Incident: The company announced its 2016 annual report on August 18. During the reporting period, the company achieved operating income of 1,372 billion yuan, up 126.84% year on year, and net profit attributable to shareholders of listed companies was 4.7818 million yuan, an increase of 103.97% over the same period last year. As of the end of the reporting period, the company had total assets of 19.78 billion yuan, net assets of 4.476 billion yuan, total liabilities of 15.354 billion yuan, and a balance ratio of 77.62%. Opinion: Both operating income and net profit have increased significantly. The company achieved operating income of 1,372 billion yuan in the first half of the year, a sharp increase of 126.84% over the previous year; of these, net profit attributable to shareholders of listed companies was 4.7818 million yuan, a sharp increase of 103.97% over the same period last year. As of the end of the reporting period, the company had total assets of 19.78 billion yuan, net assets of 4.476 billion yuan, total liabilities of 15.354 billion yuan, and a balance ratio of 77.62%. We believe that the sharp increase in the company's operating income and profit in the first half of the year benefited from the following two aspects: first, industry sales began to heat up in the second half of 2015, and the company's settlement area increased dramatically; second, after Electric Construction Real Estate became the company's largest shareholder, it provided the company with a large number of projects and financial support. At the same time, the collaborative development of the two sides in business was also an important reason for the sharp increase in the company's performance. Power Construction has obvious complementary advantages when investing in real estate. Since 2012, Dianjian Real Estate has acquired the company's shares twice and has actual control over the company. Up to now, Dianjian Real Estate holds 40.67% of the company's shares, making it the largest shareholder and actual controller of the company. Currently, Electric Construction Real Estate mainly develops residential products, while Nanguo Real Estate mainly develops and operates commercial real estate. The advantages between the two complement each other. Through the acquisition of the company, the resources of the two can be fully integrated to achieve organic business integration. At the same time, Electric Construction Real Estate has great advantages in real estate reserves and capital. As the state-owned enterprise reform process continues to advance, the company expects to benefit significantly from this process. Multi-channel financing helps companies expand rapidly. The company has clarified the goals of the top 100 in the country in 2018, and has continuously increased its expansion in first-tier and key second-tier cities. Facing increasing capital demand, the company has made full use of listed financing platforms since 2015 to promote direct financing: the first fixed increase since the steady promotion of listing (1.5 billion), and the majority shareholders subscribed 40%. The company announced on July 3, 2016, that it has successfully issued 270 million non-public shares at a price of 5.64 yuan/share, and raised 1.53 billion yuan in capital; in addition, it is also actively testing various debt financing instruments and successfully issuing 1 billion yuan of targeted financing instruments, 10 billion yuan 100 million medium-term notes and 1.5 billion corporate bonds, with a comprehensive interest rate of 6.5%. While successfully using various financing instruments, the company's principal credit ratings were raised from AA- to AA, which shows that the capital market recognizes the company, lays the foundation for issuing short-term loans, ultra-short loans, and perpetual bonds, etc., will further reduce financing costs and protect the company's strategic goal of rapid market expansion. Join hands with Chinese and Indian culture to lay out the development of industrial parks. The company signed the “Strategic Cooperation Framework Agreement” with the China-India Group in June 2015. According to the agreement, Chinese and Indian Culture will introduce related cultural industries such as themed cultural industrial parks, cultural finance services, and park fairs into the company's related projects. The strategic cooperation between the company and Chinese and Indian culture can take advantage of the dominant position of Chinese and Indian culture in the cultural and creative industry market to achieve the common development of the company's commercial real estate and cultural industries. In order to speed up the pace of the company's layout of the cultural industry, the company signed a “Memorandum of Cooperation” with Hubei Electric Power Construction No. 1 Engineering Company in April 2016. The two sides will jointly set up a preliminary development team to carry out a series of tasks such as project positioning, formulating renovation plans, and optimizing and adjusting planning indicators. This cooperation marks that the company is actively cultivating new profit growth points while developing its main business of commercial real estate operations.