Event: The company released its report for the first half of 2020. On August 26, the company released its annual report for the first half of 2020. 2020H1 achieved operating income of 926 million yuan, an increase of 33.04% over the previous year, and realized net profit attributable to common shareholders of listed companies of 443 million yuan, an increase of 110.11% over the previous year. “One Punch Man” led by the company's excellent game product performance in the first half of the year. The main reason for the company's rapid revenue growth in the first half of 2020 in the first half of 2020 was the excellent performance of the new overseas self-developed game market. In particular, “One Punch Man: The Strongest Man” had a good revenue contribution. The product was launched in January 2020 in Hong Kong, Macao and Taiwan, Southeast Asia in June, and topped the download list for both AppStores and Google Play platforms in Singapore and other countries. The company's self-developed product “True Red Blade” was launched in August. The week before launch, it basically maintained the top ten rankings in the App Store role-playing game list. Currently, the company operates 23 games online. The highest number of users of 2020H1's domestic products exceeds 4 million, and the highest quarterly ARPU value is 1,200 yuan. The company increased investment in R&D, and Xinyou received high praise. The company continued to increase R&D investment. 2020H1 R&D investment reached 183 million yuan, an increase of 15.71% over the previous year. The company's current reserve projects, such as “National Miracle 2,” “Tide of Darkness,” “Roland's Genesis,” “Hypnos,” “Street Fighter: Showdown,” and “Those Needing Protection,” etc. are progressing steadily. Among them, “Those in Need of Protection” TapTap's 9.2 rating is currently as high as 9.2, and the number of pre-orders is close to 30,000. Currently, it has passed two rounds of testing and has received a version number; “Hypnos Hypnos” has a TapTap rating of 8.7 and the number of reservations is 39472. The company actively buys back shares, demonstrating confidence in the future. In February 2019, the company implemented the first repurchase plan; in June 2020, the company launched a second repurchase plan. The repurchase price does not exceed RMB 8.61 per share, and all of the repurchased shares will be used to implement employee stock ownership plans or equity incentives. We are optimistic about the company's future product line and overseas revenue, and maintain the “Highly Recommended” rating. The company's future product line has a wide range of categories, “National Miracle” IP audience, and overseas revenue is growing rapidly. We expect the company's net profit from 2020 to 2022 to be 651 million, 1,024 million, and 1,284 million respectively; EPS is 0.24, 0.37, and 0.47 respectively; corresponding PE is 33, 21, and 17, respectively. Maintain a “Highly Recommended” rating. Risk warning: The progress and quality of the launch of new games falls short of expectations, the life cycle of existing games is exhausted, and policy risks.