Key investment events: The company announced that it signed a “Strategic Cooperation Framework Agreement on Investing in Cultural Tourism Related Fields” with Shanghai Yunfeng New Investment Center (Limited Partnership) and IDG Capital Investment Consultants (Beijing) Co., Ltd. to carry out comprehensive strategic cooperation in investment in cultural, tourism and related fields. The main contents of this strategic cooperation include: 1) the parties to the agreement should prioritize each other as business partners for investment projects in culture, tourism and related fields; 2) the parties to the agreement establish a joint project implementation team to clarify the project responsible representatives of each party to promote the implementation of the following tasks: investment and management of excellent tourism and performing arts projects; overall investment and operation of cultural tourism projects with scarce characteristics; joint integration of cultural tourism projects and tourism and entertainment projects, deep exploration of user resources, and enhancing customer service value. Relying on new technologies and formats such as the Internet, e-commerce, and big data, to enhance customer service value. Cooperation in tourism; 3) Explore and initiate the establishment of a special fund to jointly invest in the development and construction of cultural tourism projects. This cooperation agreement lasts for 3 years, and the strategic cooperation period expires. If the parties to the agreement do not raise objections, the entry into force can be automatically extended for 3 years. Comment: The strategic cooperation agreement further deepens tripartite cooperation to help the company transform cultural tourism. Yu Feng, the appointed representative of Yunfeng Xinchuang's executive affairs partner, is the actual controller of Impression Creative Inc., the shareholder of the company holding 6.52% of the company's shares. At the same time, Yunfeng Xinchuang is also a shareholder of the company. Li Jianguang, director of IDG Capital, is the director of Sanxiang Impression and the company's shareholder. The in-depth cooperation between the three parties in terms of cultural and tourism project investment, operation, management and industrial funds will help further enhance the mutually beneficial partnership between the three parties and help the transformation of cultural tourism in Sanxiang. Yunfeng Innovation and IDG have a broad layout in the field of cultural tourism. The actual controller of Yunfeng Innovation has invested in companies such as Giant Network, Focus Media, Huayi Brothers, and Juzhong Media in the cultural tourism industry; IDG has invested in Baidu, Tencent, Sohu, Tudou, Ctrip, Huazhu, Huazhu, Huazhu, Huazhu, Rujia, Wuzhen, Gubei Water Town, etc., and their rich layout in the cultural tourism industry helps give Sanxiang full support in terms of investment, operation, and talent in the cultural tourism industry. The field of cultural tourism will become the company's core expansion direction in the future. The company completed a 100% equity acquisition of Guan Impression in May '16. Guan Impression has always been a benchmark for the production of cultural tourism and performing arts projects in China. The director team, with famous directors Zhang Yimou, Wang Chaoge, and Fan Yue as the core, adheres to the independent creation and intellectual property licensing model, adheres to the boutique route, and collaborates with selected the top domestic tourist attractions to launch the “Most Memories”, “Impression”, “See You Again”, and “Return” series of performances by the four major brands of “Most Memories,” “Impressions,” “See You Again,” and “Return”. It created China's first landscape show “Three Impressions” and “Three Impressions”, and China's first indoor experience drama “Three Impressions” “See Pingyao Again”, G20 directed by Zhang Yimou The summit theatrical performance “Most Memorable Is Hangzhou” received high praise from world leaders. Wang Chaoge's “See Dunhuang Again” and “See Malacca Again” entered the “Belt and Road” to achieve “common hearts and minds”, and the latest “Zhiyin” directed by Fan Yue attracted a large number of bigwigs such as Ma Yun, Yu Feng, and Xiong Xiaoge to perform live, showing a leading position in the field of culture and performing arts; One year after the company officially entered the field of culture and performing arts, signed a long-term strategic cooperation agreement with Yunfeng and IDG Determination to do well and expand vigorously. Profit forecast and investment ratings: The real estate business is currently deeply involved in Shanghai and the Beijing-Tianjin wing region, with steady performance, providing the company with a margin of safety (currently over 50% NAV discount), a sharp increase in real estate sales revenue and a fixed increase in capital raising. At the same time, after entering the capital market, it is expected that management mechanisms and market-based operations will improve, and new projects will accelerate markedly after acquisition. Future plans include 2-3 new contracts and 2 performances each year. Performance growth is expected. EPS for 17-19 is expected to be 60.5/6/ 0.65/0.78 yuan, of which visual impressions contributed 0.12/0.14/0.17 yuan respectively, maintaining the “increase in holdings” rating. Risk warning: Business collaboration falls short of expectations, cultural tourism expansion falls short of expectations, and systemic risks in the real estate and cultural industry.