In the first half of 2010, the company achieved operating income of 164 million yuan, a year-on-year increase of 48.88%; operating profit of 16.62556 million yuan, a year-on-year increase of 4.77%; net profit attributable to the parent company of 58565 million yuan, a year-on-year decrease of 26.1%; and basic earnings per share of 0.04 yuan. Non-recurring profit and loss is the main reason for the year-over-year decline in the company's net profit. The company's non-operating expenses during the reporting period were 1,452,000 yuan, compared with only 148,200 yuan in the same period last year. The company's basic earnings per share during the reporting period after deducting non-recurring profit and loss were 0.045 yuan, which was basically the same as the same period last year. Overview of fundamentals. Currently, the company's main business is real estate development and steel rolling processing. During the reporting period, the real estate development business achieved revenue of 63.3976 million yuan, accounting for 38.54% of the company's operating income, and realized gross profit of 29.533 million yuan, accounting for 80.27% of gross profit, which is the company's main source of profit. The steel rolling processing business is dragging down the company's performance, and it is planned to dispose of this portion of the shares. The steel rolling processing business achieved revenue of 101 million yuan during the reporting period, an increase of 111.99% over the previous year, which is the main reason for the year-on-year increase in the company's operating income. However, the gross margin of this business has always been at a low level. The gross margin for the reporting period was 7.18%, down 0.15 percentage points from the previous year; at the same time, due to the increase in business volume, sales expenses, management expenses, etc. of this business all increased, causing the business to lose 659,500 yuan during the reporting period. Since this business is a legacy of bad assets, the company began planning to dispose of its shares in early 2009, but since disposal at that time would involve major asset restructuring, the company now plans to complete its disposal by the end of 2010 as revenue and profits from the real estate development business increase. Land reserves are in urgent need of replenishment. The company's real estate business is mainly carried out by Beijing Huasong Real Estate Development Co., Ltd. and Beijing Tianyuan Real Estate Development Co., Ltd. In December 2009, the company proposed a targeted additional distribution plan, and plans to issue no more than 150 million shares to majority shareholders Wan Fangyuan and others at a price of 14.12 yuan/share to acquire 91.87% of Chongqing Baichuang's shares, 100% of Fangcheng Real Estate's shares, 61% of Chu Shengyuan's shares, and 100% of Chengyuan Real Estate's shares. This targeted sale has not only solved the problem of competition among peers, but will also enable the company to obtain at least 1,500 acres of land for real estate development, greatly expand the company's land reserves, and provide an effective guarantee for continued operation in the future. At present, sales of the “Yujing Huating” project developed and constructed by Beijing Huasong have been completed, and basic development has been completed; the residences built in Tianyuan later in Beijing are relocation and guaranteed housing; however, the targeted expansion work has not yet been completed. As a result, the company's current project reserves are insufficient, and there is an urgent need to replenish land reserves. Earnings forecasts and investment ratings. Considering that the disposal time of the steel rolling processing business is still uncertain and that targeted additional distribution work has not yet been completed, there are no profit forecasts or investment ratings yet. However, Wan Fangyuan, the controlling shareholder of the company, promised during the stock reform that the company's fully diluted EPS from 2008 to 2010 would not be less than 0.20 yuan; otherwise, it would chase 0.75 shares for every 10 tradable shares, reminding investors to pay attention.