In 2009, the company achieved operating income of 454 million yuan, a year-on-year increase of 9.84%; operating profit of 109 million yuan, a year-on-year decrease of 19.20%; net profit attributable to the parent company of 155 million yuan, an increase of 20.36% over the previous year; and achieved earnings of 0.24 yuan per share. The distribution plan is $0.20 (tax included) for every 10 shares. Real estate business sales are good, and land reserves have increased: The company is a real estate A-share listed company in Chongqing. It mainly deals in real estate grade 1 and 2 development, housing sales and leasing, site leasing, tunnel management, etc. In 2009, the real estate projects sold by the company were mainly the Qi Nian Yuecheng and Ranjiaba Olive County projects. Currently, they have all been sold, but since the Qi Nian Yuecheng project has not entered the settlement period, the overall real estate business revenue has declined. By the end of the reporting period, the company's real estate sales revenue was 111 million yuan, down 11.80% from the previous year, and advance receipts from project sales were 286 million yuan, a sharp increase of about 6 times compared to the beginning of the year (mainly due to sales of the QiNian Yuecheng project developed by the company's wholly-owned holding subsidiary Qinian Company). At the end of the reporting period, the company's commercial and residential project reserves included the Banan Jinzhu Industrial Park project, the Nan'an District Huangjueya Project, and the first Chongqing Development Project, all of which were obtained through land auctions in 2009. The problem of the company's insufficient reserve projects has been solved to a certain extent. Currently, the reserve area is about 1 million square meters, and construction is expected to start between 2010 and 2011. Exhibition and tunnel operating revenues contribute to stable cash flow. The company's toll business, including the operation of the Shihuang Tunnel and the operation of the convention and exhibition center, achieved a total revenue of 239 million yuan in 2009, accounting for about 50% of total revenue. It can provide a relatively stable cash flow, but growth is insufficient. This is also one of the reasons why the company's revenue growth is slow. Non-operating income increased substantially. In 2009, due to the government's repurchase of the Hechuan project and the demolition of the office, the company received a total compensation of 65.32 million yuan, which is the main reason why the company's performance slightly exceeded expectations. The majority shareholders' overall listing expectations have been further strengthened. According to the “Guiding Opinions on Further Promoting the Overall Listing of Key Municipal State-owned Enterprises” issued by the Chongqing Municipal Government, the consolidation and overall listing of Chongqing's state-owned assets is foreseeable. The majority shareholder of Chongqing Development is Chongqing Urban Construction Investment Group. It is one of the eight major state-owned investment groups in Chongqing. It is a state-owned investment group with the second largest land reserves in Chongqing. It currently reserves more than 100,000 mu of land, mainly distributed within 1,000 square kilometers of the main city, and currently has 8,000 mu of land being expropriated and cleared. As the only listed company under CITIC, Chongqing Development has obvious strategic significance in the rapid development of CITIC. Considering that some of the majority shareholders' businesses are highly correlated with the business developed in Chongqing, and that the majority shareholders have huge capital requirements in their development plans, and the majority shareholders have clearly stated that they want most of the capital to be obtained through capital market financing, the motivation of the majority shareholders to expand and strengthen the listed company is quite clear. Currently, the ban on shares held by CITIC has been lifted, increasing the possibility of further optimizing the shareholding structure. These factors have further strengthened the expectations of major shareholders to operate capital. Regional planning enhances the company's development expectations. The Chongqing Municipal Government has reported the “Liangjiang New Area” planning plan to the State Council. Judging from the development of Pudong and the Binhai Development Zone, economic development has given land appreciation quite a bit of room to rise. The formation of the “Liangjiang New Area” plan will surely promote the urbanization of Chongqing, thereby increasing the housing demand in Chongqing. For enterprises with large land reserves, the added value of land and the further increase in demand are opportunities for the company to achieve rapid growth. Profit forecast and valuation: We forecast that in 2010 and 2011, the company would benefit 0.27 yuan and 0.32 yuan per share, corresponding to the closing price of 14.86 yuan on February 5, and dynamic PE 54 times and 46 times, respectively. The company directly benefits from Chongqing's “Liangjiang New Area” plan, while expectations for the overall listing of major shareholders' assets have increased. For the first time, we have given an “added” investment rating to a company.