In the first quarter of 2013, the company achieved operating income of 184 million yuan, a year-on-year increase of 2.91%; operating profit of 303.36,500 yuan, a year-on-year decrease of 8.6%; net profit attributable to owners of the parent company of 236.948 million yuan, an increase of 8.96% year on year; and basic earnings per share of 0.0330 yuan. Overview of fundamentals. The company has second-level real estate development qualifications and is a group enterprise integrating real estate development, investment and management, construction engineering, decoration engineering and property management. Currently, the company's properties under construction are mainly located in the Qingyuan, Wuhan, and Shangyu areas of Shaoxing. The cost of obtaining land for the three projects is relatively low. Expenses for the period were well controlled. The company's expense ratio for the period was 11.79%, a year-on-year decrease of 2.67 percentage points. Among them, the sales expense ratio was 2.39%, down 0.29 percentage points from the previous year; the management expense ratio was 8.18%, down 2.69 percentage points from the previous year; and the financial expenses ratio was 1.22%, up 0.31 percentage points from the previous year, mainly due to the increase in interest expenses during the period. Long-term financial pressure has increased, and short-term financial pressure has decreased. The balance ratio at the end of the period was 54.06%. The actual balance ratio after excluding advance payments was 48.86%, an increase of 4.56 percentage points over the previous year, and long-term financial pressure increased; the book capital at the end of the period was 468 million yuan, an increase of 27.89% over the previous year, and “monetary capitals/ (short-term borrowings+non-current liabilities due within one year)” was 1.13 times, up 0.14 from the previous year, and short-term financial pressure decreased. The project reserves are abundant. The inventory at the end of the period was 2,436 billion yuan, up 12.4% year on year, accounting for 71.5% of total assets, and project reserves were relatively rich. The company said that in the future, it will continue to be guided by policy trends, actively seek government cooperation projects with low land costs based on second-tier and third-tier cities with urbanization rates between 40% and 50%, and advance in the strategic direction of developing high-end housing mainly in immediate demand. On April 13, the board of directors of the company deliberated and decided to liquidate and disband Wuhan Wolong Real Estate Development Co., Ltd. and Shengzhou Wolong Lvdu Real Estate Co., Ltd. The main projects developed by the above companies include Wolong Mountain Water Green City, etc. They are all early Wolong Real Estate project companies, all of which have now been completed. Therefore, in order to integrate the company's resources, this liquidation has no impact on the operation of existing projects. We previously estimated that the company's earnings per share for 2013-2014 would be 0.12 yuan and 0.14 yuan respectively, maintaining a “neutral” investment rating. Based on the closing price on April 25, 2013, the corresponding dynamic price-earnings ratios would be 27 times and 24 times, respectively. Risk warning: Real estate regulation policy risks; project sales and development progress may fall short of expectations.