Core view: The scale of performance has remained stable, and gross margin has declined. The commercial real estate securitization revenue in 2016 was 7.608 billion yuan, an increase of 2.14% over the previous year, and achieved net profit of 741 million yuan, an increase of 1.48% over the previous year and 0.32 yuan per share. The dividend plan distributes 1 yuan in cash dividends for every 10 shares, with a dividend ratio of 31.65%. Real estate business settlement gross margin fell 4.5 percentage points in 2016, with a significant drop in central China and North China. The company successfully issued 736 million yuan of REITs asset-backed securities, and the investment income contributed to the increase in profits in '16 and '17. The sales scale reached a record high, and the average price continued to decline. With careful performance reserves, the company signed a sales amount of 7.08 billion yuan in '16, an increase of 88.3% over the previous year, which provides a strong guarantee for performance growth in '17. The company's real estate project reserves are careful. Beijing, Changsha and Tianjin have 278,000 square meters of land to be developed, and the planned construction area is 1,080,000 square meters. The company acquired the Guangzhou Dayi Mountain Villa project, covering an area of about 152,000 square meters, and expanded its layout in the Pearl River Delta. The cost of allocating shares and issuing corporate bonds continued to drop. In 2016, the company issued 3.5 billion yuan of corporate bonds and raised 1.74 billion yuan of shares, further reducing financing costs. In 2016, the company's net debt ratio fell from 140.1% in 2015 to 92.5%. Good sales performance and stable land investment reduced the company's leverage level. The cost of comprehensive financing fell to 5.85% at the end of 2016, and the annual interest amount was 726 million yuan. The expected results for 17 and 18 were $0.33 and $0.35, respectively, maintaining a “buy” rating. The company's current real estate business still supports the release of the company's performance. The layout of Changsha and Xi'an has remained relatively stable, driven by market popularity in 2016. As one of the two listed companies under the Xicheng District State-owned Assets Administration Commission, resources in Beijing will also fully benefit from regional policies. The risk suggests that the company's sales performance is greatly affected by policies, and there is uncertainty about the progress of the project.