The 2009 semi-annual report shows that from January to June 2009, the company achieved operating income of 3.602 billion yuan, a year-on-year increase of 0.35%; realized operating profit of 59 million yuan, a year-on-year decrease of 49.59%; realized net profit attributable to owners of the parent company of 63 million yuan, a year-on-year decrease of 40.37%; and earnings per share of 0.04 yuan. PC business revenue continues to decline, and PCB business is growing steadily. The company's main business includes the production and sale of PCs and related products and printed circuit boards (PCBs). During the reporting period, demand for PCs from enterprises and individuals declined due to the financial crisis, and the company's PC business revenue fell 2.54% year on year to 3,030 million yuan. Since 2007, this business revenue has continued to decline. The revenue share has fallen from 93.1% in mid-2007 to 84% in 2009, and the gross profit share for the same period fell from 80.4% to 60.2%. It is expected that there will be no significant improvement in this part of the business in the short term, and the share will decline further. With the commencement of the Chongqing PCB Industrial Park, the company's PCB business revenue continued to rise, achieving revenue of 557 million yuan during the reporting period, an increase of 28% over the previous year. The gross margin of the main business declined, and the cost ratio for the period was basically stable. During the reporting period, the gross margin of the PC business fell 0.72 percentage points to 5.98% year on year due to the influence of manufacturer price wars and low prices entering the countryside for home appliances; the PCB business's gross margin fell 3.95 percentage points to 20.99% year on year due to the expansion of business scale and the increase in manpower and manufacturing costs. The gross margin of the two major businesses fell 1.31 percentage points to 8.8% year on year. In order to increase product sales, increase channel construction, and expand sales investment, the company's sales expenses increased 26.34% year over year to 105 million yuan. Other expenses were properly controlled during the same period, management expenses and financial expenses fell 6.29% and 10.53% year on year, respectively, so the period expenses increased by only 0.27 percentage points to 6.94% year on year, and remained basically stable. The PCB business is the company's main profit point, and its share of revenue and profit will continue to rise. During the reporting period, the share of PCB business revenue continued to rise, with a year-on-year increase of 3.47 percentage points to 15.57%, while the share of gross profit increased by 9.23 percentage points to 39.13% during the same period. The company's PCB business products are mainly HDI, high-multilayer boards, and system backboards. Among them, HDI board sales revenue with high gross margin accounts for 45% of total PCB business revenue. HDI boards are mainly used for consumer electronic goods such as high-end mobile phones. As the country increases the popularity of 3G, demand for consumer electronic goods such as 3G mobile phones will continue to rise, which will have a great driving effect on the demand for HDI boards. The Zhuhai HDI project raised earlier by the company has already reached production. As the Chongqing PCB Industrial Park, which mainly produces high-multi-layer boards and system backboards, is put into operation, the company's production capacity will continue to expand, and it is expected to become the largest PCB manufacturer in China. We believe that the company's PCB products can be supported by market demand, continue to grow rapidly in the next 2 years, and the share of revenue and profit will further increase. Profit forecast and rating: The company's earnings per share for 2009-2010 are expected to be 0.08 yuan and 0.11 yuan respectively. Based on the closing price of 4.29 yuan on August 14, the corresponding dynamic price-earnings ratio is 51 times and 40 times, respectively, maintaining the company's “neutral” investment rating.