Core view: Affected by the real estate settlement cycle, the performance level declined briefly. In the first half of the year, the company achieved operating income of 2,429 billion yuan, a year-on-year decrease of 16.90%; net profit attributable to owners of the parent company was 0.34 billion yuan, a year-on-year decrease of 89.00%, and earnings per share were 0.02 yuan. The sharp decline in performance was mainly due to the cyclical nature of real estate project development and the decline in the price of copper, a raw material for enameled wire. The company's enameled wire business revenue was 1.299 billion yuan, down 13.12% from last year. The company plans to have a main revenue scale of 7.5 billion yuan in 2016, and the profit level remains stable. Sales prices rose both times, boosting the annual performance to a record high in sales. In the first half of '16, the company achieved a real estate sales area of 228,700 square meters, a sharp increase of 110.40% over the previous year, and contract sales of 2,534 billion yuan, an increase of 96.74% over the previous year. The total value of goods is estimated to be over 10 billion for the whole year, and a sales amount of 5 billion dollars can be achieved. Focus on the New Energy Industry Transformation and Development Company has determined the technical route of the Fuqing New Energy Lithium Battery Plant, completed equipment selection and some plant renovation, etc., and the core technical personnel introduced are now basically in place. On the other hand, in order to increase the production of lithium battery electrolyte additives, Fujian Chuangxin Company, a subsidiary of the company, introduced 3 new production lines during the reporting period, and is expected to be put into operation in the second half of the year. EPS is expected to be 0.34 and 0.36 yuan respectively in 16-17, maintaining a “buy” rating. Currently, the company's main performance is still supported by real estate and traditional enameled wire business. After 15 years of adjusting the balance and liability structure and completing the medium- to long-term employee incentive plan, we expect the company to further increase its investment in the direction of new energy transformation in 2016 and focus on its ability to contribute to the performance of new businesses. The risk suggests that real estate business sales are affected by the market, and there is some uncertainty about the progress of new business projects.