The company publishes its semi-annual report. In the first half of the year, the company achieved operating income of 213.47 million yuan, an increase of 26.13% over the same period last year; net profit of 11.19 million yuan, down 90.75% from the same period last year; and net profit of 11.31 million yuan after deducting non-recurring profits and losses belonging to shareholders of listed companies, down 19.71% from the same period last year. The income per share is 0.03 yuan.

Revenue increases and profits decline. In the first half of the year, the company completed 491.38 million kilowatt-hours of electricity supply, an increase of 10.24 percent over the same period last year, and completed electricity sales of 432.21 million kilowatt hours, an increase of 10.45 percent over the same period last year. The growth of the company's electricity supply and sales is mainly related to regional economic development; in addition, in November 2009, the company's on-grid electricity price increased by 2.45 points, the above factors led to a large increase in the company's revenue in the first half of the year. However, the company's business model is power grid + hydropower, 42% of the electricity is self-supplied by the company, and about 58% comes from the company's outsourced electricity. In the first half of the year, the company was affected by the dry climate, the amount of water coming from the river basin was less, and the company's spontaneous electricity decreased sharply. The sharp increase in purchased electricity led to an increase in costs and a decline in operating profits.

Progress has been made in debt resolution and embarked on the track of sound development. After the problem of the company's guaranteed debt was basically solved, the company began to step into the track of healthy development. The 40% stake in the Muli River Shawan power station project is expected to generate electricity by the end of 2010; the Yongning River fourth-stage power station with an installed capacity of 40,000 kilowatts will also be able to achieve the trial operation of the first unit in 2010; and the construction of the 180000 kilowatts of the Guzeng project has also begun. At the same time, the company also plans to build a 220KV transmission line from Yanyuan to Xichang to ensure that the generating capacity of the company's Yongning River Power Station can be sent smoothly, at the same time, it will help the company to consolidate the grid-connected relationship with Yanyuan and Muli counties, solve the problem of power distribution in Yanyuan and Muli power supply business areas, and stabilize the power supply market of Yanyuan and Muli counties.

Profit forecast and investment rating. It is estimated that the fully diluted EPS of the company from 2010 to 2012 will be 0.22,0.29,0.32 yuan respectively, and the corresponding dynamic price-to-earnings ratio will be 39 times, 30 times and 27 times respectively.