Event: Company announcement 2016 semi-annual report. Revenue increased in the first half of 2016, resulting in a 9.36% decline in net profit. In the first half of 2016, the company completed revenue of 407 million yuan, an increase of 36.22% over the previous year; of these, the main real estate business revenue was 368 million yuan, accounting for 90.48%, an increase of 41.08% over the previous year; taxi service revenue was 20.49 million yuan, a decrease of 4.63% over the previous year. During the reporting period, the company achieved net profit attributable to shareholders of listed companies of 142 million yuan, a decrease of 9.36% over the same period last year. Gross margin remained high, and debt ratio remained low. As of the end of the reporting period, the company's gross margin was 73.76%, a slight increase of 1.89% over the same period last year. The company's net interest rate was 32.15%, a sharp decline of 17.91% from the same period last year. It was mainly affected by the increase in business tax and additional expenses. The company's balance ratio was 48.57%, up 8.67% year on year; interest-bearing debt ratio was 41.72%, up 9.44% year on year; balance ratio excluding accounts received in advance was 45.81%, up 7.07% year on year; net balance ratio was 20.77%, up 22.05% year on year. The company's cash in currency is 422 million yuan, and non-current liabilities maturing within one year are 424 million yuan, so there is no risk of short-term debt repayment. The majority shareholders promised to resolve competition in the industry by 2017, and the company has suspended trading or is involved in restructuring. Huaxin Real Estate, the majority shareholder of the company, promises: 1) Huaxin Real Estate and its subsidiaries will not participate in the bidding for any projects where listed companies participate in the bidding; 2) By December 31, 2017, related businesses and assets with peer competition will be gradually injected into the listed company in a market-based manner, making the listed company the only commercial real estate operation platform for Huaxin Real Estate's subsidiaries. Currently, the company's trading was suspended on August 25, 2016. Shanghai Yidian Group, which holds 100% of the shares in Huaxin Real Estate, the controlling shareholder of the company, announced that it is planning major matters related to the company, or involving major asset restructuring or non-public issuance of shares. Investment advice: The company is expected to become the first stock in the A-share smart park in the future, giving it an “increased holding” rating. The company's transformation focuses on smart industry community operators, and the project layout is in the Yangtze River Delta region. It is expected that there will be synergy with the smart industry community of major shareholders in the future. The majority shareholders promised to resolve competition in the industry by 2017, and there are strong expectations that their related business will be injected into listed companies. We expect the company's 2016 and 2017 EPS to be 0.31 and 0.38 yuan respectively, and the company's suspension price on August 25 is 11.93 yuan, corresponding to 2016 and 2017 PE of 38.48 times and 31.39 times, respectively. In 2016, the company was given 45XPE with a corresponding target price of 13.95 yuan, giving it an “increase in holdings” rating. Risk warning: The progress of the company's smart park project fell short of expectations, majority shareholders resolved competition in the industry, and asset injection fell short of expectations.