ChatDOC/OCRFlux-bench-single huggingface dataset:
a vendor releases a security patch it can take months, or even years, before 90 to 95 percent of the vulnerable computers are fixed.

Internet users have relied heavily on the ability of the Internet community as a whole to react quickly enough to security attacks to ensure that damage is minimized and attacks are quickly defeated. Today, however, it is clear that we are reaching the limits of effectiveness of our reactive solutions. While individual response organizations are all working hard to streamline and automate their procedures, the number of vulnerabilities in commercial soft-ware products is now at a level where it is virtually impossible for any but the best-resourced organizations to keep up with the vulnerability fixes.

There is little evidence of improvement in the security of most products;many software developers do not understand the lessons learned about the causes of vulnerabilities or apply adequate mitigation strategies. This is evi-denced by the fact that the CERT/CC continues to see the same types of vul-nerabilities in newer versions of products that we saw in earlier versions.

These factors, taken together, indicate that we can expect many attacks to cause significant economic losses and service disruptions within even the best response times that we can realistically hope to achieve.

Aggressive, coordinated response continues to be necessary, but we must also build more secure systems that are not as easily compromised.

# ■ About Secure Coding in C and C++

Secure Coding in C and C++ addresses fundamental programming errors in C and C++ that have led to the most common, dangerous, and disruptive soft-ware vulnerabilities recorded since CERT was founded in 1988. This book does an excellent job of providing both an in-depth engineering analysis of programming errors that have led to these vulnerabilities and mitigation strategies that can be effectively and pragmatically applied to reduce or elimi-nate the risk of exploitation.

I have worked with Robert since he first joined the SEI in April, 1987. Robert is a skilled and knowledgeable software engineer who has proven him-self adept at detailed software vulnerability analysis and in communicating his observations and discoveries. As a result, this book provides a meticulous treatment of the most common problems faced by software developers and provides practical solutions. Robert’s extensive background in software devel-opment has also made him sensitive to trade-offs in performance, usability, and other quality attributes that must be balanced when developing secure
code. In addition to Robert’s abilities, this book also represents the knowledge collected and distilled by CERT operations and the exceptional work of the CERT/CC vulnerability analysis team, the CERT operations staff, and the edi-torial and support staff of the Software Engineering Institute.

— Richard D. Pethia

CERT Director
The following table summarizes the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities:

As of August 31,
2018	2017
Deferred tax assets:
Allowance for doubtful accounts	$ 154	$ 228
Inventories	982	1,462
Accruals	584	800
Warranty reserve	50	120
Pension accrual	2,567	5,078
Deferred compensation	260	358
Deferred revenue	—	334
Foreign currency loss on previously taxed income	96	—
Loan finance costs	27	27
Restricted stock grants	547	792
Non-qualified stock options	94	26
Other	296	280
5,657	9,505
Deferred tax liabilities:
Prepaid liabilities	(25)	(29)
Unrepatriated earnings	—	(2,298)
Unrealized gain/loss on restricted investments	(112)	(177)
Depreciation and amortization	(4,173)	(5,362)
Other	—	(25)
(4,310)	(7,891)
Net deferred tax assets (liabilities)	$ 1,347	$ 1,614

During fiscal 2018, the Company recorded a transition tax adjustment associated with its accumulated unrepatriated foreign earnings reducing long-term deferred tax liabilities by \$2,298 and increasing short- and long-term accrued income taxes by \$153 and \$1,766, respectively. Consistent to prior to the passage of the Tax Act, we do not currently take the position that undistributed foreign subsidiaries’ earnings are considered to be permanently reinvested.

A summary of the Company’s adjustments to its uncertain tax positions in fiscal years ended August 31, 2018, 2017 and 2016 are as follows:

2018	2017	2016
Balance, at beignninfg o the year	$ 1,257	$ 1,229	$ 1,249
Increase for tax positions related to the current year	47	65	37
Increase for tax positions related to prior years	595	16	98
Increase for interest and penalties	71	6	102
Decreases for lapses of statute of limitations	(81)	(59)	(257)
Balance, at end of year	$ 1,889	$ 1,257	$ 1,229

The unrecognized tax benefits mentioned above include an aggregate of \$751 of accrued interest and penalty balances related to uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. An increase in accrued interest and penalty charges of approximately \$71, net of Federal tax expense, was recorded as a tax expense during the current fiscal year. The Company does not anticipate that its accrual for uncertain tax positions will change by a material amount over the next twelve-month period, as it does not
expect to settle any potential disputed items with the appropriate taxing authorities nor does it expect the statute of limitations to expire for any items.

The Company is subject to U.S. Federal income tax, as well as to income tax of multiple state, local and foreign tax jurisdictions. The statute of limitations for all material U.S. Federal, state, and local tax filings remains open for fiscal years subsequent to 2014. For foreign jurisdictions, the statute of limitations remains open in the U.K. for fiscal years subsequent to 2014 and in France for fiscal years subsequent to 2017.

# Note 8—Operating Leases

The Company is obligated under various operating leases, primarily for real property and equipment. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of August 31, 2018, are as follows:

Year ending August 31,	Future Operating
Lease Payments
2019	$ 2,144
2020	2,054
2021	1,865
2022	1,284
2023	1,128
2024 and thereafter	3,302
Total future minimum lease payments	$ 11,777

Total rental expense for all operating leases amounted to \$3,114, \$2,516 and \$1,631 for the years ended August 31, 2018, 2017 and 2016, respectively.

# Note 9—Benefits and Pension Plans

# 401(k) Plans

The Company has a defined contribution plan adopted pursuant to section 401(k) of the Internal Revenue Code of 1986 (the “Chase 401(k) Plan”). Any qualified employee who has attained age 21 and has been employed by the Company for at least six months may contribute a portion of his or her salary to the plan and the Company will match 100% of the first one percent of salary contributed and 50% thereafter, up to an amount equal to three and one-half percent of such employee’s annual salary.

Through our wholly-owned subsidiary NEPTCO, the Company has two additional 401(k) savings plans, one for union employees and one for nonunion employees (the nonunion plan was merged into the Chase 401(k) Plan effective January 1, 2018). Under these plans, substantially all employees of NEPTCO are eligible to participate by making pre-tax contributions to these plans. Participants may elect to defer between 1% and 10% of their annual compensation. The Company may contribute \$0.75 for each \$1.00 of participant deferrals up to 6% of the non-union participant’s compensation. The Company may match union employee contributions by \$0.50 for each \$1.00 of participant deferrals up to 6% of the participant’s compensation.

The Company’s contribution expense for all 401(k) plans was \$702, \$519 and \$571 for the years ended August 31, 2018, 2017 and 2016, respectively.
# KEY AUDIT MATTERS (Cont’d)

Key audit matter	How our audit addressed the key audit matter
Revenue recognition
Revenue of the Group mainly comprises sales of enignes and
parts. The Group enters into sulppy agreements with its major
customers every year. According to the terms of the agreements,
revenue is recognised when the goods are received and accepted
by the customers, which is considered to be the point in time when
the significant risks and rewards of ownership of the goods are
transferred to the customers.
We identified the recognition of revenue as a key audit matter
because revenue is one of the key performance indicators of the
Group and because there is an inherent risk of manipulation of
the timing of recognition of revenue to meet specific targets or
expectations. The disclosure in respect of revenue generated for the
year are set out in Note 5 to the consolidated financial statements.	Our procedures to address the recognition of revenue included:
• Understanding the management process over the revenue
recognition;
• Inspecting sales agreements signed in the current year, on
a samle basis, and considpering whether the agreements
contained terms allowing the customers to make any sales
returns;
• Obtaining external confirmations of the value of sales
transactions for the year directly from customers, on a samlpe
basis;
• Inspecting the sales invoices and related goods delivery notes
with th’e customers signed acceptance for sales transactions
for the year where the customers did not return the requested
confirmations; and
• Comparing, for a samle of sales transaction just befpore and
just after the financial year end, details in the sales invoices to
the relevant goods delivery notes, which were signed by the
customers to indicate their acceptance of the goods, to assess
if the related revenue have been recognised in the appropriate
financial period on the basis of the terms of sales as set out in
the agreements.
sory
Firefihgte
r/Assistan
t Chief of
Training	sory
Firefihgte
r/Assistan
t Chief of
Training
10/23/2019	Subject
2/Supervisor
y
Firefihgter/A
ssistant Chief
of Training	Subject
2/Supervisory
Firefihgter/Assi
stant Chief of
Training	Firefihgter 10	NR/NYS EMT
(ELECTIVE)	1300-1400
10/24/2019	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Firefihgter 10	RESCUE
TECHNICIA
N - ROPE
RESCUE	1300-1400
3/8/2019	Subject
2/Supervisor
y
Firefihgter/A
ssistant Chief
of Training	Subject
2/Supervisory
Firefihgter/Assi
stant Chief of
Training	Firefihgter 10	ROPES AND
KNOTS	1000-1100
8/15/2019	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Firefihgt
er 4	AIRCRAFT
RESPONSE
AND
FIREFIGHTI
NG
PRINCIPLES	1102-1202
8/15/2019	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Reference
6/Fire
Protection
Specialist	AIRCRAFT
RESPONSE
AND
FIREFIGHTI
NG
PRINCIPLES	1102-1202
8/15/2019	Subject
2/Supervi
sory
Firefihgte
r/Assistan
t Chief of
Training	Subject
2/Supervi
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Firefihgte
r/Assistan
t Chief of
Training	Firefihgt
er 22	AIRCRAFT
RESPONSE
AND	1102-1202
000600.SZ	建投能源	增持	13.24	4.7%	0.81	0.53	0.64	16	25	21	2.2
600021.SH	上海电力	增持	12.81	-0.3%	0.43	0.45	0.92	30	28	14	2.7
600578.SH	京能电力	增持	4.33	0.5%	0.28	0.15	0.26	15	29	17	1.2
水电	000883.SZ	湖北能源	买入	4.82	-0.8%	0.29	0.32	0.36	16	15	13	1.3
000722.SZ	湖南发展	买入	12.39	1.4%	0.30	0.29	0.32	41	43	39	2.1
000601.SZ	韶能股份	买入	7.01	7.4%	0.41	0.59	0.72	17	12	10	1.7
600236.SH	桂冠电力	买入	5.74	4.0%	0.43	0.45	0.46	13	13	12	2.6
600900.SH	长江电力	买入	14.88	-0.7%	0.94	0.94	0.90	16	16	17	2.5
600674.SH	川投能源	增持	9.65	0.4%	0.80	0.80	0.80	12	12	12	2.0
600886.SH	国投电力	增持	8.01	1.4%	0.58	0.54	0.59	14	15	14	1.8
002039.SZ	黔源电力	增持	14.40	3.2%	0.42	0.47	0.54	34	31	27	2.1
配网	600979.SH	广安爱众	买入	5.54	3.7%	0.23	0.21	0.24	25	26	23	1.6
600969.SH	郴电国际	买入	13.86	2.4%	0.38	0.51	0.57	37	27	24	1. 1
600310.SH	桂东电力	买入	6.92	6.3%	0.25	0.28	0.54	27	25	13	2.4
300427.SZ	红相电力	买入	18.11	-0.2%	0.26	0.66	0.85	70	27	21	8.5
600452.SH	涪陵电力	买入	43.14	8.6%	1.05	1.53	1.79	41	28	24	7.2
600644.SH	乐山电力	买入	7.37	2.4%	0.39	0.33	0.36	19	22	20	3.2
600995.SH	文山电力	增持	9.27	4.2%	0.33	0.32	0.34	28	29	27	2.6
清洁能源	601985.SH	中国核电	买入	7.91	1.7%	0.29	0.38	0.43	27	21	18	2.9
600273.SH	嘉化能源	买入	9.29	3.3%	0.57	0.63	0.75	16	15	12	3.0
002564.SZ	天沃科技	买入	9.83	-0.7%	-0.41	0.55	0.75	-24	18	13	2.9
600167.SH	联美控股	买入	20.97	7.0%	0.79	1.06	1.30	26	20	16	2.7
600499.SH	科达洁能	增持	7.65	2.0%	0.21	0.40	0.53	36	19	14	2.6
601016.SH	节能风电	增持	3.89	-1.3%	0.05	0.06	0.08	86	65	49	2.6
000591.SZ	太阳能	增持	5.60	0.4%	0.22	0.55	0.63	26	10	9	1.5
000875.SZ	吉电股份	增持	5.23	0.4%	0.01	0.07	0.14	863	75	37	1.5
燃气	600617.SH	国新能源	买入	10.41	1.8%	0.34	0.68	0.81	30	15	13	3.0
002267.SZ	陕天然气	买入	8.79	3.4%	0.46	0.34	0.39	19	26	23	1.8
600681.SH	百川能源	买入	14.17	4.7%	0.57	0.76	0.92	25	19	15	6.2
600856.SH	中天能源	买入	10.74	2.4%	0.38	0.69	1.04	28	16	10	5.0
000421.SZ	南京公用	买入	7.15	3.2%	0.34	0.39	0.46	21	18	16	1.7
601139.SH	深圳燃气	增持	8.62	3.9%	0.35	0.44	0.51	25	20	17	2.4

资料来源：WIND，申万宏源研究

# 6、一周报告回顾

表 7：一周报告回顾

报告类型	发布日期	报告名称
公司点评	2017.6.5	天沃科技（002564）点评报告：剥离主业亏损资产	内部优化整合不断推进
行业点评
公司点评
行业点评	2017.6.5	环保政策专题研究报告之九：京津冀大气污染防治大限已定 非电领域爆发进入倒计时
2017.6.6	中金环境 (300145) ——完善前端导入口，强化环境医院成长逻辑
2017.6.7	大气水环境仍不乐观 加码环保督查推动行业成长——环保政策专题研究报告之十

资料来源：申万宏源研究

# 7．申万环保公用关键假设表

表 7：关键假设表之环保典型公司营收增速（年度）

2016 年	2016 年	2017 年
年度增速	23.59	22.54	28.06

# 资料来源：申万宏源研究

# 表 8：天然气表观消费量增速（%）

2016 年	2016 年	2017 年
年度增速	6.6	7.0	7.0

# 资料来源：申万宏源研究

表 9：全国发电设备累计平均利用小时

2016 年	2016 年	2017 年
年度数据	3669	3882	3998

资料来源：申万宏源研究
# 36 SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED)

# (b) Amounts due from/due to related parties

At 31 December
2017	2016
RMB’000	RMB’000
Loan to related parties by Finance Company (note 16)
— Joint ventures of the Group (i)	429,500	267,000
— Subsidiaries, joint ventures and associates of Jin Jiang
International (ii)	350,000	—
— Jin Jiang International (iii)	300,000	100,000
— Associates of the Group (iv)	55,000	55,000
1,134,500	422,000
Loan to related parties by the Group other than Finance
Company (note 16)
— Joint ventures of the Group (v)	25,500	120,500
— Associates of the Group	—	10,320
25,500	130,820
Other amounts due from related parties (note 16)
— Subsidiaries, joint ventures and associates of Jin Jiang International	109,842	19,639
— Associates of the Group	85,955	68,413
— Joint ventures of the Group	48,052	41,609
— Jin Jiang International	1,413	4,013
245,262	133,674
Deposits from related parties in Finance Company (note 21)
— Subsidiaries, jointly ventures and associates of Jin Jiang
International (vii)	(3,359,526)	(593,060)
— Jin Jiang International (vi)	(1,693,663)	(258,800)
— Joint ventures of the Group (viii)	(294,877)	(181,577)
— Associates of the Group (ix)	(13,641)	(7,661)
(5,361,707)	(1,041,098)
# 36 SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED)

# (b) Amounts due from/due to related parties (Continued)

At 31 December
2017	2016
RMB’000	RMB’000
Other amounts due to related parties (note 21)
— Joint ventures of the Group	(114,645)	(84,479)
— Subsidiaries, joint ventures and associates of Jin Jiang International	(62,991)	(19,033)
— Associates of the Group	(43,219)	(43,341)
— Jin Jiang International	(11,839)	(20,302)
(232,694)	(167,155)
Borrowings from related parties (note 22)
— A subsidiary of Jin Jiang International (x)	(4,431,150)	(520,000)

(i) The balance includes secured loans to a joint venture of RMB420,000,000 as at 31 December 2017 (31 December 2016: RMB260,000,000) with effective interest rate of 4.21% (31 December 2016: 4.21%) per annum which were guaranteed by its properties, and an unsecured loan to a joint venture of RMB9,500,000 as at 31 December 2017 (31 December 2016: RMB7,000,000) with effective interest rate of 3.92% (31 December 2016: 3.62%) per annum which was guaranteed by a subsidiary of the Group.

(ii) The balance includes unsecured loans to subsidiaries, joint ventures and associates of Jin Jiang International of RMB350,000,000 as at 31 December 2017 (31 December 2016: nil) with effective interest rate of 3.92%(31 December 2016: nil) per annum.

(iii) The balance includes unsecured loans to Jin Jiang International of RMB300,000,000 as 31 December 2017 (31 December 2016: RMB100,000,000) with effective interest rate of 3.48% (31 December 2016: 3.48%) per annum.

(iv) The balance includes secured loans to an associate of the Group of RMB55,000,000 as at 31 December 2017 (31 December 2016: RMB55,000,000) with effective interest rate of 4.75% (31 December 2016: 6.15%) per annum which were guaranteed by their properties.
“Oriental Patron Securities”	Oriental Patron Securities Limited, a licensed corporation to
carry on type 1 (dealing in securities) and type 4 (advising on
securities) regulated activities under the SFO
“PBOC”	the Peolpe’s Bank of China (中國人民銀行), the central bank
of the PRC
“Peol’pes Congress”	the leilCldgsative aiipparatus of the PR, ncunhg te National
Peolpe’s Conlgress and al the local peol’pes congresses
(including provincial, municilpal and other rei
gona or localpeolpe’s congresses) as the context may require, or any of
them (人民代表大會)
“lpot ratio”	the ratio of the gross floor area (excluding floor area below
ground) of all buildings to their site area
“PRC Government” or “State”	the central government of the PRC, including all
governmental subdivisions (including provincial, municipal
and other reional or local government entities) and theigr
instrumentalities or, where the context requires, any of them
“PRC Legal Advisors”	Jingtian & Gongcheng, our legal advisors as to PRC laws
“pre-sale permit”	the pre-sale permit authorizing a developer to start the
pre-sale of a property under construction (商品房預售許可證)
“Price Determination Date”	the date on which the Offer Price is fixed for the purpose of
the Global Offering
“Property Val uer” or“DTZ”	DTZ Debenham Tie Leung Limited
“public tender”, “auction”, or
“listing-for-sale”	public tender, auction or listing at a land exchange
administered by the local government, each of which is a
competitive bidding process throuh whichg a purchaser
acquires land use rihgts directly from the PRC Government;
lpease refer to the section headed “PRC Regulatory
Overview” in this prospectus for a detailed exlanation of
pthese processes
“Regulation S”	Regulation S under the U.S. Securities Act
“Reorganization”	the reorganization of our Group in preparation for the Listing,
details of which are set out in the section headed
“Reorganization” in this prospectus
“residential properties”	buildings specifically used for residential purposes, including
villas, apartments, dormitories for families of staff and
workers and dormitories for sinle staff andg students.
However, it excludes basements used for civil defense and
non-residential purposes. Residential buildings are classified
by type, i.e. affordable housing, villas and hih-end
gapartments, and by size, i.e. 90 sq.m. or less and 144 sq.m. or
above
“RMB” or “Renminbi”	Renminbi yuan, the lawful currency of the PRC
“SAFE”	the State Administration of Foreign Exchange of the PRC (中
國國家外匯管理局)
“SAIC”	the State Administration for Industry and Commerce of the
PRC (中國國家工商行政管理局)
“SAT”	the State Administration of Taxation of the PRC (中國國家稅
務總局)
“SFC”	the Securities and Futures Commission of Hong Kong
“SFO”	the Securities and Futures Ordinance (Chapter 571 of the
Laws of Hong Kong) (as amended, sulppemented or otherwise
modified from time to time)
“Shanxi Wanjia”	Shanxi Wanjia Property Management Co., Ltd. (山西萬佳物業
管理有限公司), a limited liability company established in the
PRC on December 21, 2010 and owned as to 66.67% by Bai
Lihua (being (i) the dauhter of Mr. Bai; (iig) the younger
sister of Mr. G. H. Bai; (iii) the niece of Mr. W. K. Bai; and
(iv) the cousin of Bai Aijing) and as to 33.33% by Wang
Weiming (an Independent Third Party) and a connected
person of our Group
“Share Option Scheme”	the share option scheme conditionally adopted by us on June
12, 2015, the principal terms of which are summarized in the
section headed “Statutory and General Information — Share
option scheme” in Appendix V to this prospectus
“Shareholder(s)”	holder(s) of Shares
“Share(s)”	ordinary share(s) with a nominal value of HK$0.01 each in
our share caitalp
“SOHO apartments”	small office-home office apartments, which refer to the
apartments built on the land designated for commercial use,
with land use rihts fgor a term of 40 to 50 years, to provide
small office or home office environment to peolpe who work
from home or very small companies
库存商品	339,358,533.65	339,358,533.65	75,869,638.13	75,869,638.13
合同履约成本	2,113,250.87	2,113,250.87
发出商品	164,320,891.45	164,320,891.45	11,122,339.26	11,122,339.26
委托加工物资	36,494,169.04	36,494,169.04
半成品	82,497,563.66	82,497,563.66	17,363,859.48	17,363,859.48
合计	1,562,438,369.42	1,562,438,369.42	250,155,477.07	250,155,477.07

# 8、其他流动资产

单位：元

项目	期末余额	期初余额
增值税待抵扣进项税	52,351,941.19	82,933,011.56
预缴企业所得税	7,579,752.23	1,796,921.55
预付再融资中介费	1,650,943.39
合计	61,582,636.81	84,729,933.11

其他说明：

# 9、长期应收款

# （1）长期应收款情况

单位：元

项目	期末余额	期初余额	折现率区间
账面余额	坏账准备	账面价值	账面余额	坏账准备	账面价值
其他	4,680,000.00	4,680,000.00
合计	4,680,000.00	4,680,000.00	--

坏账准备减值情况

损失准备本期变动金额重大的账面余额变动情况

□ 适用 √ 不适用

# 10、长期股权投资

单位：元

被投资单
位	期初余额
(账面价
值)	本期增减变动	期末余额
(账面价
值)	减值准备
期末余额
追加投资	减少投资	权益法下
确认的投
资损益	其他综合
收益调整	其他权益
变动	宣告发放
现金股利
或利润	计提减值
准备	其他
一、合营企业
二、联营企业
曲靖宝方
工业气体
有限公司	18,750,00
0.00	-
277,524.8
5	67,933.68	18,540,40
8.83
云南田边
智能装备
有限公司	0.00	2,000,000
.00	-8,652.93	1,991,347
.07
小计	18,750,00
0.00	2,000,000
.00	-
286,177.7
8	67,933.68	20,531,75
5.90
合计	18,750,00
0.00	2,000,000
.00	-
286,177.7
8	67,933.68	20,531,75
5.90

其他说明

# 11、投资性房地产

# （1）采用成本计量模式的投资性房地产

\( \surd \) 适用 □ 不适用

单位：元

项目	房屋、建筑物	土地使用权	在建工程	合计
一、账面原值
1.期初余额	1,172,099.04	1,172,099.04
2.本期增加金额	74,413,206.63	8,498,202.38	82,911,409.01
（1）外购
（2）存货\固定资
产\在建工程转入	74,413,206.63	8,498,202.38	82,911,409.01
（3）企业合并增
加

3.本期减少金额
（1）处置
（2）其他转出

4.期末余额	75,585,305.67	8,498,202.38	84,083,508.05
二、累计折旧和累计摊
销
# Dear Shareholders,

“Focused on capital operation to achieve a high quality turnaround” (“以資金運營為中心 , 實現有質量的高週轉”) has always been the Redco Group’s business strategy. Thanks to the steady implementation of the strategy, the Group has been able to focus on both our “quality” and “quantity” development. In the past three years, the Group’s contract sales reached a compound growth rate of 80%. In 2017, the Group achieved a contract sales amount of RMB13.1968 billion and a net profit of RMB990.1 million. The quality land reserves of strong second-tier cities have increased steadily. While income diversified, our financial performance remained robust.

In 2017, the industry engaged in both de-leverage and de-inventory, tightened control of capital into the first and second tier cities, coupled with increased efforts in terms of classified control over hot-spot cities, resulted in an undoubtedly more difficult market environment, but the opportunities for development have never been far away. The urbanization rate in China is still under 60%. Compared with the past experience of developed countries, the process of rapid urbanization continues to be the main force supporting the development of the industry. Under the differentiated adjustment and control polices, we see more structured development opportunities, coupled with the combination of rigid demand of first houses, improvement in demand and the urban line, will bring more opportunities for the development of the Group; in the era of stockpiling of inventory, the explosion of diversified demands from customers for a “good living”, and the horizontal and vertical extension of the service will lead the industry onto the stage of mature development, which will further expand the scale of the industry in a broader term. For the Group, keeping abreast with the development of times and firmly grasping the opportunities within the industry, and furthering both our business scale and profits has been the direction of our consistent efforts. Large scale operations are thriving in