Incident: During the reporting period, the company achieved total operating income of 1,002 billion yuan, realized a total profit of 72.7752 million yuan, and realized net profit of 41.7949 million yuan, of which: net profit attributable to the owner of the parent company was 71.5581 million yuan, an increase of 72.72% over the previous year. Opinion: Total revenue increased slightly. During the reporting period, the company achieved total revenue of 1,002 billion yuan, an increase of 1.25 percentage points; total profit of 72.7752 million yuan, up 2.35% year on year, of which net profit attributable to the owner of the parent company was 71.5581 million yuan, an increase of 72.72 percentage points year on year; and revenue per share was 0.18 yuan, up 63.34% year on year. The company's positive net profit for the first half of the year was mainly due to the sale of 3.26 million shares of Huiquan Brewery shares. The total investment income was 51.59 million yuan, an increase of more than 2,000 times over the previous year, which partly covered up the problem of the decline in the profitability of the company's main business. Judging from the product composition of operating income, the revenue of the engineering contracting business decreased by more than 30% year on year, while the real estate development business increased by nearly 120% year on year. The gross margin of the main business increased due to the combination of higher gross margin of engineering contract settlement projects and higher gross margin of real estate development project settlement projects. Judging from the regional sources of operating income, mainland China contributed less than 50% of revenue, but more than 50% of gross profit. At the same time, considering the obvious recovery in the sales market in the region where the company's real estate projects are located, it is likely that most of the company's gross profit in the second half of the year will be Real estate development business contribution. International engineering contracting business contract amounts have dropped significantly. The amount of new contracts signed by the company during the reporting period was about 700 million yuan, a year-on-year decrease of 40%. Especially in the context of the overall steady increase in the international engineering contracting business of Chinese enterprises, it largely reflects that there is still a certain gap in the competitiveness of the company and other overseas Chinese enterprises. The wholly-owned holding of Beijing Wuyi is progressing smoothly. The company transferred 10% of the shares in Beijing Wuyi (Beijing Wuyi Real Estate Development Co., Ltd.) held by Beijing Zhongtong (Beijing Zhongtong Real Estate Development Co., Ltd.) for 215.4 million yuan. After the transfer of shares, Beijing Wuyi became a subsidiary holding 100% of the shares. Beijing's Wuyi's large land reserves in the Tongzhou region provide the possibility for significant future business growth. The company's wholly-owned holdings through equity acquisitions will help the company fully benefit from the profit growth of the Tongzhou project. High value land reserves are sufficient. Beijing Wuyi, a wholly-owned subsidiary of the company, has 600 acres of land in Tongzhou, with a construction area of 1 million square meters. Most of it is residential land. Based on the estimated floor value near the reserve plot, the current land reserve value is as high as 10 billion yuan. Currently, the company is actively proceeding with development work in an orderly manner in accordance with the requirements of the Beijing Planning Commission. It is expected that construction of the project will officially start in 2015, bringing high expectations for a sharp increase in the company's sales revenue and profit. In addition to Tongzhou's land reserves, during the reporting period, the company purchased 19.23 acres of state-owned construction land in Fu'an City, Fujian Province for 201 million yuan, while also actively searching for suitable targets at home and abroad. Corporate bonds+allotments reduce financial expenses. By the end of the reporting period, the company's interest-bearing debt was about 5 billion yuan, the maximum interest rate for short-term loans was 12%, and the interest expenses included in financial expenses alone were about 120 million yuan. The pressure on financial costs was enormous. In May, the company proposed an allotment plan of 1.4 billion yuan, which has now been accepted by the Securities Regulatory Commission. In July, it also proposed a corporate bond issuance plan of no more than 500 million yuan. It is expected that the company's refinancing will be successfully realized during the year. The low cost capital of 1.9 billion yuan is expected to save nearly 100 million yuan in financial expenses, while significantly reducing the company's balance ratio. Conclusion: The Tongzhou project is expected to start this year, and the company's future sales amount and profit are expected to increase dramatically. Along with this expectation, the market's valuation of the company will also increase dramatically. We expect the company's revenue for 2015-2017 to be 3.68 billion yuan, 9.687 billion yuan and 14.891 billion yuan respectively, with earnings per share of 0.47 yuan, 0.93 yuan, and 0.99 yuan, respectively. The corresponding PE is 42.45, 21.65 and 20.28, respectively, maintaining the “Highly Recommended” rating.