Key investment points In the first half of the year, the company achieved operating income of 926 million yuan, an increase of 33.04% over the previous year, net profit of 443 million yuan, an increase of 110.11% over the previous year, and realized net profit after deducting 269 million yuan from the mother, an increase of 10.08% over the previous year. Among them, 2020Q2 achieved revenue of 517 million yuan, an increase of 51.93% over the previous year, and realized net profit after deduction of 180 million yuan, an increase of 93.4% over the previous year. The company achieved a 33.04% increase in revenue in the first half of the year, mainly due to outstanding performance in the new overseas self-developed game market. Among them, “One Punch Man: The Strongest Man” had outstanding revenue performance. The product was launched in Hong Kong, Macao and Taiwan in January 2020 and continued to rank at the top of the App Store and Googleplay lists in Hong Kong, Macao and Taiwan; it was launched in Southeast Asia in June 2020, and ranked first in the Google Play download list and App Store download list in Singapore, Malaysia, Thailand, the Philippines and other countries. On August 5, 2020, the company's self-developed product “True Red Blade” was launched, which will contribute to the company's performance in the second half of the year. Meanwhile, key products such as “National Miracle 2,” “Tidal of Darkness,” and “Street Fighter: Showdown”, etc. are progressing steadily, and are expected to be launched one after another from the second half of 2020 to the first half of 2021, which will bring sufficient performance flexibility to the company. While improving its business capabilities, the company is also actively promoting the establishment and implementation of a long-term incentive system. On August 18, 2020, the company announced the second draft employee shareholding plan. The company plans to repurchase 106 million yuan of shares for the employee stock ownership plan. The employee transfer price is 3.80 yuan/share. Profit forecast and investment rating: The company's subsequent key products are poised to launch. As products are launched one after another, they will bring significant performance growth to the company. We expect to achieve operating income of 25.99/33.57/3.851 billion yuan in 2020-2022, net profit of 6.29/12.95/1,545 billion yuan, and EPS of 0.23/0.47/0.56 yuan, corresponding to the current PE 36.65/17.80/14.92 times, maintaining the “buy” rating. Risk warning: risk of product launch delay; risk of stricter industry policy regulation; systemic risk