Guide to this report: Revenue declined year-on-year due to a decline in real estate settlements, and the incremental stock of the performing arts business grew at a rapid pace. Taking advantage of the “culture+tourism” of the new Hangzhou administration site saw initial results, and the dual business strategy continued to advance. Key investment points: Performance is in line with expectations, and holdings are increased. ① Revenue declined year-on-year due to reduced real estate settlement, and the company is actively acquiring land in Tier 1 and 2 cities; ② Cultural and performing arts projects have been introduced, incremental and stock businesses are blooming, and entertainment business revenue is improving; ③ “Culture+Tourism” has seen initial results, and the dual main business continues to advance, maintaining the 2017/18 EPS of 0.27/0.31 yuan, with a target price of 13.06 yuan. Performance summary: In the first three quarters of 2017, the company achieved revenue of 1,008 million yuan/ -77.97%; net profit of 61.4906 million yuan/ -86.32%, corresponding to EPS of 0.04 yuan/share, of which the third quarter achieved operating income of 130 million yuan/ -77.63%, net profit of 31.074 million yuan, corresponding to EPS-0.02 yuan. The performance was in line with previous forecasts. Revenue fell sharply year on year due to the decline in real estate settlements, and the performing arts business launched new projects to achieve high growth. ① The real estate settlement base in 2016 was high, and revenue declined sharply by 77.97% due to a decrease in real estate carry-over revenue in the current period; ② The most memorable was the performance of 2 projects in Hangzhou Hezhiyin, a total of 10 projects in progress and 4 in production. The stock projects were running well, and the incremental stock business blossomed, driving both net revenue growth in the cultural and performing arts business; ③ The company strictly controlled expenses, and the disposal of Zhongying Real Estate caused a sharp decrease in expenses over the same period last year, sales expenses fell by 57.34%, and management expenses fell 15.17%. Taking over the “culture+tourism” of the new Hangzheng plot has seen initial results, and the dual main business strategy continues to advance. ① Relying on the influence of the brand, the company won the Hangzheng new plot, and the integration of “tourism+real estate” has seen initial results; ② The company's four major performing arts brands have launched performing arts projects, and carried out investment and management of tourism and performing arts projects with IDG and Yunfeng Fund. Performance and talent development are guaranteed; ③ Tourist destination cultural projects drive land resource acquisition and real estate sales, and the strategic goal of “culture+real estate” continues to deepen. Risk warning: Regional policies in the real estate industry have contracted; project progress has fallen short of expectations.