In the first half of 2011, the company achieved operating income of 674 million yuan, an increase of 1649.35%; operating profit of 127 million yuan, an increase of 5311.99%; net profit attributable to owners of the parent company of 557.933 million yuan, an increase of 7871.29%; basic earnings per share of 0.12 yuan and net assets of 2.16 yuan per share. The main reasons for the sharp increase in net profit are: 1. The number of real estate development projects sold by the company that met the revenue recognition conditions during the reporting period increased compared to the same period last year, and the base for the previous year was lower; 2. The cost rate for the period dropped sharply by 80.7 percentage points to 3.6%; projects were settled one after another, and performance is expected to be released. The company currently has four major projects: Yinchuan Jingneng Tianxachuan, Hohhot Jingneng Garden, Beijing Sihe Upper House, and a real estate project in the Dongjiang port area of Tianjin Port. 1). The fourth round of settlement by the upper house brought about performance release. The Sihe Upper House project has a construction area of about 150,000 square meters above ground, and the company owns 62% of its interests. The 2010 settlement was mainly for building 1, and buildings 2 and 3 were settled in 2011. 2). Other project conditions. The total saleable construction area of the Jingneng Tianxachuan project is about 700,000 square meters. The company owns 70% of the interest in the project. In 2009, the company confirmed revenue of 153 million yuan through the sale of projects under construction (construction area 74,700 square meters). The Jingneng Garden project has a construction area of 146,000 square meters. The company owns 100% of the interest, and has already begun participating in the settlement during the reporting period. Tianjin Port Dongjiang Port Area Project: In September 2010, the company acquired 49% of Tianjin HNA East Coast Development Co., Ltd. at a price of 24.5 million yuan (consolidated list) to participate in the development of the Tianjin Port Dongjiang Port Area Real Estate Project. The project is located in the southern part of the Dongjiang Port Area of Tianjin, covering an area of 394,800 square meters and a construction area of about 774,600 square meters above ground. 3). Advance payments are highly targeted at future performance. At the end of the reporting period, the company's advance payment balance was 1,848 million yuan, an increase of 7% over the beginning of the period. Short-term debt is under pressure, and the long-term financial structure is stable. At the end of the reporting period, the company's short-term loans and non-current liabilities maturing within one year totaled 401 million yuan, monetary capital was 709 million yuan, and short-term unpaid debt pressure; the balance ratio excluding advance payments was 36.36%, down 4.36 percentage points from 40.72% at the beginning of the period, and the long-term financial structure was stable. Earnings forecasts and investment ratings. The company's earnings per share for 2011-2012 are expected to be 0.64 yuan and 0.71 yuan respectively. Based on the recent closing price of 5.58 yuan, the corresponding dynamic price-earnings ratio is 9 times and 8 times, respectively. The valuation level is low, and the investment rating of “increased holdings” is maintained. Risk warning. The company is currently small in size, has few project reserves, and the sustainability of performance is uncertain; there is a risk that project settlement progress will not meet expectations.