Revenue increased 35% and net profit increased 34%. Dakang Animal Husbandry achieved operating income of 383 million yuan in 2010, an increase of 34.58% year on year; net profit attributable to the parent company was 404.959 million yuan, up 34.09% year on year, and EPS 0.39 yuan in 2010. The overall gross margin increased, and the period expense ratio decreased. The company's comprehensive gross margin increased by 1 point to 13.4% during the reporting period. The fee rate was reduced by about 1 point to 1.92% during the period. The share of high-margin pig breeding business is increasing year by year. The pig breeding business and the fattening pig business contribute about 80% of the company's revenue and gross profit. During the reporting period, the revenue of the pig breeding business with a gross profit margin of 18% increased 39% year-on-year, contributing 58% to gross profit; the gross margin of the fattening pig business fell 4 points to 10.6% due to sluggish pig prices in 2010, and the revenue growth rate was 25%, contributing 27% to gross profit. The whole pig breeding industry chain brings synergy effects. The company's business is mainly based on piglets/piglets/fattening pigs/feed. After the slaughter and processing project of the IPO fund-raising project was delivered in 2011, Dakang Animal Husbandry will become an integrated company covering the entire pig breeding industry chain, achieving a full quality control system from piglets to the table. “High quality and safe pork” has a huge capacity in the domestic market. At the same time, the “clenbuterol” incident has caused the company's slaughter business to face rapid development opportunities. The feed/fattening pig/pig slaughter business enables the company to open up upstream and downstream businesses in the industrial chain and actively achieve the advantages of complementary resources and mutual risk avoidance. Profit distribution plan for 2010: The company plans to distribute profits of 0.5 yuan (tax included) for every 10 shares and transfer 4 shares for every 10 shares converted from the capital reserve fund. The expansion of share capital is of positive significance in improving stock liquidity. It was given a “prudent increase” rating, and the target price was 28 yuan. We expect Dakang Animal Husbandry to achieve net profit of 6,900/8800/99 million yuan in 11-13, corresponding to EPS: 0.68/0.86/0.97 yuan, giving a “cautious increase” rating, and a target price of 28 yuan.