The incident company released its 2020 three-quarter report. In the first three quarters, the company achieved operating income of 364 million yuan, an increase of 8.26% over the previous year, net profit of 59 million yuan, a decrease of 5.75% over the previous year, and net profit after deducting 39 million yuan from the previous year, a decrease of 26.48% over the previous year. Among them, in the third quarter, the company achieved operating income of 130 million yuan, a year-on-year increase of 14.22%, net profit of 23 million yuan, a year-on-year decrease of 15.71%, and net profit after deducting non-return mother of 18 million yuan, a year-on-year decrease of 21.67%. Briefly, the impact of the epidemic has gradually been eliminated, and the Q3 revenue growth rate continues to rise. On the revenue side, the company achieved revenue of 130 million yuan in the third quarter, an increase of 14.22% over the previous year. The growth rate was further increased from -2.94% in the first quarter and 12.74% in the second quarter, reflecting the gradual elimination of the impact of the epidemic. Under the stimulus of the demand side, e-commerce SaaS business volume will continue to increase. The company's revenue growth rate is expected to continue to rise in the fourth quarter. In terms of period expenses, the company's sales expenses, management expenses, and R&D expenses for the third quarter increased by 39.09%, 14.52%, and 27.46%, respectively. The management expense ratio was basically the same as the same period last year. However, due to the expansion of Kuaimai's sales team and SaaS R&D team, the company's sales expenses rate and R&D expense ratio for the third quarter increased by 3.70 pct and 2.24 pct respectively compared to the same period last year. To a certain extent, the profit side's performance was weaker than the revenue side. The company's net profit for the third quarter fell 15.71% year on year. Equity incentives bind the company's core talents and reinforce expectations for revenue growth. In September, the company announced a restricted stock incentive plan. It plans to grant the company's core executives and technical personnel a limited number of 1,912,500 shares, accounting for 0.48% of the company's total share capital. Among them, the performance assessment target for 2020 is a 10%-15% year-on-year increase in revenue or gross margin, and an 18%-30% year-on-year increase in revenue or gross margin in 2021. The introduction of equity incentives is not only conducive to improving the company's long-term incentive mechanism to attract and retain outstanding talents, but also to guide the market's expectations for the company's revenue growth. Investment advice: Guangyun Technology relies on the Alibaba platform and is a leading e-commerce SaaS company in China. The e-commerce SaaS circuit has moved from the initial stage of explosive growth to a stage of steady growth. In the future, as small and micro businesses grow, the e-commerce SaaS market size will continue to increase steadily. There are two areas for future growth of Guangyun Technology. One is the continuous improvement of the product matrix. The company has successively launched products such as super store managers, express delivery assistants, high-store transactions, and super express trains. It has also developed products such as Kuaimai ERP and Kuaimai Design for large e-commerce merchants, and the ARPU value has steadily increased. On the other hand, the company accelerated its cross-platform strategy, and revenue from platforms such as Pinduoduo and JD gradually increased. As the epidemic stabilizes, small and medium-sized e-commerce businesses further resume work and resume production, e-commerce SaaS business volume is expected to continue to increase, and the company's revenue growth rate is expected to continue to rise in the fourth quarter. Risk warning: Kuaimai's ERP product sales fell short of expectations, the diversion of new marketing methods to traditional e-commerce channels, and the impact of the economic downturn on consumption.