Qianjiang Water Resources (600283) released its 2011 semi-annual report. The main content and our views are as follows: In the first half of 2011, the company achieved total profit of 54 million yuan, a year-on-year decrease of 23.99%, net profit attributable to shareholders of listed companies (after deducting non-recurring profit and loss) of 32 million yuan, a year-on-year decrease of 38.83%, and basic earnings per share of 0.15 yuan, a decrease of 25% over the previous year. The decline in the performance contribution of Paradise Silicon Valley in the first half of the year was the main reason for the decline in the company's net profit. The investment income contributed by Paradise Silicon Valley in the first half of the year was 27 million yuan, a decrease of 33.14% from the 41 million yuan in the same period last year. However, with the lifting of the ban, it is expected that the power of Paradise Silicon Valley to reduce its holdings of project shares will increase. The company's main water business maintained a relatively rapid growth trend. In the first half of the year, it achieved a total revenue of 248 million yuan, an increase of 13.06% over the previous year, and an operating profit margin of 46.26%, an increase of 0.84 percentage points over the same period last year; the expansion of water sales volume and sewage treatment volume is the main reason for the steady growth of the main water business. Under favorable policies, by expanding the water supply area and the scope of sewage treatment, the company achieved a steady increase in revenue in the main water supply business and an effective increase in profit margins, with year-on-year growth exceeding expectations; however, most of the listed projects that can be lifted in Paradise Silicon Valley this year are concentrated in the second half of the year, and performance growth is still worth looking forward to; the Lin'an Qingshan Lake Project real estate project will not contribute to performance until next year. The company's earnings per share in 2011 are expected to be 0.46 yuan. With the gradual lifting of the ban on venture capital projects in the second half of the year, it is expected to drive explosive growth in investment income and maintain a “prudent recommendation” rating.