The company released its 2016 semi-annual report, achieving operating income of 3.32 billion yuan, a year-on-year increase of 42.1%, and net profit attributable to shareholders of listed companies of 0.3 billion yuan, a year-on-year decrease of 93.7%. Half the time, half the task: The main reason for the sharp decline in the growth rate of the company's net profit to mother is the sharp drop in gross margin. In addition to the Chengdu Central City-State and Shanghai Junting projects, Huizhou and other projects are also expected to enter a centralized carry-over cycle throughout this year, and profit margins are expected to recover later. The company achieved sales of about 5.1 billion dollars in the first half of the year, an increase of 184% over the previous year, and basically achieved more than half of the tasks. Projects that can be sold in the second half of the year are still mainly concentrated in Shanghai, Chengdu, Huizhou, Qingdao, etc. Although the company's Shenzhen projects, including Sungang and Golden Terrace, are progressing slower than expected, the good harvest of offsite projects will drive the completion of the company's annual target of 10 billion dollars. Bidding strengthens Chengdu's endowment, and Diwang's stock value is highlighted: the company added 2 new projects: 1. The company obtained the Hong Kong Causeway Bay project through mergers and acquisitions; in February and June, it took the initiative to acquire land in Chengdu through tenders for the first time. Fierce competition in the land market since this year has brought opportunities and challenges to the company. The challenge is that the high land market threshold makes it difficult for the company to gain; the opportunity is that the increase in land prices has given the company an opportunity to drastically reassess its existing resources. The company's net debt ratio rebounded again in the middle of the year. The company announced the 2016 non-public share offering plan in February, and after adjusting the plan in August, the non-public offering was initiated for the second time. The scale of issuance was expanded, and it is expected to be approved in the second half of this year. The employee stock ownership plan was successfully completed, and the incentive mechanism was further strengthened: the company launched the employee stock ownership plan in March. As of July 13, the company successfully completed the 2016 employee stock ownership plan. Since last year, the company has launched the incentive mechanism twice: 1. The first phase of the equity incentive plan; 2. We believe that the two incentive mechanisms will help bind the common interests of management and employees and promote the development of the company's business. This year, the company clearly proposed exploring new business development and thinking about enterprise transformation, including the real estate service industry, industrial real estate, and “real estate+finance” expansion using property management as a platform. The smooth implementation of the incentive mechanism will also add additional impetus to the company's growth and transformation path. Profit forecast and investment rating: The company's EPS for 2016 to 2017 is expected to be 0.70 yuan and 0.97 yuan, respectively, maintaining a “buy” rating.