From January to June 2009, the company achieved operating income of 328 million yuan, a year-on-year decrease of 13.42%, and completed 41% of the annual plan; total profit of 625,400 yuan, a year-on-year decrease of 71.02%, completion of 10.42% of the annual plan; net profit attributable to owners of the parent company was -2,448 million yuan; basic earnings per share - 0.0072 yuan; and the company's net profit for the first and second quarters of 2009 was a loss. The main business continues to be weak: the company is mainly engaged in the production and sale of traditional photosensitive materials, of which color photosensitive materials account for about 90% of the company's revenue. In recent years, under the double effect of emerging digital products impacting the traditional photosensitive materials market and the continuous decline in prices of silver salt products, the company's color film sales have declined sharply, and operating income has declined markedly. Since 2008, quarterly net profit has continued to fluctuate between marginal profit and loss. In the first half of 2008, the company's color photosensitive materials business achieved operating income of 305 million yuan, a year-on-year decrease of 12.47%; the company's comprehensive gross margin was 16%, down 1 percentage point from mid-2008, down 4 percentage points from normal profit in 2007; and domestic business revenue was 190 million yuan, down 20.28% year on year. It will take some time for new products to provide profit: In order to mitigate the risks brought about by product unification, the company entered the new energy and new materials industry and invested 59.36 million yuan in solar battery backpanels and new functional isolation materials with its own capital of 59.36 million yuan. At present, samples of the new product have been completed and are in the customer trial stage. It is expected that it will be introduced to the market in the second half of the year, but mass sales will take time and cannot provide strong support for the company's development. The cost rate was reduced during the period: the company formulated a work policy of “speeding up the construction and marketization of new projects and making every effort to extend the life cycle of the silver salt business” and adopted effective measures to adjust the product and industrial structure to achieve cost reduction and efficiency. The company's expense ratio for the second quarter was 16.5%, down 1.8 percentage points from the previous quarter and 1.7 percentage points from the previous year. Profit forecast and investment rating: The company's industry is in a downward phase, product market share has shrunk seriously, and the introduction of new products still requires a process. We are pessimistic about the company's 2009 performance, but with the gradual promotion of new products, the company's performance in 2010 will improve. We expect the company's earnings per share for 2009-2010 to be -0.01 yuan and 0.04 yuan respectively, maintaining a “neutral” rating.