Event: Company announcement 2016 semi-annual report. In the first half of 2016, the company realized net profit from a year-on-year return to a profit. In the first half of 2016, the company completed operating income of 1,371 billion yuan, an increase of 126.84% over the previous year; net profit attributable to owners of listed companies was 0.5 billion yuan, achieving earnings of 0.003 yuan per share, turning a loss into a profit over the previous year. The company achieved total assets of 197.80 yuan in the first half of 2016. As of the end of the reporting period, the company had total assets of 19.780 billion yuan, total liabilities of 14.792 billion yuan, and a balance ratio of 74.78%. Accounts received in advance amounted to $802 million, accounting for 5.42% of total liabilities. In terms of debt structure, short-term loans and non-current liabilities maturing within one year were 2,215 billion yuan, accounting for 14.97% of total liabilities, and net cash flow from operating activities was -212 million yuan. The company's cooperation with Dianjian Real Estate has been further deepened. The company began cooperating with Dianjian Real Estate in 2012. First, the former majority shareholder Xu Xiaoming transferred 29.75% of the shares and officially introduced Dianjian Real Estate. Since then, Dianjian Real Estate officially became the majority shareholder holding 41% of the shares through an offer, and the company also officially changed from a private enterprise to a listed company platform owned by the central enterprise Power Construction Real Estate. Since then, the two sides have cooperated a lot in land acquisition and financing, and signed a “Memorandum of Cooperation” with Hubei Electric Power Construction No. 1 Engineering Company in Wuhan in April 2016. Provincial Electric Power Company 1 is a subsidiary of China Power Construction. The two sides have reached cooperation intentions on the renovation and utilization of old plant resources owned by SAGE 1, carrying out urban renewal, and building industrial parks for cultural creativity and innovative industries. Further cooperation between the two sides is expected in the future. The company is gradually transforming cultural and creative-related industries. In addition to cooperation with Hubei Electric Power Construction First Engineering Company in cultural and creative industries, the company signed a “Strategic Cooperation Framework Agreement” with China India Group Culture Co., Ltd. on June 6, 2015. Chinese and Indian Culture belongs to China Cultural Industry Development Group Corporation (hereinafter referred to as “China Cultural Industry Development Group”) under China Guoxin Holdings Co., Ltd., directly under the State Council's State-owned Assets Supervision and Administration Commission; it is an investment platform and strategic fulcrum for cultural and creative industries. It mainly focuses on the development and operation of cultural and creative industrial parks and cultural enterprise investment, focusing on innovative industrial parks + development and operation/exhibition/internet/education and training. It is a professional service platform for cultural and creative industry consulting services, park operation and resource integration. The company will continue to step up the transformation of related industries in the future. Investment advice:” The estimated earnings per share of the company in 2016 and 2017 are 0.30 and 0.40 yuan, respectively. As of August 19, the company closed at 5.94 yuan, corresponding to PE 19.80 times in 2016 and 14.85 times PE in 2017. Considering the company's future growth, the PE valuation was 25 times that of 2016, corresponding to the target price of 7.5 yuan, maintaining the “increase in holdings” rating. Major uncertainties. The recovery in industry fundamentals fell short of expectations.