Performance grew rapidly, with smart street lights for lighting engineering bringing in high-revenue revenue of 715 million yuan, up 35.76% year on year; achieving operating profit of 115 million yuan, up 35.33% year on year; total profit of 115 million yuan, up 34.38% year on year; net profit to mother of 93.454 million yuan, up 32.47% year on year; deducting non-net profit of 91.736 million yuan, up 47.28% year on year. The high increase in performance was mainly due to increased revenue from lighting projects and smart street lights. Large-scale commercialization of 5G is imminent, and smart street lights open up long-term growth space. With policy support and accelerated construction by operators, large-scale 5G commercialization is imminent, the pace of smart city construction is expected to accelerate, and the country's investment in municipal infrastructure construction such as road lighting will continue to grow. Smart street lights integrate functions such as smart lighting, WIFI, video surveillance, information release, environmental monitoring, disaster warning, and charging piles, etc., and have become an important carrier for smart cities, and the national street lamp market of nearly 100 billion dollars has opened up a broad market space for them. Huati Technology is a scarce enterprise with a full industry chain layout in the industry. Revenue from smart street lights continues to rise. Joining hands with giants such as China Tower, Huawei, and Tencent, the company's performance is expected to continue to grow. The public issuance of 210 million convertible bonds was invested in the Chengdu Smart Greenway Project Company and Tencent to form a joint bid to win the bid for the Chengdu Huancheng Ecological Zone Ecological Restoration Comprehensive Ecological Restoration Project Smart Greenway Social Joint Venture Partner project. This is another milestone in the company's smart street light operation and has a strong demonstration effect. The total project is 884 million, divided into three projects: infrastructure construction costs of 272 million, basic platform software and application software of 283 million, and public cloud platform system services, network security system services, and big data platform system services of 319 million. Together with Tencent, the company is expected to replicate this model offsite. The total investment amount of this project is 395 million, of which 210 million convertible bonds were publicly issued to achieve project implementation as soon as possible. Investment advice: Optimistic about the development of the company's smart street lights and other businesses. Maintaining a “buy” rating will benefit from smart street lights in the 5G era. The company joined hands with Tencent and joined the Huawei eLTE ecosystem. We expect the company's net profit for 2020/2021 to be 198/273 million yuan, corresponding to PE of 24.6/18, respectively, maintaining a “buy” rating. Risk warning: Project progress falls short of expectations, national investment falls short of expectations, and 5G construction progress falls short of expectations.