He Shihao said that the company has changed the sales strategy, compared to the past few years tended to increase in sales, now changed to consider the profitability of first order. He said, the first half of the gross margin has improved, mainly due to the increase of company restructuring, East China production line and increase the production efficiency to enhance profit rate better export orders, but whether the continuous improvement still depends on a number of factors affecting the market. As for the lubricating oil is still in the loss of business, the company will reduce the profitability of the lack of orders, believe that the business can be a turnaround this year.

He also pointed out that the company has been through a period of investment, capital expenditure will be 350 million yuan last year, this year fell to 97 million yuan, the existing material production capacity is sufficient to meet the next three to five years of development, the next two years, the capital expenditure will be maintained at 80 million to 90 million yuan level, have sufficient funds on hand, will make the corresponding assignment.