Electric dust collectors are a major source of revenue. The company is one of the major enterprises in the domestic electric dust removal field. During the reporting period, electric dust collectors were still the company's main source of revenue, accounting for 66% of total revenue; with the expansion of the domestic power plant flue gas desulfurization market in recent years, the company's desulfurization business revenue also increased 148.5% year-on-year, accounting for 13% of revenue; in addition, power distribution equipment and pneumatic transmission equipment accounted for 12% and 4% of revenue respectively. The gross margin trend of each business is different. Although the operating income of electric dust collectors decreased slightly by 7.45% year on year, gross margin increased by 3.29% year on year, increasing their contribution to main profit; the gross margin of desulfurization products and electrical components decreased by 3.60% and 4.09% year on year, respectively, and their contribution to main profit did not increase with revenue. Increased expenses are the main reason for the decline in net profit. The main reason for the year-on-year decline in the company's net profit in the first half of 2007 was a sharp increase in management expenses and financial expenses. While the main business profit increased slightly from 78.31 million yuan in the same period last year to 89.89 million yuan, management expenses and financial expenses increased by 13.72 million yuan and 6.13 million yuan, respectively, by 35% and 52%, leading to a sharp decline in net profit. It is difficult for the desulfurization business to drive performance. According to the company report, the reason for the increase in management expenses and financial expenses is the increase in technology development funds and bank loans for holding subsidiaries such as Fida Desulfurization Engineering Company. Due to the increasing competition in the desulfurization industry, we believe that the increase in the company's investment in technology development is less likely to have an obvious positive impact on future business performance. Investment Rating: Wait and see. The profit contribution of the company's electric dust collector business is stable but growth is limited; sales in the desulfurization business are growing but profitability is declining. Progress in new businesses such as bag filters is lagging behind. It is still difficult to contribute profit recently, and the company's business performance has not yet reached a low point. The company's EPS for 2007, 08, and 09 is estimated to be 0.06, 0.08, and 0.15 yuan respectively, giving it a “wait-and-see” investment rating.