The company announced the interim report: the company realized sales income of 364,451,100 yuan, completed a total profit of 256,379,500 yuan, and realized a net profit of 20,203,400 yuan. Compared with the same period of last year, sales revenue increased by 69.18%, total profit increased by 287.78%, and net profit attributable to shareholders of listed companies increased by 257.19%.

Analysis and comments:

1. Significant growth in both internal and external performance The company continued its rapid growth in the first quarter and its interim results increased substantially. In terms of income and profit composition, although government subsidies for non-operating income account for an important part, the company's LED business is an emerging industry that the government encourages investment. It is expected that non-operating income will be an important part of profit in recent years.

The rapid growth of the industry has brought high growth to the company's main business. The company's sales revenue and operating profit increased rapidly. This trend will continue in the next few years.

The industry is growing at a high speed and the government strongly encourages development. The company's internal and external environment is good, and the company's performance growth is highly certain.

2. The gross profit margin remained stable, and the growth rate of the company's gross profit margin remained steady and rising. The company's revenue growth, scale effect appeared. The company's rates are on a downward trend. At the same time, the company's revenue and profit growth rate maintained an upward trend, showing a good momentum of development.

The company is in the upstream of the LED industry, with high barriers to entry and high profit margins. The company's profitability is expected to remain stable. The LED industrialization project of Tianjin Sanan Optoelectronics Co., Ltd., which was invested and invested by the company in 2009, was successfully completed on June 22, 2010. It was put into production on June 24, 2010. Although the global backlight market is currently facing short-term inventory adjustments, demand in the domestic market is still strong. The company's revenue is expected to continue to grow rapidly.

3. Actively expand the LED industrialization project of Tianjin Sanan Optoelectronics Co., Ltd., which has been actively invested in the development of non-public offering of shares in 2009. The annual production scale of the Tianjin project is 850,000 pieces/year, and the chip is 20 billion pieces/year. The construction of the Wuhu project was actively carried out. The company is expanding rapidly in the LED field. The company's leading position has been strengthened.

At the same time, the company began to increase investment in the field of concentrating solar energy. Recently announced that the company and the US EMCORE Corporation jointly established the "Three Branch Photovoltaic Co., Ltd." in the Wuhu Economic and Technological Development Zone. The pace of application of HCPV components and systems for ground solar applications has increased. Providing new growth momentum for the company's future The company's technical strength in the field of optoelectronics is strong, and the company's development in related fields is worth looking forward to.

4. Earnings forecast and rating We expect sales revenue in 10-11 years to be 980 million yuan and 2 billion yuan respectively, and net profit is 401 million yuan and 641 million yuan respectively, corresponding to EPS of 0.72 yuan and 1.15 yuan respectively, corresponding to the close of 2010.8.16. The price is 50.31 yuan, and the PE is 69.9 and 43.7 times.