Specific events. OFILM's 2020 semi-annual report was officially released. We have interpreted the company's semi-annual report in detail and refined the core highlights of the financial report as follows: 1) Rapid growth was achieved in the first half of the year, and profitability continued to improve. In the first half of 2020, the company achieved revenue of 23.465 billion yuan, a year-on-year decrease of 0.53%, mainly due to the divestment of the Android touch business. Net profit was $502 million ($450 million to $550 million in the performance forecast), a significant increase of 2,290.28% over the previous year. The company's optical business continued to grow rapidly, orders from some major customers increased, shipments of high-end modules and optical lenses increased, and profitability continued to improve; benefiting from the increase in tablet sales to major customers, the company's touch control business structure continued to be optimized, raising the company's overall profit level. In 2020, the product structure was improved, and the proportion of high-end products increased. The company will focus on the field of optics in the future. 2) The company's main financial indicators have been improved, operating capacity has been improved, and cash flow has improved. The company's business cycle for the first half of 2020 fell 5.7 days compared to the same period last year. The company continued to strengthen inventory management. Inventory for the first half of 2020 was 7.195 billion yuan, accounting for 30.66% of total revenue, down 6.3 percentage points from 36.92% in the same period last year. At the same time, inventory turnover days were optimized, and operating capacity continued to improve. The first half of 2020 achieved a net operating cash inflow of 1,627 billion yuan, an increase of 21.6% over the previous year. Camera upgrades continue, extending further upstream in the industrial chain and expanding lens production capacity. The number of mobile phone cameras on the demand side has doubled, and supply side lenses have been continuously upgraded. High-end lenses take up more production capacity for lenses, reducing supply capacity in disguise. Ophie's current share of 6P is gradually increasing, and lens production capacity is expected to expand dramatically by the end of the year to cope with the gap between supply and demand. The company further developed the R&D and manufacturing of optical lenses, and continued to expand upstream in the industrial chain. The penetration of multiple cameras is accelerating, the camera business continues to advance, and the camera self-supply rate is gradually increasing. OFIL will fully benefit as a leading manufacturer. Along with the increase in profit margins of major customers this year, the continuous penetration of Android multiple cameras, periscope, TOF, etc., the product structure continued to improve, and the internal learning curve increased. At the same time, the company strengthened cost control and inventory management, improved operating efficiency, and further improved yield and profit margins. Profit forecasts and investment advice. The optical circuit continues to upgrade. As the penetration rate of three cameras and multiple cameras continues to increase, the product structure continues to upgrade, and the company's profitability gradually increases, we expect the company to achieve revenue of 525.71/598.42/75113 billion yuan in 2020E/2022/202E, an increase of 1.1%/13.8%/25.5% over the previous year; achieving net profit of 14.60/19.61/2,666 billion yuan, an increase of 186.4%/34.3%/35.9% over the previous year. The current stock price corresponds to PE37.6/28.0 /20.6x, maintaining the “buy” rating. Risk warning: The impact of the epidemic has intensified, downstream demand has fallen short of expectations, and trade disputes have intensified.