The performance improved significantly from month to month: during the reporting period, the company achieved operating income of 78.82 million yuan, a year-on-year decrease of 5.9%, and the company realized net profit attributable to the parent company of 17.78 million yuan, equivalent to EPS of 0.13 yuan, a decrease of 19.8% over the previous year. The main reason was that during the reporting period, the white carbon black market was sluggish, and the company was unable to produce white carbon black at full capacity. It is worth noting that the company's net profit for the second quarter increased by 6.53 million yuan month-on-month, an increase of 116%. It is expected that the situation will gradually improve after the second half of the year. The introduction of the domestic green tire labeling law is imminent: in February 2012, the Department of Raw Materials of the Ministry of Industry and Information Technology commissioned the Rubber Industry Association to formulate China's green tire self-regulatory standards and non-mandatory tire labeling classification methods, as well as a voluntary certification system for green tire products. Relevant standards and regulations will be introduced before the end of 2013, and the promotion of green tire industry self-regulatory standards to industry standards and national standards, using voluntary, then mandatory steps. It is expected that the mandatory green tire classification label law will begin to be implemented by 2017. Among them, in the non-mandatory classification stage, 50% of tire companies striving to achieve the production capacity of green tires by 2015, and of these, no less than 50% of the production capacity will be green tires, which means that 25% of the total production capacity will be green tires. At present, the company is still trying to develop customers, and the white carbon black for green tires is in the customer trial stage. Investment advice: Increase holdings - A investment rating, target price of 8 yuan for 6 months. We expect the company's revenue growth rates from 2013 to 2015 to be 16.5%, 30%, and 30%, respectively, and net profit growth rates of 24.8%, 31.4%, and 30.4% respectively. Increase in holdings with an investment rating of -A, and a target price of 8 yuan for 6 months, which is equivalent to a dynamic price-earnings ratio of 28 times that of 2013. Risk warning: competition intensifies, demand falls short of expectations