From the perspective of expenses, the company insists on matching the scale of expenses to the scale of business to improve operational efficiency. In the first half of 2020, financial expenses declined by approximately 66.0%, accounting for approximately 0.5% of the revenue, mainly due to a decrease in the interest expenses arising out of a decline in the amount of borrowings. R&D expenses increased by approximately 9.0%, accounting for approximately 10.9% of the revenue, mainly attributable to adjustment of the research and development personnel structure, and the increase in costs including wages, development materials costs, testing expenses, amortization of intangible assets and intellectual property royalties. Sales expenses declined by approximately 38.8%, accounting for approximately 6.0% of the revenue, primarily due to the decrease in staff salaries, travel expenses, advertising fees, logistic fees, rents and charges of water and electricity, expenses on marketing and exhibition and business meeting expenses. Management expenses decreased by approximately 11.7%, accounting for approximately 9.8% of the revenue. Mainly due to (1) the decrease in costs including wages, social insurance charges, labor union dues, exchange loss and other insurance expenses and (2) the significant decrease in expenses such as business expenditures, maintenance costs and transportation costs.