In the first half of 2010, the company realized operating income of 519 million yuan, an increase of 78.41% over the same period last year; operating profit of 78.1074 million yuan, an increase of 549.69% over the same period last year; net profit belonging to the parent company was 64.141 million yuan, an increase of 730.27% over the same period last year; and basic income per share was 0.06 yuan.

Real estate sales revenue increased year-on-year, and gross profit margin rose. During the reporting period, real estate sales income reached 319 million yuan, an increase of 209.74% over the same period last year, which is the main reason for the company's business income growth. The gross profit margin was 47.86%, an increase of 9.77 percentage points over the same period last year. Mainly lies in: 1), Shantou Jinye Island project sales revenue increased by 106 million yuan, gross profit margin increased by 9% compared with the same period last year. 2) the real estate sales revenue of the group's headquarters increased by 109 million yuan over the same period last year, and the gross profit margin increased by 17 percentage points compared with the same period last year. Affected by the substantial increase in real estate sales revenue year-on-year and the rise in gross profit margin, the company's overall operating income increased year-on-year in the reporting period, and the gross profit margin increased by 9.89 percentage points.

Investment income contributes to the growth of the company's performance. During the reporting period, the company realized investment income of 22.4401 million yuan, an increase of 191.72% over the same period last year, accounting for 28.73% of the company's operating profit. It mainly lies in: 1), during the reporting period, the dividend payment of Kunshan Peak shaving Power Co., Ltd. increased compared with the same period last year; 2), the transfer of 50% equity in Sha Tau Kok Nantian Shopping Mall, achieving an investment income of 9.6366 million yuan.

The land available for development is still insufficient. The historical land in the company's existing land reserve is difficult to develop for various reasons, which leads to the current real estate business mainly depends on the Jinye Island project. In August 2009, the company bought two pieces of land in Guangming New District, Shenzhen, with a total construction area of 180000 square meters, which temporarily alleviated the problem of insufficient land reserve, but due to the difficulty of solving the problems left over by other projects, the land available for the company's development is still insufficient.

Financial pressure still exists. Due to the delay in the development progress of Longgang and Dongle projects, there is a precipitation of funds invested in the early stage, and in the second half of the year, the remaining land price of the Guangming New area project and the loans that are about to mature within a year need to be repaid, and the company's financial pressure still exists. At the end of the reporting period, the company had monetary funds of 325 million yuan, and the asset-liability ratio excluding prepaid payments was 53.94%. By the end of the reporting period, the company has paid 900 million yuan for the Guangming New area project, and the remaining land premium of 300 million yuan must be paid before August 28, 2010.

Profit forecast and investment rating. It is expected that the company will achieve earnings per share of 0.11,0.13 and 0.17 yuan respectively from 2010 to 2012. Based on the closing price of 6.12 yuan on August 23, the corresponding dynamic price-to-earnings ratio is 58 times, 47 times and 37 times respectively, maintaining a "neutral" investment rating.

Risk hint. The historical land in the company's existing land reserve restricts the development of the main business because it is difficult to solve the remaining problems.