Summary of results in the first three quarters of 2009: from January to September 2009, the company achieved operating income of 21.95 million yuan, an increase of 179.39% over the same period last year; net profit belonging to the parent company was 1.32 million yuan, compared with a loss of 24.34 million yuan in the same period last year; earnings per share were 0.008 yuan. In the third quarter, the company achieved operating income of 8.39 million yuan, an increase of 254.56% over the same period last year; a net loss of 1.79 million yuan, 89.59% less than the same period last year; and earnings per share of-0.010 yuan.

Basic situation of the company: the company's main business includes real estate and property management, pharmaceutical industry and so on. The company's main development projects include Oak Bay, Yanfeng Building, the third phase of the new century, etc., concentrated in Yantai, Shandong Province.

Gross profit margin has risen: the company's comprehensive gross profit margin was 22.1% in the first three quarters, of which 23.1% in the third quarter, up 1.5 percentage points from the first half of the year. Due to the low settlement income, the company's expense rate reached 44.1% in the first three quarters, of which 42.6% in the third quarter, down 2.4 percentage points from the first half of the year. At the end of the third quarter, the company's asset-liability ratio was as high as 87.9%, even excluding pre-sale payments, the asset-liability ratio was still 72.1%.

The advance sales show that the future performance is more secure: the company received 104.09 million yuan in advance at the end of the third quarter, and the Oak Bay project is expected to begin settlement at the end of the year, when the company's revenue is expected to increase significantly. However, presales increased less in the third quarter. The company owns 60% interest in the Oak Bay project.

One-time investment income makes the company still profitable: the company liquidated its subsidiary Yantai Hualian Communication Technology Co., Ltd., resulting in an investment income of 5.69 million yuan, equivalent to 25.9% of the operating income in the first three quarters.

With the settlement of the Oak Bay project, the company's profits are expected to improve. However, even if all advance receipts are settled during the year, the current valuation of the company is still on the high side. And the high asset-liability ratio increases the operating risk of the company.