Today, Shandong wishful (002,193, closing price of 7.63 yuan) announced the semi-annual report. In the first half of this year, Shandong Ruyi achieved operating income of 262 million yuan, up 33.26% over the previous year; net profit of 15.5336 million yuan, an increase of 19.01%; earnings per share of 0.10 yuan, 2.77% return on net assets. In the first half of this year, the textile industry in China was affected by various factors such as the sluggish international economy, macroeconomic regulation and control, factors of rising production costs, the snowstorm in the south and the earthquake in Sichuan. In the first half of this year, the industry was facing severe problems The situation, the overall pace of growth slowed down, many companies in the industry even suffered a loss. As Shandong Ruyi's products are in the mid-to-high end of the woolen spinning industry, they have strong market competitiveness and product cost transfer capability in the industry. Only in the unfavorable environment of the industry, the profit of the Company keeps growing but the gross profit margin still appears Dropped by 6.39% from 30.46% in the same period of last year and reached 24.07% in the first half of the year, which is still at a relatively high level in the industry. Appreciation of Renminbi Increases Financial Pressure From the analysis of sales structure, Shandong Ruyi vigorously develops its foreign trade. From January to June 2008, the company achieved overseas sales revenue of 165 million yuan, accounting for 63% of sales revenue, up 46.60% over the same period of last year; while the domestic sales revenue was 85,602,500 yuan, an increase of only 7.20% over the same period of last year. Since 2008, the appreciation of the renminbi has been accelerating. For such export-oriented enterprises as Shandong Ruyi, they are facing a lot of operational and financial pressures. From January to June this year, the company lost as much as RMB3.2279 million in exchange losses, accounting for 16.33% of the total profits. However, the exchange loss of the company was only RMB391,800 in the same period of last year. Therefore, how to cope with the appreciation of the Renminbi and reduce the exchange losses has become a major problem restricting the rapid development of the Company. . The second half of the fund-raising project will be put into operation In November 2007, Shandong wishful to the public public offering 20 million shares, raised a total of 252 million yuan for functional and ecological wool fabric items. As of June 30, has been used to raise funds yuan. The company also added an annual output of 4 million meters high-grade worsted fabric production line is expected before the end of this year will be fully operational, making the company's production capacity to reach an annual output of 16 million meters. Analysts pointed out that although the textile industry is now in a decline cycle, but because of the company has strong technical strength, a leader in the industry, orders in good condition, it can maintain normal production and management, the new project of the long-term development of the company's long-term development Is undoubtedly a positive, can ease the company's production capacity problems, the stock price may be better performance.