The company's sales revenue and profits increased well in 2005, thanks to: (1) with the gradual commissioning of listed fund-raising projects, the company's production capacity increased. According to the annual report, of the two fund-raising projects, 20,000 tons of dyeing and finishing projects have been completed, and 20,000 tons of weaving projects are gradually put into production. (2) with the expansion of domestic and foreign markets, about 70% of the company's main business income in 2005 came from the Quanzhou area where it is located, and the sales revenue in this area increased by 27.77% compared with the same period last year; the company's foreign business sales increased rapidly in 2005, with an increase of 381.85% over the same period last year. It has accounted for 10.5% of the company's main business income (only 2.95% in 2004).

The company's main business is divided into four parts: weaving, bleaching and dyeing, yarn dyeing and sewage treatment, in which weaving and bleaching and dyeing are the main sources of revenue and sales profits. In 2005, the revenue from weaving and bleaching and dyeing accounted for 50.34% and 43.19% of the company's main business income, respectively, an increase of 42.17% and 32.39% over last year. The gross profit margin of weaving business and bleaching and dyeing business was different in 2005, and the gross profit margin of weaving business was 3.5% higher than that in 2004. on the other hand, the gross profit margin of bleaching and dyeing business decreased by 5 percentage points compared with 2004 due to the increase in fuel power and dyeing chemical prices caused by the high international oil price in 2005. As a result, most of the increase in the company's gross sales margin in 2005 came from the weaving business.

In 2005, the company invested 45 million yuan in Shandong Yutai Fengzhu cotton spinning project, and plans to invest 76.95 million yuan in Jiangxi Ruichang 50,000 yarn knitting cotton spinning project. The annual report shows that in 2005, the company's new spinning business achieved sales income of 177500 yuan, which was in a state of loss. We believe that increasing investment in cotton spinning projects is the company's exploration in improving the industrial chain, which aims to provide raw material supply, but it is difficult to produce great benefits in the short term.

At the end of 2005, the company's inventory increased by 32.46 million yuan, an increase of 65.42% over the beginning of the period, mainly because the company increased its reserve of cotton yarn, the raw material needed for production. Accounts receivable increased significantly by 75% with the increase in credit sales brought about by the expansion of the company's sales scale. Among the company's expenses for the period 2005, the operating expenses increased by 49.02% compared with the same period last year, mainly due to the increase in staff wages and self-export expenses due to the expansion of the sales scale; the company's financial expenses were negative in 2004 and increased significantly to 6.1259 million yuan in 2005. It is mainly due to the increased exchange loss of the euros purchased for the equipment to be imported due to exchange rate changes.

It is estimated that the company's earnings per share in 2006 and 2007 are 0.34 yuan and 0.40 yuan respectively, and the dynamic price-to-earnings ratio is 10.12 times and 8.6 times respectively. In 2005, the company grew well due to the expansion of production capacity. The dyeing and finishing project in the IPO project has been completed, while the construction progress of the knitting project lags behind expectations. With the continuous expansion of production capacity, we have a wait-and-see attitude on whether the company's sales can keep up. At present, we cautiously give G Fengzhu investment rating as follows: in the next 12 months, the market will be synchronized.