Event: The company released the 2014 Semi-Annual Report. From January to June 2014, the company achieved sales revenue of 101.0495 million yuan, a decrease of 26.54% compared with the same period of the previous year; net profit attributable to owners of the parent company was 310.65 million yuan, a decrease of 29.55% compared with the same period of the previous year; and EPS per share was 0.28 yuan. Lower than our previous expectations. Comment: Revenue from the main business declined slightly, and the integrated circuit chip business declined sharply. From January to June 2014, the company's main business revenue was 95.457 million yuan, down 2.03% from the same period last year; of these, the integrated circuit chip business sold 3.9 million yuan, a year-on-year decrease of 82.6%. The installation period for the loss reduction project was extended for two years. As of June 30, 2014, the company's loss reduction project had completed the installation of 120,000 electricity meters in more than 150 Taiwan districts. The Ghana National Electric Power Company (ECG) acknowledged that it had delayed the progress of the project due to difficult drawings, so the installation period of the project was extended for another two years, that is, the installation period for the loss reduction project stipulated in the contract was extended until the first quarter of 2016. ECG's official confirmation letter confirms that the extension of the project safety period does not affect the ten-year contract period; it is recommended that all existing maps in the project area be updated and verified to help facilitate the smooth implementation of the project; at the same time, the ECG project team will do its best to assist the company in arranging the later installation work. The development of new chip products is progressing smoothly. The company has completed research and development tasks for single-phase smart meter SoC chips, three-phase smart meter SoC chips, micropower wireless chips and solutions, interface chips with built-in lightning protection, and PL3300 high-performance power line carrier communication chips. Among them, the interface chip with built-in lightning protection and the PL3300 high-performance power line carrier communication chip have entered mass production. Profit forecasting and investment ratings. We predict that the net profit of Fuxing Xiaocheng's shareholders from 2014 to 2016 will be 107 million yuan, 152 million yuan, and 201 million yuan respectively, with corresponding earnings per share of 0.98 yuan, 1.38 yuan, and 1.84 yuan respectively. We maintain the company's “gain” rating. risk factors. The construction progress of the company's power grid renovation project in Ghana fell short of expectations; Ghanaian sovereignty and single customer risks; the company's chip sales fell short of expectations; and Ghanaian photovoltaic industry policy risks.