Haiyin Co., Ltd. disclosed that in the first half of 2016, the company achieved operating income of 994 million yuan, up 17.94% year on year; net profit attributable to shareholders of listed companies was 96.2472 million yuan, up 6.01% year on year; net profit attributable to shareholders of listed companies was 883.364 million yuan, up 17.36% year on year; and basic earnings per share of 0.04 yuan. The company's performance is in line with expectations. Real estate revenue has risen, and the financial and entertainment sector has increased performance. The increase in the company's performance is mainly due to the year-on-year increase in real estate revenue and the rapid growth in new business, finance, and entertainment sectors. By business, the property leasing and management business revenue was 402 million yuan, up 1.50% year on year, gross margin was 44.65%, down 8.68 percentage points year on year; department store revenue was 274 million yuan, down 0.93% year on year, gross margin was 13.43%, up 3.23 percentage points year on year; hotel industry revenue was 195.16 million yuan, down 8.19% year on year; gross margin was 48.90%, down 2.60 percentage points year on year; real estate revenue was 192 million yuan, up 39.51% year on year, gross margin was 52.01%, a year-on-year decrease of 7.69 percentage points; the financial industry's revenue was 37.1344 million yuan, up 271.45% year on year, gross margin was 90.55%, an increase of 10.01 percentage points over the previous year; the new business culture sector achieved revenue of 68.165 million yuan, due to the fact that Hunan Red Sun, which holds 75% of the company's shares, was merged into the report in 2016. The “Haiyin Ecosystem” continued to upgrade During the reporting period, the company continued to improve its commercial layout and business format, actively integrated new financial and entertainment business sectors, and the “Haiyin Ecosystem” continued to upgrade. In the commercial sector, the company acquired 80% of Dongjin Professional's shares to build an intelligent warehousing, logistics and distribution center for the professional market; invested in the “China Food City” project to achieve complementary advantages with the company “Panyu Haiyin · Another City” in retail, tourism, and food. In the financial business sector, Haihe Investment, a strategic merger and acquisition fund owned by the company, completed its first foreign investment, and became the third largest shareholder through the subscription of Shenzhen Maida Digital Co., Ltd. to become its third largest shareholder, holding 6.04% of the shares; in the entertainment sector, the company issued convertible bonds to invest in the “Shanghai Haiyin · Another City” entertainment complex project. The project is located in Chuansha New Town, Pudong New Area. It belongs to the core radiation circle of Disney's economy, and will fully benefit from the driving role played by the opening of Disney Park. Maintaining the collaborative development of the commercial, financial, and entertainment sectors of “increased holdings” rating companies, has a clear strategic position and deserves the active attention of investors. We forecast that in 2016-2018, the company's net profit will be 278/3.59/474 million yuan, and EPS will be 0.12/0.16/0.21 yuan respectively, maintaining the “increased holdings” rating. Risk warning: The macroeconomy is seriously declining; new business development falls short of expectations.