Investment matters: The company disclosed its 2017 quarterly report: operating income was 203 million yuan, an increase of 16.71% over the previous year; net profit was 5.8717 million yuan, turning a loss into a profit, with a loss of 6.5063 million yuan in the same period last year. Expected operating performance for the first half of 2017: Net profit of 43 million yuan to 50.85 million yuan, a year-on-year increase of 172.19% to 221.89%. Report Summary: Endogenous and extrinsic extension work together to help increase revenue and performance. During the reporting period, the company's revenue performance all increased, with profit turning a loss into a profit. Mainly because the company's various businesses are progressing smoothly, and the revenue of each business has increased markedly. At the same time, the operating cost control is reasonable, and the growth rate is lower than the revenue growth rate; in terms of extension, Ruiyi's constant movement has increased the company's performance. Furthermore, the company received a VAT refund, which led to a certain increase in non-operating income. The cost control for the period is reasonable. The company's period expenses were 116 million yuan, an increase of 12.09% over the previous year, lower than the revenue growth rate, and the overall control of period expenses was reasonable. Among them, management expenses were 99.2451 million yuan, up 14.77% year on year; sales expenses were 84277 million yuan, up 12.88% year on year; and financial expenses - 461,000 yuan, down 2,2262 million yuan year on year, mainly due to the reduction in exchange losses on the company's euro loans during the reporting period. Convertible bonds have been approved, which strongly supports the layout in various fields. The company publicly issued convertible corporate bonds, raising no more than 780 million yuan in total capital. The project has been approved by the Securities Regulatory Commission. The capital will be used for five projects: “Jiuqi Government Research and Development Center Construction Project”, “Purchase 100% of Beijing Ruiyi Hengdong Technology Co., Ltd.”, “Next Generation Group Control Platform”, “Digital Marketing Operation Platform”, and “Government and Enterprise Big Data Platform” to further improve the company's strategic layout in various fields. Various businesses continue to improve, and the high growth rate of performance is expected to continue. The company disclosed its performance forecast for the first half of the year, with a year-on-year increase of more than 170%, further reflecting the strong development momentum of the company's various businesses. Combined with the increase in external performance, the high performance growth rate is expected to continue. Investment advice: The company expects EPS of 0.53/0.77/1.06 yuan in 2017/2018/2019, corresponding to PE33.71/23.13/16.70 times, giving it a “buy” rating. Risk warning: Internet business falls short of expectations.