The 1H10 performance was in line with expectations, and the performance of 133Q10 increased by 30-50%. The first half of 2010 achieved operating income of 599 million yuan, a year-on-year increase of 41.10%; gross profit margin of 23.08%, a slight increase of 1.46 percentage points over the first half of 2009; net profit attributable to owners of the parent company was 40.16 million yuan, up 120.56% year on year, achieving basic earnings per share of 0.27 yuan/share. The net cash flow from the company's operating activities was about -29.95 million yuan, a year-on-year decrease of 130.94%. The company expects net profit from 1-3Q10 to increase by 30%-50% year-on-year, which is approximately 6040-69.69 million yuan in net profit. Cost increases led to a decline in 2Q10 gross margin. We noticed that the company achieved operating income of 336 million yuan in 2Q10, an increase of 28.28% over the previous month; gross profit margin was 21.68%, down 3.19 percentage points from 24.87% in 1Q09; and net profit attributable to the parent company was 1997 million yuan, a decrease of 1.04% over the previous month. The rise in coal tar prices has pushed up the price of carbon black products, and the gross margin of carbon black has declined. The company maintained the gross profit level by transferring cost pressure through price increases. In addition, production line maintenance in May and June led to a decrease in production output, which led to a slight decrease in the company's 2Q10 net profit compared to 1Q10. The expansion of business scale reduced the level of the expense ratio. Judging from the company's three expenses, the H10 sales expense ratio, management expense ratio, and financial expense ratio, the total amount was 13.03%, down 1.17 percentage points from 1H09, and the expansion of the company's sales revenue scale dilutes the level of the expense ratio. Financial expenses were 18.74 million yuan, an increase of 2.39% over 1H09. The growth rate was lower than the increase in sales revenue, and financial expenses fell from 4.31% to 3.13%. Management expenses were 17.68 million yuan, an increase of 24.04% over the previous year, and the cost rate fell from 3.36% to 2.95%; the increase in transportation costs led to the company's 1H10 sales expenses of 41.61 million yuan, an increase of 50.14% over the previous year, driving up the management expenses rate from 6.53% to 6.95%.