Summary of the results for the first three quarters of 2009. From January to September 2009, the company achieved operating income of 620 million yuan, down 33.81% from the same period last year; operating profit was-44.32 million yuan, compared with-14.48 million yuan in the same period last year; net profit belonging to the parent company was-22.18 million yuan, compared with-11.72 million yuan in the same period last year; and basic earnings per share was-0.06 yuan.

Among them, the operating income in the third quarter (July-September) was 195 million yuan, an increase of 40.11% over the same period last year; the net profit attributed to the parent company was-27.15 million yuan; and the basic earnings per share was-0.08 yuan.

Overview of the company's fundamentals: the company's main business is real estate development, computer peripheral products, trade and property management, in which real estate development and sales business is the main source of business income and profits. The real estate business is a new business arising from the share reform in 2008, mainly Changchun Rongchuang, a holding subsidiary injected at that time. In the first half of 2009, the income of the real estate development business was 240 million yuan, accounting for 58.03% of the company's operating income, the gross profit accounted for 76.2%; the income from computer peripheral products was 120 million yuan, accounting for 28.71% of the operating income, and the gross profit accounted for 23.13%; the income from the trade business was 53.57 million yuan, accounting for 12.94% of the operating income, and the gross profit accounted for 1.13%. The income of the property management business is 1.34 million yuan, accounting for 0.32% of the operating income, and the gross profit accounts for-0.46%.

The decline in operating income was due to changes in the scope of the merger, during which expenses gobbled up the company's profits.

Compared with the same period last year, four companies were not included in the consolidated statements during the reporting period, which was the main reason for the change in operating income. The company's gross profit margin increased slightly in the first three quarters of 2009, but the company lost money due to a sharp increase in expense rates during the period. The company's gross profit margin in the first three quarters of 2009 was 20.44%, up 2% from the same period last year; the expense rate during the period was 23.36%, up 7.8% from the same period last year, of which the management expense rate rose from 5.98% to 10.92%, an increase of nearly 5% over the same period last year, which was the main reason for the sharp increase in the expense rate during the period.

With the help of the real estate development business, the company is still expected to make a profit for the whole year. The company's real estate projects are mainly in Changchun, supplemented by Beijing and Yantai. Changchun Shangcheng project is being developed and sold during the reporting period. In the first half of 2009, the operating income was 240 million yuan and the operating profit was 36.42 million yuan, which is the main source of profit for the company. By the end of this report, the company has received 410 million yuan in advance, mainly for the advance sale of real estate, which is expected to increase the company's gross profit by 120 million yuan. In the second half of 2009, the company added two new real estate projects that have not yet started.

Risk hint. The real estate project needs more funds, but the company's current asset-liability ratio is as high as 88.88%, the debt is too heavy, the financing capacity is limited, and the financial pressure is greater. During the period, the expense rate is high, and the company's cost control ability is poor.