On the evening of September 18, the company issued an announcement stating that Chen Jinsong, the former chairman of the company, applied to resign as chairman, elected company director Hu Jia as chairman, and elected Chen Jinsong as co-chairman. The company plans to use its own funds to repurchase shares, with a repurchase price of no more than 7.4 yuan/share; all repurchases are intended to be used to implement the employee stock ownership plan; the upper limit of the number of repurchases is 2% of the company's total issued share capital, and the lower limit is 1% of the total share capital; and the total repurchase amount is no more than 302 million yuan. In order to optimize the balance and liability structure of the wholly-owned subsidiary “World Union Cluster House” and promote its strategic transformation, the World Bank plans to convert the 1.54 billion yuan debt formed by the World Federation Cluster House into equity, that is, the World Bank will increase the registered capital of the World Federation Cluster by 450 million yuan, and the remaining 1.09 billion yuan will be included in the capital reserve. The board of directors agreed that the World Bank will change the implementation method of raising funds for the “long-term rental apartment construction project” from providing loans to the wholly-owned subsidiary “World Union Building” to increasing capital to the “World Union Collection”. Comment: Hu Jia, chairman of Hengqin, was appointed as the chairman of the World Bank, and Chen Jinsong is the co-chairman of the World Bank. On September 18, the company issued an announcement stating that the former chairman Chen Jinsong applied to resign as chairman. Company director Hu Jia was elected as chairman, and Chen Jinsong was elected as co-chairman of the World Bank. Hu Jia has been the chairman of Zhuhai Grand Hengqin Group for a long time and has rich management and operation experience. Previously, World Bank fundamentals were under pressure. This time, Hu Jia became the new chairman, injecting momentum into the company's fresh start. At the same time, Chen Jinsong and his co-actors still hold 30.5% of the World Bank's shares, and they also have some control over the company's future development direction. Repurchase shares, improve the incentive mechanism, and demonstrate confidence in the company's future prospects. The company plans to use its own funds to repurchase shares. The repurchase price is no more than 7.4 yuan/share (23.7% higher than the current share price); all repurchases are intended to be used to implement the employee stock ownership plan; the upper limit of the number of repurchases is 2% of the company's total issued share capital, and the lower limit is 1% of the total share capital; the total repurchase amount is no more than 302 million yuan. The company buyback shares and plans to use all of them to implement employee stock ownership plans, reflecting confidence in future development prospects and fully mobilizing the enthusiasm of the core team. Optimize the balance and liability structure of the “World Union House”. The World Bank plans to convert the 1.54 billion yuan debt formed by the World Federation complex into equity, that is, the World Bank will increase the registered capital of the World Federation complex by 450 million yuan, and the remaining 1.09 billion yuan will be included in the capital reserve. After debt-to-equity swaps, it will help optimize the balance and liability structure of “World Union Housing”. World Union Housing is mainly engaged in the management of long-term rental apartments and turnkey services for the entire operation. Change the implementation method for some fund-raising investment projects. The board of directors agreed that the World Bank will change the implementation method of raising funds for the “long-term rental apartment construction project” from providing loans to the wholly-owned subsidiary “World Union Building” to increasing capital to the “World Union Collection”. The total amount of capital raised for the project was 881 million yuan. As of August 31, 2020, a total of 353 million yuan had been invested. Investment advice: Previously, the Grand Hengqin Group became the actual controller of the World Bank. This time, the World Bank replaced Hu Jia as chairman to inject momentum into the company's future development. Shares are repurchased and used to implement employee stock ownership plans, demonstrating confidence in the company's development. The Grand Hengqin Group is the main urban development and operation entity on Hengqin Island, and will give the company more room for development in the future. We expect the World Bank's EPS in 2020 and 2021 to be 0.05 yuan and 0.07 yuan respectively. Based on the closing price on September 20, PE will be 119.6 times and 85.4 times, respectively, maintaining the “buy” rating. Risk warning: The transaction service business falls short of expectations; the risk of continuous loss in the apartment management business; the integration progress falls short of expectations.