Key investment points: Interim results declined by 19.78%, and performance reversed losses. Nanjing Chemical Fiber released its 2015 interim report. The company's revenue during the reporting period was 674 million yuan, a year-on-year decrease of 7.94%, and net profit attributable to the parent company was 1,116,500 yuan, a decrease of 19.78%, achieving an EPS of 0.004 yuan. EPS of 0.01 yuan was achieved in a single quarter. Operations in the chemical fiber industry have improved, and real estate has declined sharply. The company's revenue of 258 million and 295 million viscose filament increased by 24.54% and 35.34%, respectively, during the reporting period, and gross margin increased 8.54 and 12.37 percentage points, respectively. The main reason is that the price and sales volume of viscose filament and viscose staple fiber products all increased year on year. Real estate revenue was 5.22 million, down 96.98% from the previous year. The main reason is that Jinling Real Estate did not start any new construction projects during the reporting period. All commercial housing completed earlier had already been sold, and no sales revenue was confirmed in the current period, so sales revenue was drastically reduced compared to the same period last year. At the same time, due to rising prices of viscose staple fibers, the investment income for the reporting period was -1,4997 million yuan, a year-on-year decrease of 8.91 million yuan. The real estate equity transfer is progressing smoothly. The company plans to transfer 70% of Jinling Real Estate's shares to China Power Construction Real Estate Group Co., Ltd., with a transfer reference price of RMB 772 million. At the end of July 2015, China Power Construction Real Estate Group Co., Ltd. remitted all equity transfer funds to the bank account designated by the Nanjing Public Resources Exchange Center in accordance with relevant agreements. The company will contact all parties to complete the relevant procedures for the change of shares in Nanjing Jinling Real Estate Development Co., Ltd. as soon as possible. The company's cash flow situation will improve significantly after the equity transfer is completed. Viscose staple fiber prices will remain strong until November. Due to environmental reasons, a total of 330,000 tons of production have been discontinued since March this year, accounting for about 9% of the total production capacity. The price of viscose staple fiber has risen about 20% from a low point of 11,400 yuan/ton. Currently, adhesive manufacturers have low inventories, tight supply, and serious oversigned orders. Meanwhile, September-October is the traditional peak season for the adhesive industry, and the price of viscose staple fiber will remain strong until November. For the first time, a “hyperholdings” rating was given. After the company's equity transfer is completed, the company's cash flow will improve markedly. There are strong expectations for transformation, suggestions for active attention, and at the same time, the company also has expectations for state-owned enterprise reform. It is estimated that the company's EPS for 15-17 will be 0.10, 0.33, and 0.41 yuan respectively, giving the company 38 times PE in '16, and the corresponding target price of 12.54 yuan, giving it an investment rating of “increased holdings”. Risk warning: Product demand falls short of expectations.