Steady operation and continuous adjustment of the revenue structure: in the first half of 2020, the company's total revenue was 552 million yuan, down 15.4% year on year; gross margin increased 0.3 ppts to 28.8% year on year; net profit of 82 million yuan, down 6% year on year, and net profit margin increased 1.4 ppts to 14.8% year on year; basic profit per share of 9.9 points, proposed interim dividend of 3 Hong Kong cents per share; available capital of 1.67 yuan per share, operating and financial conditions remained steady. The card business is expected to gradually recover in the second half of the year: the revenue of the embedded software and secure payment products business in the first half of the year was 328 million yuan, down 30.5% year on year, accounting for 59.3% of total revenue. The gross profit margin was 23.6%, up 0.3 percentage points year on year. IP products accounted for 26% of bank card revenue, rising for three consecutive years. We believe that the decline in the company's business due to the epidemic is within expectations. As the domestic epidemic remains manageable, we expect financial institutions to resume their card issuing business in the second half of the year. Furthermore, the company also became the first supplier in the industry to pass the dual application dual algorithm product certification of American Express's joint venture clearing agency in China. It has introduced top production equipment in the industry, completed related process technology research, and is expected to receive incremental orders in the future. Platform and service business growth optimizes both revenue and profit: platform and service business revenue was 220 million yuan, up 23.8% year on year, the revenue share increased to 40.7%, and the gross profit margin was 36.4%, which remained stable. Among them, equipment sales revenue was 140 million yuan, a sharp increase of 182% over the previous year. The business continues to benefit from the increase in domestic demand for smart self-service card issuing equipment. Currently, demand for “contactless” services is increasing day by day. We believe that the company's business segment is expected to maintain high growth while benefiting from economies of scale, and the gross profit side of this business will continue to improve. Affected by the decline in the card business, the revenue of the data processing business in the first half of the year was 80 million yuan, down nearly 35% from the previous year. We expect the decline to narrow as the card business gradually recovers in the second half of the year. Adjust the target price to HK$2.24. Purchase rating: The company's operations in the first half of the year were pressured by the decline in the card business, but the optimization of the business structure continued. The innovative upgrading of the card business and the increase in the share of the platform service business are conducive to a steady increase on the profit side. Considering that the impact of the epidemic in the second half of the year is still uncertain, we adjusted the revenue forecast for card products and 2020 operating forecast to HK$169/176/182 million. The target price for the next 12 months was adjusted accordingly to HK$2.24, equivalent to HK$2.24 The price-earnings ratio of 9.4/9.0/8.7 times the predicted earnings per share for 2020-2022 maintains the buying rating.