From January to June 2011, the company achieved operating income of 313 million yuan, a year-on-year increase of 20.06%; operating profit of 43.09 million yuan, a year-on-year increase of 25.21%; net profit attributable to owners of the parent company of 38,49 million yuan, an increase of 30.58% over the previous year; and achieved basic earnings per share of 0.33 yuan. The company expects net profit attributable to the parent company to increase by less than 30% in the first three quarters of 2011. The revenue growth rate is increasing, and the share of revenue from the wind turbine business is on a downward trend. The company's main business is R&D, manufacture and sales of Roots blowers. During the reporting period, as the economy continued to recover, the growth rate of fan demand increased. Driven by this, in the first half of 2011, the company's operating income increased by 20.06% year on year, far higher than the revenue growth rate for the full years of 2009 and 2010. The blower business is the main source of the company's revenue. The blower business's share of revenue has remained above 65% in recent years, but the overall trend is declining. During the reporting period, the company actively expanded its product line and vigorously developed mills, slurry pumps and other businesses. Affected by this, the share of revenue from the fan business fell to 56.83%. The company has now formed a business pattern integrating R&D, design, processing and manufacturing of mechanical products such as centrifugal blowers, pneumatic conveying systems, industrial pumps, mills, etc. Profitability has declined slightly, and cost control ability has improved. In the first half of 2011, the gross margin of the fan business, which accounted for 73.79% of gross profit, fell by 6.23 percentage points. Furthermore, the gross margin of the mill, electrical equipment, and pneumatic conveying business all declined to varying degrees, leading to a decrease of 3.20 percentage points to 27.12% in the company's overall gross margin. During the reporting period, the company strengthened cost control and management. The cost rate for the accrual period was 14.08%, down 3.33 percentage points from the previous year. Among them, the sales expense ratio, management expense ratio, and financial expense ratio decreased by 1.46, 1.27, and 0.60 percentage points respectively. The fund-raising project is expected to break the company's production capacity bottleneck. The company went public for the first time on June 29, 2011, and plans to raise 334.48 million yuan for three projects to build a new energy-saving Roots blower, centrifugal blower, and pneumatic conveying production base. After the capital raising project is implemented, the bottleneck in the company's production capacity can be broken and the company's production scale can be expanded. The project has good profit prospects and is expected to contribute 574.8 million yuan in operating income to the company every year and a total profit of 125.37 million yuan after delivery. Profit forecast and investment rating: We expect the company's earnings per share for 2011-2013 to be 0.55 yuan, 0.67 yuan, and 0.82 yuan. Based on the closing price of 18.51 yuan on July 28, the corresponding dynamic price-earnings ratios are 34 times, 28 times, and 22 times, respectively. Considering that the company currently has no valuation advantage, the company was given a “neutral” investment rating for the first time. Risk warning: risk of macroeconomic fluctuations; risk of changes in downstream demand; risk of fluctuations in raw material prices.