From January to June 2011, the company achieved main business revenue of 457 million yuan, an increase of 16.23% over the previous year; operating profit of 291 million yuan, an increase of 78.51% over the previous year; net profit attributable to the parent company of 240 million yuan, an increase of 81.30% over the previous year; and diluted earnings per share of 1.31 yuan. The sale of shares in Takeda yielded significant investment income. During the reporting period, the company's non-recurring profit and loss was 8,389 yuan, mainly due to the sale of 25% of Tianjin Takeda's shares, which generated investment income of 98.48 million yuan. After deducting non-recurring profit and loss, the net profit attributable to the parent company was actually 156 million yuan, an increase of 17.86% over the previous year; diluted earnings per share were 0.85 yuan. The main business maintained steady growth. During the reporting period, the sales volume of the company's main products increased steadily, and the cultivation of new product markets gradually matured. The pharmaceutical business achieved revenue of 410 million yuan, an increase of 7.97% over the previous year. Among them, driven by Jubisan, the main product, tablets achieved revenue of 263 million yuan, an increase of 16.34% over the previous year. The real estate business achieved revenue of 46.09 million yuan, a sharp increase of 273.37% over the previous year. The decline in the cost ratio offset the decline in gross margin. Under the influence of rising costs and price cuts, the gross margin of the pharmaceutical business and real estate business fell by 3.58 and 2.22 percentage points respectively, and the company's consolidated gross margin fell 4.55 percentage points year-on-year. However, due to the negative financial expenses of companies that have raised capital, the period expense ratio decreased by 4.74 percentage points year-on-year, synchronizing the growth rate of net profit after deducting non-recurring profits and losses with the growth rate of revenue. Several projects are under construction. The company's fund-raising project COVID-19 Pharmaceuticals' chemical raw materials and formulation industrialization project is progressing in an orderly manner and is expected to be completed by the end of 2012. After the completion of the project, production capacity for chemical APIs will be increased: 550 tons of lamivudine per year; 50 tons of emtricitabine; 300 tons of nevirapine; and 2,000 tons of triclofenol glyceride. Production capacity for solid preparations was increased, with an annual production of 3 billion tablets; 400 million capsules; 600 tons of granules (export), 50 million bags (domestic sales). In addition, the company also used overraised capital to invest in biochemical pharmaceuticals' 23-valent pneumococcal vaccine project and production expansion and relocation project, and the company invested 1.1 million US dollars to jointly invest in the establishment of Tianjin Laodun Chinese Medicine Co., Ltd. and Japan Uchida and Chinese Medicine Co., Ltd. It will lay the foundation for the rapid development of the company in the next two or three years. It benefited from the reintegration of pharmaceutical assets under Tianjin Pharmaceutical Group. Recently, the company announced that Lisheng Pharmaceutical plans to acquire 51% of the shares of Central Pharmaceutical held by Sino-Singapore Pharmaceutical in cash, while also acquiring 49% of the shares held by Tianjin Pharmaceutical Group. The acquisition of 100% of Central Pharmaceutical's shares will enhance the competitiveness of Lisheng Pharmaceutical in the field of chemicals. In the future, Lisheng Pharmaceutical will continue to be the platform for the integration of chemical resources of Tianjin Pharmaceutical Group. Profit forecasts and ratings. The company's 2011-2013 EPS is expected to be 2.12 yuan, 1.82 yuan, and 2.26 yuan respectively. According to the latest closing price calculation, the corresponding dynamic price-earnings ratios are 20 times, 24 times, and 19 times, respectively. The current valuation is quite reasonable, maintaining a “neutral” investment rating. Risk warning. New product promotion is slower than expected.