Investment highlights: Event: Company announcement signed a strategic cooperation framework agreement with Shanghai Yunfeng New Investment Center (Limited Partnership) and IDG Capital Investment Advisory (Beijing) Co., Ltd. Together with Yunfeng IDG, the cultural tourism industry cooperation is in full swing. The company signed a “Strategic Cooperation Framework Agreement on Developing Investments in Cultural Tourism Related Fields” with Shanghai Yunfeng New Innovation Equity Investment Center and IDG Capital Investment Consultants (Beijing) Co., Ltd. The three parties will carry out comprehensive strategic cooperation by investing in culture, tourism, and related fields. This cooperation is a reflection of the firm transformation of the company from real estate to “culture+real estate”. It will help enrich the company's layout of cultural tourism and performing arts businesses and enhance the company's competitiveness. The Ziyin performance further perfected the cultural tourism performance layout. 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, there were 2 performance projects and 3 new contract projects, and the business accelerated. On May 20, 2017, “Zhiyin” was performed in Wuhan. The drama was modeled after the “Jiang Hualun” of the Wuhan Minsheng Company in the beginning of the last century, and built the Yangtze River's first steam ship from the 2030s to be used as an performing arts theater. It is worth mentioning that “Zhiyin” is the world's first drift multi-dimensional experiential drama. It is a key innovative cultural tourism project in Hubei Province to promote the “13th Five-Year Plan” global tourism development strategy, and a key cultural project for Wuhan City's “13th Five-Year Plan”. Join hands with Hunan University to train entertainers. The company donated RMB 10 million to Hunan University to support the establishment of the “Hunan University Zhang Yimou School of Art”, which mainly trains directors, directors, production and management talents for large-scale events. The company promised to attract a large number of outstanding graduates from “Zhang Yimou Art School” in the future to help accelerate the company's cultural transformation and development. Furthermore, the creative team with director Zhang Yimou at the core continues to expand, attracting a large number of top talents, including G20 chief producer, director Sha Xiaolan. The company continues to advance the training of creative teams and the introduction of talents. The real estate is small but beautiful, and evidence is being collected for the Chongming and Zhangjiang projects. The company is a “small but beautiful” real estate company. Among the main unsettled projects, Sanxiang Haishang Yundi in Chongming, Shanghai and Sanxiang Haishang Fudi in Zhangjiang, Shanghai will be the main sales and main settlement projects in 2017. Currently, the second phase of the Chongming project is applying for a pre-sale license. The Zhangjiang project was affected by the price limit for issuing pre-sale licenses in Shanghai. The license price of the pre-sale license is inverted with the prices of second-hand housing in the surrounding area, and no certification has yet been obtained. Investment advice. We expect the company's 2017 and 2018 EPS to be 0.61 yuan and 0.69 yuan respectively. As of May 22, the company closed at 7.37 yuan, corresponding to PE in 2017 and 2018, 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.