Guide to this report: 2017H1 was affected by real estate settlement, and the performance decline was obvious; in the future, the performing arts business is expected to continue to have a good harvest, and the two main industries of “culture, entertainment+real estate” are progressing hand in hand. Key investment points: Due to few settlements in the company's real estate business, performance has declined. However, we see that the company is still rich in land reserves in Shanghai, and at the same time actively acquires land in Tier 1 and 2 cities; the number of performances and reserves for spectators and performing arts programs has also maintained a steady increase in the number of performances and reserves each year. Due to a decrease in the company's real estate business settlement, the 2017/18 EPS was lowered to 0.27/0.31 yuan (-0.15/-0.13 yuan). The comprehensive real estate and performing arts business gave the 2017 average of 2.7 xPb, which was slightly higher than the industry average, corresponding to maintaining the target price of 13.06 yuan, maintaining an increase in holdings rating. Performance summary: In 2017, H1 achieved revenue of 888 million yuan/ -78.02%; net profit of 9.25647 million yuan/ -79.91%; corresponding EPS was 0.07 yuan/share. The performance was in line with previous forecasts. Real estate settlements have caused changes in performance, and new cultural and performing arts are constantly being introduced. ① The real estate business had sales revenue of 707 million yuan/ -82.08%, and gross profit of 3.10/ +17.27%. The performance during the reporting period fluctuated greatly due to the high real estate settlement base in the previous period. ② Cultural and performing arts revenue was 79 million yuan/ +1894.45%, and net profit was 47.31 million yuan, mainly due to the continuous implementation of visual impression project creations (the most memorable achievement was the performance of 2 projects in Hangzhou and Zhiyin, 10 in progress, and 4 in production) and stock project maintenance revenue. ③ Disposal of subsidiary Zhongying Real Estate and increased cost control, resulting in a year-on-year ratio of sales expenses/financial expenses of -48.18%/-29.55% during the reporting period. ④ Watch the Hangzhou performance enhance brand influence, the company competed for a new land plot in Hangzheng, and the integration of “tourism+real estate” is beginning to bear fruit. The “culture+real estate” dual business strategy continues to advance. ① The four major performing arts brands “Impression, See You Again, Most Memories, and Return” have all begun to launch performing arts programs, and performance promises are expected to be worry-free. ② Strategic framework agreements have been signed with IDG and Yunfeng Fund. It is expected that investment and management of tourism and performing arts projects will be carried out in the future, and talent development will also be guaranteed. ③ Cultural projects in tourist destinations drive the acquisition of land resources and real estate sales, and the strategic goal of the “culture+real estate” business continues to deepen. Risk warning: Regional policies in the real estate industry have contracted; project progress has fallen short of expectations.