From January to June 2010, the company achieved operating income of 499 million yuan, an increase of 124.18% over the previous year; operating profit of 84.51 million yuan, reversal of losses over the previous year; net profit attributable to owners of the parent company of 74.24 million yuan, reversal of losses over the previous year; and achieved basic earnings per share of 0.25 yuan. Trade revenues have surged. During the reporting period, the company's operating income increased sharply, up to 124.18% year on year, mainly because the company's trade revenue increased 755.57% year on year. However, the gross margin of the company's trading business was only 0.42%, reducing the company's overall gross margin by 24.14 percentage points to 17.1%. In terms of other business, the company's alcohol business revenue was basically the same as the same period last year, while the starch business decreased by 81.01% year on year. Meanwhile, the company has stopped the health products business. The main business continued to lose money, and the company's losses were reversed by reducing its holdings of San'an Optoelectronics. From January to June 2010, the company's cost control was ideal. The period expenses were basically the same as the previous period, and the period fee rate fell by 26.11 percentage points year on year, to only 22.15%. However, the company's consolidated gross margin is only 17.1%, which is less than the period's expense ratio, indicating that the company's main business is losing money. The main reason for the company's year-on-year loss was that investment income contributed nearly 123 million yuan in revenue, of which the reduction of its holdings in Sanan Optoelectronics shares received 108 million yuan. Currently, the company still has more than 3 million shares of San'an Optoelectronics, which it will sell at any opportunity. Analysis of the company's business. 1) The prospects for health alcohol are good. The company currently has the second largest market share and a perfect product structure. Coconut Island Deer Turtle Liquor is aimed at the middle and high-end, while the middle and low end products include Yedao Haiwang Liquor. The average annual growth rate of China's health alcohol industry has reached 30%. As the company focuses on its main business and adjusts its marketing strategy, the company's health alcohol sales revenue will further increase; 2) The fuel ethanol project will be the company's highlight once it has passed the preliminary review. The project between the company and Sinopec to invest in the construction of cassava ethanol has now passed the preliminary review by the Development and Reform Commission, and we expect that the project is likely to pass. The company has an advantage in raw materials. Hainan is located in the cassava growing belt, and the company is also carrying out a cassava cultivation project in Laos. Currently, the company's controllable production of fresh cassava is 600,000 tons/year, with obvious raw material advantages. 3) Construction has begun on the “Coconut Island Plaza” real estate project after the relocation of the Haikou winery. The company plans to use this as an opportunity to revitalize the company's stock of land resources. Since there is great uncertainty about the company's performance, we will not provide a profit forecast for the time being and maintain the company's “neutral” investment rating. Risk warning. (1) General market systemic risk; (2) food safety risk; (3) fuel ethanol project risk.