In the first half of the year, the company achieved revenue of 2,408 billion yuan, a year-on-year increase of 278.34%; net profit of 180 million yuan, an increase of 258.40% over the previous year; and non-net profit of 156 million yuan, an increase of 230.19% over the previous year. Integrated development through strengthened communication has led to significant growth in orders and revenue. In 2017, the public company disclosed four large orders totaling 1,923 billion yuan, and obtained a total of more than 2 billion yuan in orders for the whole year. Since 2018, the company has disclosed more than 2.5 billion yuan in new orders. In 2017, revenue from integrated communication was confirmed at 560 million yuan, revenue was confirmed in the first half of 2018, and revenue of 1.62 billion yuan was confirmed, which can be expected to exceed 3 billion yuan for the whole year. The gross margin of integrated communication declined slightly, from 13.83% in 2017 to 10.73%, mainly due to the cheap order structure, and there is limited room for gross margin to decline. Beidou has a comprehensive layout of application fields and strengthened research and development of core technologies. The company provides Beidou high-precision products and space-time information application solutions to the industry market, and has been widely used in the fields of surveying and mapping, precision agriculture, mechanical control, robotics, drones, driving tests, etc. In the first half of the year, high-precision business revenue was 440 million yuan, an increase of 62.18% over the previous year. Among them, high-precision boards and antennas increased 229.43%, measurement products increased 61.67%, and precision agriculture grew 43.56%. Revenue from the mobile internet business and spatial information business declined slightly in the first half of the year. In terms of research and development, a series of products and application systems such as next-generation surveying and mapping products, agricultural machinery autonomous driving systems, continuous compaction control systems, and UA32 high-precision antennas were launched in the first half of the year. Company managers plan to increase their holdings by no less than 200 million yuan. In June 2018, the company disclosed plans for senior management to increase their holdings by no less than RMB 200 million through the shareholding platform within 6 months. The entities that increased their holdings included a director, board secretary, financial director, and 5 business leaders. Going back to August 2017, company executives increased their holdings by 8.2 million shares through trust plans, amounting to 120 million yuan. At that time, the average price increased their holdings was 14.64 yuan/share. Profit forecast: The net profit of the mother in 2018-2020 is expected to be 4.01, 6.02, 756 million yuan, and EPS 0.54, 0.81, and 1.02 yuan/share, corresponding to the current stock price of PE 30.02, 20.02, and 15.93 times, giving it an “increase in holdings” rating. Risk warning: Applications in the Beidou industry fell short of expectations, and new orders for integrated communication fell short of expectations.