In the first quarter of 2013, the company achieved an operating income of 25.2725 million yuan, an increase of 811.93% over the same period last year; an operating profit of 4.8145 million yuan, a reversal of losses (a loss of 5.3168 million yuan in the same period last year); a net profit of 1.2073 million yuan belonging to the owner of the parent company (a loss of 3.899 million yuan in the same period last year); and basic earnings per share of 0.0100 yuan.

Fundamental description. The company carried out a major asset restructuring in 2008: it sold its refined oil distribution business, bought a 90% stake in Rongfeng Real Estate, and transformed its main business into real estate development. The project is distributed in Beijing, Chongqing and Changchun; at present, according to the trend of the domestic real estate industry, the company has appropriately slowed down the development progress of the Chongqing Cimushan project, and the current income mainly comes from the Rongfeng Jiayuan project in Beijing.

During the reporting period, the company's net profit belonging to the owner of the parent company reversed year-on-year, mainly due to a pick-up in the market in the first quarter and the formation of sales in some of the company's residential and commercial areas. as a result, the company's sales revenue and profits increased in the first quarter of 2013 compared with the same period last year. The loss in the same period last year was 3.8997 million yuan, mainly because the sales of the Rongfeng project were coming to an end, and only a small number of supporting businesses and underground parking spaces were sold.

During this period, the cost is well controlled. During the period, the company's expense rate was 33.29%, down 205.62 percentage points from the same period last year. Among them, the sales expense rate was 0.39%, an increase of 0% over the same period last year; the management expense rate was 10.85%, down 116.82 percentage points from the same period last year; and the financial expense rate was 22.04%, down 88.8% from the same period last year.

Pay attention to the development and sales progress of Changchun and Chongqing projects. The key project promoted by the company is the Changchun International Financial Center project, which has a planned construction area of about 292800 square meters. The building types include office buildings, hotels and commerce. It is the first urban complex project in Changchun and will become a landmark of Changchun when completed. The company's other reserve, the planned construction area of the Chongqing Cimushan project is about 390000 square meters, which is still in the preparatory stage, and the company intends to slow down the development progress of the Chongqing Cimushan project.

Equity finance: the company initially invested 14.84 million yuan to hold 2.07% of the equity of Changsha Bank, with a book value of 14.84 million yuan by the end of 2012.

In view of the lack of sustainable operation capacity of the company's main business and the uncertainty of the relevant business integration process, we do not give profit forecasts for the time being and maintain a "neutral" investment rating.

Risk tips: the scale is small, the reserve is not enough, and the ability of sustainable development needs to be improved.