From January to September 2009, the company achieved operating income of 54.89 million yuan, down 11.5% from the same period last year; operating profit was-16.85 million yuan, compared with a loss of 15.35 million yuan in the same period last year; net profit belonging to the owner of the parent company was-16.8 million yuan, compared with a loss of 14.61 million yuan in the same period last year; diluted earnings per share was-0.12 yuan.

From July to September 2009, operating income was 18.2 million yuan, up 16.9 percent from the same period last year, down 10.9 percent from the previous month, and operating profit was 6.55 million yuan. It lost 6.78 million yuan in the same period last year and 3.87 million yuan in the second quarter of 2009. The net profit attributed to the owner of the parent company was-6.53 million yuan. It lost 6.81 million yuan in the same period last year and 3.87 million yuan in the second quarter of 2009. Diluted earnings per share-0.045 yuan.

During this period, the expense rate remains high. In the first three quarters, the company's expense rate was 54.5%, down 12.7 percentage points from the same period last year. Among them, the sales expense rate was 4.5%, down 3.3% from the same period last year; the management expense rate was 12.8%, up 2.4% from the same period last year; and the financial expense rate was 37.2%, up 13.6% from the same period last year.

The problems left over from history that affect the development of the company have not been solved. At present, the company has not yet repaid the overdue loan of 350 million yuan, nor has it obtained an extension agreement or new loan for the above-mentioned loan; the shareholders' equity is-388 million yuan, and some matters involving litigation have not yet been resolved, therefore, we believe that the company's financing conditions are difficult to improve in the short term, financial pressure is greater, and the company's sustainable development capacity is poor.

Due to the recession of the industry, the production and sales of home computers, the main alternative products, are increasing year by year, resulting in a decline in DVD market share and more fierce competition in the industry.

So we don't think the company's sales will increase significantly in the short term.

Due to the poor financial situation of the company, if it is not restructured, it will face the threat of suspension. We will not make a profit forecast for the company for the time being. Give the company a "neutral" investment rating.