Performance Overview: In the first half of 2013, the company achieved operating income of 196 million yuan, a year-on-year decrease of 46.78%; operating profit of 4.152,900 yuan, a year-on-year decrease of 93.39%; net profit attributable to owners of the parent company was 10.7956 million yuan, a year-on-year decrease of 80.74%; and basic earnings per share. Settlable resources are decreasing, and costs are rising. During the reporting period, the total settlement revenue of the four major projects, Fenghuang Heming, Fenghuang Hexi Area A, Phoenix Villa, and Phoenix and the US, was 193 million yuan, a year-on-year decrease of 46.8%. Of these, the Fenghuang Mountain Villa project settled 119 million yuan, accounting for 62% of the total revenue. Due to the low gross margin of the Phoenix Mountain Villa project (22.75%), the gross margin of the company's real estate settlement business fell 10.81 percentage points year-on-year to 31.71% during the reporting period. Furthermore, due to the fact that many real estate properties were on pre-sale during the reporting period, the company increased its marketing efforts. Coupled with the increase in overseas projects, the company's sales expenses and management expenses rose sharply during the period. The company's expenses ratio during the period was 25.68%, an increase of 11.51 percentage points over the previous year. The year-on-year decrease in settlement resources and the rise in costs and expenses were the reasons for the company's poor performance in the first half of this year. The performance is expected to gradually improve. As of the publication date of this report, the company's ongoing and proposed projects covered an area of about 251,000 square meters, with a planned construction area of about 1.161,000 square meters. Looking at the project reserve area, all of the company's projects are concentrated in Jiangsu, distributed in Nanjing, Suzhou, Nantong and Yancheng. Judging from the start and completion time of the project, the Phoenix Helui Project, the Phoenix Mountain Villa Project, the Fenghuang Hexiyuan Area B Residential Project, the Suzhou Phoenix International Bookstore Project, and the Nantong Bookstore Project can all be completed and delivered by the end of this year. It is roughly estimated that the settlement volume of these projects is in the range of 6.6 billion yuan to 7 billion yuan. Therefore, it is expected that the company's settlement resources will gradually increase starting in the second half of the year, and the company's performance will gradually improve as a result. The long-term development of the company's cultural real estate is promising. With economic development and the improvement of people's living standards, people's demand for housing has changed from a simple practical type to a comfortable one. Housing requirements not only improve the quality of housing, but also meet spiritual needs. At the same time, the country proposed “speeding up the development of the cultural industry and promoting the cultural industry to become a pillar industry of the national economy”. In the context of changes in consumer demand and policy promotion, cultural real estate is the next direction for real estate development in the future. Currently, the company is mainly committed to cultural real estate development, that is, focusing on cultural management and cultural consumption, while promoting the development of surrounding commercial and residential projects. Its advantage in cultural real estate project development is that it can rely on the advantages of the Brother Phoenix Publishing Media brand to raise the price of its own cultural brand, and the company's media culture concept is outstanding. Furthermore, through cultural brands, cultural real estate projects are created with cultural concepts, thereby enhancing property value. Taking into account the prospects of the cultural real estate industry and the company's own advantages, we are optimistic about the long-term development of the company's cultural real estate business. Participate in financial equity investments. Since the company once again increased its holdings in Nanjing Securities in 2012, the company's latest shareholding ratio in Nanjing Securities was 10.54%. During the reporting period, the company received 100 million yuan in Nanjing Zhong Fei dividends. Joining Nanjing Securities can be seen as an important step for the company in the field of financial investment. It is expected that in the future, the company will also choose high-quality financial equity for investment. Profit forecast and investment rating: The company's earnings per share for 2013-2014 are expected to be 0.35 yuan and 0.56 yuan, respectively. Based on the latest closing prices, the corresponding dynamic price-earnings ratios are 16 times and 10 times, respectively. Give an investment rating of “increase in holdings.” Risk Warning: Performance falls short of expectations; real estate market regulation risk