Interim results declined sharply and were basically in line with market expectations. The company released its 2010 mid-year report today: operating income of 433 million yuan, down 61.21% year on year; operating profit of 103 million yuan, down 79.25% year on year; net profit belonging to the parent company was 73 million yuan, down 80.28% year on year; earnings per share were 0.07 yuan, which is basically in line with market expectations. A regional developer based in Ningbo and laid out in the Yangtze River Delta. The company completed asset restructuring in May 2009 and became a regional developer based in Ningbo and laid out in the Yangtze River Delta. Its products include residential and office buildings. The company currently reserves a planned construction area of more than 1.2 million square meters for construction and proposed projects, mainly distributed in Ningbo, Changshu and Hangzhou. The smaller volume of carry-over projects and lower gross margins led to a decline in performance. The company's main projects that participated in the settlement in 2010 were “Rong An Garden” and “Rong An Qin Bay”. Among them, Rong An Garden was delivered in June 2010, and Rong An Qin Bay will be delivered at the end of 2010. The company's settlement during the reporting period was mainly Rongan Garden. The project was relatively small (the construction area was only more than 50,000 square meters), which was the main reason for the decline in revenue; furthermore, Rongan Garden's gross margin was relatively low, only about 36%, down 15 percentage points from the previous year. The simultaneous decline in revenue and gross margin was the main reason for the company's poor performance. Sales declined in the second quarter. The company mainly sold projects during the reporting period, such as Rongan Garden, Rongan Qin Bay, and Central Garden Phase I. The balance of advance payments as of the end of June was 1,129 million yuan, down 12.5% from the end of the first quarter; the company received 270 million yuan in cash from selling goods and services in the second quarter, compared to 4.4 billion yuan in the first quarter. Reverse the market and acquire land. On June 17 and July 2, Ningbo Rongan Real Estate Company, a holding subsidiary of the company, acquired a plot of land each in Binjiang, Hangzhou and Yinzhou, Ningbo, etc., with a total construction area of 113,600 square meters and a land price of 1,318 billion yuan, increasing project reserves by about 10%. Cash is relatively scarce, but support from the majority shareholders is strong. As of the end of June 2010, the company's real balance ratio was 52.74%, which is at a moderate level in the industry, and the long-term financial structure is reasonable; book cash was 100 million yuan, down 350 million yuan from the end of the first quarter, mainly due to slowing sales repayments and increased land acquisition expenses; Rongan Group, the majority shareholder, promised to give the company 3 billion yuan of short-term loan lines over the next year. This may be the motivation for the company to still gain a lot of ground in the face of insufficient cash.