Incidents. The company published its 2016 semi-annual report. During the reporting period, the company achieved operating income of 4.42 billion yuan, a year-on-year increase of 114.1%; net profit attributable to shareholders of listed companies was 350 million yuan, an increase of 168.4% over the previous year; and achieved basic earnings per share of 0.17 yuan. In the first half of 2016, driven by increased carry-over, the company's revenue surged by 114%; driven by minority shareholders' rights in the acquisition project company, the company's net profit increased to 168%. The real estate business in Shanghai and Fuzhou developed rapidly during the reporting period. The two regions have a total construction area of 1.6 million square meters, and 780,000 square meters will reach pre-sale conditions in 2016. In terms of real estate sales, the company's advance accounts balance at the end of the reporting period was 3 billion yuan. During the reporting period, the company's gross profit margin on real estate sales was 40.23%, and the balance ratio was 75%. During the reporting period, Kangsheng Investment participated in the establishment of a fixed increase special fund with a total scale of 4 billion yuan. As of the date of this report, the Fixed Growth Fund has subscribed to five non-public shares, including Linyang Energy, Gongjin Shares, Yuyue Healthcare, Hailide, and Yonggui Electric. Second, Kangsheng Investment, a subsidiary of the company, continued to increase its holdings of Boxin shares to the largest shareholder, with a shareholding ratio of 16.29%; the company invested in the strategic investment of the new third board film and television company Zhongguang Film and Television (stock code: 834641). In March 2016, the company jointly initiated the establishment of the Yellow River Financial Insurance Company, holding 14% of the shares. In April 2016, Inpaisen, which holds 70% of the company's control, was listed on the New Third Board. In April 2016, the company acquired 100% of the shares of Zhongcheng Leasing Company. In May 2016, the company established Mingcheng International (Hong Kong) Co., Ltd. to create an overseas investment platform. In May 2016, the company cooperated to establish the 3 billion yuan Anxin Fund-China Merchants Bank-Tibet Kangsheng Dingzeng-1 Asset Management Plan. On May 10, 2016, the company announced that the company's information disclosure obligors Jiacheng Zhongtai and Tibet Nuoxin increased their A-share holdings by a total of 100,577,865 shares through the Shanghai Stock Exchange centralized bidding and trading system, accounting for 5% of the company's total shares. As of May 9, 2016, the combined shareholding ratio of information disclosure obligors Jiacheng Zhongtai and Tibet Nuoxin accounted for 10% of the company's total shares. Investment advice: The company's development model is in line with the direction of new urbanization construction and is an important target of the Fujian Free Trade Zone and the “Silk Road” theme. Daming City sales are expected to benefit from tax and financial benefits related to free trade zones. The Lanzhou Eastern Science and Technology City project is in the core area of the “Silk Road Economic Belt”. Currently, the company is clearly building a two-wheel drive for the real estate sector and the financial sector. The company clearly stated that it is actively exploring new industries such as financial services, investment and trade, warehousing and logistics, big culture and health. We expect the company's EPS in 2016 and 2017 to be 0.3 yuan and 0.4 yuan respectively, corresponding to RNAV at 13.5 yuan. Considering the company's strong transformation, we maintained a “buy” rating with 1.1 times RNAV, or 14.85 yuan, as the company's target price for the next six months. Risk warning: The real estate industry is facing regulation and blocking corporate transformation.