incident. OFILM released its 2020 semi-annual report. In the first half of the year, the company achieved revenue of 23.465 billion yuan, a year-on-year decrease of 0.53%. The company's net profit attributable to shareholders of listed companies was 502 million yuan, a significant increase of 2290.28% over the previous year. The main optical industry is concentrated, and profits continue to improve. In the second quarter of 2020, the company's single-quarter revenue increased 5.93% year on year, and net profit was increased 30.12% year on year. In the first half of 2020, the company's revenue declined, mainly due to the independent development of the Android touch business. The company's net profit attributable to shareholders of listed companies increased sharply year-on-year, mainly because orders from some major customers increased in the first half of the year, the optical business continued to grow rapidly, and shipments of camera modules and optical lenses increased. At the same time, it benefited from increased tablet sales to major customers and the optimization of the touch business structure, and the company's overall profitability continued to improve. Orders from major international customers have increased, and the share of dual camera modules has increased. Benefiting from the increase in mobile phone product sales and further deepening cooperation with major international customers, the company's non-Android video module product sales revenue was 3.673 billion yuan, up 95.95% year on year; shipment volume was 55 million units, up 30.34% year on year; comprehensive gross margin was 10.94%, up 11.24 percentage points year on year; mainly due to increased orders from major international customers, increased capacity utilization and increased share of dual camera modules. There is a high growth in optical lenses for mobile phones. The company's optical lens products developed steadily, achieving revenue of 364 million yuan (including internal self-supplied camera modules), up 1.30% year on year; shipment volume was 91 million units, up 13.33% year on year; of these, mobile phone lens product revenue was 263 million yuan, up 34.85% year on year, and shipment volume was 89 million units, up 16.71% year on year; internal camera modules achieved revenue of 229 million yuan, up 77.39% year on year. The 3D sensing business is growing at a high rate. The company's 3D sensing business achieved rapid growth, with revenue of 1,763 million yuan, up 79.83% year on year; shipment volume of 44 million units, up 80.80% year on year; comprehensive gross margin was 12.23%, up 12.53 percentage points year on year; mainly due to increased orders from major international customers and increased penetration rate of 3D sensing products in the Android market. Profit forecasts and investment advice. We expect OFILM's EPS from 2020 to 2022 to be 0.60, 0.75, and 0.99 yuan, respectively. Based on the valuation situation of comparable companies, OFILM was given a 40-45 times PE valuation in 2020. The corresponding reasonable value range was 24.00-27.00 yuan, giving it a “superior to the market” rating. Risk warning. The impact of global macroeconomics on consumer electronics; the risk that 5G commercialization is slow; and the risk that the development of intelligent/assisted driving technology for cars will fall short of expectations.