Incidents The 2020 Interim Report showed good growth in revenue and profit. The company achieved revenue of HK$402 million in the first half of 2020, up 39.6% year on year; gross profit of HK$112 million, up 85.1% year on year; gross margin increased 21% to 28% from the same period last year; and net profit attributable to shareholders turned a loss into a profit, up HK$1.83 million over the same period last year. Brief review The utilization rate of production capacity has increased markedly, and cost reduction and efficiency have seen initial results. In the first half of 2020, the company produced 124,500 m3 and shipped 125,100 m3, an increase of 70% over the previous year. The capacity utilization rate increased from 26% in 2019 to 39%, and the capacity utilization rate increased significantly. Costs in the first half of the year fell 7% from last year to 2003 yuan/m3. Some factory costs have already reached less than 1,700 yuan/square meter, and the cost reduction is beginning to bear fruit. The four major development strategies protect the company's long-term development (1) position the entire industry chain as a “turnkey” model. The company plans to expand from the current PC manufacturing business to the entire industry chain of design, component production, engineering construction, garden decoration, etc., to further exploit cost advantages; (2) form a synergy with the Construction Industry Group. In 2019, the majority shareholders of the company changed. Hu Baosen, chairman of the board of directors of Jianye Group, acquired shares in the company held by China Civil Investment, and Zhuyou became the upstream real estate sector under Jianye Group. Jianye Group ranked 40th among China's top 500 real estate developers in 2019 and is the strongest real estate developer in Henan. Relying on the advantages of the entire industry chain, Zhuyou accelerates the layout of the country's business. This year, green science parks will be built in Jiaozuo, Zhoukou, and Dengfeng, Henan, to deepen the company's layout in Henan. It is expected that in the future, the company will have a large business coming from supplying real estate development projects of the Construction Industry Group. (3) Rapid expansion of production capacity. In the next three to five years, the company plans to expand the PC-side business market share, mainly in strategic regions such as Henan, Yangtze River Delta, Pearl River Delta, and Beijing-Tianjin-Hebei by adding direct-run factories, franchise factories, and asset-light factories. In the second half of 2020, it is expected that 6 factories will enter the production stage, and the total design capacity will increase by 360,000 m3; (4) Continue to reduce production costs through technological means. The company plans to reduce production costs through R&D, design, bidding, fine management, and digital central platforms. The company's annual cost will drop by more than 10% over the next three years. The company's strategy is clear, and we are optimistic about industry growth and company development, and give a “buy” rating. We expect the company's revenue in 2020-2022 to be HK$13.3/18.8/25.1 billion, up 91%/41.6%/33.2% year on year, net profit (excluding minority shareholders' interests) HK$0.8/1.32/187 million, year-on-year change -28% /64.+6/41.8 %. There was one-time land concession revenue of HK$134 million in the second half of last year. Net profit after deduction is expected to increase by about $100 million from last year's losses. We are optimistic about the growth of the industry and the development of the company. We give a “buy” rating for the first time. Risks suggest that competition in the industry is increasing; policy support is weakening; and production plans fall short of expectations.