Event: Company announcement 2016 annual report. Net profit attributable to the parent company increased by 24% in 2016. In 2016, the company completed operating income of 10.485 billion yuan, an increase of 30.59% over the previous year; net profit attributable to owners of listed companies was 581 million yuan, achieving earnings per share of 0.61 yuan, an increase of 23.93% over the previous year. The company's main business was changed, and low-margin businesses related to metals were removed. <公司章程>On October 19, 2016, the board of directors of the company deliberated and passed the “Proposal on Changing the Scope of Business and Amendments”. According to the latest announcement, the company removed the old metals and related low-profit businesses. This change will further strengthen the company's determination to transform. The company announced an equity incentive plan, and executive incentives were further put in place. The company announced its equity incentive plan on November 17, 2016. The incentive form adopted in this incentive plan is restricted stock. The source of the stock is the company's targeted issuance of the Company's A shares of common stock to incentive targets. The number of restricted shares to be granted under this incentive plan is 23.9 million shares, accounting for 2.52% of the total share capital for the year. The company's real estate business continues to grow. The company benefited from the popularity of various projects such as Fuxing Huafu, Donghu City, and Waterfront International, and the overall sales performance was excellent. Achieved sales of 11.3 billion dollars in 2016. Better sales performance will further strengthen the company's future settlement performance. The company is actively seeking business transformation. The company announced in October 2015 that it intends to jointly invest with its affiliate Wuhan Xinghui Investment Management Center (Limited Partnership) to establish a subsidiary, Fuxing Smart Home Property Service Co., Ltd., of which the company accounts for 51% and Xinghui Investment accounts for 49%. Among them, Fuxing Smart Home's business scope is property management, with registered capital of 500 million yuan. Among them, Fuxing Co., Ltd. invested 255 million yuan with its own and self-raised capital, accounting for 51% of registered capital; and Xinghui Investment invested 245 million yuan, accounting for 49% of registered capital. The registered capital of 500 million yuan also made Fuxing Smart Home Company directly the property company with the largest registered capital. Investment advice: maintain a “buy” rating. The company's earnings per share for 2017 and 2018 are expected to be 0.85 and 1.05 yuan, respectively. As of March 23, the company closed at 13.30 yuan, corresponding to PE 15.64 times in 2017 and 12.67 times PE in 2018. The corresponding RNAV is expected to be 24.94 yuan. Considering the company's future growth, the company was given 23 times the PE in 2017, corresponding to the target price of 19.55 yuan, maintaining the “buy” rating. Risk warning. The recovery in industry fundamentals fell short of expectations.