1. Overview of the incident. On December 4, Chinese enterprises announced that the new shares issued by the company had completed registration procedures at China Securities Registration and Settlement Co., Ltd., and that the number of shares issued with supporting capital this time was 373 million shares, the issue price was 534 yuan/share, and the capital raised was 1,994 billion yuan. 2. Analysis and judgment, implementation of additional issuance. China Resources Yueju, the second shareholder of China Resources announced on December 4 that the company completed the registration procedure for the additional shares in China Securities Registration and Settlement Co., Ltd. and issued 373 million additional shares. The issue price is 534 yuan/share, and the capital raised is 1,994 billion yuan. In this private offering, 344 million shares were issued to China Resources Land Holdings and 29.873 million shares were issued to Ping An Real Estate Co., Ltd. After the transaction was completed, China Resources Land Holdings held 6.76% of the shares in Chinese companies, becoming the company's second largest shareholder. China Resources has entered the management level, and improvements in operating efficiency can be expected. After the restructuring of Chinese enterprises was completed in April this year, Ling Xiaojie, the former deputy general manager of China Resources Land in North China, and Wang Huihong, the deputy general manager of East China Region, became the company's general manager and deputy general manager respectively; China Resources became the second largest shareholder and entered management, which is conducive to improving the company's future operating efficiency. Cooperation with Ping An to enhance financing capacity After Ping An invests in shares, the company will use Ping An's financial real estate platform to enhance the company's long-term financing capacity in the financial sector in the future. 3. Investment recommendations After injecting high-quality assets, Chinese enterprises have sufficient land reserves, rely on the majority shareholder, Shanghai Real Estate Group, have efficient management, and have strong certainty about future performance. It is estimated that the company's EPS in 18-20 was 0.4, 0.49, and 0.58 yuan, and the corresponding PE was 14.6/12.0/10.1 times. The company's highest, lowest, and median PE in the past three years was 62.1/-16.8/16.6 times, respectively, maintaining the company's “recommended” rating. 4. Risk warning: Policy regulation in the real estate industry has intensified, and the improvement in corporate management efficiency has fallen short of expectations.