From January to June 2010, the company achieved operating income of 436 million yuan, a year-on-year increase of 32.90%; operating profit of -21.055 million yuan, a year-on-year increase of 396.51%; net profit attributable to the parent company - 99401,000 yuan, a year-on-year decrease of 420.64%; and basic earnings per share - 0.02 yuan. Revenue from the daily chemicals business has shrunk, and the overall gross profit level has declined. The company's main business is the production and sale of daily necessities. At the same time, it also involves diversified operations in some industries. Among them, the household hygiene products business, which mainly includes toothpaste, toothpaste, shower cap ancillary products, soap, washing powder, and sanitary napkins, achieved revenue of 210 million yuan, a year-on-year decrease of 3.58%, and gross margin rose to 17.39%, an increase of 0.67 percentage points over the same period last year. The sucralose and paper business achieved operating income of 82.7432 million yuan and 109 million yuan, up 29.66% and 222% respectively over the same period last year. Among them, the paper business seized the favorable opportunity of product price increases at the beginning of the year, increased sales of profitable products, and revenue grew rapidly. The trading business achieved revenue of 8.445,600 yuan, a year-on-year decrease of 13.82%. Pharmaceutical sales achieved revenue of 3745.79, a year-on-year increase of 32.04%. The company's overall gross profit level during the reporting period declined slightly from the same period last year to 18.46%, a decrease of 0.4 percentage points over the same period last year. Periodical expenses eat away at profit. In the first half of the year, the company's period expenses reached 132 million yuan, and the period fee rate was 30.30%. Although this is a slight improvement over the same period last year, it is still far higher than the gross profit margin of 18.46%, which is an important factor limiting the company's profit. Looking back at historical financial data, the company's period expense ratio has been higher than the gross profit ratio for a long time. From 2006 to 2009, the company's period expenses reached 44.00%, 52.42%, 35.11%, and 36.66%, respectively, while the company's gross margins for the corresponding period were 25.65%, 21.38%, 21.17%, and 19.76%, respectively. It is very difficult for a company to achieve sustainable profits through its main business due to high period expenses and declining gross profit margins from year to year. The stock price of CITIC Securities has a significant impact on the company's profit. The company held 95.527,500 shares of CITIC Securities and contributed 31.8466 million yuan in investment income during the reporting period. After deducting the income from this investment, the company's operating profit will still suffer a larger loss. If the price of CITIC Securities shares in the secondary market fluctuates greatly, it will have an impact on the company's profit. Profit forecast. Considering the long-term losses of the company's main business, the actual net profit level is greatly affected by the stock price performance of CITIC Securities, a financial asset available for sale, and the timing of its sale. We have yet to predict the company's profit, nor have we given the company a corresponding rating. Risk warning. The risk of fluctuations in raw material prices; the risk of mismanagement brought about by diversified operations; the risk that fluctuations in the stock price of CITIC Securities will affect the company's net profit; the company may face the risk of litigation due to misreporting of financial data and being administratively punished by the Securities Regulatory Commission.