Core opinion: Investment income led to a 198% increase in performance, and Securities and Exchange and Huijin ranked among the top ten shareholders: the company's revenue for the first three quarters was 3.46 billion yuan, a slight decrease of 5.46% from the previous year, the decline was nearly 3 percentage points narrower than the semi-annual report, net profit was 3.13 billion yuan, and EPS 1.05 yuan, a sharp increase of 198.02% over the previous year, in line with the performance forecast. The decline in operating income was mainly due to a decrease in real estate sales carry-over. The sharp increase in performance was mainly due to the sale of some Western Securities and Everbright Bank stocks to obtain higher investment returns. The total profit margin after deduction of investment income fell 40.9% year on year, and the gross profit margin of the main business was 33.7%, down about 4 percentage points year on year. Due to increased asset restructuring costs and environmental group project launch and operation rates, the company also climbed nearly 3 percentage points to 13.25% year on year. However, the company's debt situation improved sharply, mainly benefited from reducing financial asset holdings and increasing cash inflows and issuance of winning votes. Furthermore, the company's debt situation improved sharply. Securities and Huijin held 2.2% and 0.98% of shares respectively in the quarterly report, ranking third and sixth among the top ten shareholders. The merger and separation plan is progressing steadily: The company's merger and separation plan has been approved in principle by the State Council's State-owned Assets Administration Commission and the Shanghai State-owned Assets Administration Commission, reviewed and approved by the Extraordinary General Meeting of Shareholders, and is currently being accepted by the Securities Regulatory Commission. According to the plan, the exchange price of CITI Holdings is 15.50 yuan/share, and the first and second cash option prices of CITI Holdings are all 10.00 yuan/share. After the plan is completed, CITI Holdings will divest the environmental protection business and transform into a comprehensive asset management group with urban infrastructure and related fields as the main investment direction. The company will use PPP funds as its main field, and at the same time seek investment opportunities in the industrial chain through PE funds. The company has now cooperated with ICBC and the Stock Exchange to establish 10 billion PPP funds each. In the future, a large amount of fee-charging urban infrastructure will be invested, including roads, bridges, tunnels, sewage and garbage, underground pipes, etc., and it is hoped that infrastructure charging projects of a certain scale and stable returns will be made through the PPP model. Real estate revolves around infrastructure and guaranteed housing projects: the company's real estate projects have two characteristics. First, the layout is dominated by first-tier cities based on the advantages of infrastructure resources, and the other is the expansion of guaranteed housing and shantytown renovation projects in combination with the pace of shantytown renovation and urban village renovation in Shanghai. According to the company's semi-annual report in the first half of the year, the company completed an area of 105,600 square meters and a construction volume of 700,000 square meters. The expansion of guaranteed housing projects made great progress, and some projects have basically reached resource acquisition intentions. By the end of the first half of the year, the company's commercial housing had an unsold area of about 330,000 square meters and land storage of about 540,000 square meters. It is located in Zhujiajiao and Xinjiangwan City, Qingpu, and has strong performance lock-up. Outstanding performance in the investment business: The investment business company is carried out by the headquarters and its subsidiary Chengding Fund. The management scale of Chengding Fund has exceeded 30 billion dollars. The investment ideas mainly revolve around the urban infrastructure industry chain. Furthermore, as of the end of the first half of the year, the company held a market value balance of about 15.309 billion yuan in various types of shares. In July, the company participated in the China Railway Construction one-year fixed increase project through an asset management plan. The final issue price was 8 yuan, and the company invested 500 million yuan in subscription. Maintaining recommended ratings: The company benefits from state-owned enterprise reforms and PPP concepts, and the merger and separation plan is progressing steadily. We keep our performance forecasts unchanged and maintain recommended ratings. Risk warning: sales fall short of expectations, environmental business progress falls short of expectations, merger and separation matters fall short of expectations.