In the first three quarters of 2009, the company achieved operating income of 511 million yuan, a year-on-year increase of 31.50%; operating profit of 55.98 million yuan compared to -10.41 million yuan in the same period last year; net profit attributable to owners of the parent company of 53.54 million yuan, an increase of 139.64% over the previous year; and diluted earnings per share of 0.12 yuan. Review of the company's business performance in January-September: The company's main business is the production and sale of daily chemicals, and at the same time, it also involves diversified operations in some industries. During the reporting period, as the company's new paper business began to contribute revenue, the company's operating income increased by about 30% year on year; currently, market competition is fierce, the company's comprehensive gross margin fell 1.31 percentage points to 19.07% year on year, and the sharp rise in management expenses caused the company's period expense ratio to increase 0.35 percentage points to 34.09% year on year; the year-on-year reversal in operating profit was mainly due to a sharp increase in the company's investment income. Although non-operating income declined significantly in the same period this year, investment income effectively compensated for the negative impact brought about by this, thus making up for the company's ownership The parent company saw a significant increase in net profit. Investment income increased, and the company's operating profit reversed losses year on year: during the reporting period, the sale of 2.85 million shares of CITIC Securities in accordance with the board of directors resolution led to a sharp increase in investment income to 130 million yuan. After deducting this investment income, the company's operating profit will still suffer a significant loss. The company's period expense ratio has been higher than the gross profit margin for a long time: the company's expense ratio for the period 2005-2008 reached 27.29%, 44.00%, 52.42%, and 35.11%, respectively, while the company's gross margin for the corresponding period was 19.79%, 25.65%, 21.38%, and 21.17%, respectively; the cost rate for the first three quarters of this year was 34.09%, and the gross margin was 19.07%; from the comparison of the two data, we can see that the period rate has been higher than the company's gross profit margin for a long time, and the gap is large, which means that the company wants to pass It is very difficult for the main business to achieve sustainable profits. Profit forecast and investment rating: Considering that the company's net profit level is greatly affected by the stock price performance of CITIC Securities and its sales time, we have not yet predicted the company's profit, nor have we given the company a corresponding rating. Risk warning: (1) the risk that expenses during the period of the company will remain high, and sales will erode the company's profitability; (2) the risk of mismanagement brought about by diversified operations; (3) systemic risks in the capital market.