Key investment points: Revenue decreased by 38.28% year on year, net profit of net income decreased by 30.81% year on year. On October 21, the company announced that from January to September 2016, it achieved operating income of 2,749 billion yuan, a year-on-year decrease of 38.28%; realized net profit of 51.42 million yuan, a year-on-year decrease of 30.81%, and EPS of 0.10 yuan. Among them, Q3 had quarterly revenue of 784 million yuan, a year-on-year decrease of 33.55%; Q3 net profit for the single quarter was 9.69 million yuan, an increase of 23.44% over the previous year. Net profit is expected to vary between 55 million and 70 million in 2016, with a range of -10.28% to 14.20%. Gross margin increased 2.48 percent year over year. The gross margin for the reporting period was 9.82%, up 2.48 percentage points from the previous year. The fee rate for the period was 8.53%, up 3.22 percentage points from the previous year. The net interest rate for the first three quarters of '16 was 1.83%, up 0.24 percentage points from the previous year, mainly due to a slight recovery in the market environment. A strategic investment in Haowu China enters the real estate e-commerce platform. The company's main business is R&D, production and sales of high-end precious metals and gemstone jewelry, and chain operation of “Ming” brand jewelry brands. On the main business side, continuously optimize and improve the management of its own stores and actively promote multi-brand operations; investing in Haowu China to expand the space for extended development will, on the one hand, directly benefit from the recovery of the real estate market, effectively increase the company's performance, and not rule out further transformation of the “Internet +” real estate intermediary business in the future; on the other hand, Haowu China's excellent Internet thinking will have a strong synergistic effect on the company's promotion of the Internet of jewelry, and the company may achieve a strategic transformation of “jewelry+Internet e-commerce”. Give a “buy” rating. Mingpai Jewelry strategically invests in Haowu China. On the one hand, it will enter the Internet real estate intermediary field to achieve a diversified business layout. On the other hand, it will integrate the company's valuable Internet team resources, accelerate the construction of the company's “Internet +” jewelry platform, and improve the company's long-term performance. It is estimated that the company's EPS for 16-18 will be 0.13 yuan, 0.43 yuan, and 0.55 yuan, respectively, and the corresponding PE will be 97X, 30X, and 24X, respectively. Risk warning. The acquisition is not progressing as expected.