In 2009, the company achieved operating income of 1,112 billion yuan, a year-on-year decrease of 3.14%; operating profit of 167 million yuan, a year-on-year decrease of 12.48%; and net profit attributable to the parent company of 137 million yuan, a year-on-year decrease of 22.83%. The company achieved earnings of 0.29 yuan per share based on the latest share capital calculation due to additional issuance on March 15. The dividend distribution policy is to distribute a cash dividend of 0.50 yuan (tax included) for every 10 shares, and an increase of 10 shares for every 10 shares. Production is basically normal, and impairment losses affect performance. Struggling with insufficient gas supply, the operating rate of the company's urea unit is only 78.5%, and production and sales have declined, resulting in a slight decrease in the company's revenue. However, the company's urea uses natural gas as raw material and is mainly supplied to Guizhou and surrounding areas. The products have regional advantages and brand advantages, and the sales price is relatively stable. The gross margin of urea has reached 41.61%, which is still at a high level in the country. However, due to a sharp drop in the sales price of paper paddles, the shareholding subsidiary Chicanhua Paper Industry lost a lot of money. The company calculated an impairment loss of 30 million yuan on long-term equity investment in this project, causing the company's net profit to drop quite a bit. In order to resolve the gas supply bottleneck, we have vigorously intervened in the coal chemical industry. The subsidiary Tianfu Chemical's annual production of 300,000 tons of synthetic ammonia and 150,000 tons of dimethyl ether projects is expected to be completed and put into operation in the first quarter of 2010. Jinchi Chemical Tongzi Coal Chemical's 520,000 ton urea and 300,000 ton methanol co-production project will also be completed by the end of 2010. Adding a coal chemical business in the future will reduce the impact of rising natural gas prices and insufficient supply, and become a new profit growth point for the company. Parking and Drought's results for the first quarter were not very optimistic. The natural gas supply in the first quarter was affected by “protecting civilian use and pressing the industry” during the winter. The company stopped production and maintenance for nearly 70 days from early January to early March, and the maintenance period was significantly longer than in previous years. Furthermore, due to a severe drought in the southwest region where the company is located, the spring farming market has been slow to start. Supply in the domestic market exceeds demand, and urea prices have declined recently. Due to poor sales of other brands of urea in Guangxi and Yunnan and the impact on sales entering the Guizhou market, the drought will also have a negative impact on the company's urea sales. Profit forecasts and ratings. It is estimated that the company's 2010 and 2011 EPS will be 0.32 yuan and 0.35 yuan respectively. Based on the closing price of 14.36 yuan on April 6, the corresponding dynamic price-earnings will be 45 times and 40 times, respectively; in terms of capital after transfer, the EPS will be 0.16 yuan and 0.18 yuan, respectively. The current valuation is too high. Due to the current price of natural gas and serious overcapacity, the domestic urea market is not very optimistic and has maintained a “neutral” investment rating. Risk warning. 1) The increase in natural gas prices will affect the company's costs; 2) The commissioning progress of coal chemical projects is slower than expected. 3) Due to overcapacity of urea, methanol, and dimethyl ether, there is a risk that project returns will not meet expectations.