Event: On August 27, the company released its 2017 semi-annual report. During the reporting period, the company achieved operating income of 6.384 billion yuan, a year-on-year decrease of 4.84%; realized net profit attributable to shareholders of listed companies of 2,012,700 yuan, a year-on-year decrease of 87.56%; and basic earnings per share of 0.005 yuan, a year-on-year decrease of 87.50%. Key investment points: Accelerate production of high-efficiency batteries and turn losses into profits in the second quarter. In the first half of 2017, the company achieved revenue of 6.384 billion yuan, a year-on-year decrease of 4.84%; net profit attributable to shareholders of listed companies was 2,012,700 yuan, a year-on-year decrease of 87.56%. The company experienced short-term losses in the first quarter, and the company's high-efficiency battery production capacity accelerated in the second quarter. The company already had 900 MW of high-efficiency battery production capacity in Peixian County, Xuzhou; the share of overseas business and energy storage business increased, and profit levels increased, and net profit of 149.5166 million yuan was successfully turned into profit in the first half of 2017. Cash flow from the company's operating activities improved dramatically in the first half of this year, up 1,599 billion yuan from the same period last year, and inventories fell 36.85% from the same period last year, indicating that the company has entered a healthy development path. Accelerate the deployment of “black silic+PERC” production capacity and promote the “Xinyangguang” photovoltaic user system. The company actively lays out high-efficiency cells and components, reduces risk in the battery supply chain, and realizes upstream and downstream integration of the industrial chain. At present, the company has a high-efficiency battery production capacity of 900 MW, and is expected to reach 2,000 MW by the end of the year. The average production efficiency of the company's polycrystalline silicon high-efficiency black silicon PERC batteries based on diamond wire cutting can reach 20.4%. The company's black silicon PERC battery technology is the most advanced in China, has the largest production capacity, and has a high advantage in the industry. The company has stepped up research and development efforts, and the application of diamond wire cutting with black silicon polycrystalline battery technology, PERC high-efficiency battery technology, and tile stack module technology has further improved product performance, reduced costs, and increased the company's overall gross profit margin. Benefiting from the development of distributed photovoltaic power plants in the industry, the company actively promotes the “Xinyangguang” photovoltaic user system, provides customers with high-quality photovoltaic solutions, and becomes the leading user photovoltaic system in China. Vietnam's 600MW battery production capacity was put into production, accelerating the expansion of overseas markets. As of June 30, 2017, the company has established subsidiaries in Japan, India, North America, Australia, Singapore and Germany to actively expand overseas markets for cells and modules. During the reporting period, the company achieved overseas revenue of 923 million yuan, a year-on-year increase of 64.54%, accounting for 14.46% of total revenue. The company's 600MW battery production capacity in Vietnam was successfully put into operation, effectively avoiding the “double reverse” policy, which had a positive impact on the company's future increase in overseas market share. The company will accelerate the establishment of an overseas marketing system with the advantages of its own “GCL” brand. Keep profit forecasts and ratings unchanged: We keep our profit forecast unchanged. We expect the company's net profit from 17-19 to be 122 million yuan, 248 million yuan, and 473 million yuan respectively. Earnings per share are 0.02 yuan/share, 0.05 yuan/share, and 0.09 yuan/share, respectively. The current stock price corresponding to PE is 215 times, 86 times and 48 times PE, respectively. Maintain the “Overweight” rating.