The company announced that it achieved operating income of 974 million yuan in the first half of 2010, an increase of 45.54% over the previous year, and realized net profit attributable to shareholders of the parent company of 46.5034 million yuan, while net profit attributable to owners of the parent company in the first half of 2009 was -9.43 million yuan, and the company achieved earnings per share of 0.12 yuan in the first half of 2010. The decline in urea prices caused the company's gross margin to decline by a certain margin in the second quarter of 2010. The company's gross margin for the second quarter of 2010 was 16,62%, down 3.96% from 20.58% in the first quarter of 2010. The company achieved net profit attributable to the parent company in the second quarter of 2010 to 1.83 million yuan, a decrease of 25.6% over the previous month. The decline in the price of urea products in the second quarter of 2010 and the relatively high level of coal prices caused the company's comprehensive gross margin to decline by a certain margin in the second quarter. Hydrogen peroxide was the company's biggest highlight in the first half of the year. In December 2009, the company used monetary capital of 39.24 million yuan to purchase 39% of the shares of Liuzhou Shengqiang Chemical Co., Ltd. held by Liuzhou Chemical Industry Group Co., Ltd. Since then, the company has held 99% of Shengqiang Industrial's shares. In the first half of 2010, the company's hydrogen peroxide production increased 70% year on year. On June 30, 2010, Shengqiang achieved operating income of 180 million yuan and net profit of 24.9882 million yuan, accounting for more than 50% of the company's consolidated net profit. In 2010, the company may expand Shengqiang Chemical's production capacity to 300,000 tons through technical improvements using Guangdong Zhongcheng Technology. The gradual release of coal mine production capacity is an important growth point for the company in the next 3 years. The construction of the company's Xinyi Mining and Aozichong Coal Mine has been basically completed, production conditions have been met, and production can be put into production after obtaining a production license. The company's coal mine has a total production capacity of 600,000 tons. As the company starts production of coal mines in the future, it will increase the company's self-sufficiency rate in coal resources and enhance the company's integration advantages. In January 2010, the company announced the suspension of major asset restructuring matters, but according to various media reports such as Guangxi Daily and Hunan Daily, Liuhua Group has completed the acquisition of Guangdong Zhongcheng Chemical and Hunan Zhongcheng and Hunan Zhicheng companies it holds. Zhongcheng Chemical is the largest hydrogen peroxide company in China and the largest insurance powder company in the world. In the future, in order to resolve competition in the industry, there is a possibility that Zhongcheng Chemical's assets will be injected into listed companies. The injection of major assets is expected to significantly increase the investment value of Liuhua shares.