Revenue and profit growth are not synchronized. Revenue for the reporting period increased by only 2.27 percentage points year over year, while net profit attributable to owners of parent companies increased 28.64 percentage points year over year. The increase in net profit was greater than the increase in revenue mainly because the company's three expenses fell by 2,7986 million yuan year-on-year during the reporting period, and income tax expenses during the reporting period were reduced by 3.857 million yuan due to the company's preferential tax policies for high-tech enterprises. Gross margin increased year on year, and refined management has paid off. The company's overall gross margin has shown an upward trend in recent years. In particular, the overall gross margin for the past three years has been greater than 30%. This is mainly due to the company's strategy of positioning its products in the middle and high-end. Judging from the interim report, the company's gross margin is at a high level of 36.57%, up 1.24 percentage points from the same period last year, mainly due to the company's lean management beginning to show results, resulting in a reduction in manufacturing costs. Overseas business accounts for a small share, and exports have benefited little from the recovery process. The company's revenue structure shows that the total export revenue in the past two years accounted for less than one percent of the total sales revenue. Therefore, the extent to which the company was previously affected by the economic downturn abroad was extremely low, but given the current bottoming out recovery of mainstream overseas economies, its benefits to the company were also extremely limited. Targeted additional fund-raising projects will enhance the company's long-term profit growth momentum. In the company's targeted additional distribution plan, it is planned to issue no more than 55 million shares at a price of no less than 1,212 yuan, raising about 548 million yuan in capital for two projects: technological transformation of modular deceleration motors and industrialization of wind power gears with an annual output of 40,000 units. The two major projects are in line with the development trend of the industry, have also received priority support from the government's industrial policy, and have good prospects for development. The construction period for both major projects is one year. If production is successfully completed, the 40,000 modular deceleration motor technology transformation project can increase annual sales revenue by 32 million yuan and profit by 73.6 million yuan; the wind power gear industrialization project can increase annual sales revenue by 40 million yuan and profit by 78 million yuan. The total increase in annual revenue was 72 million yuan and profit was 151.6 million yuan, 1.36 times 2008 revenue and 1.81 times profit, respectively. In the long run, fund-raising projects can bring great revenue and profit contributions to the company, but short to medium term companies benefit less. Diluted earnings per share for 2009 and 2010 are expected to be 0.62 yuan and 0.76 yuan respectively, and corresponding PE is 27.25 times and 22.24 times, respectively, giving a “neutral” rating.