From January to June 2010, the company achieved operating income of 1,112 billion yuan, an increase of 21.85% over the previous year; operating profit of 31.076 million yuan, an increase of 5.27% over the previous year; and net profit attributable to the parent company of 282.351 million yuan, an increase of 12.66% over the previous year. Basic earnings per share are $0.15. Profit growth has slowed due to weather and political factors. The company's domestic project revenue fell by 21.72% year-on-year during the reporting period. The main reasons include: (1) long-term rain in southern regions such as Hunan and Sichuan, and the project progress was delayed due to floods; (2) construction started later in the Xinjiang region due to snow disasters, cold weather, etc. Foreign business revenue increased by 60.90% year on year, mainly due to the large increase in revenue in the Algerian region. Foreign business revenue did not meet the company's expectations, mainly due to political turmoil in Kyrgyzstan and Pakistan, domestic ethnic groups, military conflicts, etc., and the progress of related projects did not meet expectations. Furthermore, due to factors such as weather, political turmoil, and ethnic conflicts, etc., the company's costs have increased and gross margin has declined slightly. The number of new contracts signed has increased dramatically, the market is developing well, and there is sufficient amount of construction that can be started in the future. Affected by the weather and politics, the progress of many of the company's projects fell short of expectations, but this did not affect the speed at which the company developed markets and accepted contracts. During the reporting period, the company undertook a total of 2,889 billion yuan of contracts, an increase of 55.23% over the previous year. The number of new contracts signed by the company in 2009 was 1,935 billion yuan. The number of new contracts signed is growing rapidly, which can guarantee sufficient capacity to start construction in the future, and the company's revenue will grow relatively rapidly in the future. It received a government subsidy of 2,7591 million yuan, resulting in a significant increase in net profit. Currently, the company's projects involve both domestic and foreign countries, and the revenue from foreign business is large. During the reporting period, the company received a total of 2,7591 million yuan from the Finance Bureau of the Xinjiang Production and Construction Corps for foreign economic and technical cooperation, funds to guarantee safety for overseas engineering projects, and funds for developing international markets for small and medium-sized enterprises. Adjust the industrial structure and enter the EPC, BT, and BOT fields. During the reporting period, the company used the brand and capital strength of listed companies to keep up with industry trends and accelerate the company's transformation from a single implementation of general construction contracting business to high-end markets such as EPC, BT, and BOT. In February 2010, the company won the bid for a BT financing construction project for the first phase of the Western China Farmer Entrepreneurship Promotion Project Pilot Zone. The total investment of the project is estimated to be 1.5 billion yuan, accounting for 65.22% of 2009 revenue, and the construction period of the project is expected to be three years. The repurchase period of the project is 6 years, and there are uncertain factors such as changes in interest rates, etc., so it is impossible to calculate the benefits of the project for the time being, but due to the relatively good profit level of the BT project, it is expected that the contract will bring great benefits to the company. Profit forecasts and ratings. We expect the company's EPS in 2010-2012 to be 0.48 yuan, 0.54 yuan, and 0.67 yuan respectively. Based on current stock prices, the corresponding price-earnings ratios are 56 times, 50 times, and 40 times, respectively. Although the company's current valuation is too high, since the company's post-IPO performance will be better released, foreign business continues to receive government support and attention, maintaining an investment rating of “increased holdings”. Risk warning: Advances in capital for the company's BT project may put a certain amount of pressure on the company due to insufficient operating capital; foreign business causes the company to have exchange risks; and various factors such as weather, politics, and nationality have a continuous impact on the company.