Net profit in 2010 fell 70.76% from a year earlier. According to the company's 2010 report, during the reporting period, the company achieved operating income of 2.237 billion yuan, down 49.01% from the same period last year; the net profit of shareholders belonging to listed companies was 128 million yuan, down 70.76% from the same period last year; and the net profit of shareholders belonging to listed companies after deducting non-recurring profits and losses was 147 million yuan, down 27.64% from the same period last year. The basic earnings per share are 0.15 yuan and the net assets per share are 2.36 yuan. Distribution plan: cash dividend of 0.5 yuan (including tax) is distributed for every 10 shares.

Regional developers focusing on the layout of the Yangtze River Delta. The company is a regional developer in the key cloth director triangle area, and the projects are mainly distributed in Hangzhou, Dongyang, Nanjing, Chongqing, Xi'an and other places. Company controller Guangsha Holdings is a famous "real estate + construction" private enterprise in Zhejiang.

Real estate gross profit margin rose, but settlement revenue fell sharply. In 2010, the company's real estate gross profit margin was 30.49%, up 8 percentage points from the same period last year. However, due to the decrease in project delivery, the operating income of the real estate business during the reporting period dropped sharply by 54.4% year on year to 1.949 billion yuan.

During the period, the increase in expense rate and the decline in investment income are a drag on performance. During the reporting period, the company's period expense rate was 13%, an increase of 6.8% over the same period last year. Among them, the financial expense rate was 5.1%, an increase of 3.4 percentage points over the same period last year, mainly due to the increase in working capital borrowing in the current period and the higher corresponding interest expenses. During the reporting period, the net profit on investment was 25 million yuan, down 89% from the same period last year, mainly due to more investment income and a higher base from the disposal of long-term equity investment last year.

Sales performance is poor, future performance growth is not expected to be strong. During the reporting period, the company received 1.48 billion yuan in cash for selling goods and providing services, a sharp drop of 53.9 percent over the same period last year. At the end of the reporting period, the company's inventory was 5.585 billion yuan, accounting for 70% of the total assets, an increase of 6 percentage points over the same period last year. The company plans to achieve sales revenue of 2 billion yuan in 2011. By the end of the reporting period, the company's advance payment balance was 1.383 billion yuan, down 42.9% from the same period last year, and the future performance guarantee is poor.

The pressure of short-term debt repayment is great, and the financial side is not optimistic. At the end of the reporting period, the company's monetary capital was 1.063 billion yuan, short-term loans and non-current liabilities due within one year totaled 2.38 billion yuan, the company's short-term debt repayment pressure was greater; excluding prepayment, the asset-liability ratio was 56%, an increase of 7 percentage points over the same period last year. The net operating cash flow at the end of the reporting period was-723 million yuan, compared with 644 million yuan in the same period last year.

Profit forecast and investment rating. We expect the company's earnings per share from 2011 to 2012 to be 0.15 yuan and 0.17 yuan respectively. Based on the latest closing price of 5.37 yuan, the corresponding dynamic price-to-earnings ratio is 36 times and 32 times respectively. The valuation level is relatively high, and the company's investment rating is downgraded to "neutral".