Key points of the report describe the events of Daming City's 2016 semi-annual report. The main contents are as follows: During the reporting period, the company achieved operating income of 4.419 billion yuan, a sharp increase of 114.11% over the previous year, net profit of 350 million yuan, an increase of 168.37% over the previous year; a net profit margin of 7.93%, up 1.6 percentage points from the previous year, and an EPS of 0.17 yuan. Incident review projects were carried over centrally, and performance grew rapidly. During the reporting period, the company's operating income and net profit increased sharply by 114.11% and 168.37% respectively. The main reason is that projects such as Daming County in Shanghai, Famous City Port Zone 1 in Fuzhou, and Hejun in Fuzhou's Famous City Port Zone 6 entered the completion and carry-over period. At the same time, thanks to the acquisition of minority shareholders' shares, the company's performance increased dramatically. The real estate business will focus on first-tier cities in the future. The company's main sales projects are located in Fuzhou and Shanghai. In the future, it will also step up the project layout in first-tier cities and speed up the elimination of remaining projects in third-tier cities. We are optimistic about the long-term development of the company's real estate business. Benefiting from the favorable sales situation in the urban property market mentioned above, the company's real estate sales during the reporting period reached 5.9 billion yuan, an increase of nearly 130% over the previous year, and the company's recent performance is guaranteed. The level of debt was steady, and the fixed increase was successfully approved. At the end of the reporting period, the company's balance ratio was 74.52%, slightly lower than the industry average. The real debt ratio was 72.44%, and the debt level was generally stable; the monetary capital coverage ratio fell to 0.56, and short-term capital was under some pressure. On July 18, 2016, the company's non-public offering of shares was approved by the Securities Regulatory Commission. The fixed increase plan is to raise 4.8 billion yuan for the Lanzhou project, which will also help ease cash pressure and reduce the balance ratio. The three major businesses of the financial control platform go hand in hand. The company's financial control platform includes three major business segments, including securities investment, financial industry investment, and strategic investment. In the securities investment sector, the holding company Kangsheng Investment participated in the establishment of a fixed increase special fund with a total scale of 4 billion yuan. It mainly lays out sectors such as big health, advanced manufacturing, and new energy, and is gradually moving towards a large asset management platform. In the financial sector, the company participated in the establishment of Huanghe Financial Insurance as the second largest shareholder. The approval process by the Insurance Regulatory Commission is progressing smoothly, and it has invested 2.5 billion yuan to acquire Mid-Term Leasing. In terms of strategic investment, the company is currently the largest shareholder of Boxin Co., Ltd. It still has plans to increase its holdings in the future, and is promoting the listing of holding company Impaison on the new third board. Investment advice: The company's real estate business has entered a peak settlement period, and rapid growth in performance throughout the year can be expected. The 2016 and 2017 EPS are expected to be 0.32 and 0.39 yuan/share respectively, corresponding to the current stock price PE of 34.35 and 28.44 times, maintaining the “buy” rating. Risk warning: declining popularity of the property market, fluctuations in the securities market