In the first half of 2010, the company achieved operating income of 999 million yuan, a year-on-year increase of 2.06%; operating profit of 11.797 million yuan, a year-on-year decrease of 34.11%; net profit attributable to the parent company of 775,800 yuan, a year-on-year decrease of 94.60%; and a basic earnings per share of 0.0011 yuan. The company's performance declined sharply during the reporting period, mainly due to the increase in financial expenses and the reduction in real estate sales of the company and its holding subsidiary Zhongguancun Construction in the current period. Overview of fundamentals. The company's business includes real estate development and construction, biomedicine, property management, etc. Among them, real estate development, construction, and biomedicine are the company's main sources of revenue and profit at present. The real estate development and construction business achieved revenue of 713 million yuan during the reporting period, accounting for 71.4% of revenue; the biomedical business achieved revenue of 155 million yuan and gross profit of 126 million yuan, the most important source of profit. In terms of real estate, the company adheres to the direction of “technological real estate” and actively explores new projects. In 2009, the company successively established Chengdu Zhongguancun Technology Development Co., Ltd. and Zhongguancun Technology (Dalian) Co., Ltd. In April 2010, the company signed a “Strategic Cooperation Agreement” with the Anshan Municipal People's Government, and the two sides carried out comprehensive strategic cooperation in the fields of Anshan development science and technology parks, real estate projects, and municipal engineering. The Harbin Songzhongguancun project, which had been dormant for many years, fully resumed work in September 2009. Phase 1, 2, and 3 #楼已于2010年6月取得预售许可证 of the project is expected to officially start sales in the third quarter of this year. Pharmaceutical business aspects. The company's pharmaceutical business is mainly carried out through Beijing Huasu Pharmaceutical Co., Ltd. (about 68% of the company's equity), the holding company of the holding subsidiary, Beijing Zhongguancun Sihuan Pharmaceutical Development Co., Ltd., and its main product, Huasu tablets, achieved sales of 166 million yuan in 2009, ranking among the top five in the field of oral and throat products. In addition, Beijing Zhongguancun Youth Venture Capital Co., Ltd., which holds 88.75% of the company's shares, is mainly engaged in venture capital business such as project investment. The rich project resources of Beijing Huasu Pharmaceutical Co., Ltd. and Youth Venture Capital Co., Ltd. are expected to benefit from the spin-off and listing. Earnings forecasts and investment ratings. Considering that the company currently has few settlement resources in the real estate business, the profit forecast for the company has been lowered. The company is expected to achieve earnings of 0.05 yuan, 0.08 yuan, and 0.12 yuan respectively from 2010 to 2012. Based on the closing price of 8.14 yuan on August 16, the corresponding dynamic price-earnings ratio is high, maintaining a “neutral” investment rating. Risk warning. The company currently has a relatively high level of debt and is involved in a number of lawsuits and arbitrations.