Revenue increased by 12.02% in the first three quarters, and net profit increased by 27.35%. The company released its three-quarter report: the first three quarters of 2019 achieved operating income of 581 million yuan (12.02%), net profit of 1.17 yuan (27.35%), net profit of 1.17 yuan (27.35%), a year-on-year increase of 28.68% after deduction, which is in line with expectations. Among them, quarterly revenue for the third quarter was 213 million yuan (13.26%), and net profit was 49 million yuan, an increase of 22.5% over the previous year. Looking at a single quarter, the company achieved revenue of 155 million yuan, 213 million yuan, and 213 million yuan respectively in the first, second, and third quarters. The year-on-year growth rates were 11.07%, 11.88%, and 12.85%, respectively. The revenue side growth rate showed a trend of increasing quarter by quarter. The company is the leader in electrical appliance testing in the country. The company has been in the performance release period in recent years. The company is the only independent third-party testing agency in China that can simultaneously carry out high and low voltage electrical appliance testing services. The testing qualifications are complete, and the testing capabilities are in a leading position in the industry. In previous years, with the rapid growth of the company's fixed assets, the share of depreciation in operating costs gradually increased, from 38.6% in 2011 to 66.1% in 2018. According to the construction plans and actual progress of the various projects under construction of the company, the company expects that most of the current project construction will be completed within 2020, and the company's depreciation expenses are expected to reach the highest value in 2021. After 2021, the company's depreciation expenses will show a trend of decreasing year by year as the depreciation period for some fixed assets ends. We believe that as the company strengthens internal assessment management, gradually develops business in non-East China regions, and the overall utilization rate gradually rises, starting in 2019, the scissor gap between the company's revenue growth rate and depreciation growth rate will be reduced or even corrected, the company will enter a stage where profit growth is faster than revenue growth, and performance is expected to be released. Maintain the “Highly Recommended” rating company as the country's leading electrical appliance testing company and invest heavily in additional laboratories. As the projects under construction gradually improve and the company's production capacity utilization rate increases, it is expected that it will usher in a period of performance release. We expect the company's net profit in 2019-2021 to be 1.68 million yuan, 2.17 million yuan, and 284 million yuan respectively, maintaining the “highly recommended” rating. Risk warning: Testing business expansion falls short of expectations