Investment highlights: Event: The company announced its report for the third quarter of 2016. Total assets declined sharply in the first three quarters, and net profit to mother turned a loss into a profit: 1) The real estate business gradually withdrew, and the debt ratio dropped sharply. As of the end of the reporting period, the company's gross margin was 11.05%, up 0.27 percentage points from the same period last year, and the net profit margin was 2.25%, up 3.97 percentage points from the same period last year. The company's balance ratio was 39.02%, down 21.73 percentage points year on year; interest-bearing debt ratio was 28.90%, down 19.84 percentage points year on year; balance ratio excluding advance accounts received was 35.05%, down 7.96 percentage points year on year; net balance ratio was 25.24%, down 11.54 percentage points year on year. 2) Revenue increased slightly, and net profit attributable to mother turned a loss into a profit. As of the first three quarters, the company achieved operating income of 1,873 billion yuan, an increase of 8.39% over the previous year, and operating costs of 1,666 billion yuan. Compared with the same period of the previous year, the company achieved operating profit of 75.34 million yuan, turning a loss into a win compared to last year; net profit attributable to owners of the parent company was 20.98 million yuan, a sharp increase of 146.90% over the previous year. l Join hands with Bill Holdings to deepen the field of ice and snow business. The company signed a “Cooperation Agreement” with Swiss EHC Biel Holding AG (EHC Biel Holding AG, hereinafter referred to as “Bill Company”) on September 29, 2016, and the two sides will carry out comprehensive in-depth cooperation in the field of equity and ice and snow business. The company plans to acquire part of Bill's shares in the future, rely on Zhejiang Rhine Ice and Snow Sports Development Co., Ltd. as a business development platform, and use the ice hockey program as an entry point to develop ice and snow program coach training and youth training services. The Huangshan International Outdoor Base was supported by the CDD Special Fund. Huangshan Huiyuan Cultural Industry Investment Co., Ltd., a wholly-owned subsidiary of the Huangshan Finance Bureau, increased the capital of the company's subsidiary Huangshan Rhine Sports Company by 60 million yuan at a low cost (1.2% annualized) from the CDB Special Development Fund. All of the funds from this capital increase will be used for the Huangshan International Outdoor Sports Base project in China. The project covers an area of about 307 acres, with a construction area of about 40,000 square meters. The rest is for outdoor sports facilities, with the goal of becoming a sports and cultural tourism base. Investment advice: Maintain a “buy” rating. The company's earnings per share in 2016 and 2017 are expected to be 0.18 yuan and 0.26 yuan, respectively. The company's suspension price on October 14 is 14.75 yuan per share, which corresponds to 81.94 times PE in 2016 and 56.73 times PE in 2017. The company is currently the company with the purest sports concept, continuous improvement of the business line layout, and the clearest strategic direction in the entire market. We are strongly optimistic about the company's medium- to long-term development trends, and are optimistic about the company's leading position in the sports industry. We gave it a valuation of 105 times 2016, that is, the target price is 18.9 yuan, maintaining a “buy” rating. Risk warning: There is a risk of uncertainty about the transformation of a company.