Sales revenue grew rapidly in the second quarter, reaching 184 million, up 24.4% year-on-year and 35.8% month-on-month, the highest level in a single quarter, indicating that the production capacity of high-pressure resistant film lines put into operation in 2005 has begun to be released in large quantities. Although the gross margin of the company's main products decreased in the first half of the year compared to the same period in 2005, there was an increase compared to the first quarter of this year; judging from the gross margin of the main products, in the second quarter, with the exception of a slight decline in recycled resin, light film, coatings, and capacitors have all rebounded (Figure 2); the overall gross margin of the single quarter has been rising for two consecutive quarters (Figure 3). We believe that the recovery in gross margin is due both to the restructuring of the company's products and to the beginning of the recovery of the industry. We believe that due to the downturn in the industry, investment in new production capacity has basically stopped, the original investment capacity has been released, and downstream demand has steadily increased. As a result, industry sentiment has begun to pick up. The company's expenses for the second quarter were 27.55 million, a significant increase from 14.91 million in the first quarter, resulting in a sharp decrease in net profit compared to the first quarter. The operating expense ratio, management expense ratio, and financial expense ratio for the first half of the year were 4.0%, 9.9%, and 4.7%, respectively, a significant increase from 2.4%, 7.8%, and 3.5% in the first quarter; net profit for the second quarter was 4.34 million, a significant decrease from 10.25 million in the first quarter. We believe that the company's ongoing polyester projects and capacitor projects have good market prospects, but if the company does not improve its management level, profit growth may be affected by period expenses. EPS is expected to be 0.109, 0.185, and 0.288 yuan respectively in 06-08. We gave it a “prudent recommendation” investment rating.