Earnings per share for the first half of the year - 0.56 yuan. The company recently released its 2010 interim report: the company achieved operating income of 107.07 million yuan in the first half of the year, an increase of 95%; operating profit of 2.14 million yuan, an increase of 322% over the previous year; net profit attributable to the parent company - 203.58 million yuan, profit for the same period last year - 950,000 yuan; earnings per share - 0.56 yuan, net assets per share 1.54 yuan. A local small to medium integrated developer in Nanchang. The company's business area is concentrated in Donghu District of Nanchang City, and is mainly engaged in residential and commercial real estate development. The core project is Zijincheng. Zijincheng is a large-scale integrated project: located in Donghu District, it covers an area of 383,000 square meters and a total construction area of 1040,000 square meters; of these, the commercial part is 340,000 square meters, the residential part is 700,000 square meters, and the floor price is about 1,300 yuan/square meter. There are two points worth paying attention to in the first half of the year. First, gross margin was drastically reduced: the company's gross margin for the first half of the year was only 13.2%, down 28.5 percentage points from the previous year. The main reason was the structural changes in carry-over projects. The carry-over during the reporting period was residential, while the carry-over period was carried over from residential properties and stores in the same period last year. Second, there was a sharp increase in non-operating expenses: Expected liabilities for the full amount of joint and several guarantee liabilities that the company may bear during the reporting period were calculated, totaling 205.3 million yuan (principal amount of 150 million yuan, interest of 55.3 million yuan), which led to a sharp increase in non-operating expenses during the reporting period. This is the main reason for the huge loss in performance. Sales in the first half of the year were poor. The company launched Zijincheng Phase 1 2-4 #楼 in the first half of the year. The main structure was largely completed. The company did not release specific sales data, but the cash received from the sale of goods and the provision of labor services was 221 million yuan, down 41% year on year, and 209 million yuan in the second quarter, down 5% year on year. The company's sales in the first half of the year may have been poor. The amount received in advance at the end of June was 283 million yuan, an increase of 68% over the beginning of the year. The value of the platform is beginning to show. The original actual controller of the company was Jiangxi University of Traditional Chinese Medicine, and the Jiangxi State Assets Administration Commission acted as funder responsibilities on its behalf. The company announced on May 5, 2010, that Jiangzhong Group, the majority shareholder, will initiate equity diversification reforms. On July 24, 2010, the actual controller of the company changed from Jiangxi University of Traditional Chinese Medicine to the Jiangxi State-owned Assets Administration Commission, and the company was officially transformed into a capital operation platform for local governments. The neutral rating is maintained for the time being. We expect the company's earnings per share for 2010-2011 to be -0.40 yuan and 0.21 yuan respectively. The performance for the next two years will be average, and the neutral rating will be maintained for the time being; however, as the company is built as a capital operation platform for local governments, its platform value is worth paying attention to. Risk warning. The project is too focused.