Key events of the report describe in 2015, the company achieved operating income of 3.474 billion yuan, a year-on-year decrease of 29.20%, and net profit of 327 million yuan, a year-on-year decrease of 44.08%; net profit margin of 9.41%, a year-on-year decrease of 2.5 percentage points. EPS 0.22 yuan. Among them, the fourth quarter achieved quarterly operating income of 719 million yuan, a sharp decrease of 79.66% over the previous year, and net profit of 91 million yuan, a year-on-year decrease of 74.01%. EPS 0.06 yuan. Incident review The decline in carry-over revenue caused a decline in performance. The company achieved operating income of 3.474 billion yuan this year, a year-on-year decrease of 29.20%, mainly due to few carry-over in the current period and the sluggish market economy in Huainan, sales volume fell 44% year on year, dragging down revenue. This year, the company achieved net profit of 327 million yuan, a year-on-year decrease of 44.08%. In addition to Huainan, prices in the Nantong market are also currently falling, resulting in a significant decline in the gross profit of the company's Yuyuan project in Nantong. These also contributed to the company's overall gross margin falling 7.71% year over year. As of the end of the reporting period, the company's net debt ratio was 24%, down 19% from the previous year; monetary capital/ (short-term debt+long-term debt maturing within one year) was 1.16, so the pressure to repay debt was less. Sales have increased dramatically, and the focus continues to be on Hangzhou. The company achieved a contract sales area of 337,800 square meters this year, with a sales amount of 5.230 billion yuan, an increase of 57.41% and 76.60% respectively over the previous year. It mainly benefited from the recovery of the Hangzhou market and the popularity of the company's Tonglu project. The new high sales volume contributed to the company's advance receipt of 4.286 billion yuan this year, providing a guarantee for future performance growth. During the reporting period, the total planned construction area of the company's ongoing projects was 827,700 square meters; the total planned construction area of reserve land was 565,700 square meters. The company acquired 4 land storage blocks in Xiaoshan, Hangzhou through an acquisition this year, further expanding its base in Hangzhou. In the future, the company will increase its land reserves in a timely and appropriate manner. Diversified financing guarantees future development. This year, the company successfully issued 1.2 billion yuan of medium-term notes with a term of 3 years and a coupon interest rate of 5.60%; in November 2015, the company's fixed increase was approved, and the total amount of capital to be raised should not exceed 1.6 billion yuan, which will be used entirely for real estate project development and investment; in November 2015, the company issued a corporate bond issuance plan, with a total capital of no more than 1.2 billion yuan for a period of 5 years. Adequate capital flow provides a steady stream of impetus for the company's subsequent development. Develop overseas projects and explore new growth points. The company began exploring overseas business in 2013. Currently, its subsidiary Shunfa America has established two joint ventures, Wanxiang 150 North Riverside Manager and Orland, in a joint venture with Wanxiang American Real Estate Group, and their cooperative development projects are being carried out in an orderly manner. In the future, the company will increase investment in overseas real estate, focusing on the development of old-age care, hotels, apartments, etc.; actively participate in the construction of Chuneng City, the majority shareholder, accumulate experience in the development and construction of new parks in management, and increase research on old-age care and health care properties, and enter in due course. Investment rating: We expect the company's EPS in 2016 and 17 to be 0.35 and 0.43 yuan/share, with PE corresponding to the current stock price being 24 times and 20 times, respectively, covering the “increased holdings” rating for the first time.