Core views: Equity acquisitions helped increase performance. In 2016, the company achieved operating income of 6.129 billion yuan, a year-on-year decrease of 17.2%; net profit of 322 million yuan, a year-on-year increase of 51.3%, and earnings per share of 0.22 yuan. Currently, the main business income and gross settlement margin have declined, while the reduction in the scale of taxes and fees, the reduction in asset impairment preparations, and the decline in the share of minority shareholders' equity are the reasons for the increase in net profit. In 2016, the company achieved a contract sales amount of 4.385 billion yuan, an increase of 9.4% over the previous year. Nanjing's Blue County and Beijing's northwest China are the main stock resources, with a total value of 28.7 billion yuan. The business transformation focusing on new energy+equity investment began in 2014. The company actively explores new business development directions on the basis of the original business. The current project expansion mainly revolves around new energy and financial equity projects. In 2016, Ruimin, Guancheng, Fujian, a subsidiary of the company, achieved sales volume of 864 kilowatt-hours. The PACK automatic production line, battery pilot R&D line, and battery cell production line are being stepped up and are expected to be fully put into operation within 2017. In the electrolyte business, as newly purchased production equipment is fully put into use, the scale of product production will be further expanded. The level of leverage declined, and the company's leverage level declined further in 2016. As of the end of the reporting period, interest-bearing debt was 4.57 billion yuan, cash in hand was 4,035 billion yuan, and the net debt ratio was only 6.9%. Furthermore, the company's average financing cost also declined. The comprehensive cost was only 5.1%, and the financing structure was greatly optimized. The EPS for 16-17 is expected to be 0.24 and 0.27 yuan respectively, maintaining the “buy” rating. The increase in the size of the company's profit for the full year of '16 was mainly due to a decline in the share of minority shareholders' equity. In terms of business development, the company sold some non-core transformation projects, consolidating the transformation direction centered on the new energy business. In '17, we focused on the company's orders for lithium batteries and the expansion of the electrolyte business. Risks suggest that real estate business sales are affected by the market, and there is some uncertainty about the progress of new business projects.