Earnings per share for the interim period of '11 were 0.17 yuan, in line with expectations. In the first half of '11, the company achieved operating income of 1.71 billion yuan, total profit of 113 million yuan, and net profit of 93 million yuan, up 53.1%, 47.7%, and 54.6% respectively over the previous year. Earnings per share were 0.17 yuan, and the performance was in line with expectations. The rise in raw material prices has not been fully transferred, affecting the gross profit margin of the product. The average price of the company's main raw materials for daily waste in the first half of the year increased by about 15% year on year. Although the downstream packaging industry was doing well, cowhide box board+white kraft paper, which accounted for 76% of revenue, was not fully transferred to costs. The gross profit ratio of 2011 H1 cowhide box board was 15.01% ↓ (15.97% in 2010), and the gross profit margin of white cow card was 12.07% ↓ (15.64% in 2010). Additional distribution project - 68,000 tons of recycled household paper enrich the company's product line. The project uses waste paper as the raw material. According to experience, the relative tonnage cost advantage is 2,000 yuan/ton; the sales price of household paper terminals made from the two raw materials in the Japanese market is about the same. The key point of the project is: the extent to which Chinese people accept recycled household paper. The company's operating efficiency has improved, and the three rates have continued to improve. The operating expenses ratio and management expense ratio were 3.5% and 2.0% respectively in the 2011 interim report, while in 2010 they were 4.2% and 2.7%, respectively. The improvement in operating efficiency is quite obvious. The listing of subsidiaries will greatly enhance the company's investment income. The subsidiary Zhejiang Sharp Ace Pharmaceutical had a net profit of 43.1 million yuan in 2010; the company's investment cost was 20 million yuan (accounting for 20% of shares). The subsidiary's application for the initial public offering of A shares was officially accepted by the China Securities Regulatory Commission on June 3, 2011. The 2011-2013 results are expected to be 0.35 yuan, 0.35 yuan, and 0.51 yuan (based on dilution of the share capital after additional issuance, without considering investment income from future listings of subsidiaries), with year-on-year growth rates of 53%, 2%, and 46%, respectively. Maintain “Prudent Recommendation - A”. Additional distribution projects were invested in 2011-2012, and results were released in 2013. We gave 15 times PE for 2013, with a target price of 7.6 yuan. We recommend that you pay attention to the progress of the listing of subsidiaries. Risk warning: It remains to be seen how people accept recycled household paper.