The decline in performance was affected by the performance of Guangfa Securities, and the main businesses were developed. In line with expectations, the company released its 2016 semi-annual report and achieved operating income of 665 million yuan, up 6.37% year on year; net profit was 468 million yuan, down 50.10% year on year; changes in revenue and net profit were in line with expectations. The company's revenue increased year-on-year, benefiting from the development of all major businesses. The main reason for the year-on-year decline in net profit was that investment income in GF Securities decreased by 42,0330,600 yuan year on year, down 51.09% year on year. Net cash flow from operating activities in the first half of the year was 606 million, achieving a slight year-on-year increase. The water sector is developing steadily, and undertakes PPP projects to fill the gaps in the company. The company is committed to becoming the country's leading integrated environmental service provider, with environmental water as its core business. The company's water supply business achieved revenue of 355 million yuan in the first half of the year, an increase of 5.23% over the previous year. Although there was a slight decline in water sales during the reporting period, there was an increase in water supply installation projects, which led to an overall increase in the water supply business. The sewage business achieved 45.35 million grants, a year-on-year decrease of 10.67%, mainly due to the value-added tax policy. In July, the company won the bid for the integrated PPP project of the sewage treatment plant network in Huangpu Town, Zhongshan City, with a bid amount of 263 million yuan. This is the company's first PPP project, which helps the company expand other sewage PPP projects in Zhongshan. The company will continue to carry out external engineering and maintenance projects in the field of water services. Progress has been made in agricultural trade and agricultural market business. The company's market management business in the first half of the year achieved revenue of 99.83 million yuan in the first half of the year, an increase of 15.16% over the previous year, mainly benefiting from: 1) the completion of the first phase of the agricultural products trading center and its full commissioning; 2) the impact of the “business reform and increase” policy. Agricultural trade and agricultural batch market business are also the company's key business. The second phase of construction of the agricultural products trading center project is under construction; the Huangpu Farmers' Market upgrade project has completed a public tender for “EPC+ operation”. In the second half of the year, the company will reform the management model of this business, shifting from “traditional rent collection” to a market business model of “actively cultivating business formats and developing with customers,” with a view to raising the level of profit. Other businesses have also developed 1) In terms of environmental protection, the company's waste incineration power generation business revenue in the first half of the year was 27.87 million yuan due to the acquisition of Tianyi Energy. 2) The company's passenger transport service business contributed 89.31 million in revenue, a slight increase of 2.4% over the previous year. 3) In February, through an auction, 100% of the shares in public works were obtained for 77.09 million yuan, and the target company had various qualifications such as general contracting for municipal engineering construction. The acquisition added to the company's engineering construction capabilities and enhanced the comprehensive nature of the company's comprehensive services. All main businesses of Zhongshan Public Utilities were developed, and the decline in performance in the first half of the year for the “increase in holdings” rating of the company was mainly due to a decrease in investment income from Guangfa Securities; however, the company actively developed its main business, made progress in various areas such as water supply, sewage, farmers' batch market business, waste incineration, passenger transport service business, etc., and through the acquisition of engineering capabilities, the company continued to move towards a comprehensive environmental service provider and reduced its dependence on investment income. At the same time, the company is also actively promoting an equity incentive mechanism to provide employee enthusiasm for work. We gave Zhongshan Public Corporation an “increase in holdings” rating. The estimated EPS for 2016-2018 is 0.68/0.75/0.84 yuan. Risk warning: There is a risk of performance fluctuations due to the large share of investment returns.