Beneficial investment income increased fourfold: on the 28th, the company released a semi-annual report, achieving operating income of 2.69 billion yuan (-8.3%), net profit attributable to the parent company of 2.96 billion yuan (+347.3%), and EPS of 0.99 yuan (+347.3%). The decline in operating income was mainly due to a decrease in real estate sales carry-over, while the sharp increase in performance was due to the company's sale of Western Securities and Everbright Bank shares, resulting in a significant increase in investment income (+3273.9%), and total profit after deduction of investment income was 409 million (-45.6%). In the main business, real estate business revenue was 1.66 billion yuan (-31.41%), and gross margin was basically the same as the same period last year, while environmental business revenue was 900 million yuan (+88.39%), gross margin decreased by 9 percentage points. The increase in environmental protection business revenue was mainly due to an increase in environmental engineering project design and planning revenue (BOT project construction) and waste incineration power generation revenue (Zhangzhou Pujiangling domestic waste incineration power plant), while the decline in gross margin was mainly an increase in BOT project construction and equipment costs. Environmental business is developing steadily, and real estate resource reserves are abundant: in the first half of the year, the company invested in 7 waste incineration projects for commercial (trial) operation, namely Jiangqiao, Chengdu, Weihai, Qingdao, Jinshan, Zhangzhou and Nanjing projects. A total of 1,507,500 tons of garbage were incinerated, and the power generation capacity of tons of incinerated waste reached 400 °/ton. The same period last year was 376 deg/ton, with a total leachate treatment volume of 370,000 tons (+31%); there are 5 waste incineration projects under construction, namely Taiyuan Project, Luoyang Project, Songjiang Dongma Project, and Fengxian Project Shitang and Chongming projects. On the real estate side, 105,600 square meters were completed in the first half of the year, and the amount of work under construction was 700,000 square meters. Significant progress was made in expanding guaranteed housing projects. As of the end of the first half of the year, the company's commercial housing had an unsold area of about 330,000 square meters, advance payments of 5.48 billion yuan (+92.0%), 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 investment business performance: the market value balance of various types of equity held by the company as of the end of the first half of the year rose from about 13.183 billion at the end of 2014 to about 15.309 billion. 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. The company invested 500 million yuan in subscription, accounting for 0.46% of the total shares. As of the 28th, China Railway Construction's closing price was 13.21. By the end of the first half of the year, the company held 1.75% of Shentong Metro, 0.53% of Everbright Bank, 16% of Western Securities, and 2% of Shanghai Construction Engineering. In the first half of the year, Chengding Fund completed the establishment of four special funds, raising more than 1.2 billion yuan in total, focusing on increasing the reform concept of state-owned state-owned enterprises with a high margin of safety, as well as high-quality pre-IPO projects. By the end of the first half of the year, a total of 5 projects had been invested, with an investment amount of 871 million yuan, and 7 more projects were signed, with a contract amount of 766 million yuan. The merger and separation plan continued to advance: In June, the company formed a response report in accordance with the requirements of the Shanghai Stock Exchange's “Audit Opinion Letter”. In August, the board of directors deliberated and passed the relevant bill. The exchange price for CITI Holdings was 15.50 yuan/share, and the exchange ratio with Yang Chen B shares was 1:1, the first and second cash option prices of CITI Holdings were all 10.00 yuan/share, and the closing price of CITI Holdings was 13.68 yuan as of the 28th. After the completion of the plan, CITI Holdings will divest the environmental business and transform into a comprehensive asset management group with urban infrastructure and related fields as the main investment direction. The company will develop asset management businesses such as PPP funds and PE funds. The real estate business will strengthen collaboration with asset management business, drive business opportunities such as land resource reserves and project management services through investment in the infrastructure sector, increase the integration of financial and industrial resources, and build its subsidiary Chengding Fund into a first-class private equity investment fund management platform in China. “Recommended” rating: Based on the company's current environment and real estate business situation, regardless of mergers and separations, we expect the company's EPS for 15-16 to be 1.25 and 1.59 yuan respectively, and PE is 10.97X and 8.60X respectively according to the closing price on the 28th, giving it a “recommended” rating. Risk warning: sales fall short of expectations, environmental business progress falls short of expectations, merger and separation matters fall short of expectations.