Net interest rates at key investment points continued to decline. The company's overall performance declined. The reason for the narrowing of the company's revenue decline and the expansion of the decline in net profit is the decline in the company's profitability: in the first half of the year, the company's net sales margin was 12.1%, down 0.92 percentage points and 4.03 percentage points from the previous year and the same period last year, respectively. Financial pressure is increasing, and capital costs are increasing. In the first half of the year, the company's balance ratio and net debt ratio both increased significantly compared to the beginning of the year, and the short-term debt ratio increased sharply by 44 percentage points over the same period last year. Acquiring minority shareholders' interests increases land reserves. In the first half of the year, the company was cautious in acquiring land, increasing the company's equity land reserves only through the acquisition of minority shareholders' rights. Sales have improved but are still not as good as last year. In the second quarter, the company received 208 million yuan in cash from sales of goods and services, an increase of 105.94% over the previous year and an increase of 58.78% over the previous year, indicating that the company's sales situation improved markedly in the second quarter of this year. However, in the first half of this year, the company received 308.9 million yuan in cash from selling goods and providing labor services, down 51.26% and 8.93% from the beginning of the year and the same period last year, respectively. Valuation and forecasting. The company achieved earnings of 0.19 yuan per share in 2011. The company's advance accounts accounted for only 14.066% of the previous year's revenue, and the degree of performance locking was very low. Therefore, the company's 2012 performance depended on the company's sales situation in the second half of the year. We forecast that the company's earnings per share from 2012 to 2013 will be 0.22 yuan and 0.28 yuan, respectively, and the closing price on July 24 will be 3.94 yuan. The corresponding price-earnings ratio for 2011-2013 will be 20.26 times, 17.61 times, and 13.89 times, respectively. Judging from the valuation, the company has no comparative advantage among similar companies. However, the company is rich in sellable and uncarried resources, and its performance is more flexible, giving it a “recommended” rating. Risk Alerts: Risk of Policy Regulation; Risk of Sales Blocking