Earnings loss per share was $0.03. The company released its 2010 quarterly report today: operating income of 60 million yuan, up 107.1% year on year; operating profit loss of 33.67 million yuan, loss amount decreased by 34.7% year on year; net profit loss attributable to the parent company was 27.84 million yuan, loss amount decreased by 47.0% year on year; earnings per share - 0.03 yuan, net assets per share were 2.17 yuan. A regional developer focusing on the Yangtze River Delta. The company is a regional developer focusing on the Yangtze River Delta region. Projects are mainly distributed in Hangzhou, Dongyang, Nanjing, Chongqing, Xi'an and other places. The main reasons for the company's net profit loss in the first quarter of 2010 were few carry-over resources, the relative rigidity of expenses for the period, and loss of investment income. There were few carry-over resources in the first quarter, which led to a very small revenue scale (only 60 million yuan). Compared with the same period last year, the positive increase was mainly due to last year's low base. Gross margin increased 6.7 percentage points year over year. The company's gross margin increased 6.7 percentage points year-on-year to 63.3% in the first quarter of 2010, mainly due to the increase in average carry-over price. Due to the small scale of revenue and the relative rigidity of expenses, the expense ratio was very high. The reporting period was 85.3 percent, which is 22 percentage points higher than gross margin. The loss in investment income was 12 million yuan, accounting for 35.5% of the loss in operating profit. There are two main reasons for the company's loss of investment income during the reporting period: first, the loss amount of the joint venture Guangsha Real Estate increased year-on-year; second, investment losses were due to the sale of shares in the subsidiary Chongqing Real Estate. Sales were poor in the first quarter, but the certainty of 2010 results is still high. The company received 460 million yuan in cash from sales of goods and services in the first quarter, an increase of 78.5% over the previous year, but a sharp decrease of 64.6% compared to the fourth quarter of 2009 (1.3 billion yuan). As of the end of March 2010, the balance of the company's advance payments was 2.57 billion yuan, an increase of 150 million yuan over the beginning of the year, covering more than 90% of our estimated settlement revenue in 2010. There is a shortage of cash. The company's balance ratio at the end of March 2010 was 76.9%, and the actual balance ratio after excluding advance payments (2.57 billion yuan) was 45.7%, which is at a moderate level in the industry; the actual moving ratio after excluding advance payments was 1.0, and short-term debt repayment pressure was not significant; the company's cash on book at the end of March 2010 was 230 million yuan, a decrease of 250 million yuan from the beginning of the year. The main reason was that land payments led to operating cash flow of -370 million yuan, and there was a shortage of cash. Profit forecasting and investment ratings. Without considering the company's private issuance in 2009, we expect the company's earnings per share to be 0.34 yuan and 0.53 yuan respectively. Based on the latest closing price of 6.64 yuan, the corresponding dynamic price-earnings ratios are 19 times and 12 times, respectively. Given that the company's valuation level is moderate and there are no unique stock price drivers, we maintain the company's “neutral” rating.