Key points of the report describe the events of Sunshine Co., Ltd. today disclosed its 2015 annual report. In 2015, the company achieved operating income of 648 million yuan, a year-on-year decrease of 52.33%, net profit of 0.2 billion yuan, an increase of 103.45%; and a net profit margin of 3.12%, an increase of 46.19 percentage points over the previous year. EPS 0.03 yuan. Among them, the fourth quarter achieved quarterly operating income of 193 million yuan, a year-on-year decrease of 59.38%, and net profit of 0.2 billion yuan, an increase of 100.35% over the previous year. Incident review The sharp rise in investment returns boosted profits. The company's revenue in 2015 fell 52.33% year on year. There are two reasons for this: (1) Real estate sales fell 64.33% year on year, mainly due to the poor location of the Tianjin project, difficulties in dismantling, and the slowdown in project carry-over in Chengdu. (2) Investment real estate rental income fell 29.77% year on year, mainly due to excessive supply of commercial and office buildings in second-tier cities such as Chengdu and high vacancy rates, which led to a decrease in rent. The company's net profit in 2015 rose 103.45% year on year, mainly due to the large investment income brought about by the company's sale and divestment of traditional projects, which caused the company to turn a loss into a profit this year. Performance is expected to grow steadily in the coming year. The company renovated nearly 100,000 square meters of self-owned properties in Beijing Sunshine Tower and Shanghai Galaxy Hotel in 2015. The commercial market space in Beijing and Shanghai is improving, and the upgrading of core self-owned properties will help contribute to the company's steady performance in the future. Traditional real estate is gradually being divested, and inventory removal is being promoted rapidly. In 2015, the company successively sold 45% of the shares of its subsidiary Ruijing Sunshine, 100% of the shares of Beijing Ruigang held by the subsidiary Beijing Ruifeng, and 51% of the shares of Linghua Sunshine and Yangling Guanghui held by the subsidiaries. Following the divestment of these three assets, the company's traditional real estate development projects are mainly the Tianjin Yangliuqing Project, the Chengdu Jinshang Project, and the Beijing Sunshine Shangdong Project. These projects achieved a total of 27,000 square meters of sales in 15 years. The company will then increase its sales efforts for these three projects and complete the removal of these inventories and the divestment of the project as soon as possible. Business areas are focused, and asset-light operations create new possibilities. While speeding up the divestment of traditional projects, the company continues to focus on the asset-light operating model of owned property management, which is mainly reflected in the management cost income and asset appreciation brought about by the leasing of commercial and office space and the transformation and exit of inefficient and non-performing assets. This asset-light model makes the company go to battle lightly and become more dynamic. On the regional side, the company's current investment properties are mainly focused on Beijing-Tianjin-Shanghai and some second-tier cities. In the future, the company will further reduce its management radius, highlighting and highlighting the advantages of concentration. Investment rating: The company's NAV valuation is 10.01, and the current stock price is discounted by 47.85%. The 2016 and 2017 EPS are expected to be 0.09 and 0.13 yuan/share, respectively, giving a buying rating.