Invest 3.5 billion yuan to build the Zhengzhou-Kaifeng section of the Zhengmin Expressway. On June 11, 2009, the board of directors of the company deliberated and passed a bill to invest in the construction of the Zhengzhou-Kaifeng section of the Zhengmin Expressway, and an extraordinary shareholders' meeting was held on June 29, 2009 to review the bill. The total length of the project on the Zhengzhou-Kaifeng section of the Zhengmin Expressway is 72.66 kilometers. It has four lanes in both directions. The estimated investment amount is 3,506 billion yuan, and the construction cost per kilometer is 48.25 million yuan. The project is scheduled to start construction in 2009 and be completed and opened to traffic in 2012. The planned construction period is 36 months. The location is average, and I am not optimistic about its profitability in the early stages of traffic opening. The Zheng Min Expressway is an important part of the Henan Expressway Network Plan. It is one of the 6 intersections in the “686” Expressway Network Plan in Henan Province. The Zhengzhou-Kaifeng section of the Zhengmin Expressway connects the Beijing-Hong Kong-Macau Expressway and the Zhengzhou Southwest Ring Expressway in the west, and the already open Rizhao Port to Nanyang Expressway in the east. Overall, the geographical location of this section of the road is average. This section forms a parallel section with the Henan section of the Lianhuo Expressway, the main national highway. After completion, it mainly diverts traffic flow in the Henan section of the Lianhuo Expressway. We believe that “Currently, most of the newly built highways are non-national main roads on local planned routes, and the profitability of construction projects is poor compared to existing road sections in the short term.” It is expected that the road's profitability in the early stages of construction will be poor, and the company's performance may be dragged down in the early stages of traffic opening. Facing greater demand for financing, the balance ratio has further increased. As of March 31, 2009, the company's balance ratio reached 72.14%, making it the company with the highest balance ratio in the highway sector. The company's projects currently under construction include the Zhengluo Expressway renovation and expansion project, the Xinzheng Yellow River Bridge project, and the Yongbohuai Expressway Shangqiu section project. In addition to the Zhengzhou-Kaifeng section of the Zhengmin Expressway to be invested in construction, the total investment for the four projects reached 11.263 billion yuan. By the end of 2008, the first three projects had already invested 2,884 billion yuan, and the company's future capital requirements are still huge. The company's balance ratio will increase further, and the company's interest expenses will rise sharply. After the new project is completed and opened, depreciation costs and financial expenses will increase drastically, and it is likely that the company's performance will be dragged down in the early stages of construction of the new project. Maintain the company's “Neutral-B” investment rating. The company's earnings per share in 2009 and 2010 are expected to be 0.22 yuan and 0.22 yuan, corresponding to the 2009 and 2010 dynamic price-earnings ratios of 17.8 times. The company's valuation is slightly higher than the industry average. At the same time, considering that the company has more late-stage capital expenditure, high profit uncertainty for new construction projects, and high investment risk, the company maintains its “short-term-neutral, long-term B” investment rating.