Event: The company announced that in the first half of 2018, it achieved revenue of 2,966 billion yuan, a year-on-year increase of 33.61%, net profit of 131 million yuan, a year-on-year decrease of 28.90%, net profit of 129 million yuan, a year-on-year increase of 138.86%, and EPS of 0.07 yuan/share. Among them, 18Q2 revenue and net profit increased by 40.99% and -21.14% year-on-year respectively. Comment: Furthermore, Hunan's overseas revenue growth has been driven by rapid revenue growth, while improvements in gross margin have led to a significant increase in non-net profit. During the reporting period, the company achieved a contracted sales area of 413,600 square meters, a sales amount of 4.739 billion yuan, a settlement area of 178,200 square meters, a settlement amount of 1,831 billion yuan, and a commercial housing sales revenue increase of 8.92%. In November 2017, the company's overseas acquisition of Hunan led to a sharp increase in other business revenue by 110.60%, driving the company's revenue growth by 33.61%; high-quality real estate project settlement and other businesses increased significantly by 4.02pct. At 10.41pct, revenue growth led to a decrease of 2.75pct in the expense ratio. Among them, the management fee rate and financial expense ratio decreased by 1.4 pct and 2.07 pct, respectively. There has been a breakthrough in cultural tourism layout, and Tongguanyao is worth looking forward to. The year '18 has been an important promotion year since the company's transformation. Following the full opening of streets on the east coast of Jiuzi, the first cultural tourism project, the ocean show officially opened during the reporting period, the west bank of Jiuzi Ancient Town has been fully completed, Tongguanyao Ancient Town is about to open, the promotion of several major cultural tourism projects such as Xining Children's Dream Land, and the acquisition of China Sea Cultural Tourism Design and Research (Dalian) Co., Ltd. and Hunan Overseas to strengthen cultural tourism transformation and help promote the development of the cultural tourism industry. Cultural tourism will become a new profit growth point for the company in the future; the construction of Tongyao Town by Xinhualian will take three years Large-scale integration of “culture+tourism+technology+leisure+entertainment+business” The cultural tourism project officially opened today. The project is based on the Changsha Yao National Archaeological Park, which has a history of more than 1,200 years. The project takes history and culture as the soul, ceramic culture as the root, Tang style and ancient charm, and cast with the spirit of craftsmanship, recreates the flourishing style of Datang, inherits thousands of years of Huxiang civilization, and has a total construction area of 1.1 million square meters, covering 8 major museums, 5 major performing arts centers, 3 star hotels, 20 homestays and inns, 18 cultural attractions, and 4 major parent-child amusement programs. It is also built according to the national 5A scenic spot standards. The first article with an investment of over 10 billion yuan The tourism project was listed as a national tourism priority project, a “Belt and Road” strategic model project, and a key project in Hunan Province and Changsha City. Bank of Changsha will soon go public, and mergers and acquisitions will enter the field of fintech. Bank of Changsha, which holds 9.40% of the company's holdings, has already passed the meeting. The acquisition of Shenzhen Youwo Finance has expanded the company's business into the field of fintech. Furthermore, the Asia Pacific Reinsurance Company, which participated in the initiation of the establishment, is awaiting approval from the Insurance Regulatory Commission. The diversified financial business is in line with the company's strategic transformation plan and can greatly enhance the company's profitability and sustainable development capabilities. Profit forecast and investment ratings: In 2018, the cultural tourism and financial layout ushered in an important breakthrough. The first large-scale integrated cultural tourism project has been successfully opened, the Bank of Changsha is about to go public, the real estate business continues to transform and upgrade, gross margin continues to increase, and the cultural tourism industry chain layout continues to improve, becoming another driving force for the company's growth. It is expected that the 2018-2020 EPS will reach 0.51/0.60/0.74 yuan, and the closing price corresponding to PE on August 28 will be 11/9/7 times, respectively, maintaining the “prudent increase in holdings” rating. Risk warning: fixed increase projects are not progressing smoothly, housing market policies have been further tightened, resource integration results have fallen short of expectations, cultural tourism project operations have fallen short of expectations, overseas projects have not progressed as expected, and there is a risk of exchange rate fluctuations.