Key investment points Currently, the company has established two core systems, namely the social public sports service system and the high-quality IP operation system. The three major IP layouts and industrial chains of soccer, basketball, ice and snow are built through various methods such as investment, mergers and acquisitions, self-construction, and cooperation; the construction of an urban public sports service platform and outdoor sports service system including a six-level stadium system is promoted through various models such as land acquisition and self-construction, leasing and transformation, and PPP. Driven by the integration of the “two core systems,” the sports industry ecosystem is gradually being formed. The sports characteristic town system is a new form of sports industry created by the company focusing on the mainstream consumption trend of “sports+leisure tourism” and using “one city, one place, one brand” as the overall development idea. Through cooperation with governments at all levels and outstanding market players, we have built a sports characteristic town integrating various core industries such as “high-end sports event venues, sports tourism service centers, sports club bases, sports brand distribution centers, and sports theme parks” through various models such as land purchase and self-construction, leasing and transformation, and PPP. The six-level stadium system is guided by the market-based demand for national fitness, and focuses on the six-level stadium system of national fitness centers, urban sports life plazas, urban sports living halls, urban single specialized stadiums, urban fitness clubs, and urban community sports convenience stores. The company plans to complete the system layout in economically developed economic regions and key cities across the country over a period of five years to form a public sports service platform for the Rhine Sports City. Profit expectations and investment ratings: The company has accumulated rich experience in commercial real estate development, and is also focused on the sports field. It is expected to organically combine IP value with commercial operations to create an open traffic entrance and a closed commercial chain. EPS for 17-19 is expected to be 0.17/0.36/0.47 times, respectively, maintaining the “gain” rating. Risk warning: IP development falls short of expectations, sports real estate projects fall short of expectations