The third quarter maintained positive revenue growth, and profit loss increased. In the first three quarters of 2020, the company achieved revenue of 416 million yuan (+0.20%), net profit of -47 million yuan (-321.08%), net profit of -60 million yuan (-734.24%) after deduction of net profit of -60 million yuan (-734.24%). Looking at the third quarter alone, the company achieved revenue of 193 million yuan (+3.30%) in a single quarter, and net profit of 13 million yuan (-66.89%). The company mainly focuses on high-end safety products and enterprise-level markets. Affected by the epidemic, market demand has been delayed and reduced, which has affected the company's recovery speed. Gross margin has declined, R&D investment has continued to increase, and the company's overall gross margin has declined, mainly because the company has adopted a certain price competition strategy while also carrying out some safety integration business. On the cost side, the company's sales expenses increased by 3.58% year on year, management expenses decreased by 6.63%, and overall control was relatively good. Even though the current market environment is not good, the company has maintained a high level of R&D investment. R&D expenses in the first three quarters increased 13% year over year. Make up for shortcomings, stick to channels, and gradually develop positive changes. The company focuses on traditional border security products. With continued high R&D investment, it has formed a high technical barrier in the field of high-end firewalls. In terms of expanding the product line, the company is also actively deploying new product fields: in terms of cloud security, Shanshi Yun Ge is the only Chinese manufacturer selected for the Gartner CWPP Global Market Guide; in the hot XDR field, Yamaishi Zhi Gan became the only manufacturer in China selected for Gartner's “NDR Global Market Guide” for two consecutive years. The continuous enrichment of the product matrix will gradually make up for the company's weaknesses in large project-level markets such as solutions. Combined with the company's newly launched safety service business, the overall safety capability framework has been improved. Judging from the company's highly standardized products and pan-enterprise customer characteristics, channels are the key for the company to break through growth bottlenecks. The company has always adhered to the channelization strategy and also held an online channel conference in July to continuously empower and improve the channel's ability to produce orders independently. Risk warning: Policies such as Waiting Insurance 2.0 fell short of expectations; industry competition intensified; and the impact of the epidemic worsened. Investment advice: maintain a “buy” rating. As the company is still recovering, the profit forecast was lowered. It is predicted that the net profit of the mother in 2020-2022 will be lowered from 122/1.59/207 million yuan to 1.03/1.27/161 million yuan, with an annual growth rate of 13%/23%/27% respectively, and diluted EPS = 0.57/0.70/0.89 yuan. Maintain a “buy” rating.