In 2012, the company achieved operating income of 1,396 million yuan, a year-on-year decrease of 0.45%; operating profit of 859 million yuan, an increase of 4.19%; net profit attributable to owners of the parent company of 633 million yuan, an increase of 4.22%; and basic earnings per share of 1.1,500 yuan. Fundamental description. The company is a government financing platform specially set up by the Tieling Municipal Government to develop Tieling New Town. It is mainly responsible for first-level land development. Tieling New Town covers an area of about 22 square kilometers. It is functionally positioned as the administrative center of Tieling City and Tieling County, and a tourist, leisure and vacation center in the Shenyang Economic Zone. It provides large-scale, modern and suitable living service areas for the population of more than 7 million people in Shenyang and 1.5 million people in industrial zones, including the Northeast Logistics City, the Northern Financial Back-office Service Base, and the Liaoning Vocational Education Base. The company's business operations. In 2012, the company's main business continued to improve. With the official opening of the Hada High Speed Rail, the high-speed rail station (Tieling West Station) officially settled in Tieling Xincheng, bringing great opportunities to Tieling Xincheng's foreign investment promotion work. As domestic first-tier brand developers enter Tieling Xincheng District one after another, there will be a large premium space in the market, and the company, as a land-level developer, will usher in rare development opportunities. Expenses for the period were well controlled. The company's expense ratio for the period was 7.28%, a year-on-year decrease of 0.19 percentage points. Among them, the sales expense ratio was 0.32%, up 0.11 percentage points from the previous year, mainly due to increased sales efforts in the current period; the management expense ratio was 2.93%, down 1.35 percentage points from the previous year; and the financial expense ratio was 4.03%, an increase of 1.04 percentage points over the previous year, mainly due to the increase in cost financing. Long-term financial pressure has declined, and short-term financial pressure has decreased. The balance ratio at the end of the period was 37.5%. The actual balance ratio after excluding advance payments was 37.41%, down 2.52 percentage points from the previous year, and long-term financial pressure decreased; book monetary capital at the end of the period was 145 million yuan, up 0.23% year on year, and “monetary capital/ (short-term borrowings+non-current liabilities due within one year)” was 0.46 times, up 0.06 from the previous year, and short-term financial pressure decreased. Level 1 land development qualification. The company is located in Tieling City, Liaoning Province. It is a third- and fourth-tier city. It is an area where the new urbanization strategy needs to be developed. The company's operating model is government-led and market-based. It exclusively develops and operates 22 square kilometers of land in Tieling Xincheng District, and is irreplaceable. In the medium to long term, the overall trend of tight land resources will not be reversed, and the continuous progress of the urbanization process will also provide strong demand for the real estate market. We previously estimated the company's earnings per share for 2013-2014 to be 1.03 yuan and 1.11 yuan, respectively. Based on the closing price of 7.99 yuan on May 7, 2013, the corresponding dynamic price-earnings ratios were 8 times and 7 times, respectively, maintaining an investment rating of “increase”. Risk warning: During the real estate regulation period, poor project sales led to a decrease in revenue; tight government finances were unfavorable to repayment