In the first half of 2013, the company achieved operating income of 1,023 million yuan, a year-on-year decrease of 2.2%; operating profit of 8.663 million yuan, a year-on-year increase of 3.54%; net profit attributable to owners of the parent company of 10.271 million yuan, an increase of 20.42% over the previous year; and basic earnings per share of 0.0300 yuan. Performance growth was driven by gross margin and non-operating income. The company is mainly engaged in the production and sale of printed and dyed fabrics, cotton textiles and garments, of which the printing and dyeing business accounts for more than 70% of revenue. Nearly 60% of its products are exported to international markets, mainly in North America, Africa and Southeast Asia. Operating income fell 2.2% year on year due to factors such as weakening demand in the international market, slowing domestic market demand, and excessive differences in domestic and foreign cotton prices. However, due to a year-on-year increase of 1.21 percentage points to 7.6%, of which the gross margin of the printing and dyeing business increased 1.72 percentage points to 7.86% year on year, and the gross margin of the home textile business increased 0.4 percentage points to -1.46% year on year, the company's operating profit increased 3.54% year on year. Non-operating income increased by 544.95% year on year due to government subsidies, so net profit attributable to owners of parent companies increased 20.42% year over year to 10.271 million yuan. The future will also depend on technological improvements and asset integration. Since Shandong Binzhou Printing and Dyeing Group became the new largest shareholder last year, the company has carried out asset consolidation and optimization work, mainly including: 1. Improving the energy supply system and completing the acquisition and merger of Tianhong Thermal Power; 2. Optimizing the asset structure and completing the transfer to Sichuan Huafang Yinhua, which has been in a state of loss for a long time. Second, the company has accelerated the implementation of structural adjustments and transformation and upgrading of its main printing and dyeing business, and has successively invested more than 60 million yuan to reform and upgrade the floral cloth wax printing system, etc. Furthermore, the company is speeding up the expansion of the industrial chain and adjusting the product structure. In the near future, it is planned to acquire Yaguang Company's industrial park-related assets through a non-public stock offering, implement a 65,000-spun compact spinning production line technology transformation project, and build a home textile production line project. It is estimated that after the project is put into operation, it will increase annual sales revenue by 253 million yuan and total profit by 17 million yuan. On June 18, the relevant non-public offering application materials were accepted through the Securities Regulatory Commission's administrative license application. Profit forecast: The company's EPS for 2013-2015 is expected to be 0.08 yuan, 0.17 yuan, and 0.19 yuan respectively. Based on the latest closing price of 3.42 yuan, the corresponding dynamic price-earnings ratio is 41, 20, and 18 times, respectively, maintaining the company's investment rating as “neutral.” Risk warning: the risk of fluctuations in raw material prices and exchange rates; the risk that market demand falls short of expectations; the risk that the printing and dyeing industry is under high pressure to save energy and reduce emissions.