From January to June 2011, the company achieved operating income of 179 million yuan, a year-on-year increase of 14.31%; operating profit of 32.8073 million yuan, an increase of 25.98%; net profit attributable to owners of the parent company of 26.1532 million yuan, an increase of 29.28% over the previous year; and basic earnings per share of 0.08 yuan. The development trend of various businesses is good. The company is located in Gansu, the main wine-growing region in China. Its controlling shareholder is Gansu Agricultural Reclamation Group, and the actual controller is the Gansu Provincial State-owned Assets Administration Commission. The main business involves agricultural cultivation and processing, barley malt and its by-products, etc. The main products are grapes, wine, barley malt, pharmaceuticals, etc. In the first half of this year, all of the company's businesses developed well: wine sales continued to grow, the market distribution was more reasonable, and the brand image continued to improve; the situation facing the malt industry was still serious, but there was an improvement over the same period, achieving steady growth; pharmaceutical production and operation were steady, and profits grew steadily. Among them, revenue from agricultural cultivation and processed products was 121.125 million yuan, an increase of 15.63% over the same period of the previous year, accounting for 67.69% of the company's revenue in the current period; revenue from the malt industry was 39.2796 million yuan, an increase of 1.04% over the same period last year. During the reporting period, the company achieved a total revenue of 179 million yuan, an increase of 14.31% over the previous year, and realized net profit of 26.1532 million yuan, an increase of 29.28% over the previous year. There was a slight increase in the cost rate during the period. In the first half of 2011, the company's expenses rate for the period was 27.6%, an increase of 0.9 percentage points over the previous year. Among them, the sales expenses ratio was 18.8%, an increase of 0.2 percentage points over the previous year; the management expenses ratio was 10.1%, an increase of 0.7 percentage points over the previous year; and the financial expenses ratio was -1.3%. In terms of value, sales expenses increased 15.6% year over year to 33.73 million yuan; management expenses increased 22.8% year over year to reach 18.1 million yuan; financial expenses were -2.37 million yuan due to interest income from deposits. Increase production capacity to help the company develop in the future. The company has formed a complete product line including different types of wine such as dry red, dry white, and ice wine. Relying on Gansu's high-quality raw materials resources, medium and high-end wines will be the focus of the company's future development. The Pinot Noir and fine ice wines it produces are already the best among the country's high-end wines. Recently, the company's fund-raising project Mogao International Winery has been completed. With the gradual completion of the project and the completion and commissioning of an additional 20,000 mu winemaking grape base project in the future, the company's production capacity is expected to double. Profit forecasting and investment ratings. We expect the company's EPS to be 0.18 yuan and 0.23 yuan from 2011 to 2012. Based on the latest closing price of 11.03 yuan, the corresponding dynamic price-earnings ratio is 61 times and 48 times, maintaining the company's “neutral” investment rating. Risk warning. Food safety risks.