Significant increase in performance: On August 29, the company released its semi-annual report. In the first half of the year, the company achieved operating income of 2,023 billion yuan, an increase of 311.53% over the previous year, net profit attributable to shareholders of the parent company of 258 million yuan, an increase of 425.18% over the previous year, and EPS of 0.19 yuan, an increase of 425.27% over the previous year. In the first half of the year, the company's carry-over area was 157,700 square meters, an increase of 359.36% over the previous year, and carry-over revenue of 1,984 million yuan, an increase of 337.97% over the previous year. The company has entered a peak settlement period since this year. The gross settlement margin for the real estate business was 33.74%, a decrease of 5.72% over the previous year, but it is still at a high level in the industry. Sales are expected to accelerate in the second half of the year, and development in cooperation with Shenzhen Metro: In the first half of the year, the company achieved sales of 1,357 billion yuan, a year-on-year decrease of 8.37%, and a return capital of 1,390 billion yuan, an increase of 12.46% over the previous year. It completed 32.82% and 33.22% of the annual business plan, respectively, and achieved a sales area of 125,000 square meters, a decrease of 5.23% over the previous year. The main ones that met the sales conditions in the second half of the year were Zhenyeluan Valley Garden Phase II, Changsha Zhenye City, Tianjin Qichunli, Tianjin, Tianjin Boya Xuan, Dongguan Songhu Yayuan, Dongguan Songhu Yayuan, Xi'an Poshu Phase II Group B, and subway cooperation projects. The sales situation is expected to improve to a certain extent. In the first half of the year, Guangxi Zhenye Real Estate, a subsidiary of Guangxi Zhenye Real Estate, competed for 160 million yuan for the Liusha Peninsula project in Qingxiu District, Nanning, Guangxi, covering an area of 13,400 square meters. In addition, the company cooperated with the Shenzhen Metro to develop the Jinhui Park project, and paid 866 million yuan to share 70% of the interests of 225,500 square meters of residential buildings, 41,000 square meters of business apartments, and 0.35 million square meters of supporting properties. The debt ratio is in a safe range: at the end of the first half of the year, the company's balance ratio was 63.26%, a year-on-year decrease of 0.64 percentage points; the net debt ratio was 81.74%, an increase of 42.6 percentage points over the previous year, mainly due to a 100% year-on-year increase in payable bonds and a 119.46% year-on-year increase in non-current liabilities maturing within one year. Looking at a horizontal comparison, the company's debt ratio is still in a safe range. Furthermore, the company successfully issued 1.5 billion corporate bonds in March, which had a certain effect on improving the debt structure. It has clearly benefited from Shenzhen's state-owned enterprise reform: the company is one of only two large-scale listed real estate companies directly under the Shenzhen State-owned Assets Administration Commission. It is also an A-share enterprise with a high level of expertise in real estate development under Shenzhen's state-owned assets. At the same time, the Shenzhen State-owned Assets Administration Commission's shareholding ratio in the company is quite appropriate, and it has a certain degree of market-based flexibility while guaranteeing its holding position. We believe that the integration of the Shenzhen real estate listing platform and its real estate resources, and the further cooperation between the Shenzhen Metro and the company all have a lot of room for imagination. Recommended ratings: The company is deeply involved in the real estate industry and is actively expanding throughout the country on the basis of being based in Shenzhen. In the first half of the year, due to a large increase in carry-over area, performance improved dramatically. In the second half of the year, seven projects met sales conditions. At the same time, as important targets for state-owned enterprise reform, they are worthy of higher valuation. We expect the company's 15-17 EPS to be 0.59, 0.76, and 0.98 yuan, respectively, giving us a recommended rating for the first time. Risk warning: Uncertainty in the real estate market is increasing, and sales are falling short of expectations.