1. Overview of the incident. The company plans to transfer 51% of the shares held by the holding subsidiaries Long Tianlu and Xing Lian Shunda to Shanghai Wanli Rongrui Investment Consulting Co., Ltd., at transfer prices of 252 million yuan and 342 million yuan respectively. 2. Analysis and judgment on the transfer of shares in subsidiaries, and the asset-light strategy continues to promote the company's holding subsidiaries Long Tianlu and Xing Lian Shunda respectively holding properties in Tongcheng Street Shopping Center in Beijing and Libao Shopping Center in Yizhuang. After selling the shares in the two companies, the company will be entrusted to manage the properties of the two companies and collect management fees, while also having the actual right to operate the shopping center. This equity transfer is a further advancement of the company's asset-light operation strategy and will help the company increase asset liquidity and achieve capital recycling. Previously, the company had issued BHG Retail Trusts (REITs) in Singapore. REITs hold shares in the five properties sold by the company. As the sponsor, trust share holder, fund manager, and property manager of REITs, the company can receive management income and trust income. In the future, the company may continue to sell mature properties to REITs and enjoy rich benefits. We are optimistic that the company will continue to implement an asset-light operating model, improve cash flow, optimize financial structure, and enhance profitability. Jointly with CITIC Industrial Fund to discover high-quality equity investment companies, the actual controller of Shanghai Wan Li Rongrui, the target of this equity transfer, is CITIC Industrial Fund. The transfer money received by the company will mainly be used to invest in new projects and supplement working capital, providing capital support for future exogenous growth. Meanwhile, the company plans to increase 860 million yuan and introduce CITIC Industrial Fund as the second largest shareholder. Previously, the company and subsidiaries had successfully cooperated with CITIC Industrial Fund and invested in projects such as “Sing” and “Are You Hungry?” to obtain profits while effectively assisting the development of the main business. We believe that in the future, the company will continue to aim for financial investment and strategic cooperation, and increase the pace of equity investment by relying on the strong project resource advantages and capital strength of the CITIC Industrial Fund. Expanding diverse business formats and building characteristic shopping centers In recent years, companies have developed various business formats such as restaurants, entertainment, and community services around the positioning of community-based shopping centers. They have continued to expand experiential consumption, and their ability to attract customers has continued to increase, effectively coping with the diversion brought about by e-commerce. In the future, the company may invest more intensively in related business formats that can bring synergy to the main business, focus on developing experiential content such as “eat, drink, and play,” and focus on market segmentation, introduce more personalized and growing non-chain brands, further implement differentiated management, increase customer traffic and customer stickiness, and strengthen core competitiveness. 3. Profit Forecast and Investment Proposals This equity transfer is a further advancement of the company's asset-light operating model. After the introduction of the CITIC Industrial Fund with fixed increases, we are optimistic that the company will use its project resource advantages and capital advantages to increase high-quality equity investment and cultivate new profit growth points. The 2016-2018 EPS is expected to be 0.16 yuan, 0.23 yuan, and 0.32 yuan, maintaining the “highly recommended” rating. 4. Risk warning: progress in fixed growth falls short of expectations; performance of equity investment targets falls short of expectations