Highlights of the report describe the events described by Jia Linjie (002486) today. The main business results are as follows: during the reporting period, it achieved operating income of 442.4568 million yuan, an increase of 6.25% over the same period of the previous year; realized net profit attributable to shareholders of listed companies of 27.0661 million yuan, an increase of 29.58% over the same period last year. , achieving earnings of 0.07 yuan per share. Incident review Fabric sales grew rapidly, and overall gross margin increased. In the first half of 2013, the company achieved a 6.25% increase in revenue and a steady increase in business performance. By product, the company's fabric sales increased by 14.48% year on year, which is the main reason driving the company's overall revenue growth. The growth in ready-to-wear sales was relatively slow, 2.18%. Looking at the subregions, export sales increased 4.42% year on year, and the domestic sales base was low, achieving revenue of 17.53 million yuan, an increase of 84.72% year on year. In the first half of the year, the company's gross margin increased significantly, reaching 23.98%, up 2.38 percentage points from the same period last year. By product, the gross margin of fabric decreased slightly by 0.31 percentage points compared to the same period last year, and the gross margin of ready-to-wear increased by 3.96 percentage points to 26.25%. Looking at the subregion, the gross margin of domestic sales improved markedly compared to the previous period. Sales expenses rose rapidly in the first half of the year. Expenses improved during the second quarter compared to the first quarter. In the first half of 2013, the company's sales expenses were 44.2266 million yuan, an increase of 30.90% over the previous year. Looking at the breakdown, the rapid growth is mainly due to market commercial development expenses, rental expenses, decoration expenses, exhibition fees, etc., indicating that the company is strengthening brand promotion efforts and accelerating market expansion. At the same time, rising labor costs are also one of the reasons driving up sales expenses. Management expenses increased by 0.34% year on year, and management expenses are better controlled. Accounts receivable grew rapidly. Operating cash flow was negative. By the end of the second quarter, the company's accounts receivable were 109.022 million yuan, up 74.80% month-on-month. The increase in accounts receivable and prepaid accounts caused the company's operating cash flow to be negative in the current period, and it is necessary to continuously track the improvement in the company's cash flow in the future. Against the backdrop of an increase in gross margin, the company's overall expenses increased slightly. The net profit margin level rose from 5.02% in the same period last year to 5.82%, and the profit level increased rapidly. Give the company a “careful recommendation” rating. The company's products have a leading edge in the field of high-end outdoor sports fabric. The outdoor market is developing rapidly, and there is plenty of room for the expansion of the company's own brands. Our profit forecasts for 2013-2015 are 0.11 yuan, 0.14 yuan, and 0.17 yuan, giving a “careful recommendation” rating.