In the first half of 2010, the company achieved operating income of 213 million yuan, a year-on-year increase of 26.13%; realized operating profit of 1.38 million yuan, a year-on-year decrease of 23.18%; realized net profit attributable to owners of the parent company of 11.2 million yuan, a year-on-year decrease of 90.75%; and basic earnings per share of 0.03 yuan. There is no distribution or increase in the current period. Electricity volume has increased, and electricity prices have increased. In the first half of the year, the company completed a total of 178 million kilowatt-hours of electricity, a year-on-year decrease of 14.93%; completed power supply of 491 million kilowatt-hours, an increase of 10.24% over the previous year; and completed sales of 432 million kilowatt-hours, an increase of 10.45% over the previous year. The increase in revenue is due, on the one hand, to an increase in electricity sales volume, and on the other hand, because since November 20, 2009, the sales price of electricity in Sichuan has increased by 2.45 points per kilowatt-hour, and the average sales price of the company has increased by about 14.4%. Decrease in self-generation has lowered the gross profit margin. The Liangshan region was affected by the drought in the first half of the year. The volume of incoming water from the watershed decreased, and at the same time there was a certain increase in electricity sales volume, which led to a sharp increase in the proportion of high-priced provincial grid electricity purchased by the company, which seriously affected the company's average electricity sales cost. The company's gross margin fell to 35.1% from 49.3% in the same period last year, and operating profit declined accordingly. However, the sharp decline in the company's net profit is mainly due to the company's significant progress in resolving guaranteed debts in the same period last year, a reduction in anticipated losses from external guarantees, a large amount of non-recurring profit and loss, and a sharp increase in profit, resulting in a higher comparative base. The increase in electricity prices at the end of last year boosted the gross margin of the company's self-generated sales. After the peak season arrived this year, the volume of incoming water from the Liangshan region has recovered relatively well. It is expected that the company's self-generating ratio will increase in the second half of the year, leading to a recovery in overall gross margin. Solid power plants enable the company to generate electricity from its own power generation to basically meet the demand for electricity sales. After the company's guaranteed debt problem was basically solved, development began to accelerate. It jointly invested with the Muli County State-owned Company and the Liangshan State-owned Investment and Development Company to establish the Guzeng Hydropower Company to develop and operate the 180,000-kilowatt Guzeng Hydropower Station. At the same time, in order to guarantee the transmission of about 300,000 kilowatts of electricity from power stations already built and under construction in Muli and Yanyuan counties, it is proposed to support the construction of a 220 kV transmission line from Yanyuan to Xichang. After the completion of the above project, the company's own electricity generation will basically meet the demand for electricity sales, replacing the purchase of high-priced electricity, and the company's profitability will increase dramatically. Maintaining the “increase in holdings” rating: It is estimated that the company's EPS after full dilution in 2010-2012 will be 0.25 yuan, 0.31 yuan, and 0.37 yuan, respectively, and the corresponding dynamic price-earnings ratios will be 37 times, 29 times, and 24 times, respectively, to maintain the “increase in holdings” rating. Risk warning. The company still has guaranteed debt of 48.9 million yuan, and debt risk still exists.