From January to September 2009, the company achieved operating income of 497 million yuan, a year-on-year decrease of 11.7%; realized operating profit of 660,000 yuan, a year-on-year decrease of 82.3%; realized total profit of 2.36 million yuan, a year-on-year decrease of 17.5%; realized net profit attributable to owners of the parent company was 3.15 million yuan; and basic earnings per share were -0.009 yuan. From July to September 2009, the company achieved operating income of 169 million yuan, a year-on-year decrease of 6.7%; achieved operating profit of 1.46 million yuan, a year-on-year increase of 69%; realized total profit of 1.74 million yuan, an increase of 146.8%; realized net profit attributable to owners of the parent company was -710,000 yuan; and basic earnings per share were -0.002 yuan. Loss for 3 consecutive quarters in 2009: The company is mainly engaged in scientific research, production, sales and related business of color photosensitive materials such as color film, color photo paper, color movie film, etc., and is one of the 189 large state-owned enterprises funded by the State Council's State-owned Assets Administration Commission. It is the only large-scale national brand listed enterprise in the domestic photosensitive materials industry, and has developed into one of the top six color roll manufacturers in the world. Among them, color sensitive materials account for about 90% of the company's revenue. In recent years, due to the dual effects of emerging digital products impacting the traditional photosensitive materials market and the continuous decline in the price of silver salt products, the company's color film sales have declined sharply, and operating income has dropped significantly. The company has been losing money for 3 consecutive quarters this year, but gross margin improved in the third quarter, reaching 21.4%, an increase of 5.6 percentage points over the previous quarter. It is difficult to support short-term performance in the new energy sector: in order to mitigate the risks brought about by product standardization, expand new profit margins, achieve industrial restructuring, enter the new energy and new materials industry, and invest 59.36 million yuan in solar cell backpanels and new functional isolation materials with its own capital. In the first half of this year, samples of the new product have been completed and are in the customer trial stage. It is expected to be introduced to the market in the second half of this year, but mass sales will take time and will not provide strong support for the company's development. Profit forecast and investment rating: The company's industry is in a downward phase, and the product market share is shrinking seriously, and it still takes a process to launch new products. We are quite pessimistic about the company's 2009 performance, but with the gradual promotion and expansion of new products, the company's performance may improve in the future. At the same time, the company was funded by the State Council's State-owned Assets Administration Commission, and there are certain expectations of restructuring. As traditional businesses continue to slack off, this expectation will gradually increase. We expect the company's earnings per share to be -0.02 yuan and 0.01 yuan respectively from 2009 to 2010, maintaining a “neutral” rating. Risk warning: 1) downstream demand continues to shrink due to the impact of digital products, etc.; 2) promotion and launch of new products is blocked; 3) the price of raw silver fluctuates.