising mainly from the company's acquisitions increased to amortization, after deducting the relevant deferred taxes. The company's profitability and target price were lowered to HK$4.45, and the company maintained a prudent increase rating: the company's transformation from an OPM model to a business model dominated by its own brands, and competitive advantages in multi-brand, multi-price, full-chain production, and global distribution. It is expected that in September 2018, the company will be included in the Dry Port Connect, which will attract more capital from the south. Furthermore, the company set up a wholly-owned subsidiary with a local distributor in Japan to build a comprehensive distribution network in Japan and establish a new dedicated team as a platform for all brands in Southeast Asia. This move will further expand target markets and expand channels in Southeast Asia, thereby increasing revenue. Risk warning: risk of impairment of goodwill, overseas market expansion falls short of expectations, acquisition integration results fall short of expectations, large exchange rate fluctuations, product safety incidents