Revenue 397 million, net profit 47.29 million yuan, earnings per share 0.11 yuan. In the first half of the year, the company realized operating income of 397 million yuan, an increase of 0.79% over the same period last year, and the net profit belonging to a listed company was 47.29 million yuan, an increase of 206% over the same period last year. The reason for the sharp increase in net profit is mainly due to the company's investment income of 30.6 million yuan from selling 55% of Bailey's assets in the first quarter, or 0.04 yuan per share after deducting recurrent profit and loss.

The comprehensive gross profit margin increased, but the expense rate also increased significantly during the period. During the reporting period, the gross profit margin of tungsten and molybdenum products and pump products increased greatly, while the gross profit margin of high and low voltage electrical appliances decreased obviously, and the comprehensive gross profit margin increased by 2.96 percentage points to 24.66%. The rate of sales and management expenses increased, which increased the rate of expenses by 3.16 percentage points during the period. In addition, the company realized the income of 10.77 million yuan from the integrated substation automation system in the first half of the year.

The operation mode of the superconducting current limiter project has been determined, but the timing is uncertain. At present, the company has completed the negotiation on the mode of cooperation with Southern Grid, in which the company uses the proposed additional 300 million yuan to set up Baili Yundian with Beijing Yundian, accounting for 64.86% of the equity, while Beijing Yundian accounts for 35.14% of the equity with 80% of the superconducting current limiter technology. The company's 220kv superconducting current limiter has not yet been put into operation, and the latest expectation is that it will be completed from September to October. The related work of the additional issuance has been approved by the shareholders' meeting and Tianjin SASAC, but the specific time point of the additional issuance is still uncertain.

Maintain this year's profit forecast of 0.14 yuan, "neutral" rating. Without taking into account the income from the rights issue, we maintain our forecast of earnings per share for the next three years of 0.14 and 0.19, respectively, 0.25 yuan. The biggest focus of the company is still the promotion of the company after the completion of the IPO, and the risk lies in the slow maturity of the application of superconducting current limiter technology and the promotion of the product by State Grid and Southern Network to maintain a "neutral" rating.