Event: The company announced on December 23, 2015: Is the purchase of 2.88 million shares of the first phase of the employee stock ownership plan completed? Successful implementation of the first phase of the employee stock ownership plan, employee business enthusiasm will increase: 1) The four shareholders transferred 2.88 million shares free of charge to the first employee stock ownership plan: According to the plan, the four major shareholders Hu Guanghui, Li Zhi, Xing Wei, and Zhang Hailin transferred a total of 2,88,000 shares of the company's stock earnings rights to the company's first phase of the employee stock ownership plan. Among them, Hu Guanghui transferred 1,177,632 stock earnings rights, Xing Wei transferred 800,352 shares, Zhang Hailin transferred 591,264 shares, and Li Zhi transferred 375,352 shares Stock earnings rights ; 2) The shareholding plan is implemented in three phases, with a total scale of no more than 5.28 million shares: The size of the company's employee shareholding plan does not exceed 5.28 million shares, of which employees invest in cash to purchase no more than 960,000 shares from the secondary market, and the four actual controllers give 4.32 million shares free of charge. The plan is to be implemented in three phases, with a rolling implementation period every two years. The second and third employee stock ownership plans are determined by the board of directors on whether to implement and the specific number of shares and plans for each phase based on the results of the implementation of the first phase and the company's operating conditions at the time; 3) The share lockdown period is December 31 of the following year: Each phase of the employee stock ownership plan is locked in from the purchase completion date to December 31 of the following year, and the shareholding period starts from the purchase of the underlying stock announced by the company. The lockdown period will not be less than 12 months. Obtaining an Internet finance microfinance license, Internet finance business may proliferate: 1) Internet technology microfinance company that successfully won the bid: The company received a notice from the Nanjing Financial Development Office on December 9, confirming that the bidding team with the main sponsor of the company officially won the bid in this Nanjing Internet Technology Microfinance Company bidding event. The company officially obtained the Internet microfinance qualification; 2) The Internet finance business has reached a new level, and performance is expected to surge: With the spread of mobile Internet, online loans are also becoming a trend. Using the advantages of the Internet, you can complete loan applications without leaving your home. Various steps include understanding the application conditions for various types of loans, preparing application materials, and submitting loan applications and review. Until now, the company has been constrained by being unable to do its own loans without a license, which will open up room for growth in the company's performance in the future; 3) Strong alliances with Zhongyuan Group, the home loan platform has developed steadily: the company's other financial product, AnjiaLoan, has successfully joined forces with the Central Plains, and the Zhongyuan Group will promote financial products cooperating with the 365 Network. The cities of Shanghai and Nanjing will use the two cities of Shanghai and Nanjing as pilot projects to provide homebuyers with financial services covering new homes, second-hand housing, etc. Renovation Bao's business model has been adjusted, and Home Furnishing O2O has obvious advantages: 1) Home Furnishing O2O has become a wholly-owned subsidiary, and its positioning has changed to finished residential decoration; 2) Renovation Bao's profit model is clear, and development will quickly become a new growth point: currently, profit sources include fees from designers and project managers, capital custody income, and price differences in group purchases of building materials. According to estimates, this business will bring the company about 600 million yuan in revenue in 2016, with net profit exceeding 100 million yuan; 3) The home O2O market space is vast, and although decoration treasure rivals have many advantages, the current e-commerce penetration rate in the home improvement industry is only 8%, and the future home O2O space will be close to trillion yuan. The company's real estate e-commerce sector can efficiently channel the household O2O business, and the customer acquisition cost is low. Cooperating with developers to give concessions can in turn promote the sale of new homes. Investment suggestions: The successful implementation of the company's employee shareholding plan is conducive to the alignment of the interests of all employees of the company with the company's interests, and the company's obtaining a license for Internet technology loans will successfully solve the long-troubled Internet finance business expansion problem, and cooperate with Central Plains Real Estate to further open up the development of home loans. The company's Internet finance business is expected to rise sharply in the new year. The company's real estate O2O, home O2O, and community O2O business will continue to grow as the region expands. We expect EPS in 15-17 to be 0.74, 1.15, respectively. 1.53 yuan. The current stock price corresponding to PE valuations is 69.5X, 44.8X, and 33.5X. Considering that the company's Internet finance business is expected to surge and the three major O2O businesses are progressing at an accelerated pace, coverage for the first time gave the company a “buy-A” rating, giving the company a PE valuation of 65 times over 16 years, with a target price of 74.75 yuan for 6 months. Risk warning: The advancement of the O2O strategy is slowing down, and the Internet finance business falls short of expectations.