Summary of results for the first quarter of 2011: The company achieved operating income of 106 million yuan, a year-on-year decrease of 0.47%; operating profit of 1,814,600 yuan, a year-on-year decrease of 71.05%; net profit attributable to owners of the parent company was 1,7984 million yuan, a year-on-year decrease of 72.84%; and basic earnings per share of 0.01 yuan/share. The decline in performance stemmed from a decline in gross margin. The company completed a major asset restructuring in August 2009, and its main business is the business pattern of real estate and pharmaceuticals. Since 2011, due to the influence of real estate regulation policies, the company has begun to transition to a mining investment strategy. The company's operating income in 2011 was basically the same as the same period last year, while the reason for the sharp decline in net profit was that the company's real estate saleable and settlement resources were drastically reduced, while the share of low-margin pharmaceutical business revenue increased, causing the company's comprehensive gross margin to drop 4.7 percentage points to 18.3% year on year. Short-term debt repayment pressure remains high. As of the end of the first quarter of 2012, the company's book cash was 203 million yuan, up 47% from the beginning of the year, mainly due to sales and financing growth. However, coverage of short-term debt and non-current debt maturing within one year was still low, at only 53%. Short-term debt accounted for 68% of total interest-bearing debt, and short-term debt repayment pressure was high. The real debt ratio after deducting advance payments is 38.73%, and long-term financial leverage is not high. Assets are booming, and there is a complete transformation to mining investment. In 2011, the company continued to promote strategic transformation, sold idle real estate projects and two concrete companies with limited profitability, acquired 68% of Guangxi Jieyao Mining, and signed the “Guangxi Wuzhou Rare Earth Resources Development Cooperation Framework Agreement” with Zhejiang CLP to participate in the development of rare earth resources in Cenxi, Guangxi. The asset structure was completely transformed to mining investment. Follow the progress of mining in Jieyao Mining. Since Guangxi Rare Earth Project Company is still in the intended stage, the company's mining assets are mainly Jieyao Mining Gold Mine. The gold mine has reserves of 25.87 tons of (332) + (333) resources, 243.43 kg of gold, and an average grade of 0.94 g/t. According to the evaluation report provided by the company, assuming that the company can achieve 1125 kg of Au metal in synthetic gold every year, according to the calculation of 232 yuan/gram, it can achieve annual sales revenue of 261 million yuan. After the company completes the relevant procedures to achieve mining, it is expected to become a stable source of revenue for the company. Profit forecast and investment rating: We expect earnings per share for 2012-2013 to be $0.29 and $0.37 respectively. Based on the latest closing price of $18.83, the corresponding dynamic price-earnings ratio is 65 and 51 times, maintaining a “neutral” rating.