Event: Company Announcement 2017 Interim Report. Contract sales increased significantly year over year, and rental income increased steadily. The contract sales amount of 17H1 Company was 100 million yuan, an increase of 88% over the previous year; the contract area was 29,500 square meters, an increase of 3.5 times over the previous year. In terms of rental income, the company's 17H1 leased property area is about 129,000 square meters, and the rent is 75.4 million yuan (up about 7.7% year on year). Furthermore, as of the interim reporting period, the company's 17H1 advance payment was 64.56 million yuan, 60% higher than at the end of the same period of the year; the company's inventory was 2,624 billion yuan, 58.7% higher than the same period in 2016. High advance payments and inventory reserve the company's subsequent performance. Operating income declined year over year due to project carry-over. Electronic City 17H1 had revenue of 296 million yuan, a year-on-year decrease of 26.56%. The decline in operating income was mainly due to a phased decline in revenue due to the impact of the company's project development and settlement cycle in the first half of the year. Operating costs also declined year over year due to carry-over project cycles. Operating costs were 154 million yuan, down 2.69% year on year. The company's 17H1 gross margin fell to 48.02% from last year, down about 13 percentage points, but overall gross margin remained at a high level. The operating income structure has been adjusted, and the contribution of property revenue has increased. The company's 17H1 revenue structure has been adjusted compared to the same period in '16. Of the 290 million yuan revenue, real estate sales accounted for 30% (down 19 percentage points year on year), park real estate leasing accounted for 26% (up 8 percentage points year on year), property management (up 14.5 percentage points year on year), and advertising media accounted for 5% (down 3.5 percentage points year on year). Judging from the revenue structure, although the company's real estate sales business was affected by the carry-over cycle, declined a lot year over year, non-cyclical revenue, such as leasing and property management, maintained steady growth. The Afro-Beijing region has begun to contribute revenue. Judging from the geographical distribution of revenue, in addition to Beijing, Tianjin and Shuozhou have also begun to contribute revenue. In 17H1, the operating income of Tianjin and Shuozhou was RMB 290,000 and RMB 10,000 respectively, accounting for 0.1% and 18.5% of total revenue, respectively. Until 17 years ago, the company was mainly involved in industrial parks and real estate projects in the Beijing area. The 17H1 revenue pattern changed, and projects outside Beijing officially began to contribute revenue. Maintain an increase in holdings rating. We forecast the company's 2017 EPS to be $0.67 per share. The company's closing price on January 30, 2017 was 11.49 yuan, corresponding to a price-earnings ratio of about 17 times in '17. We maintain the price-earnings ratio valuation given to the company 25 times in 2017, with a target price of 16.75 yuan per share. Give it an “Overweight” rating. Risk warning: Policy regulation continues, and sales volume and prices in regulated cities have both declined.