According to the quarterly report in March 2009, the company achieved operating income of 2.99 billion yuan, down 24. 5% from the same period last year. 1%; the net profit attributed to the parent company was 46.18 million yuan, compared with 7.82 million yuan in the same period last year; earnings per share was-0.11 yuan; of which, the operating income in the third quarter was 1.04 billion yuan, down 22% from the same period last year, and the net profit attributable to the parent company was 10 million yuan, an increase of 932% over the same period last year.

Gross profit margin and period expense rate. The company's gross profit margin was 7.68%, down 0.86% from the same period last year; the expense rate during the period was 8.57%, an increase of 1.39% over the same period last year, of which the management expense rate increased by 0.96%, the sales expense rate increased by 0.53%, and the financial expense rate decreased by 0.11%, mainly due to the decrease in the scale of bank loans and the reduction of loan interest.

Fair value and investment income thickening performance. The net income of fair value changes of the company in the current period was 9.57 million yuan, compared with a loss of 29.5 million yuan in the same period last year, which was mainly due to the rebound in the value of the transactional financial assets held by the company; the investment income was 31.48 million yuan, compared with 5.53 million yuan in the same period last year, mainly due to the sale of some shares in Gaochun Ceramics and Bank of Communications; at the same time, the non-operating expenditure of the current period was 55.1 million yuan, mainly due to the loss of inventory under the company's import agents. The company puts all the holding cost of inventory and undeductible VAT input tax into non-operating expenses-caused by inventory loss; regardless of the above factors and the impact of non-operating income, the total profit for the current period is 39.56 million yuan. It was 50.28 million yuan in the same period last year.

Import and export business is not optimistic. The company's main business is import and export business, according to the disclosure of the China News, due to the continued downturn in the company's main export markets, including the United States, Europe and Japan, the decline in export orders and actual transactions caused by shrinking external demand is still very obvious, and the company's main foreign trade business has declined significantly. According to customs statistics, in the first half of 2009, the company's total import and export volume totaled US $255.85 million, down 28.85% from the same period last year, of which exports reached US $236.92 million, down 20.74% from the same period last year; imports reached US $18.93 million, down 68.81% from the same period last year. We think the above situation can be continued in the third quarter.

Earnings forecasts and ratings. Taken into account, considering that exports will gradually improve, we give profit forecasts of EPS of-0.02,0.07 and 0.13 yuan respectively for 2009-2011 to maintain the company's "neutral" investment rating.