In the first half of 2019, the company's operating income reached 908 million yuan, up 36.04% year on year; net profit attributable to shareholders of listed companies was 63 million yuan, up 135.53% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 056 million yuan, up 127.15% year on year; basic earnings per share was 0.12 yuan, up 140.00% year on year. Gross margin continues to rise, profit is greatly improved. Under the trend of accelerating resource integration in the cable industry, the company promotes high-quality development, steadily advances various key tasks, and achieves a significant increase in operating income. The company focuses on high value-added products and continuously adjusted its product structure, making it account for 31.50% of the company's sales revenue, an increase of 14.56 percentage points over the previous year. The company also emphasized improving the level of production management and production efficiency, giving full play to the scale effect of order growth, and continuing to reduce costs and increase efficiency. In the first half of the year, the company's gross margin was 21.05%, an increase of 3.87 percentage points over the previous year, reaching a new high in recent years. Sales expenses reached 45 million yuan, an increase of 51.79% over the previous year, mainly due to a corresponding increase in income-related transportation costs and business package expenses. Financial expenses reached 121 million yuan, an increase of 145.62% over the previous year. Mainly because of the increase in revenue, interest expenses increased dramatically due to increased capital requirements, and cost control capabilities needed to be improved. During the reporting period, the company's net profit growth rate far exceeded the revenue growth rate, which contributed to value maximization. Promote technological innovation to help develop markets, and companies spend no less than 3% of sales revenue on R&D every year, continuously increase research and development efforts, and strengthen the construction of technological innovation systems. During the reporting period, the company won the bid for the “Hualong 1” pilot project for the world's first “Hualong 1” — the CNNC Fuqing Nuclear Power Station Unit 56 project, and the world's first high-temperature air-cooled reactor nuclear power plant demonstration project — the Shidaowan Nuclear Power Plant project. The company continued to promote technological upgrades, enhance product competitiveness, and become a technology-leading cable company in the field of nuclear power. The company continues to consolidate traditional advantageous markets such as steel and metallurgy, petrochemicals, and electrical equipment, strengthen market development for rail transit cables, and achieve rapid growth in the nuclear power and new energy markets. In the past three months, the company announced that the total amount of the winning sales contract with Sunway, a wholly-owned subsidiary, reached 516 million yuan, accounting for 32.75% of the operating income of the most recent fiscal year, which has had a positive impact on the company's future operations and is conducive to improving overall profitability. Achieving the goals of the 18-year assessment and increasing confidence in future development The company issued a restricted stock incentive plan in 2018. A total of 10,194,637 shares of the company's shares were repurchased through centralized bidding transactions, accounting for 1.96% of the company's total share capital, and the total amount of capital paid was 59,999,678.84 yuan. The assessment target is that the net profit for 2018, 2019, and 2020 will reach 500 million yuan, 100 million yuan, and 200 million yuan respectively, and the company's net profit in 2018 is 58 million yuan. The reservation conditions have been fulfilled. The stock incentive plan establishes a benefit-sharing mechanism between employees and shareholders, which stimulates the enthusiasm of the management team and improves operating efficiency. On an 18-year basis, the net profit targets for fiscal years 19 and 20 have continuously doubled, demonstrating the company's management's confidence in future development. The investment proposal expects the company to achieve net profit attributable to shareholders of listed companies of 145/2.24/285 million yuan in 2019/20/21. The corresponding EPS is 0.24/0.37/0.48 yuan/share, giving an “increase in holdings”.