Key investment points: Performance fell short of expectations. On the evening of March 26, the company disclosed its 2012 report: achieved operating income of about 5.187 billion yuan, up 33.12% year on year; realized net profit attributable to shareholders of listed companies was about 348 million yuan, down 45.44% year on year; achieved basic earnings per share (EPS) of 0.24.1 million yuan, lower than our previous expectations. The main reason for the increase in the company's operating income during the reporting period and the obvious decline in net profit attributable to shareholders of listed companies was due to the calculation of inventory price reduction preparations. The amount involved was about 375 million yuan, affecting net profit attributable to shareholders of listed companies of about 367 million yuan. Profit distribution plan for 2012: Based on the company's total share capital of 1445241071 shares on December 31, 2012, it is proposed to distribute a cash dividend of 1.00 yuan (tax included) to all shareholders. Sales resources are relatively abundant, and sales will be flexible. We expect the company's main saleable projects in 2013 to focus on: (1) Qinglin Bay Project (Phase 6-8), (2) Donghu Mingyuan Project (1-4), (3) Villa Town (Phase 2), (4) Evian County Project, and (5) Shanshui Yipin Project. The total saleable value of the above projects is over 6 billion yuan, and the expected sales value of the company's commercial housing in 2013 is around 3.5 billion yuan. Inventory price reduction preparations are calculated to release project risks. In view of the actual situation in the Ningbo regional real estate market, the company prepared inventory price reduction preparations for the Evan County project and the Ninghai Taoyuan Road project, which were 346 million yuan (about 19.35% of the project's land concession fund) and 29 million yuan (about 2.2% of the project's land concession fund), respectively. We believe that the calculation of inventory price reduction preparations for the Evan County project is conducive to early release of the investment risks of the project; at the same time, the company's positioning of the Evan County project as a low-density residential project will facilitate the exploration of project value and can withstand project investment wind risks to a certain extent. Maintaining the “buy” rating, we expect the company's 2013-2015 EPS to be 0.50 yuan, 0.62 yuan, and 0.78 yuan, respectively. The PE corresponding to the current stock price is 12.2 times, 9.8 times, and 7.8 times, respectively. As Ningbo's regional economy develops and new urbanization progresses, we are relatively optimistic about the real estate market in Ningbo, and the company will benefit from it as a real estate company with potential land advantages. We maintain the company's “buy” investment rating