China Leon's overall corporate operating conditions were good in the first half of this year. In addition to increase in both the quantity of inspected coal and the price, the income in its main business increased. The Company's income in its main business increased from RMB 81.1 million in the first half of last year to RMB 105.9 million this year, with an increase of 30.6%. The gross margin increased from RMB 41.5 million in the first half of last year to RMB 57.1 million this year, with an increase of 37.8%. The gross profit rate increased from 51.2% in the first half of last year to 54.0% this year. The net profit increased from RMB 10.1 million in the first half of last year to RMB 23.2 million this year, with an increase of 130.3%.

In accordance with established strategic principles, China Leon constantly increases the development of domestic and foreign markets in a wider range and continuously improves the service quality of nine domestic service agencies. With the establishment of four overseas service agencies, its service network and coverage have been more sophisticated. Besides, the Company further strengthens the high-tech research and development work, which is progressing smoothly. We believe that the Company's future strategic planning will help maintain its current leading market position and better respond to the various challenges  brought about by domestic and international market changes.

In order to enhance the service capacity of nine domestic service agencies and cope with the ever-increasing amount of business, the Company decides to upgrade the laboratories and other office facilities of the four service agencies in the north. The Company's future development plan is to create a better customer experience and provide better services for new and existing customers through the overall upgrade of the existing facilities in the service agencies, thereby to further enhance the Company's share of each market. Currently, the Company's service agencies across the country have basically covered China's major domestic coal trading ports. With the continuous growth of business volume, the Company plans to expand the service network to other areas strategically significant to China's waterway coal trading market, including the many important ports in Shandong and Fujian. To date, the Company has set up four overseas service agencies in Southeast Asian and South Asian countries, i.e. Singapore, Malaysia, Indonesia and India, through investment in establishment, acquisition and M&A. The establishment and operation of overseas service agencies will certainly greatly enhance the Company's international reputation and increase its income in overseas business, and then blow the horn for China Leon's entry into the international market.

The Company will continue to provide various supporting resources for the purposes of promoting the work regarding scientific research, innovation and development and enhancing its internal research and development capabilities. Besides, it will further strengthen the cooperation with scientific research institutions to jointly develop an automated service program. If the program can be successfully put into use, the Company's cost of labor will be significantly reduced, and minimum human errors and maximum service efficiency will be achieved. The Company also plans to develop and upgrade its internal technology infrastructure to support integrated quality control services and other new business. Moreover, the customer system has achieved interoperability so that customers can obtain complete and accurate test results through the most convenient way in the shortest possible time.

Looking ahead, China Leon's management said that, in addition to continuous upgrade and expansion of the service center network, China Leon will improve its research and development capabilities to enhance the detection program and experimental capacity, actively make arrangements for the business regarding testing of imported and exported coal, and enhance scientific research ability and technical level. Besides, the Company will further consolidate its leadership in the coal testing and inspection industry, and integrate China's coal testing and inspection market through selection and acquisition.