Performance summary: In 2015, the company achieved operating income of 1,078 million yuan, a year-on-year decrease of 29.91%; net profit attributable to shareholders - 18.43 million yuan, a year-on-year decrease of 147.83%. The downturn in the real estate industry compounded divestment companies, and there were many losses after deducting non-net profit. During the reporting period, the company withheld non-net profit of RMB 89.47 million, a year-on-year decrease of 19.13%, mainly due to: 1. The real estate delivery cycle was long, and there was less confirmed revenue this year; 2. Affected by the decline in new real estate construction area in Zhenjiang, the subsidiary Port and New Materials lost 52.99 million yuan; 3. The subsidiary Dacheng New Energy lost 52.99 million yuan; 3. The company's subsidiary Dacheng Renewable Energy lost 44.82 million yuan in asset depreciation, and net profit of -80.1 million yuan in 2015. In 2016, the company got rid of the burden of losses from subsidiaries, commercial housing gradually confirmed revenue, and Echo Semiconductor contributed to performance, so net profit would turn a loss into a profit. Gross margin declined sharply, dragging down net interest by 4.22 percentage points. During the reporting period, the company's overall gross margin was 19.97%, down 6.50 percentage points from the previous year. Mainly due to the downturn in the real estate industry in the Zhenjiang region, the company adopted a price reduction promotion strategy, and the gross margin of the real estate business fell 18.73 percentage points year-on-year to 20.88%. During the reporting period, the company's expense ratio was basically the same as the same period last year. Affected by the decline in gross margin, the net profit margin fell 4.22 percentage points to -1.71%. The wholly-owned acquisition of Elko Semiconductors entered the booming integrated circuit testing market. Alco Semiconductor is a leading independent integrated circuit testing service provider in China. The testing business covers every link in the integrated circuit “design-production-packaging” industry chain. The domestic integrated circuit industry is developing rapidly, and as the market's technical requirements for integrated circuits continue to increase, integrated circuit testing is also moving towards a specialized division of labor. More and more integrated circuit design factories, wafer manufacturers, and packaging and testing plants outsource testing to independent test vendors. With high-quality customer resources and high technical barriers in the independent semiconductor testing industry, the company will benefit fully from the rapid development of the industry. Profit forecasts and ratings. Net profit growth in 2016-2018 is expected to be 513.5%, 114.9%, and 27.22%, respectively, and EPS is 0.13, 0.27, and 0.34 yuan respectively, giving it an “increase in holdings” rating. Risk warning: commercial real estate delivery falls short of expectations; Elco Semiconductor's performance falls short of expectations