Core view: In 2017, the company achieved total revenue of 5.592 billion yuan, +6.6% year-on-year; imputed net profit of 3.668 billion yuan, +21% year-on-year, and a weighted average ROE of about 25.23%, a year-on-year decrease of 15.92 percentage points. Unaffected by industry channel business expansion, active management capabilities were further enhanced, and the company achieved annual handling and commission revenue of 5.28 billion yuan, +17% over the same period, accounting for 94% of total operating income, and maintaining a dominant position in trust business revenue. The size of fiduciary assets at the end of the period was 232.6 billion yuan, a decrease of 1% over the previous year. Active management of trust business accounted for 68% of the scale, an increase of 8 percentage points over last year, and achieved a trust return rate of 1.92%. Overall, the industry was not affected by channel business impulses in 2017, and the company maintained an increase in both the share of active management and the remuneration rate. The inherent business sector dragged down overall revenue growth. The company achieved net interest income of 126 million yuan, a year-on-year decrease of 29%. The increase in interest expenses was mainly due to the repayment of liquidity support from credit insurance funds and the consolidation of structured entities; investment income and fair value variable income totaled 187 million yuan, compared to 522 million yuan in the same period last year. The main reasons were an increase of 100 million yuan in accounting losses after changes in valuation methods and market fluctuations caused by financial asset holdings. The highly active strategy has not changed, and is still the industry's high-quality target 1) Strong active management trust business is the company's core competitiveness. The company positions the trust business as an “industrial investment bank” and focuses on developing PE and equity investment projects. Trust assets account for 64% and 24% of investment in industry and real estate, respectively, which strongly supports financing in the real economy, and has deployed new fields such as biomedicine and photovoltaic power plants. 2) The existing business actively lays out diversified finance, holding banks, insurance companies, CITIC, etc. 3) The issue of the non-public offering of preferred shares is progressing. Sufficient capital and business experience will help the company adjust faster and reduce the impact of the business impact under the new asset management regulations. The plan is to raise 6.8 billion yuan to further supplement capital. After completion, the company's net capital is nearly 18 billion yuan, ranking among the highest in the industry. The investment proposal assumes that the size of the company's fiduciary assets and the share of active management will continue to grow steadily, and the rate will not change. The impact of the non-public offering of preferred shares on the company's operations and net assets is not considered yet. The estimated net profit of the company in 2018\ 2019 is 42.63\ 5.045 billion yuan, and the EPS is 0.94\ 1.11 yuan per share, respectively. The company's strong capital strength and strong active management ability have core competitiveness during the period of industry transformation, and maintained a prudent increase rating. Risk warning factors affecting the company's operations include declining macroeconomic and industry sentiment, the implementation of new asset management regulations exceeding expectations, increased competition in the industry, falling short of expectations, growth in the size of trusteeship falling short of expectations, the outbreak of serious risk incidents in continuing projects, and severe fluctuations in the secondary market.