Investment highlights: Event: The company announced that directors and executives increased their holdings in the company. Management increased their holdings in the company, demonstrating their confidence in the company. On May 11 and 12, 2017, the company announced that Huang Hui (chairman, actual controller), Xu Wenzhi (director, general manager), and Xu Yu (deputy general manager, director) would increase their holdings of the company by 1,219,900, 120,800, and 0.5 million shares respectively. The chairman plans to continue to increase his holdings of the company by at least 7811,000 shares within $9/share. This time, the company's core management increased its holdings of the company's shares, which on the one hand demonstrated the management's confidence in the company's future development prospects, and also reflected the management's attitude towards the current value of the company. Performance increased significantly in 2016, and the debt structure improved. In 2016, the company achieved operating income of 6.705 billion yuan, a significant increase of 1190.63% over the same period last year; realized net profit attributable to shareholders of listed companies was 705 million yuan, a significant increase of 574.07% over the same period last year. As of the end of the reporting period, the company's balance ratio was 52.23%, down 25.41 percentage points from the same period of the previous year; the interest-bearing balance ratio was 30.74%, down 3.41 percentage points from the same period last year; the balance ratio after excluding accounts received in advance was 43.81%, down 0.82 percentage points from the same period last year; and the net debt ratio was 49.26%, a sharp decrease of 91.63 percentage points from the same period last year, which is at a healthy level. The real estate business is developing steadily, building a green technology developer. The company achieved a sales area of 92,600 square meters in 2016, with a sales amount of about 2,519 billion yuan. The company currently has 11 major sales and construction projects, mainly located in the Shanghai region. The Hangzhou project was successfully obtained in January 2017. The company's 2017 work plan focuses on the Hebei Yanjiao project to ensure the full commencement of plot 15 of the Yanjiao project. Impression of acquisition, transformation of the cultural industry. The company completed the acquisition in May 2016 with an impression of 100% equity, taking a substantial step in the transformation culture. After acquiring Guan Impressions, 2 performance projects and 3 new contract projects were signed, and the business accelerated. The Ziyin project will be performed at the end of May, in line with the original performance plan. Investment advice. The company's real estate business is developing steadily, focusing on the Shanghai region enjoying the double dividends of rising land prices and housing prices, and the return of sales capital to provide ammunition for transformation; on the other hand, the impression of a successful acquisition is that the layout of the cultural industry has been settled, and new cultural tourism projects — “I remember Shaoshanchong the most”. The company binds Zhang Yimou to the creative team through equity. Once “Zhang Yimou IP” is successfully replicated through the Sanxiang Cultural Real Estate monetization model, future performance and valuation are highly flexible. We expect the company's EPS in 2017 and 2018 to be 0.61 yuan and 0.69 yuan respectively. As of May 12, the company closed at 7.37 yuan, corresponding to PE of 2017 and 2018 at 12.08 times and 10.68 times, giving the company 20 times PE in 2017, and the corresponding stock price of 12.20 yuan, giving the company a “buy” rating. Risk warning: The real estate industry is facing a decline in fundamentals; corporate transformation falls short of expectations.