Interim report brief: The company's total revenue in the 2015 interim report was 92.8877 million yuan, up 2.25% year on year, and total profit was 5.7049 million yuan, down 30.46% from the same period last year. Net profit attributable to shareholders of listed companies was 5.3823 million yuan, a decrease of 25.43% year on year, and basic earnings per share were 0.0427 yuan, a decrease of 58.58% year on year. Key investment points: The 3D printing cloud platform is beginning to take shape, and the advantages of the business model are prominent: as a leading manufacturer of laser application equipment in China, the company has entered the 3D printing field in the past two years, opened offline front door stores to cultivate users, and built an online innovative design 3D printing cloud platform through the 3D Italian manufacturing network. The number of users has now exceeded 300,000, and has obtained 50,000 sets of printing cases, and has achieved a certain advantage in the industry. Since the 3D platform is in the credit card phase, the total profit declined due to an increase in human and material costs. We believe that the accumulated advantages of the company's platform are expected to gradually become prominent in the second half of the year. At the same time, the company purchased 681,500 shares from the secondary market at an average price of 53.83 yuan/share through the “Xingzheng Asset Management Xinzhong No. 18 Pooled Asset Management Plan”. The employee stock ownership plan mobilizes employees' enthusiasm and also provides a margin of safety for the company's performance. Increase capital and expand application space: The company increased its capital by 20% of Flexible Innovation's shares with 130 million yuan in cash through the holding industrial fund. Smart Innovation is an animation toy company with independent IP and strong profitability. The product channel has sunk to almost all prefecture-level cities in China. Through exclusive strategic cooperation with the world's most professional 3D printing online service platform, i.materialise, on services such as excellent designers, logistics and distribution, real-time tracking, etc., it has improved the company's hardware+software+content+service operation capabilities, and narrowed the technical level gap with European intelligent manufacturing. Flexible Innovation's 2015, 2016 and 2017 performance promises to increase the company's net profit by about 2.26 million yuan, 3.96 million yuan and 5.09 million yuan. The capital increase has expanded the company's downstream application space market, and will be able to exert a better synergy effect with the company. National policies focus on support, and there is plenty of room for growth: Recently, Premier **** of the State Council presided over a special lecture by the State Council to discuss issues such as speeding up the development of advanced manufacturing and 3D printing. As an important element of intelligent manufacturing, 3D printing technology has broad room for growth. According to Wohler, the global 3D printing additive manufacturing market is expected to exceed 7 billion US dollars by 2016 and reach 12.5 billion US dollars in 2018. 3D printing technology is widely used in the industrial and medical fields. Due to the high price of machine materials and the time required for extensive clinical trials and certification, the rapid large-scale development of 3D technology in the high-end field has been limited to a certain extent, so currently it is mainly in the civilian consumer sector to achieve performance growth. The company enters from a civilian perspective, has accumulated rich application experience, has a good industry card position, and will have a great first-mover advantage with the help of industrial investment funds and government policy support. Rating the company for increasing its holdings: As an emerging industry, the 3D industry is in its infancy, and downstream applications have yet to be developed. It is estimated that in 2015-2017, the company will achieve operating income of 2.29, 2.77, and 336 million yuan, respectively, and net profit of 1,144, 1449, and 15.46 million yuan, and EPS of 0.091, 0.115, and 0.123 yuan, respectively. The current price corresponding to 2015-2017 PE is 361.27, 285.31, and 267.39 times, respectively. The company is committed to digital applications of laser and 3D printing, and uses platform advantages to gradually extend the industrial chain to provide comprehensive solutions for downstream industry applications. The growth model is excellent, giving the company an increased rating. Risk warning: Affected by the economic downturn, industry competition has intensified; the downstream business development of 3D laser printing is unfavorable.