Core view: Real estate supports the main operating performance scale. In the first three quarters of the year 17, the company achieved a sales return of about 3 billion yuan from the real estate business, a decrease of 50.7% compared with the same period in 2016. The purchase limit policy in the Nanjing market was the main reason limiting the growth of the company's real estate business scale. The average contract sales price for the first half of '17 was 14,444 yuan/square meter, an increase of 17% compared with last year. With a large amount of high-quality resources in the Jiangbei region of Nanjing and historical reserves in other third-tier cities, the company's real estate development can still gain the potential for steady development in the next few years. The pace of transformation continues. Looking forward to the formation of new performance growth points, Suning Global focuses on real estate development. The transformation goal of “big culture, big health, and big finance” has been progressing steadily since it was proposed in 2014, and remarkable results have been achieved in various areas of business development. After years of layout and preparation, on the basis of stabilizing the main real estate business, the company continues to steadily promote the transformation of the cultural, sports, health, and financial industries, and industrial investment projects have been implemented one after another. Nanjing's talent introduction policy has been relaxed. Focusing on regional policies to catalyze Nanjing will adjust its talent settlement policy to allow talents with a graduate degree or above and a bachelor's degree under 40 to settle in first and then be employed. Relaxation of household registration policies will form potential support for housing purchase demand. For Suning Global, the company's land reserves in Nanjing account for more than 70%. Relaxation in marginal policies has a positive impact on improving corporate profitability. The expected performance in '17 and '18 was $0.34 and $0.39 respectively, maintaining the “buy” rating. Currently, the company has a reserve of 3.1 million square meters for unsettled projects, and the net equity value of development projects has increased by 10.16 billion yuan. The value of the company's pure real estate business is 4.0% compared to the current stock price discount rate, and NAV5.83 yuan/share per share. According to the latest stock price PE levels, it is 16.2 times and 14.1 times, respectively. Risk suggests that sales performance is greatly affected by Nanjing's policies, and there is uncertainty about the performance contribution of the transformed business.