From January to June 2008, the company achieved operating income of 527 million yuan, a year-on-year increase of 65.3%; operating profit of 25.34 million yuan, a year-on-year decrease of 54.5%; net profit attributable to the company's owners of 25.32 million yuan, a year-on-year decrease of 21.7%; and diluted earnings per share of 0.0386 yuan. The company's traditional business growth accelerated. The gross profit for the first half of the year reached 8,962 yuan, an increase of 74.8% over the previous year, but the gross margin was only 17.6%, making it difficult to make up for the high period expenses, and investment income grew weak due to the drag on Huafei's equity. We believe that the company's business growth is better than expected, but cost control still needs to be strengthened, and the dragging effect of Huafei's equity is difficult to eliminate in the short term. Maintaining the company's EPS profit forecasts of 0.17 yuan and 0.21 yuan for 2008 and 2009, respectively, the current price-earnings ratio corresponding to 2008 is 35 times, maintaining a “neutral” rating.