In the first quarter of '09, the company achieved operating income of 484 million yuan, a year-on-year decrease of 49.83%; operating profit of 4.75 million yuan, a year-on-year decrease of 61.2%; realized net profit attributable to owners of the parent company of 3.75 million yuan, a year-on-year decrease of 62.39%; achieved EPS of 0.01 yuan in a single quarter, and EPS of 0.02 yuan after excluding non-recurring profit and loss, which is in line with our previous expectations. In addition, operating income fell 14.81% month-on-month in the first quarter of '09, and realized net profit attributable to owners of the parent company turned a month-on-month loss into a profit, with a loss of 5.34 million yuan in the fourth quarter of '08. YoY: The sharp decline in raw material prices and non-recurring profit and loss was the main reason for the sharp decline in performance indicators over the same period last year. The company's main business is the production and sale of high-precision copper strips, copper bars and copper cables. It is a copper processing enterprise. It adopts the pricing model of “electrolytic copper price+processing fee”. At the level of copper prices in 2008, raw material costs accounted for more than 90% of the main business revenue, and profits mainly came from processing fees. The main reason for the 49.8% year-on-year decline in operating income during the reporting period was that raw materials fell by more than 50% year on year, and the 62.4% year-on-year decline in net profit was the impact of non-recurring profit and loss items during the reporting period. However, if the profit level of non-recurring profit and loss companies was basically the same as the same period last year, the company's main business operations were relatively stable. Month-on-month: The sharp recovery in comprehensive gross margin ensured that the month-on-month loss was turned into a profit. Due to the sharp drop in copper prices in the fourth quarter of 2008, there was a deviation in the company's grasp of the procurement timing of raw materials, which caused the company to bear higher raw material costs. The consolidated gross margin for the fourth quarter of 2008 was only -2.5%, which was the main cause of losses in the fourth quarter of 2008. However, with the gradual depletion of high-cost raw materials and the price of the raw material electrolytic copper falling significantly from the average price in 2008, the comprehensive gross margin reached 8.1% during the reporting period, up 10.6 percentage points from the previous month, ensuring that losses were turned into profits during the reporting period. Profit forecast and investment rating: We expect the company to achieve net profit attributable to owners of the parent company in 2009 to be 48.45 million yuan, and achieve EPS of 0.11 yuan and 0.16 yuan respectively in 2009 and 2010. According to the closing price of 6.26 yuan on April 23, the corresponding dynamic P/E is 57 times and 39 times, maintaining the company's “neutral” investment rating.