Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Alex Harbin - Tollcross Securities.
Alex Harbin – Tollcross Securities
I’m wondering in terms of this OEM orders and the shutdown of certain customers during the Beijing Olympics, what percentage of revenue is represented by firms that are going to shutdown during the Olympics?
Dan Joseph
This is Dan Joseph again with ICR. I’m going to provide the translation for the questions.
Richard Cai
Hey, Alex this is Richards. Yes, we’ve not suffered the impact from the shutdown of OEM customer and the implementation of (inaudible) from the feedback of our customers within that basic -- some of our major customers had told me they may produce like 50% less in the second half of the year, that will be significant impacts.
Alex Harbin – Tollcross Securities
So, in terms of how you guys review your growth rate, do you have any comments on made be a target year-over-year growth rate for the second half?
Richard Cai
For the second half?
Alex Harbin – Tollcross Securities
Like versus last year.
Richard Cai
Alex this is Richard. We think that overall combine this three market segments; the OEMs, aftermarket and export market, we expect that the growth rate will be moderate. Although compared with the second half of the last year it could be flat, the growth rate.
Alex Harbin – Tollcross Securities
It could be flat with the second half of the last year.
Richard Cai
The OEM portion, altogether. In the second half for OEM we think that it could be 40% or maybe even 50% less than the first half.
Alex Harbin – Tollcross Securities
Than the first half of this year or than the second half of last year, because obviously you have?
Richard Cai
This year, but the aftermarket sales and export sales will keep moderate growth.
Alex Harbin – Tollcross Securities
Okay, so overall on a blended side, do you guys have the target on the growth rate in the second half or are you seeing?
Richard Cai
It is still very difficult to make the precious estimate. Somebody said during the fourth quarter the OEM sales will pick up. So, right now we do not provide guidance, we’re just trying to give you a sense how we are conservative on the OEM sales. Conservatively, we think compared with the second half of last year, this year would be flat, the second half.
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