Business performance is in line with expectations. The company achieved revenue of 8.849 billion yuan in 2019, up 4.47% year on year; net profit of 584 million yuan, down 27.62% year on year; deducted non-net profit of 487 million yuan, up 2.72% year on year. Q1 2020 achieved revenue of 1,727 billion yuan, up 5.43% year on year; net profit of 158 million yuan, up 2.38% year on year; deducted non-net profit of 147 million yuan, down 5.03% year on year. The main reason for the decline in 2019 results was that the performance of some of the acquired subsidiaries did not meet expectations, and the company accrued impairment losses of 165 million yuan in goodwill. All business lines are progressing steadily. By business line, 1) Health industry: achieved revenue of 1,381 billion yuan in 2019, an increase of 25.4% over the previous year. 2) Financial industry: Achieved revenue of 4.322 billion yuan in 2019, an increase of 0.57% over the previous year. 3) Energy industry: achieved revenue of 1 billion yuan in 2019, an increase of 6.03% over the previous year. 4) Government sector: achieved revenue of 700 million yuan in 2019, an increase of 16.73% over the previous year. 4) Internet industry: achieved revenue of 314 million yuan in 2019, an increase of 3.88% over the previous year. 5) Communications industry: Achieved revenue of 573 million yuan in 2019, an increase of 2.31% over the previous year. Join hands with Huawei to build a “Pengxiao” server. At the beginning of 2020, the company and Huawei jointly launched the first batch of “Pengxiao” servers based on Kunpeng processors. Currently, contracts have been signed with Ningbo and Qingdao to invest in the construction of “Pengxiao” bases in the two places, expand server production and development of supporting software, and promote large-scale commercial application of “Pengxiao” servers. As a strategic ISV partner of Huawei, the company will continue to promote close cooperation with Huawei in the future, actively participate in the construction of the Kunpeng industrial ecosystem, and accelerate innovation and breakthroughs in domestic Xinchuang products. Investment advice: The company has two major industry giants, Huawei and Tencent, working together, and the business cooperation is expected to continue to deepen. We are optimistic about the company's future development prospects. EPS is expected to be 0.4 and 0.51 yuan in 2020 and 2021, maintaining a buy-A rating, and a target price of 15 yuan for 6 months. Risk warning: risk of impairment of goodwill; progress in innovation falls short of expectations; progress in cooperation with Huawei falls short of expectations.