Incident: The company released financial data for 2010. The company achieved main revenue of 457 million yuan (YOY 471.19%); achieved net profit of 518 million yuan (YOY 477.92%); the company had a small carry-over of real estate sales, but net profit of 392 million yuan stemming from the transfer of 48.4761% of shares in the Fuxing Tiandi Project. The company achieved an EPS of 0.98 yuan, fulfilling the performance promise of the stock reform. The company's performance also met our expectations of 0.96 yuan; Comments: 1. The company's capital operations contributed the vast majority of profits in 2010. The company obtained a net profit of 392 million yuan through the transfer of 48.4761% of the shares in the Fuxing Tiandi Project. It can be described as a good effort. The Fuxing Tiandi project was affected by the plan. Construction has not yet started. The project's quality is excellent, but the performance is slow. The sale of shares in the project by the company can reflect long-term profits in the short term and successfully complete the performance promise. In 2010, the company also acquired the majority shareholder Huijing Tiandi Project. The project is located in a prime location on Luban Road, Luwan District, Shanghai, and will contribute to performance this year and next. 2. The company's performance this year will be mainly contributed by the Shanghai Huijing Tiandi project and the Suzhou Taishang Lake project. The company's Suzhou “Taishang Lake Project” achieved carry-over revenue of 405 million yuan in 2010, achieving a pre-sale area of 141,000 square meters, and pre-sale revenue of 160 million yuan. The lower unit price was mainly due to the fact that most of the property products on sale were arranged in groups, with an average price of 9,000-12,000 yuan/square meter; the Shanghai “Huijing Tiandi” project achieved pre-sale of 10,500 square meters and obtained pre-sale revenue of 532 million yuan. The Huijing Tiandi project will be the main source of profit carried over this year. 3. The company will increase its investment in non-real estate business this year and seek to take multiple steps. In 2010, the company acquired 40% of Huatai Great Wall Futures Co., Ltd. This year, the company also made it clear that the situation of relying on the real estate business alone needs to be improved. Therefore, this year, the company will take advantage of its own advantage. While doing a good job in the real estate business, the company will pay close attention to industries such as biomedicine, new energy, energy saving and environmental protection, and finance, choosing an appropriate time, the company will carefully and selectively make experimental investments, and gradually cultivate the company's second main business. The company plans to invest 2 billion yuan in equity. 4. Investment advice. Performance Forecast and Investment Rating: We forecast the company's EPS for 2011, 2012 and 2013 to be 0.88 yuan, 0.91 yuan and 0.95 yuan, respectively. The company's 2011 RNAV was 7.35 yuan. Maintain the “Prudent Recommendation — A” rating for the company's stock. 5. Risk warning. The company's advance accounts are only 560 million, and this year's performance guarantee is poor. The company's valuation is also high.