The gross margin of the main business is low. The company mainly produces electric dust removal and flue gas desulfurization equipment for power plants. Due to excessive competition in the industry, the gross margin of the electric dust removal business, which accounts for about 70% of the company's revenue, is only 14%, and the gross margin of flue gas desulfurization is less than 10%. The barriers in the flue gas dust removal and desulfurization industry are too low. The National Development and Reform Commission has signed environmental responsibility certificates with the five major power groups. The renovation of old power plants will further increase downstream demand in the flue gas desulfurization and dust removal industry. However, companies in the industry lack core technology and manufacturing capacity for core equipment. A large number of companies have entered this market to compete at the low end, resulting in a continuous decline in product prices and a continuous decline in gross margin. It has an environmentally friendly concept, but lacks investment value in the near future. The company, like other enterprises in the industry, buys its core equipment from abroad, manufactures some of its own equipment, and outsources the rest. Enterprises mainly participate in the assembly and commissioning of equipment, and competition is mainly reflected at the level of public relations and sales. The lack of monopolistic technology, the high public relations costs of power systems, and the constant low price competition of new entrants make the company have an environmental concept but lack investment value. There was a lack of growth in performance in 06 and 2007, so a neutral rating was given. The company's earnings per share are expected to be 0.18 and 0.17 yuan in 06/07, giving it a neutral rating.