The company's performance maintained a relatively rapid growth rate: in the first half of the year, the company's performance continued to grow at a high rate. It achieved operating income of 516 million yuan, an increase of 41.66% over the previous year, net profit attributable to shareholders of listed companies of 31.32 million yuan, an increase of 46.17% over the previous year, and basic earnings per share of 0.3 yuan, an increase of 30.43% over the previous year. The gross margin level of the company's main businesses declined to varying degrees in the first half of the year, but due to the rapid growth rate of revenue from high-margin products such as wind power products and high-voltage products, the consolidated gross margin did not decline to 15.53%, which is basically the same level as the comprehensive gross margin level of 15.32% in the same period last year. The impact of the rise in the price of silicon steel sheets cannot be ignored: the price of silicon steel sheets, the company's main raw material, rose rapidly in 2011. Since the company uses a “cost+value-added value” pricing method for its products, the rise in the price of silicon steel sheets has accelerated the increase in the company's operating income and the decline in product gross margin to a certain extent. Fund-raising projects have strongly alleviated production capacity bottlenecks: In the first half of the year, the construction of the company's fund-raising projects in Tianjin and Nantong went smoothly, and the Tianjin project was successfully put into operation, achieving operating income of 39.46 million yuan in the first half of the year. The company has very strong technical strength in the field of silicon steel stamping and pressing for motors, and the related additional production capacity can be rapidly digested, providing strong support for the company's annual performance in 2011. The sharp increase in exports reflects the company's technical strength: in the first half of the year, the company's export business soared, achieving revenue of 17.9 million yuan, an increase of 301.04% over the previous year. The company successfully became a supplier to famous international companies such as GE, Siemens, Cummins, and Gamesa. This also reflects from one side the company's excellent technical strength in the field of silicon steel sheet stamping. In the silicon steel sheet stamping industry, having excellent technical strength is the main driving force for producing high-quality products, increasing the added value of products, and effectively reducing production costs. Furthermore, it is also fundamental for rapidly expanding the market and improving the company's performance. Profit forecast and investment rating: We expect the company's EPS for 2011-2013 to be 0.684 yuan, 0.861 yuan, and 1.063 yuan respectively, and corresponding dynamic price-earnings ratios of 26.95 times, 21.43 times, and 17.35 times, respectively, giving the company a carefully recommended investment rating for the first time. Risk warning: 1. The new installed capacity of wind power has declined sharply, affecting the company's wind power product sales; 2. The construction of fund-raising projects is slow; 3. Serious quality problems have occurred in the company's products.