Performance summary: in the first half of 2013, the company achieved operating income of 130 million yuan, down 8.54% from the same period last year; operating profit was 15.2033 million yuan, down 49.31% from the same period last year; net profit belonging to the owner of the parent company was 16.8285 million yuan, down 34.23% from the same period last year; and basic earnings per share was 0.05yuan per share.

The largest shareholder of the company is Zhejiang Oriental Group, with a shareholding ratio of 48.97%; the actual control is the State-owned assets Supervision and Administration Commission of the Wenzhou Municipal people's Government. The company's main business is real estate development, market leasing, commodity circulation business and so on. Income structure in the first half of the year: the income from commodity sales during the period was 114 million yuan, accounting for 88.54% of the total income, and the gross profit was 6 million yuan, accounting for 35.48% of the total gross profit; the income from market leasing was 15 million yuan, accounting for 11.46% of the total income, and the gross profit was 11 million yuan, accounting for 64.52% of the total gross profit. Affected by the real estate development cycle, the sales settlement of the company's real estate projects has no income, resulting in a substantial reduction in profits. During the period, the cash inflow received by the company for selling goods and providing services was 160 million yuan, an increase of 4.25% over the same period last year, and the return of operating cash was the same as the same period last year. The amount of accounts received in advance at the end of the period was 83 million yuan, an increase of 30.29% over the same period last year. "accounts received in advance + operating income during the period" accounted for 69.37% of the business income in 2012, and the performance was highly locked in 2013.

The growth in the past five years is average: in the past five years, the compound growth rate of operating income is 14.06%, the compound growth rate of operating profit is-5.99%, the compound growth rate of net profit belonging to the parent company is 5.18%, and the compound growth rate of net assets is 11.03%. The compound growth rate of total assets is 7.68%.

Profitability and expense control ability: during the reporting period, the company's comprehensive gross profit margin was 14.61%, down 4.42% from the same period last year; the expense rate during the period was 8.18%, an increase of 3.15% over the same period last year, among which the sales expense rate and management expense rate increased significantly. The net profit margin is 12.92%, down 5.05 percentage points from the same period last year; the rate of return on net assets is 2.6%, down 1.78 percentage points from the same period last year, and profitability is relatively weak.

The finance is sound, the investment enthusiasm is relatively insufficient. The asset-liability ratio at the end of the period is 23.71%. Excluding accounts received in advance, the real asset-liability ratio is 13.87%, down 0.4% from the same period last year, and the long-term capital pressure is reduced; the book monetary funds at the end of the period are 61 million yuan, an increase of 40.13% over the same period last year, and the "monetary funds / (short-term loans + non-current liabilities due within one year)" is 15.34 times, down 0.25% from the same period last year.

We previously expected the company's earnings per share from 2013 to 2015 to be 0.07yuan, 0.07yuan and 0.1yuan respectively. According to the closing price on August 12, 2013, the corresponding dynamic price-to-earnings ratio was 146,140,102 times respectively. Give a "neutral" investment rating.

Risk hint: the growth potential of the main business is weak.