The performance from 1 to 3Q17 was 0.25 yuan per share, +53% year on year. In line with expectations, Electronics City announced the 1 to 3Q17 results: operating income of 728 million yuan, up 29.3% year on year; net profit attributable to the parent company was 200 million yuan, up 53% year on year, corresponding to earnings of 0.25 yuan per share. Strong growth on the sales side. During the period, the company achieved a sales area of 76,131.74 square meters, an increase of 73% over the previous year; the sales amount was 125 million yuan, an increase of 30% over the previous year. Investment property income declined slightly. The company's rental income during the period was 115 million yuan, down 13.52% year on year; rental property area fell 5.67% year on year to 264,600 square meters. Net interest rates have increased significantly thanks to increased government subsidies. The company's consolidated gross margin after tax reached 39.5% during the period, down 4.7 percentage points from the same period last year. The net interest rate for net income during the period increased 4.3 percentage points to 27.4% year-on-year, mainly due to a sharp increase in government subsidies to 31.82 million yuan (650,000 yuan in the same period last year). Net cash is in hand. The company had cash on hand at the end of the period of 4.564 billion yuan, far higher than the interest-bearing debt of 1,665 billion yuan. In the middle of the year, the company successfully issued 650 million yuan of medium-term notes. The issuance interest rate was 5.50%, and the financing channels were smooth. The development trend is optimistic about the company's transformation to the technology service industry and the expansion of projects outside Beijing. In 2016, the company focused on innovation and actively explored value-added services for high-tech innovative industries. The non-public offering also introduced Hongrui Investment, an investment platform of Lenovo Holdings, and the holding subsidiary cooperated to establish Kodi Shuangjia. The company is steadily advancing projects in Shuozhou, Tianjin, and Qinhuangdao, and has also actively deployed in Xiamen, Kunming, and Nanjing. Future development of projects outside of Beijing is worth paying attention to. Earnings Forecast We have maintained our earnings per share forecast for the full year 2017/2018. Valuation and recommendations Currently, the company's stock price corresponds to 16.5/11.6 times the predicted price-earnings ratio for 2017/18. We maintain a neutral rating and target price of RMB 12.80, which is 16.05% higher than the current stock price. The regulation of risky real estate has been further upgraded.