From January to June 2010, the company achieved operating income of 160 million yuan, an increase of 9.84% over the previous year; operating profit of 177.763 million yuan, an increase of 396.51% over the previous year; and net profit attributable to the parent company of 16.88 million yuan, an increase of 325.62% over the previous year, and basic earnings per share of 0.16 yuan. Business revenue increased, and gross profit levels increased. The company is mainly engaged in the weaving of knitted fabrics, textile fabric dyeing and finishing, processing and sales. In the first half of the year, the company's main business achieved revenue of 159 million yuan, an increase of 9.27% over the previous year. Among them, the fabric weaving business achieved revenue of 107 million yuan, an increase of 83.83% year on year, and gross margin increased 4.71% year on year to 24.00%. The dyeing and finishing business achieved revenue of 147.093 million yuan, an increase of 26.31% over the previous year. The trading business achieved revenue of 35.6 million yuan, a year-on-year decrease of 49.93%, mainly due to the decline in the import and export business of subsidiary Hongda during the same period. The company's gross profit level increased during the reporting period. With the gradual recovery of the textile market, the sales prices of the company's main products have increased, and the prices of some raw and auxiliary materials have also risen by a certain margin. After offsetting the two, the overall gross margin increased by 5.11 percentage points to 18.80%. Investment returns have increased significantly. In the first half of the year, the company's net investment income was 8,5837 million yuan. Among them, the company transferred 100% of the shares held by Haining Hongda Science and Technology Innovation Center Co., Ltd., a wholly-owned subsidiary, to the related party, Hongda Holding Group Co., Ltd., and the sale of the shares generated revenue of 5.426,400 yuan. During the reporting period, the company also received a 2009 cash dividend of 3,0997,700 yuan from Haining China Leather City Co., Ltd. The sharp increase in investment income increased the company's profit, contributing 0.06 yuan per share based on the total number of shares after the company issued new shares. Asset restructuring brings about future profit growth points. During the reporting period, the company obtained approval from the Securities Regulatory Commission for issuing shares to purchase Shenzhen Weilde's assets. After this acquisition is completed, the company will form a warp editing business and a medical device business. The two businesses will carry out product R&D, production and sales relatively independently under the overall leadership of the board of directors, and will form a dual main business of warp editing and medical devices, and the two industries will work together to coordinate development. As Wilder's lottery business is put into operation one after another, this transaction will increase the company's consolidated operating income and further improve the company's current business structure, which only relies on the traditional textile industry as its main business, becoming an important growth point for the company's future profits and enhancing the company's overall profitability. Wilder will consolidate statements and begin contributing to profits from August 1, 2010. Profit forecast. Based on the total number of shares of the company after issuing new shares, the company's EPS for 2010-2012 is expected to be 0.19 yuan, 0.18 and 0.21 yuan. Based on the closing price of 18.85 yuan on August 12, 2010, the corresponding dynamic PE was 98 times, 104 times, and 87 times, respectively. Give a “neutral” investment rating risk alert. Risk of fluctuations in raw material prices; risk of mismanagement brought about by diversified operations.