Excerpts:

For1H2008, company’s operating revenue and net profit attributable to parent experienced yoy growth of 26% and 34% respectively; additionally, EPS stood at Rmb0.29, beating our forecast, and EPS pegged at Rmb0.27 (+56% yoy), deducting non-current profit and loss. Sales amount of Shikumen maintained flat trend yoy while revenue of yellow rice wine slightly declined mainly because the company reduced distribution of some low-end products to prepare basic wine for “He Wine”. Besides, gross margin of sugar business sharply declined for 12.66ppt, which dragged composite gross margin down 2.48ppt. As a whole, asset impairment loss reduction and net non-operating income and expenditure increment stayed main forces for 7.87% growth in total profit, and income tax decline contributed 28% of net profit attributed to parent.