Event: The company announced its report for the third quarter of 2016. Revenue increased sharply in the first three quarters, but net profit declined markedly: 1) Net interest rates fell sharply, and debt ratios increased. As of the end of the third quarter, the company's gross margin was 68.97%, not much change from the same period last year. The net profit margin was 27.83%, down 23.02% from the same period last year. The company's balance ratio was 53.40%, up 10.48 percentage points year on year; interest-bearing debt ratio was 44.52%, up 7.59 percentage points year on year; balance ratio excluding accounts received in advance was 50.27%, up 8.46 percentage points year on year; net asset ratio was 16.40%. 2) The sharp increase in expenses led to a 22.90% year-on-year decrease in net profit. By the end of the third quarter, the company and its holding subsidiaries had added 82,000 square meters of land, no new construction area, and a new completed area of 76,000 square meters. The contract sales area was 20,800 square meters, the contract sales amount was 313 million yuan, the rental real estate area was 121,300 square meters, and real estate rental income was 54.715,800 yuan. The company achieved total operating income of 452 million yuan, a year-on-year increase of 32.71%, total operating cost of 348 million yuan, an increase of 76.18% over the previous year, operating profit of 138 million yuan, a decrease of 27.58% over the previous year, and net profit attributable to owners of the parent company of 143 million yuan, a decrease of 22.90% over the previous year. The increase in the company's revenue was mainly due to the increase in real estate sales area compared to the previous year. The company has suspended trading or is involved in restructuring and plans to inject financial assets. Shanghai Yidian (Group) Co., Ltd., which holds 100% of the shares of Huaxin Real Estate (Group) Co., Ltd., the controlling shareholder of the company, carried out a major asset restructuring of the company and suspended trading on August 25. This major asset restructuring plans to deposit some assets and liabilities and inject some of Huaxin Securities's shares. As of October 26, due diligence, audit, and evaluation work has not yet been finalized due to the heavy workload of this major asset restructuring, so trading will continue to be suspended. The board of directors of the company passed a plan to amend the “Articles of Association”. <公司章程>On August 11, 2016, the company held the 20th meeting of the 8th board of directors. The meeting deliberated and approved the “Company's Plan on Amendments”. The revisions mainly focused on: the board of directors can decide on the company's financing plan, not just debt financing plans; the shareholders' meeting authorizes the board of directors to consider projects that are no longer limited to unrelated transactions, etc. Investment advice: The company has now been suspended. Shanghai Yidian (Group) Co., Ltd., which holds 100% of the shares of Huaxin Real Estate (Group) Co., Ltd., the controlling shareholder, should request a major asset restructuring. The preliminary plan indicates that the company will deposit some of its assets and liabilities (the industry it is located in is the real estate industry) and inject some of the shares in Huaxin Securities. Expectations for asset injection into listed companies under Shanghai Yidian are strong. We expect the company's 2016 and 2017 EPS to be 0.31 and 0.38 yuan respectively, and the company's suspension price on August 24 is 11.93 yuan, corresponding to 2016 and 2017 PE of 38.48 times and 31.39 times, respectively. In 2016, the company was given 45XPE with a corresponding target price of 13.95 yuan, giving it an “increased holdings” rating. Risk warning: The company's asset restructuring falls short of expectations.