Event: The company published its 2018 interim report on August 29. During the reporting period, the company achieved operating income of 2,966 billion yuan, an increase of 33.61% over the same period of the previous year; realized net profit attributable to the parent company of 131 million yuan, a decrease of 28.90% over the same period of the previous year; realized net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses of 129 million yuan, an increase of 138.86% over the same period last year; and earnings per share of 0.07 yuan. Opinion: Operating income and net profit continued to grow in 2018. During the reporting period, the company achieved operating income of 2,966 billion yuan, an increase of 33.61% over the same period of the previous year; realized net profit attributable to the parent company of 131 million yuan, a decrease of 28.90% over the same period of the previous year; and realized net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses of 129 million yuan, an increase of 138.86% over the same period last year. The increase in operating income was mainly due to Hunan's overseas revenue. In the first half of the year, the company's operating income in the second quarter increased by 40.99%, significantly better than 21.88% in the first quarter. The gross sales margin in the second quarter also increased to 33.06%, while in the first quarter it was only 25.62%. The company's annual performance gradually increased. The company implements diversified development in the fields of cultural tourism, residential real estate, commercial real estate, etc., and adheres to the concept of multi-format development. A diversified product system covering residential, commercial, office buildings, hotels, and large urban complexes can better ease the cycle of the real estate industry. The proposed opening of the Tongguanyao Ancient Town project has boosted sales. In addition to the steady sales of traditional residences in Shanghai, Changsha, Wuhu, Tangshan, Inner Mongolia, and Xining, the company achieved a breakthrough in cultural tourism and commercial sales. The launch of the No. 1 key project, the Tongguanyao Ancient Town Project in Xinhualian, Changsha, led to rapid sales of its own commercial and apartment products. In the first half of the year, the company's real estate projects accelerated the resumption of work and construction, comprehensively upgraded project management, strengthened quantitative project assessment, and further improved project progress and quality. In the first half of the year, 4.6823 million square meters were resumed, and 169,000 square meters were completed and delivered, effectively guaranteeing the revenue and profit carry-over of listed companies. In the first half of the year, the company achieved a contracted sales area of 413,600 square meters, a sales amount of 4.739 billion yuan, a settlement area of 178,200 square meters, and a settlement amount of 1,831 billion yuan. In the process of transformation and upgrading, the company continues to focus on first-tier cities such as Beijing and Shanghai, as well as regions such as Beijing-Tianjin-Hebei and the Shanghai economic circle, hot second-tier cities, and some provincial capitals, and has good profitability and resilience to risks. 2018 is a new starting point for the company's cultural tourism projects to enter rapid growth. The company's national tourism priority project, the Changsha Xinhualian Tongguanyao Scenic Area, a key project in Hunan Province, has entered the final stage of construction during the reporting period and will officially commence operation on August 28, 2018. The company regards the cultural tourism industry as an important pillar in the transformation and development strategy. In addition to the Changsha Xinhualian Tongguanyao Scenic Area project, the company's other cultural tourism projects also continue to be promoted rapidly. Among them, the company's first cultural tourism project, Wuhu Jiuzi Ancient Town, has officially opened, and the west bank of Jiuzi Ancient Town has been fully completed; the company's Xining Xinhualian Children's Dream Park project, which is located on the Qinghai Gold Tourism Route, is speeding up construction progress, and striving to complete equipment installation and commissioning by the end of this year and trial operation in 2019. After completion, this project will become a new landmark for tourism and vacation in the northwest. The company will create a season-free, dreamy family tourist resort for the entire five northwest provinces; the company's South Korea Xinhualian Jinxiu Mountain Villa project has been approved by the local provincial council, and preparations for commencement of construction are being carried out in full. In addition, the company's various cultural tourism projects are actively expanding into industries such as education, sports, culture, exhibition, etc., and will explore new paths for diversified collaboration among various sectors. Cultural tourism will become a new profit growth point for the company in the future, and its stable cash flow will help improve the company's valuation. The financial layout enhances the company's profitability. The company has a good layout in various fields such as banking, fintech, and insurance. It already holds 289.4 million shares of Bank of Changsha shares through wholly-owned subsidiaries, accounting for 9.40% of the shares and is the second largest shareholder. On August 1, 2018, New Silk Road Cultural Tourism successfully acquired 100% of the economic interests of Shenzhen Youwo Financial Information Service Co., Ltd. by issuing shares to purchase assets. Furthermore, the Asia Pacific Reinsurance Company, which the company participated in initiating the establishment, is awaiting approval from the Insurance Regulatory Commission. Diversified financial services are in line with the company's strategic transformation plan and can greatly enhance the company's profitability and sustainable development capabilities. In addition, through the acquisition of CNOOC Cultural Tourism Design and Research (Dalian) Co., Ltd. and Hunan Overseas Tourism Co., Ltd., the company has now formed a multi-industrial layout of cultural tourism and real estate project development, planning and design, construction, landscape, decoration, property services, commercial operations, hotel management, scenic area operation, tourism services, etc., which can improve the company's resilience to risks and enhance sustainable, stable and healthy management capabilities. Conclusion: Under the guidance of the “cultural tourism+real estate+finance” strategy in 2018, the company achieved great results. The Tongguanyao Ancient Town project in Xinhualian, Changsha has driven rapid sales of its own commercial and apartment products. The company's focus on building cultural tourism real estate will promote the company's better growth, and its stable cash flow is conducive to improving the company's valuation. Judging from the financial statements, the company's revenue growth and gross margin in the second quarter were significantly better than in the first quarter. We expect the company's operating income from 2018 to 2020 to be 10.1 billion yuan, 126 billion yuan, and 15 billion yuan respectively, and earnings per share of 0.49 yuan, 0.61 yuan and 0.74 yuan respectively. The corresponding PE is 11.04, 8.89 and 7.29 respectively, maintaining the “highly recommended” rating. Risk warning: Real estate sales falling short of expectations and uncertain risks in the financial industry brought about by regulatory policies