Performance increased steadily in the first half of the year. The company announced its semi-annual report, achieving operating income of 239.6723 million yuan, an increase of 21.85% over the previous year, and realized net profit attributable to shareholders of listed companies of 5,937,400 yuan, an increase of 44.86% over the previous year. Sales volume of alternated aluminum wires surged during the reporting period, the company completed the supply of 800kv UHV DC from Lingzhou-Shaoxing and Ximeng-Shandong UHV AC, and sales in overseas markets also increased significantly. The company has always had an absolute market share in the field of UHV replaceable aluminum wires. Although new entrants have adopted a low price strategy to seize the market, the company has an outstanding first-mover advantage with excellent operating performance and product quality, strong cost control capabilities, and overall profit margins have declined, but the overall profit margin has declined, but the overall profit margin is still impressive. Displacement copper wire opened up the market. The company has entered the high-end copper core electromagnetic wire market in the past two years. The technical barriers in this market are high, and the profit margin is quite impressive. Currently, no more than 5 domestic copper core electromagnetic wire companies can produce UHV products. The company is the only electromagnetic wire manufacturer for the national scientific research project “±1100 kV converter transformer electromagnetic wire development project” and has outstanding technical advantages. The company has established cooperative relationships with Baobian Electric, TBEA, and China Xidian, etc., which are core suppliers of UHV electrical equipment. Furthermore, copper core electromagnetic wires can also be used in high-speed rail, wind power and other industries. Market demand is broad, and products are gradually being released. Reactor products are expected to receive orders in the second half of the year. The three reactors successfully developed by Zhengneng Electric in the first half of the year passed technical certification. Among them, the DGKL-800-6250-50 dry-type flat wave reactor can reach 6250A through current, making it the world's first reactor product with the highest voltage level and the largest current. In addition, the 1000kv AC power frequency withstand voltage equipment and the 4,400kv lightning impact test equipment developed by Zhengneng Electric have also reached world-class levels, highlighting the company's technical strength in the field of UHV primary equipment. At present, the company's reactor products have participated in the tender, and it is expected to receive orders in the second half of the year. This product will enrich the company's product structure, increase the level of business revenue, and lead the company to become a core supplier of UHV primary equipment. Profit Forecast and Investment Rating We believe that the company's three major products, displaceable aluminum wires, displaceable copper wires, and reactor products, are all positioned in the UHV high-end market, fully enjoying the dividends of the rapid development of the industry and the rich profit margins brought about by the company's own leading technical level, with high performance flexibility. In the first half of the year, the company made great efforts to transform and upgrade products and establish customer relationships. As UHV construction continues to accelerate, performance will be fully unleashed. The company's profit forecast was lowered. The EPS for 2015-2017 is expected to be: 0.10, 0.16, and 0.25 yuan/share, respectively, giving a rating of increase in holdings.