Summary of the results in the first quarter of 2011: the company realized operating income of 2.7713 million yuan, down 81.04% from the same period last year; operating profit loss of 5.3168 million yuan (3.9521 million yuan in the same period last year); net profit loss of 3.8997 million yuan belonging to the owner of the parent company (25.09 million yuan in the same period last year); basic earnings per share-0.03 yuan per share.

There are few available resources and a loss in the first quarter. The company was reorganized in the third quarter of 2008, and its main business changed from wholesale and retail of refined oil to real estate development. the project is mainly distributed in Beijing, Chongqing, Changchun and other first-and second-tier cities. The main reason for the sharp decline in the company's total operating income and net profit during the reporting period compared with the same period last year is that the sales of the company's only project, Beijing Rongfeng project, is coming to an end, and only some matching commercial and underground parking spaces are on sale. Changchun project and Chongqing project are still under construction and have not yet met the sales conditions. In the first quarter, the company received only 3.59 million yuan in cash for selling goods and providing services, which was 97.17% lower than the same period last year. As of the end of March 2012, the company had only 6.14 million yuan in paper cash, but no short-term debt. The net inflow of operating cash was-14300 yuan, compared with-2.65 million yuan in the same period last year, and the cash flow improved, mainly due to the decrease in project payment and taxes paid by the company in the current period. The company's asset-liability ratio is only 21.37%, and the net debt ratio is only 5.51%, which is lower than that of similar companies in the industry, and financial leverage still has the potential to improve.

Pay attention to the development and sales progress of Changchun and Chongqing projects. The project that the company focused on promoting in 2012 is the Changchun International Financial Center project, which has a planned construction area of about 285000 square meters, including office buildings, hotels and commerce, and is the first batch of urban complex projects in Changchun to be completed in 2013. when completed, it will become a landmark of Changchun. Another reserve of the company, the planned construction area of Chongqing Cimushan project is about 390000 square meters, which is still in the preparatory stage and aims to start construction in 2012. The company has less project reserves and plans to expand some low-risk and income-guaranteed projects in 2012. we need to pay attention to the progress of replenishing inventory in the future.

Profit forecast and investment rating. It is estimated that the company's earnings per share from 2012 to 2013 are 0.21 yuan and 0.28 yuan respectively, calculated at yesterday's closing price of 8.91 yuan, the corresponding dynamic price-to-earnings ratio is 42 times and 32 times, the valuation level is on the high side, and at present, the company's project reserves are less, and the certainty of development project performance is less. so maintain a "neutral" rating.

Risk hint: market systemic risk and real estate regulation and control policy risk