Event: The company released a draft stock incentive plan on the 16th: it is proposed to issue 23.9 million restricted shares (2.52%) to incentive targets as an incentive plan for employees. The performance assessment target is that net profit from 17-19 is not less than 60%, 120%, or 240% of the 15-year base. Based on current stock prices, the market value of the restricted stocks involved this time reached $310 million, and the grant price was 50% of the average trading price on the day of the announcement. The source of the company's current stock incentive plan is the targeted issuance of shares to incentive targets. The number of restricted shares to be granted this time is 23.9 million shares, accounting for 2.52% of the total share capital, involving a market value of 3.1 billion yuan based on the closing price of the day (13.01). Of these, 19.2 million shares and 4.7 million reserved shares are to be granted for the first time, accounting for 80.33% and 19.67% of the total shares to be granted, respectively. The grant price is determined based on 50% of the average price of 13.01 yuan per trading day before the draft announcement, which is 6.51 yuan per share. The motivation for grassroots cadres is high, and the degree of interest bundling is high. For the first time, this plan was awarded to a total of 56 people, including senior executives of the company and subsidiaries, middle level and above, core technical, business personnel, and other employees that the board of directors believes have a direct impact on the company's business performance and development. Among them, 47 key managers and core business (technical) personnel of the company who are not the vice president or above granted shares accounting for 55% of the shares granted under this plan, with a market value of about 172 million. The per capita benefit amount calculated according to the stock price on the day of the announcement was about 1.83 million (tax not taken into account). In addition, the company's chairman plans to grant shares to account for 8.4% of the granted interest, while the remaining board members plus the eight vice presidents account for 16.7%. The performance target is to double the net profit of the mother by 2.4 times in three years, demonstrating the determination to do real business and perform well. According to the company's performance assessment conditions, the performance target for this assessment is that net profit for 2017-2019 is not less than 60%, 120%, and 240% of the 15-year base. Compared with the 15-year base, net profit is 7.5, 10.3, and 1.59 billion yuan, respectively. If the target is achieved, the corresponding basic EPS is 0.79, 0.97, and 1.11 yuan. It shows the company's determination to do a good job. This incentive plan is locked for 12 months from the date of grant. After the expiration of the period, it is unlocked 3 times within 36 months. Stocks that do not meet the unlocking conditions are repurchased and cancelled by the company. The three unlocking period for shares initially granted and restricted shares reserved under this plan is 12 months from 12 months to the last trading day of 24, 36, and 48 months. The third unlocking ratio is 40%, 30%, and 30%, respectively. The number of unlocked plans is linked to the target individual's performance in the previous year. Among them, if the annual individual performance assessment is excellent or good, the unlocking ratio is 100%; if the assessment results pass, the unlocking ratio is 60%; if the assessment results pass, the unlocking ratio is 60%; if the assessment results are unqualified, then the company buys back and cancels. Investment advice: Following the 2015 employee stock ownership plan, the company once again launched a stock incentive plan aimed at creating an internal benefit-sharing mechanism. The average cost of the company's 2015 employee stock ownership plan is 9.46 yuan/share. Compared with the current high stock price fluctuation, the incentive effect is evident. The company promised to extend the unlocking period by 6 months. The company is currently actively exploring integrated real estate and large property management businesses, and the smart home crowdfunding platform is actively exploring profit models. Its determination to achieve strategic goals and good performance is firm. The company's EPS for 16-18 is expected to be 0.79, 0.97, and 1.11, maintaining a buy-A rating, with a target price of 18 yuan for 6 months. Risk warning: The progress of the two reform projects was blocked, and the impact of regulation on sales fell short of expectations.