The incident company announced its 2013 interim report, achieving operating income of 375 million yuan, up 25.72% year on year; realized net profit attributable to shareholders of listed companies of 38.9982 million yuan, down 14.24% year on year; and realized net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses of 41.0572 million yuan, up 9.57% year on year. Basic earnings per share are $0.11. The change in net profit attributable to shareholders of listed companies from January to September 2013 was -10%-20%, or between 6,678.05 and 8,904.06. A brief review of revenue growth. Ongoing orders were full, and the progress of south-to-north water transfer fell short of expectations. The company achieved operating income of 375 million yuan, an increase of 25.72% over the previous year (of which concrete pipes increased 19.1% and plastic pipes increased by 37.89%); the revenue ratio of concrete and plastic pipes was 6:4. In January-June, the company signed new orders of 928 million yuan; at the end of the reporting period, it was executing orders of 1.37 billion yuan, with a delivery amount of 533 million yuan, and signed unexecuted orders of 533 million yuan. The company has plenty of orders in hand, providing a guarantee for subsequent revenue growth. Due to the influence of subjective and objective reasons such as high temperatures and heavy rain for the South-to-North Water Transfer Project, the overall progress of delivery and acceptance is slow, and revenue confirmation falls short of expectations. Most of the projects are progressing smoothly, and the Qinglong projects in Anyang, Nanyang, Hebei, and Baoding, Hebei have been completed and completed as scheduled; the Qinglong construction projects in Inner Mongolia are progressing smoothly, and the water conservancy investment projects of the relevant local governments in Gansu have been delayed. The company adjusted the construction progress of the Qinglong Dunhuang and Xinjiang Fukang projects according to the local project situation. As a result, the construction progress of the Shanxi Qinglong project and the Hongdunzi Industrial Park project in the Yinchuan Economic Development Zone fell short of the plan. The decline in gross margin, the increase in the period cost ratio, and the reduction in government subsidies led to a decline in net profit. The company's comprehensive gross profit margin was 27.67%, down 1.6 percentage points from the previous year. Among them, the gross profit margin of concrete was 29.32%, down 1.89 percentage points from the previous year, and the gross profit margin of plastic pipes was 25.05%, down 0.67 percentage points from the previous year. Another factor in the decline in overall gross margin is the increase in the share of revenue from plastic pipelines, which have lower gross margins. The company's period expense ratio was 14.46%, an increase of 2.25 percentage points over the previous year. Among them, financial expenses increased by 1.53 percentage points due to a decrease in deposit interest and an increase in short-term loans. Also, due to factors such as the rapid rise in labor costs and the high cost of investing in newly established subsidiaries, the sales expense ratio and the management expense ratio have both increased. The company received 8.11 million yuan in government subsidies in the same period last year, and only 1.29 million yuan this year. Therefore, the reduction in government subsidies also caused a decline in the company's net profit. After deducting irregular profit and loss, the company's net profit attributable to shareholders of the parent company was 41.0572 million yuan, an increase of 9.57% over the previous year. Net cash flow from operating activities The net cash flow from the company's operating activities decreased. The net cash flow from the company's operating activities was -7.59 million yuan, compared to -4.86 million yuan in the same period last year. The main reasons for the decrease in net cash flow were a decrease in net profit, a sharp increase in inventory, and a sharp increase in accounts receivable. However, the company's payable items also increased dramatically, offsetting some of the impact of the decline in cash flow. The sharp increase in the company's inventory was mainly due to the fact that the amount of goods shipped was greater than the amount of recognized revenue. Investment ratings and profit forecasts The company's delivery amount for the first half of the year was 533 million yuan, which far exceeded confirmed revenue. According to PCCP industry characteristics, delivery and confirmed revenue progress in the second half of the year was better than in the first half of the year. The estimated operating income for 2013-2014 is 1,092 billion yuan and 1,320 million yuan. Corresponds to EPS 0.30 and 0.37. Overstock ratings.