The company's consolidated statement for January-June 2010 showed that it achieved operating income of 544 million yuan, an increase of 1032.52%; operating profit of 69 million yuan, a year-on-year decrease of -17.27%; and net profit attributable to shareholders of the parent company of 51 million yuan, a year-on-year decrease of 39.97%. Basic earnings per share were $0.12. Revenue increased sharply and net profit declined: During the reporting period, the company's revenue increased 1032.52% year on year to reach 544 million yuan, mainly confirming sales revenue for the Wuhan project “Merrill Lynch Qingcheng Phase II”. Net profit of 51 million yuan was achieved, down 39.97% year on year, mainly due to a sharp decline in investment income: the transfer of shares in Southwest Securities during the same period last year achieved a large investment income, totaling 131 million yuan, 1.57 times the current operating profit. However, the investment income during the period was only 64,900 yuan, all of which came from long-term equity investment in the associated company Sanya Wanjia Industrial Co., Ltd. The performance in the past two years has been quite guaranteed: the company's operating income mainly comes from the Merrill Lynch Qingcheng project, which provides a certain guarantee for performance. In addition, after transferring the Dragon Ball New Town Phase III project, the company obtained 15,000 construction area after completion. The estimated sales price is 10 million yuan/square meter, which can generate pre-tax profit of 18 million yuan, increasing the company's earnings per share by about 0.03 yuan; in terms of investment income, the company invested 61 million yuan to purchase an apartment building on Xinglong West Street in Chaoyang District, Beijing. After the project cooperation period expires, the investment return is not less than 30%. It is expected to increase the company's profit before tax by about 18.3 million yuan and increase the company's earnings per share by about 0.04 yuan; in addition, the company holds Southwest Securities The 33.25 million shares, at the current price of 13.87 yuan/share, have a fair value of 461 million yuan. It is expected that the company will be sold one after another in the next few years, which may drive a significant increase in the company's profits. Expenses for the period have been controlled, and operating conditions have improved: Although the company's revenue for the first half of the year increased 10.32 times, the total expenses for the period were only 49 million yuan, a slight increase of 3.50% over the previous year. The rate of expenses for the period fell from 98.82% in the same period last year to 9% in the current period. The sharp improvement in the company's performance is conducive to a steady increase in the company's performance. Maintain a “neutral” rating. We forecast that the company's earnings per share from 2010 to 2012 will be 0.23 yuan, 0.32 yuan, and 0.41 yuan, respectively. Based on the company's recent closing price of 5.15 yuan, the corresponding dynamic price-earnings ratios are 22 times, 16 times, and 13 times, respectively. Maintain a “neutral” investment rating for the time being.