The company's earnings per share of 0.20 yuan in the first half of the year were basically in line with expectations. The company's glass distribution business developed rapidly, accounting for 30% to 40% of the main business, mainly due to the increase in the variety and quantity of glassware sold by the subsidiary Shanghai in five days. The company's overall product gross margin increased by 3.84% over the previous year, mainly due to an increase in the sales ratio of high-end daily-use ceramics and an increase in the proportion of direct sales of supermarket terminals by its subsidiary Shanghai Wutian Industrial Co., Ltd. The company's business is the manufacture and sale of household goods such as ceramics, glassware, bamboo and wood products. The company's development focus is not on the production of household goods, but on the establishment and promotion of a domestic household goods distribution network. In the early days, the company mainly sold household products to retail terminals such as supermarkets and stores around the world through its own five-day distributors. Currently, the company has established a household goods service center in Shanghai. In addition to directly providing distribution services to local retail terminals, it has also set up a modern household goods lifestyle center at the service center to build a household goods brand. The company is gradually replicating this model to other domestic cities such as Beijing, Wuhan, Chengdu, and Shenyang. The key to the company's rapid development is the development process of a household goods distribution network. The company faces competition from different competitors in various regions, and there are no national household goods sales companies that can compete with the company. We are optimistic about the company's long-term development. The company's earnings per share for 2007 and 2008 are predicted to be 0.45 yuan and 0.59 yuan respectively. The price-earnings ratio at current prices is 54 and 41 times, respectively, which is comparable to the current average price-earnings ratio of listed companies in the retail industry. Considering the great uncertainty of the company's marketing network expansion, we maintain a “neutral” rating.