Gold Shipping's performance met expectations, and the new business helped the company's performance grow rapidly. The newly acquired wholly-owned subsidiary, Jinhaiyun, has completed and met performance expectations. Sea and air equipment products achieved operating revenue of 187 million yuan and a gross profit margin of 59.29%, and the increase in new business revenue was the main factor driving the sharp increase in profits. The natural gas business revenue increased sharply from last year, up 219.31% year on year, driving the company's performance growth. The traditional shipbuilding and offshore engineering business was affected by the general environment of the sluggish market, and revenue fell 33.68% year on year. The pace of civil-military integration is accelerating, and defense equipment is expected to continue to benefit. The company acquired Jinhaiyun to enter the field of marine life saving and special equipment, while also developing the military auxiliary ship market. The strategic layout of the military defense industry is beginning to bear fruit. China is currently comprehensively strengthening military construction, and sea and air defense equipment is ushering in a new round of development opportunities, and the company is expected to benefit from the rapid development of the industry. Set up a civil-military science and technology industrial park to build a large-scale defense equipment industry. The company plans to invest 15-20 billion dollars to establish the first civil-military integrated science and technology industrial park in China. It is expected to be completed within 3 to 5 years. It will cover the design, manufacture and service needs of the military's various defense equipment, form a large-scale industry, help the company enhance its defense equipment development capabilities and maintain core competitiveness in future military and civilian integration market competition. Actively explore new markets, and continue to advance the natural gas business. The current growth rate of the natural gas market has declined, but considering the needs of urban air pollution control and the transformation of China's industrial structure, demand for natural gas will continue to grow steadily in the future. The company is actively developing new businesses based on its existing business. It is already piloting LNG refueling in Shanghai, which is expected to have a positive impact on performance, and the company's clean energy business is expected to continue to develop rapidly. Profit forecasting and investment advice. We expect the company's 2016-2018 EPS to be 0.61/0.90/1.11 yuan, respectively. Considering that the company's new defense equipment business is benefiting from rapid growth in defense construction, the company was given a “buy” rating. Risk warning: Defense equipment orders fell short of expectations; the growth rate of the clean energy industry continued to decline.