In 2009, the company achieved operating income of 772 million yuan, a year-on-year increase of 35.52%; operating profit of 128 million yuan, a year-on-year increase of 97.91%; net profit attributable to owners of the parent company was 171 million yuan, an increase of 89%; and EPS of 0.53 yuan. Distribution plan: Cash distribution of 0.5 yuan (tax included) for every 10 shares. The power business is developing well and is still the company's main focus. During the reporting period, the company achieved electricity sales volume of 798.5404 million kilowatt-hours, a year-on-year increase of 10.67%, and revenue of 433 million yuan, an increase of 15.06% over the previous year. Although the company's power generation volume fell 4.93% year-on-year to 507.864,700 kilowatt-hours in 2009 due to the deterioration in water conditions, the gross margin of the power business fell by 3.03 percentage points, but benefiting from the increase in electricity sales, the company achieved gross profit of 163 million yuan, accounting for 68.78% of the company's gross profit, which is basically the same share as in 2008, and is still the main support point for the company's performance. During the reporting period, the company invested 2.08 million yuan to acquire 46% of the shares of Kangding Hualong Hydropower Investment and Development Company. Hualong Company has an installed capacity of 30,000 kilowatts, an annual design power generation capacity of 164 million kilowatt-hours, and an annual design feed-in capacity of 144 million kilowatt-hours. It is expected to start production in 2010. After the acquisition is completed, the installed capacity of the company's equity increased by 11.94% to 129,400 kilowatts, which will further increase the proportion of the company's own power generation, which is conducive to increasing the profitability of the company's power business. In 2010, benefiting from regional economic growth, we believe that the company's electricity sales volume will continue to grow to a certain extent, but the profitability of the power business is still largely affected by water conditions. Operating income has increased dramatically, and performance has been enhanced. During the reporting period, the company's non-operating income increased by 416.75% year on year to 94 million yuan, increasing EPS by 0.25 yuan. Non-operating income increased sharply, mainly because the Guangdong Provincial High Court handed down a final judgment on “rejecting Huaxia Bank's appeal and upholding the original judgment” in the case between the company and Huaxia Bank, and the company withdrew the accrued debt impairment in preparation for the transfer of 800.5 million yuan to non-operating income. The acquisition of Oshenda is conducive to broadening diversified operations. In November 2009, the company's board of directors agreed to invest 46.47 million yuan to acquire 65.94% of Oshenda. Aoshenda is mainly engaged in industrial silicon, cable production, mining development, etc. According to the assessment, as of August 31, 2009, the company had total assets of 209.58 million yuan, net assets of 74.05 million yuan, and net assets of 158 yuan per share. Judging from the valuation point of view, the purchase price is 1.5 yuan per share, which is slightly lower than the assessed price, but compared to the book value, the premium rate is 3017.77%, which is high. This acquisition will facilitate the diversified development of the company and cultivate new profit growth points. However, considering that Oshenda currently has poor operations, a loss of 15.6 million yuan in the first 8 months of 2009, and there is great uncertainty in the company's mining industry, this acquisition may increase the uncertainty of the company's performance. Expectations for equity transfers and restructuring have increased. During the reporting period, Sichuan Pearl Water Resources and Electric Power Co., Ltd., the former controlling shareholder, transferred 20.07% of the company's shares to Sichuan Electric Power Company. After the equity transfer was completed, the company changed from the original level 4 holding subsidiary of Sichuan Electric Power Company to a level 2 holding subsidiary. However, with the separation of central enterprises and subsidiaries and the progress of the listing process of power grid companies, we cannot rule out the possibility that the Sichuan Electric Power Company will consolidate its assets within Sichuan. Therefore, after the equity transfer, we believe it will be beneficial to expand the space for restructuring the company's assets. Valuation and investment analysis. We expect the company's 2010 and 2011 EPS to be 0.28 yuan and 0.32 yuan respectively. Based on the closing price of 9.58 yuan on March 4, the corresponding dynamic price-earnings ratio is 34 times and 30 times, respectively. The valuation is too high, and considering poor growth, we maintain the company's “neutral” investment rating. However, investors are invited to pay attention to the investment opportunities brought about by the company's asset restructuring expectations.