Gross margin has been rising steadily. 2020Q3 achieved revenue of 743 million yuan, a year-on-year decrease of 9.12%, net profit of 109 million yuan, a year-on-year increase of 109.18%, net profit of 103 million yuan, a year-on-year increase of 128.19%, and net operating cash flow of -65 million yuan, a year-on-year decrease of 246.15%. The first three quarters achieved revenue of 1,955 million yuan, a year-on-year decline of 4.89%, net profit of 266 million yuan, a year-on-year increase of 60.02%, a year-on-year increase of 60.02%, net non-net profit of 252 million yuan, a year-on-year increase of 64.14%, and net operating cash flow of 30 million yuan, an increase of 107.24% over the previous year. The overall gross margin of 2020Q3 was 43.10%, an increase of 20.24pct over the previous year. We believe that the main reason is the increase in the share of smart city revenue; at the same time, the company's own brand of software and hardware products has been continuously increased in the project, reducing costs, and the overall gross profit level of the project has continued to rise. Core technology drives growth and opens up a new global smart city circuit. Focusing on smart technology, the company has carried out extensive basic research in eight directions, including sensor/sensors, AI/artificial intelligence, IOT/IoT, processor/processor, cloud/cloud, bigdata/big data, SS/system software, and AS/application software. Through integrated applications between technologies, it has formed three core technology systems based on AIOT (fully intelligent IoT sensing platform), NGII (next-generation information infrastructure), and PAIS (integrated governance as service platform). The company passed the global software capability maturity CMMI5 top certification, and was included in the artificial intelligence AI50 sample stock index by Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. At the same time, the company also carried out mutual certification of technology and products with credit and innovation alliances such as Huawei, Longxin, and Tongxin, and established a “autonomous, controllable, and domestically replaced” smart city entire industry chain system. Increased development consolidates its position in the industry and increases core technology. The company announced a fixed increase plan in February 2020, and plans to raise no more than 2 billion yuan, respectively for “autonomous controllable magnetooptoelectronic storage technology research and development and industrialization projects for cloud computing and big data (700 million yuan)”, “autonomous controllable cluster embedded artificial intelligence image analysis system development and industrialization project (250 million yuan)”, “Hezhang County Smart Hezhang PPP construction project (600 million yuan)”, and “supplementary liquidity (450 million yuan)”. The pricing benchmark date is the first day of the issuance period for this non-public offering. The company's additional issuance was approved on July 15, 2020. China Unicom's mixed reform is progressing steadily, and business collaboration has boosted the rapid growth of the company's performance. The company is currently participating in China Unicom's mixed reform projects in Yunnan and Guangxi provinces. Currently, the Yunnan Unicom mixed reform project has been implemented in stages, and repayment has begun in accordance with the schedule agreed in the contract. Currently, social cooperation operations between Guigang and Wuzhou in Guangxi Unicom's four mixed reform cities are starting, and other regions will make steady progress in the future. Jiang Li's forecast and investment advice. In the “smart China” field, the company is one of the few smart China comprehensive solution providers and operation service providers in the industry with experience in the construction and operation of single 1 billion yuan projects. We predict that the company's operating income in 2020-2022 will be 2,77131.67/3.759 billion yuan, net profit of the mother will be 4.04/5.21/658 million yuan, and the corresponding EPS will be 0.58/0.75/0.95 yuan respectively. Currently, the company's valuation is at a low level in the computer sector, giving a dynamic PE of 25-30 times in 2020, and a reasonable value range of 14.5 yuan to 17.4 yuan, covering the “Youzi Market” rating risk alert for the first time: industry informatization demand is slowing, bad accounts receivable, etc.