The performance was in line with expectations. The first three quarters of 2020 achieved cumulative operating income of 5.202 billion yuan, a year-on-year increase of 0.25%; net profit attributable to shareholders of listed companies was 247 million yuan, a year-on-year decrease of 5.45%. The third quarter achieved operating income of 2,031 billion yuan, up 14.05% year on year; net profit attributable to shareholders of listed companies was 94 million yuan, up 16.47% year on year, and performance was in line with expectations. With strong support from China and Taiwan, ECCOM helped China Unicom upgrade its entire network efficiently. A nationwide equipment upgrade is a major project for any operator. Due to various factors such as a wide range of outlets, large influence, many equipment, different versions, difficulties in coordinating personnel in many locations, and uncontrollable on-site operations, there is a certain risk as to whether the changes will eventually be successful. ECCOM uses a service model combining front desk and middle office to give full play to the advantages of service delivery in the middle of business. Combined with the strong on-site delivery capabilities of front desk personnel, ECCOM controls the overall risk, progress and quality of the project, and helps Unicom Group achieve the implementation of a network-wide upgrade project. Another breakthrough has been achieved in the construction of “One Network Management” in Shanghai, and the country's first urban IoT operation center was officially opened. On October 21, 2020, the Shanghai “One Network Control” Urban Internet of Things Operation Center was officially opened, marking a new stage in the comprehensive digital transformation of Shanghai's urban operation management. The operation center focuses on building a shared, open and collaborative ecosystem, and brings together the government and society to coordinate the orderly construction and intelligent operation and maintenance of the city's IoT sensing infrastructure, providing real-time sensing data for urban vital signs, and promoting the integration of IoT data, public data, and social data, enriching the neuronal system of urban operation management, and better supporting “one network control” and empowering urban operation management. Telecom Softcom participated in the IoT Operation Center cooperation agreement. Build two major new businesses, Innovation and IDC, and promote the company's upgrading and transformation. The company seizes major opportunities in the industry's information technology innovation market and focuses on building complete IT innovation solutions for industries such as finance. At the same time, the company deepened its industrial layout and invested in the construction of a “cloud base” data center in Songjiang, Shanghai in 2020. The first phase of the data center plans 3,024 racks, mainly serving financial clouds, government clouds, and industry customer applications. The “cloud base” data center project has been included in the list of the first batch of new Internet data center projects supporting energy use in 2019. Industry-oriented information technology innovation solutions and data operation services will become the twin engines for the upgrading and development of the company's business. Investment suggestion: As a platform for scarce listed companies located in Shanghai under China Telecom, the company is expected to fully benefit from the Group's deepening reform process. In addition, it introduces major strategic shareholders to open up space for future collaborative development. The company's positioning is improving while facing huge opportunities. It is estimated that EPS in 2020-2021 will be 0.89 yuan and 0.94 yuan respectively, maintaining a buy-A rating. Risk warning: New business development falls short of expectations.