Gross margin rose year on year. The company's consolidated gross profit margin for the first half of the year was 18.4%, up 6.4 percentage points year on year, but gross margin for the second quarter was 16.6%, down 4 percentage points from the first quarter. The fee rate for the first half of the year was 12.4%, down 2.8 percentage points from the previous year. In the first half of the year, the profitability of hydrogen peroxide and ammonium nitrate was outstanding. The urea business was affected by droughts and floods. Urea demand declined, causing urea to show a trend of poor peak season. Gross margin fell to 1.6% from 4.4% in the same period last year, gross profit fell 68.9%; ammonium nitrate gross profit ratio was 33.3%, an increase of 11.5 percentage points over the same period last year, and gross profit increased 137.7% year on year; hydrogen peroxide production increased 70% year on year. Shengqiang achieved operating income of 17.9.93 million yuan and net profit of 24.9882 million yuan. Guizhou Xinyi Mining Co., Ltd. has basically met the trial production conditions and entered the coal mine safety inspection stage. The Xinyi Coal Mine has geological reserves of 66.03 million tons, recoverable reserves of 45.7 million tons, and planned production capacity of 900,000 tons/year. Shengqiang expects to add 100,000 tons of production capacity by the end of the year, reaching 300,000 tons of hydrogen peroxide production capacity. The company's earnings per share for 2010-2012 are expected to be 0.26, 0.44, and 0.55 yuan, respectively. The company's coal mine will soon be put into operation, increasing its coal self-sufficiency rate and increasing profitability; the gross margin of the ammonium nitrate business is at a high level; hydrogen peroxide production capacity will be further expanded; the urea business is already at a low profit point; there are future asset injection expectations, giving the company a recommended investment rating.