Excerpts:

For 1H2008, the company issued total operating income of Rmb116mn (+9.43% yoy), net profit attributable to parent of Rmb11.81mn (-22.73% yoy), EPS of Rmb0.15. The company has been mainly engaged in development and sales of intelligent building system, and it had enhanced the hotel and senior convalescent markets during the first half of the year, which resulted on a small raise for its core business. Meanwhile, price hike on raw materials led main business gross profit to decline by a small margin. Period expense rate was 9.04% (+1.47% yoy) as of issuing of the report, among which the sales expense rate had reached to 2.32% due to enhancement of its new markets, up 1.09 yoy. Core business of the company is susceptible to the real estate industry which is easy to be influenced by marco-regulation, thus the company’s performance will likely to suffer from a drastic decline in the near future due to demand reduction of the downstream industries.