From January to September 2010, the company achieved operating income of 2.623 billion yuan, an increase of 22.97% over the same period last year; operating profit of 51.72 million yuan, an increase of 394.51% over the same period last year; net profit belonging to the owner of the parent company was 35.79 million yuan, an increase of 215.67% over the same period last year; and basic earnings per share was 0.08 yuan per share.

The income has obvious seasonality. Judging from the single-quarter data, the company achieved operating income of 1.064 billion yuan in the third quarter of 2010, an increase of 32.86% over the same period last year; operating profit of 37.47 million yuan, an increase of 643.59% over the same period last year; and net profit belonging to the owner of the parent company was 20.34 million yuan, an increase of 651.63% over the same period last year. The company's net profit in the first three quarters accounted for a low proportion of the whole year, mainly because the income from China Science and Technology Ocean and Noan Fund was concentrated in the fourth quarter.

As an investment-controlled enterprise, the company's main profits come from its three holding subsidiaries, Daheng Group (distribution, Daheng Image), Zhongke Dayang (leader in TV editing and broadcasting system) and Ningbo Mingxin (closed test of discrete devices). The rapid growth of the company's net profit in the first three quarters is mainly due to the turnaround of Ningbo Mingxin and China Science and Technology Ocean. At present, Ningbo Mingxin, which is mainly engaged in discrete device closed testing business, is further improving its capacity utilization. Profitability is expected to further improve in the fourth quarter. China Science and Technology Ocean, as the leader of the TV editing and broadcasting system, benefits from the provincial network integration, and its performance has also shown rapid growth this year. We believe that with the further acceleration of provincial network integration, the net profit of China Science and Technology Ocean will continue to maintain rapid growth.

Nuoan Fund equity transfer date gradually, continue to contribute to stable income. In December 2007, the company signed an "equity transfer agreement" with the former second shareholder, Zhongguancun Science City, and transferred 20% of the equity of the Nuoan Fund. before the transfer was successful, all the dividends of Zhongguancun Science City were handed over to Daheng Science and Technology. Recently, as the three-year supplementary agreement is approaching, the company will apply for equity transfer again. If the CSRC approves smoothly, the company will calculate the investment income with the equity method, and the EPS can be thickened by about 0.1 yuan. Will continue to contribute stable income to the company.

Earnings forecast and rating: we expect the company's earnings per share from 2010 to 2012 to be 0.3 yuan, 0.46 yuan and 0.55 yuan respectively, with a corresponding dynamic price-to-earnings ratio of 30 times, 20 times and 16 times respectively. At the same time, the success of the transfer of the Noan fund will bring a certain margin of safety for the company's stock price and maintain the company's "buy" rating.