Key investment event 1: The company issued an announcement to establish Power Source India Co., Ltd. in India with a registered capital of 1 million US dollars. The purpose is to meet the needs of the company's overseas business development, further expand the markets of India and neighboring countries, respond quickly to the technical service and after-sales service needs of local enterprises, and achieve rapid product delivery. Event 2: The company issued an announcement and formulated a medium- to long-term incentive plan for core personnel to meet the needs of the company's strategic development and business line (division) organizational system change, further establish and improve the company's medium- and long-term incentive mechanism, attract and retain outstanding talents, stimulate the sense of ownership, enthusiasm and creativity of the company's directors, middle and senior management personnel and core technical (business) personnel, build a core team, and promote the sustainable development of the company. The Indian business developed smoothly, and the company received overseas growth points: the company's overseas sales revenue in the first half of 2016 reached 608.04 million yuan, a year-on-year growth rate of 32.33%, which is 10 percentage points higher than the domestic market growth rate. While the domestic market is facing growth pressure, the smooth development of overseas markets has injected new impetus into the company's development. A significant portion of the company's overseas sales occur in India and neighboring countries, and its main products include. Various products such as module power supplies, energy storage products, electric vehicle accessories, etc. The establishment of an Indian subsidiary by the company will accelerate the development of the company's overseas business by considering various aspects of local policy support, taxation, corporate transaction processing efficiency, and ease of business development. We remain optimistic about the company's competitiveness in the Indian market. We also acknowledge the company's efficiency in quickly completing the establishment of subsidiaries, and are optimistic that the company's overseas business will maintain a higher growth rate than the domestic one. Multi-level incentive mechanisms collaborate to create a powerful corporate core: The company completed the equity incentive plan in 2015 and granted 15 million restricted shares to the company's management and core team. The incentive plan unlocks the performance assessment requirements. Based on the 2014 net profit, the company's net profit growth rate in 2016 and 2017 is not less than 60% or 100% after deducting the 2014 benchmark, and it is initially determined that the company's performance can achieve the target. The company continues to implement a medium- to long-term incentive plan. The main considerations are: 1. In order to continue to provide long-term incentives to the company's management and core team after the 2014-2017 original incentive plan cycle, further enhancing the company's core cohesion and work morale; 2. The incentive plan is implemented in the form of an incentive bonus package, which is directly related to the actual performance completion every year, and the incentive effect is good; 3. The incentive package is used uniformly to purchase stocks in the secondary market, forming good support for the company's stock price, and demonstrating the company's confidence. The allotment plan continues to advance, further expanding production capacity and increasing R&D investment: The company's allotment plan has been approved and plans to raise 800 million yuan in capital. After receiving capital, the company, on the one hand, continued to expand the production capacity and technical process level of the Anhui factory, and on the other hand, invested close to 300 million yuan to build a research and development center to maintain the company's technological advantages. Furthermore, the company's repayment of part of the bank loan will also strongly reduce financial expenses and enhance the company's profitability. Profit forecast and investment rating: The company's 2016-2018 EPS is expected to be 0.17 yuan, 0.21 yuan, and 0.26 yuan, corresponding to PE64/54/43X. We are optimistic about the company's development in overseas markets and the effects of multi-level incentive plans, and give it a “buy” rating. Risk warning: The development of the communication power supply industry falls short of expected risks, and overseas business development falls short of expected risks.