Net profit attributable to the parent company lost 7.57 million yuan. The company released its 2010 interim report today. Earnings for the first half of the year were 458.47 million yuan, up 40.41% year on year; net profit attributable to the parent company was 7.57 million yuan, compared to -7.8 million yuan for the same period last year; earnings per share were -0.035 yuan, and net assets per share were 0.44 yuan. A small company with a layout in Sichuan, diversified business, and backed by large groups. The company is the capital operation platform of Chengdu Hi-Tech Investment Group (GAC Group). It is mainly engaged in real estate development and construction business. The projects are mainly distributed in cities in Sichuan Province such as Chengdu, Mianyang, and Ya'an; the company's business is diverse, and it is also involved in futures brokerage, pharmaceuticals, and cabinet manufacturing. Gaotou Group is a wholly-owned holding company of the Chengdu High-tech Zone Management Committee, with a registered capital of 2.84 billion yuan and total assets of over 10 billion yuan. It is mainly engaged in park development, industrial investment, and park support services in the Chengdu High-tech Zone. It has two subsidiary companies that specialize in park development: Hi-Tech Real Estate and Hi-Tech Construction. Major projects that did not meet the carry-over conditions led to losses. The company's main project in 2010 - Beit - Lingshang Phase I - has not yet met the carry-over conditions and is expected to be completed by the end of the year. The company's revenue growth in the first half of the year was mainly due to the construction business, which is a typical low-profit business (gross margin is only 4.7%). As a result, the comprehensive gross margin fell 7.4 percentage points year-on-year to 27.6% in the first half of the year. This is the main reason why the increase in earnings did not increase profit in the first half of the year. The company's futures business achieved revenue of 55.81 million yuan in the first half of the year, an increase of 15% over the previous year; the performance of the pharmaceutical and cabinet manufacturing business was relatively average. The company expects a net profit loss of 12.2 million yuan in the first three quarters of 2010. Focus on asset restructuring. The company announced on August 3 that trading was suspended due to planning a major asset restructuring. The company's current asset restructuring is generally within expectations: the path of corporate restructuring can be described as having ups and downs. It ran aground in October 2008, but as the GAC Group's emphasis on high-tech development increased, and the chairman of GAC Group joined Hi-Tech Development (in February 2010, GAC Group **** Xing was elected as the chairman of Hi-Tech Development), we had anticipated that the company restructuring would be put on the agenda again. We expect that the general direction of the company's restructuring should be to inject real estate assets into the group. Maintain an increase in holdings rating. Without considering asset restructuring, we expect the company's earnings per share to be 0.27 yuan and 0.41 yuan respectively. Based on the latest stock price of 10.59 yuan, the corresponding dynamic price-earnings ratios are 39 times and 26 times, respectively. Although the valuation level is a bit high, considering the company's three major points of asset integration (improving fundamental expectations), futures concepts, and restructuring expectations, we maintain the company's shareholding rating.