The conversion of the review agreement saves about 68 million dollars in financial expenses. Simply put, the conversion of a debt transfer agreement with a “3-year term amount of 1 billion yuan and an interest rate of 13%” was changed to a “1-year term with an amount of 1 billion yuan and an interest rate of 13%” plus a “2-year term with an amount of 1 billion yuan and interest rate of 9.6 percent” debt agreement. Through the above agreement conversion, one important result is that the cost of capital use has been reduced, that is, 13% to 9.6%. If the agreement is implemented normally, the company can save about 68 million yuan in financial expenses. A debt transfer and repayment agreement, a type of financing arrangement. We believe that the debt transfer and repayment agreement between Ningbo City, the majority shareholder, Kunlun Trust, is a type of financing arrangement for the company, that is, an indirect trust financing arrangement. At the same time, whether it was the 13% capital usage cost before the conversion or the 9.6% capital usage cost after the conversion, it all matched the cost of capital in the credit environment at the time. From a certain perspective, the above capital costs were not high. The 12-year sales repayment was nearly 3 billion yuan. Based on relevant data from the Ningbo Transparent Property Sales Network and the Yuyao Real Estate Information Network, we initially estimated that the company's commercial housing sales amount in 2012 was about 2.95 billion yuan (ending January 15, 2013), of which the Qinglin Bay project was about 2.31 billion yuan and the Dongcheng Mingyuan project was about 630 million yuan. We believe that with sales revenue of nearly 3 billion yuan, combined with the majority shareholder Ningbo City Investment's commitment to the company's financial support, the company's capital chain is stable. Maintaining the “buy” investment rating, we expect the company's EPS to be 0.58 yuan, 0.82 yuan, and 1.09 yuan respectively in 2012-2014, and the corresponding dynamic PE will be 11.7 times, 8.3 times, and 6.3 times, respectively, maintaining the company's “buy” investment rating.