The company achieved revenue of 0.555 billion yuan in the first quarter of 2010, up 79.5% year on year; realized net profit of 14.87 million yuan, up 7.8% year on year. The company's gross margin for the first quarter was 21.43%, an increase of 0.8 percentage points over the same period in 2009. Benefiting from the boom in the automobile industry, the company's auto parts business revenue grew rapidly, but due to the increase in expenses and the increase in the income tax rate of subsidiaries, the increase in profit attributable to the parent company was lower than the increase in revenue. The company previously announced plans to acquire three major military aviation parts companies, China Aviation Biao, Fenglei Company, and Tianyi Electric, which are expected to be officially completed in the second half of the year. We maintain the company's target price of $25.50 and maintain our buy rating.