Key Investment Events On August 20, the company released an interim report. In the first half of 2020, it achieved operating income of 2,801 billion yuan, a year-on-year decrease of 9.77%, and net profit of 75 million yuan, a year-on-year decrease of 218.82%. Comment: Losses in the first half of the year were mainly affected by public health events. There was a rapid recovery in the second quarter, and net profit increased slightly by 1.5%. The first half of 2020 achieved operating income of 2,801 billion yuan, a year-on-year decrease of 9.77%, and net profit of net income of 75 million yuan, a year-on-year decrease of 218.82%. The second quarter achieved operating income of 1.74 billion yuan, a year-on-year decrease of 2.9%, and net profit of 89 million yuan, a year-on-year increase of 1.5%. Looking at each business: (1) The trading service business remains stable. The trading services business revenue for the first half of the year was 0.56% year on year, and 13% year on year in the second quarter. Among them, the retail sales business revenue for the first half of the year was 1,246 billion yuan, down 4.74% year on year, and gross margin was 27.4%, up 3.23 percentage points from the same period last year; the Internet+ business achieved revenue of 554 million yuan, up 17.33% year on year, and gross margin was 8.31%, down 7.21 percentage points. (2) In the post-transaction service business, financial services revenue was 100 million yuan, a year-on-year decrease of 66.64%. The decoration business achieved revenue of 64 million yuan, a year-on-year decrease of 61.86%. (3) Asset operation service business revenue was 401 million yuan, up 0.36% year on year. The gross profit margin was -62.39%, down 2.43 percentage points from the same period last year. (4) Property management services revenue was 276 million yuan, down 4.01% year on year, and gross profit margin was 14.8%, down 2.64 percentage points from the same period last year. The number of fully commissioned projects signed in the first half of the year was 5, the number of projects under management was 93, and the actual fee area was 4.95 million square meters. The actual controller changed. Da Hengqin holds 15.9% of the company's shares and has 29.90% of voting rights. It is the actual controller of the company. The Grand Hengqin Group is the main urban development and operation entity in Hengqin Island. The Zhuhai Grand Hengqin Group is a wholly-owned subsidiary of the Hengqin New Area State Assets Administration Commission. The actual controller is the Zhuhai Hengqin New Area Management Committee. Hengqin Island is located next to Macau and has a prominent strategic position. Greater Hengqin will collaborate with the professional service advantages of listed companies, integrate the Hengqin New Area and its integrated regional resources, create a model for innovative urban managers, and gradually promote it throughout the country. At the same time, Grand Hengqin will pay more in-depth attention to the various business segments of listed companies, seek more integrated and empowering development opportunities, and help listed companies continue to develop and grow. Investment suggestion: The actual controller of the World Federation Bank has been changed to the Hengqin State Assets Administration Commission. The Grand Hengqin Group is the main urban development and operation entity of Hengqin Island. Hengqin Island is adjacent to Macau, and has now formed a pattern of collaborative development of six major industries. We expect the World Federation Bank's EPS for 2020 and 2021 to be 0.05 yuan and 0.07 yuan respectively. Based on the closing price on August 20, PE is 92.6 times and 66.1 times, respectively, maintaining the “buy” rating. Risk warning: The transaction service business falls short of expectations; the risk of continued loss in the apartment management business.