From January to June 2011, the company achieved operating income of 418 million yuan, a year-on-year increase of 124.73%; achieved operating profit of 103 million yuan, a year-on-year increase of 166.54%; realized net profit attributable to owners of the parent company of 61.322 million yuan, an increase of 71.08% over the previous year; and achieved diluted earnings of 0.31 yuan per share. Revenue continued to grow rapidly. Although the photovoltaic industry entered an adjustment period in the second quarter, the biggest impact was still on module manufacturers. The company's revenue continued to grow rapidly. On the one hand, because equipment companies were driven by producers' demand to expand production, and the boom cycle lagged behind; on the other hand, market enthusiasm for monocrystalline manufacturing rebounded, making the company's monocrystalline furnace revenue better than expected, up 37.62% year-on-year, reaching 240 million yuan. Roughly estimated to have sold more than 300 units. In addition, the overall photovoltaic industry in the third quarter is expected to show a slow recovery trend. The goal is easier Achieve. Business adjustments have led to a significant increase in gross margin. The company reorganized its business, excluded businesses that were less profitable, and at the same time, several new businesses with high gross margins achieved revenue. As a result, the company's overall gross margin increased 7.6 percentage points year over year, and operating profit increased dramatically. The new business began to gain strength. During the reporting period, the company began to harvest the fruits of early new project reserves, and various businesses achieved revenue, including 2008 million yuan for polycrystalline furnaces, 1.7 million yuan for multi-wire cutting machines, 34 million yuan for demonstration line projects, 92.17 million yuan for graphite thermal fields, and 4.36 million yuan for crucibles. Five new businesses have accounted for 36.5% of revenue. Optimistic about new business in the second half of the year. Based on good expectations for the company's new business, sales of polycrystalline furnaces and multi-wire cutting machines will be the main force of new growth, and annual revenue is expected to exceed 200 million yuan. Shanghai James, which holds 68% of the company's shares, and Tianlong Light Source, which holds 56.2%, have been merged. It is conservatively estimated that its graphite hot field and crucible sales could bring the company more than 40 million net profit attributable to the parent company for the whole year, and the company's sapphire LED furnace will also achieve a small amount of revenue in the second half of the year. Due to increased competition for silicon wafers, the demonstration line project will have revenue and no profit this year, while sapphire cutting machines and MOVCDs are under development. Profit forecast and rating: The company's 2011, 2012, and 2013 EPS is expected to be 0.95 yuan, 1.47 yuan, and 1.98 yuan respectively. Based on the August 9 closing price, the corresponding dynamic price-earnings ratio is 29 times, 19 times, and 14 times, respectively. Although the industrialization process of the company's polycrystalline furnace is slightly slower than expected, there is broad scope for import substitution for many new products. Once a large order is obtained, performance and valuation will rise at the same time, maintaining the company's “increase in holdings” investment rating.