Events: Company announcement, 1) In the first half of 2016, the company achieved operating income of 374 million yuan, a year-on-year increase of 21.56% (previous value of -33.35%); realized net profit attributable to shareholders of listed companies of 43 million yuan, a year-on-year decrease of 98.08% (previous value -73.30%); EPS was 0.0015 yuan/share; 2) The company plans to invest 533 million yuan to acquire 30% of the shares in Suzhou company held by China Housing Group. Performance is under pressure, and breakthroughs are imminent: 1) Performance pressure: In the first half of 2016, the company achieved operating income of 374 million yuan, a year-on-year increase of 21.56%; realized net profit attributable to shareholders of listed companies of 43 million yuan, a year-on-year decrease of 98.08%; 2) ROE and gross sales margin declined in tandem: the company's ROE for the first half of 2016 was 0.03%, down 1.31 percentage points from the same period last year; gross sales margin was 28%, down 9.4 percentage points from the same period last year. Excellent land storage, diversified financing for development: 1) Excellent land storage, sales have reached 91.56% of the previous year's annual sales: in the first half of 2016, the company planned a total construction area of 5.2199 million square meters, achieved contracted sales area of 1,579 million yuan, and a contracted sales area of 145,900 square meters. The contracted sales volume for the first half of the year reached 91.56% of last year's annual sales; 2) Diversified financing provided strong resource support for subsequent development: The company actively used capital market platform financing, and all capital raised in equity financing will be used for 1 plot of land and 4 plots in the Ruizhi Community of Zhongfang and 6 Land plot (centralized commercial) project and CCCC Manshan A83 and A84 project development and construction. The acquisition of shares and growth can be expected: 1) The company plans to invest 533 million yuan to acquire 30% of the Suzhou company held by China Housing Group; after the transaction is completed, the company will hold 70% of the shares of the Suzhou company; 2) the net asset appreciation rate is 90.15%: the net asset appreciation rate of the Suzhou company is 90.15%; 3) The projects held by the Suzhou company are located in the Yangtze River Delta economic circle, which is expected to benefit from the development of the economic circle in the future. The company's acquisition of the Suzhou company may provide a new growth point for the company's future profits. Investment suggestions: In the first half of the year, the company achieved contracted sales of 1,579 billion yuan, reaching 91.56% of last year's full-year sales. As the company develops projects and increases in promotion and sales, the company is expected to achieve excess sales scale throughout '16; furthermore, the company's diversified financing channels can provide strong resource support for project development and construction; the acquisition of 30% of Suzhou's shares is expected to bring new profit growth points to the company; furthermore, the company is expected to continue as a small real estate target with state-owned capital reform endowments, and the catalyst brought about by the deepening integration of group resources is expected to continue. We expect the company's EPS for 16-18 to be 0.14, 0.16, and 0.19, respectively, and the PE multiples of the stock price corresponding to the suspension period are 163.9X, 147.2X, and 121.7X; we maintain the “buy-A” rating, with a target price of 24.5 yuan for six months. Risk warning: performance falls short of expectations, long-term revenue growth in real estate business does not increase profit