Key investment matters: The company announced that the actual controller China Cinda and related party Cinda Capital signed the “Ningbo Baonengxin Investment Partnership (Limited Partnership) Partnership Agreement” in August 2015 to jointly initiate the establishment of a fund. The fund pledge scale was 2,801 billion yuan. At the same time, the company pledged 50 million yuan as a limited partner. The investment period of the fund shall not exceed 3 years, and it will invest in projects in the South District of Zhonglin Science and Technology Industrial Park in Shenzhen in the form of equity and debt. Ping An's view: The group collaborates to another city, and the financial real estate model is unique: this time, the company and the group followed up the investment to establish a merger and acquisition fund. This is another pioneering collaborative model following Guangdong's Jiayue debt-based acquisition to open up group collaboration. The purpose of this M&A fund is to carry out project mergers and acquisitions in the Shenzhen region. Cinda Real Estate will follow up investment and share profits, and will carry out supervision during the project development process. We expect that the company will also charge a certain amount of supervision fees to achieve an innovative financial real estate model in collaboration with the Group. China Cinda has a large amount of resources, and the company invests in asset-light gold blue seas: 60% of the non-financial business of the non-performing asset business in China Cinda's business involves real estate business. The investment and asset management business has also participated in large-scale asset package bidding such as Shanghai Bailian, which includes a wealth of real estate business opportunities, all of which have provided a large amount of resources for the development of Cinda Real Estate. At the same time, as the real estate industry enters a cycle of turbulence, there are a large number of financing and acquisition opportunities for small and medium-sized developers. Cinda Real Estate will collaborate by following up on investment, supervision, or agency construction to increase the company's intermediary business revenue while achieving asset-light expansion. The sales scale has reached another level, and is expected to reach 10 billion yuan in 2015: the company's land reserves have been gaining strength since 2013, and has now entered the harvest stage of sales, and is expected to achieve a sales amount of 10 billion yuan in 2015. At the same time, with financial support from Cinda Group, the company obtained Guangzhou and Hefei projects in the form of funds, once again focusing on core Tier 1 and 2 cities, while at the same time strengthening the company's resource advantages in the Pearl River Delta and helping its future sales scale rise to the next level. Upgrading the rating to “highly recommended”, optimistic about the company's unique development model: at a time when the profit growth rate of traditional real estate development companies is declining, the operating difficulties of small and medium-sized enterprises provide a large amount of business for Cinda Group, which is good at handling non-performing assets, and also provides the company with opportunities for collaboration. Since the company does not need to invest capital in the collaboration, it is expected that asset-light expansion will be achieved. The implementation of the Shenzhen project indicates that the company's collaboration accelerates, and the upward rating has gone from “recommendation” to “highly recommended.” It is estimated that the company's EPS in 2015 and 2016 will be 0.59 and 0.70 yuan, and the corresponding PE will be 12.2 and 10.3 times. Risk warning: The collaborative process is slower than expected.