Performance review: The company announced its 2010 interim results. The company achieved operating income of 1,034 billion yuan, an increase of 29% over the same period last year, realized operating profit of 51.3847 million yuan, an increase of 25.09% over the same period last year, and net profit attributable to the parent company was 26.9639 million yuan, an increase of 30.56% over the same period last year. Earnings per share were $0.11. It basically met our expectations. The porcelain insulator business benefits from the construction of power grids and electrified railways. Suzhou Electric Porcelain built two new production lines for ultra-high voltage and ultra-high voltage AC/DC porcelain insulators in 2010, and built new production bases to expand production capacity and promote product upgrading and transformation. The company's revenue from this business increased 24.82% year on year, but due to intense competition in the industry, the gross margin of product sales fell to 29.35%, and the gross profit level declined slightly year on year. Acquired Fushun Hi-Tech to complete the product line. The investment plan for the construction of the national power grid is huge, the share of investment in UHV and DC lines is steadily increasing, and the market share of domestic equipment continues to rise. After the acquisition of Fushun Hi-Tech, it has complementary advantages with Suzhou Electric Porcelain in terms of resources, technology and talents. The company's product line will cover power transmission and transformation stations and high-voltage transmission lines, and can provide comprehensive insulation system solutions. The company will maintain a leading level in the domestic porcelain insulator industry and further expand its market and technical advantages. The clean and environmentally friendly business is growing steadily. The holding subsidiary Sujing Group has strong R&D capabilities and huge room for development. Currently, the company focuses on supporting three major industries: air cleaning equipment and engineering, and environmental protection equipment and engineering. In the first half of 2010, the company achieved revenue of 253 million yuan, an increase of 22.83% over the previous year. The gross profit level is basically the same as the previous year, at 17.56%. The surveying and mapping instrument business has maintained a good momentum of development. Suzhou Yiguang, a holding subsidiary of the company, has become a leading enterprise in the domestic surveying and mapping instrument manufacturing industry, and its technical level and comprehensive strength are in a leading position in the industry. In the first half of the year, the company achieved revenue of 111 million yuan, an increase of 30.40% over the previous year. Profit forecast and investment advice: The company's net profit level attributable to owners of the parent company from 2010 to 2011 is expected to reach 0.92 and 166 million yuan, an increase of 8% and 80% over the previous year. The company is expected to achieve earnings of 0.32 and 0.58 yuan per share after completing the additional issuance and dilution from 2010 to 2011. According to the 2011 EPS level, the current PE is 23.7 times higher. We are getting closer to the date of payment of the balance of the share acquisition balance on September 30, 2010. Recently, the market performance was strong, and we gave the company an investment rating of “increase in holdings.”