Incident: The company issued an announcement stating that the company and the actual controller China Cinda Asset Management Co., Ltd. (“China Cinda”) and the related party Cinda Capital Management Co., Ltd. (“Cinda Capital”) jointly initiated the establishment of a Ningbo Baonengxin partnership to invest in the Shenzhen Zhonglin Science and Technology Industrial Park South Area project in the form of equity and debt. Main opinion: Establish a real estate fund and deepen cooperation with major shareholders. The company signed the “Ningbo Baonengxin Investment Partnership (Limited Partnership) Partnership Agreement” with the actual controller China Cinda and the related party Cinda Capital to jointly initiate the establishment of a fund. The total amount of funds pledged was 2,801 billion yuan. As the fund's limited partner, the company pledged 50 million yuan, accounting for 1.79% of the total amount pledged; China Cinda pledged 2.75 billion yuan as the fund's limited partner, accounting for 98.18% of the total pledged amount. The fund will invest in the Shenzhen Zhonglin Science and Technology Industrial Park South District project in the form of equity and debt. We believe that the establishment of a real estate fund with the majority shareholders of the company this time will deepen business collaboration between the company and China Cinda and promote innovation in the company's “financial real estate” business model. The fixed increase guarantees the rapid development of the company. In June, the company announced a plan for the non-public offering of A-shares. It plans to issue no more than 239 million shares at a price of no less than 8.37 yuan/share, and raise no more than 2 billion yuan in capital for the construction of the first phase of the Hefei Cinda Tianyu, Chongqing Binjiang Lanting, and Ningbo Grand Junting. The company's finances have always been relatively stable. Relying on the strong strength of the majority shareholders, the company also enjoys advantages in terms of financing channels and financing costs. This is the first non-public offering since the company went public backdoor in 2008. Since its listing, the company has carried out continuous business integration. In recent years, against the backdrop of a downturn in the real estate industry, the company's real estate project sales have grown against the market. We believe that this non-public offering of A shares will support the continued rapid growth of the company's business. Profit forecasts and investment ratings. We expect the company's operating revenue for 2015-2016 to be 6.890 billion yuan and 13.162 billion yuan respectively, corresponding to EPS of 0.67 yuan and 0.84 yuan respectively, and corresponding PE of 11.9X and 9.5X respectively, maintaining the “highly recommended” rating.