Shunfa Hengye released its 2015 annual report, achieving operating income of 3.47 billion yuan, a year-on-year decrease of 29.2%, and net profit attributable to the parent company of 330 million yuan, a year-on-year decrease of 44.1%. It plans to distribute a cash dividend of 3.8 million yuan for every 10 shares to transfer 3.8 shares to 1 share. Sales reached a record high: 15 years was not a centralized carry-over cycle for the company, and profit margins declined due to the carry-over project structure, so the decline in net profit was greater than revenue. Looking ahead to 2016, the company can carry over plenty of resources. At the same time, the US projects invested in the company in 2015 do not rule out the possibility of achieving investment income in 2016. We believe that the company's performance in 2016 is more flexible and will improve compared to 2015. In 2015, the company's sales contract amount was 5.23 billion yuan, a record high. The company's inventory+new goods value is expected to exceed 10 billion yuan in 2016, and it is expected that sales will continue to grow steadily throughout the year compared to 2015. Cooperation consolidated the home ground and a year of capital improvement: In 2015, the company once again stepped up its land acquisition efforts in the Xiaoshan region, achieved joint development with brand developers such as Vanke, Xuhui, and Longhu, adding a total of 119,000 square meters of equity construction area. On the financial side, the company's net debt ratio has fallen back to a low level in the industry. 1.2 billion medium-term notes and 1.2 billion corporate bonds have all been approved. At the same time, equity refinancing has also been approved by the Securities Regulatory Commission, laying the financial foundation for future international expansion and possible new business models. Embrace “Concentration City” and actively “go global”: The company's future development ideas are gradually being clarified: 1. Actively participate in the construction of Chuneng City, the majority shareholder. In the next 10 years, Wanxiang Group will invest 200 billion dollars to build a Wanxiang Innovation Concentration City, which will include industries such as new energy components, batteries, buses, and passenger cars. As the core real estate platform under Wanxiang Group, the company will play a central role in the development, construction and future operation of the city; 2. Actively promote cooperation on US real estate business platforms. Wanxiang America has extensive experience investing in the US. Through cooperation with the US platform, which is the majority shareholder, the company will help increase investment in overseas real estate, which is expected to form new growth points and link domestic and foreign markets. Profit forecast and investment rating: We expect the company's EPS for 16-17 to be 0.32 and 1.03 yuan respectively, maintaining the “increase in holdings” rating.