From January to September 2009, the company's operating income was 225 million yuan, down 66.33% from the same period last year; the total profit was-19.86 million yuan (compared with 12.67 million yuan for the same period last year); the net profit attributable to the owner of the parent company was-1986 yuan (12.99 million yuan for the same period last year); and basic earnings per share was-0.06 yuan. Among them, from July to September 2009, the operating income was 87.42 million yuan, an increase of 58.35% over the second quarter; the net profit belonging to the owner of the parent company was-8.28 million yuan, an increase of 6.53 million yuan over the second quarter; and basic earnings per share was-0.02 yuan.

The industry is in the doldrums, and the company's product sales, price and gross profit margin fall at the same time. Affected by the financial crisis, the demand for the company's main products was insufficient, the operating rate dropped, and the price dropped sharply, resulting in a sharp drop in operating income, and the decline in product prices far exceeded the decline in the cost of raw materials. During the reporting period, the company's gross profit margin was only 2.99%, down 6.61 percentage points from the same period last year. At the same time, the company closed its own power plant in October 2008, which increased power costs during the reporting period and further affected the company's profits.

During the period, the expense rate increased sharply compared with the same period last year. During the reporting period, the expense rate during the company period was 13.45%, an increase of 7.85 percentage points over the same period last year. The main reason is the decrease of product price, the decrease of sales volume and the sharp decrease of operating income.

Phosphate fertilizer overcapacity, the company operating pressure. The company's main business is the production and sales of ammonium phosphate, three elements, cement, bromine, liquid alkali and other products. However, the domestic phosphate fertilizer industry has serious overcapacity, the price of ammonium phosphate is still in the downward space, the company's profitability is weak, and it is difficult to reverse losses in the short term. The company issued a notice on October 30, stating that it is prepared to increase the fund recovery of accounts receivable. It plans to recover more than 50 million yuan of loans with an age of more than three years. 50% of the provision for bad debts has been recorded and recorded in profits and losses, and the provision for bad debts is expected to return 25 million yuan. At the same time, prepare to dispose of related assets to increase income.

Profit forecast and investment rating: as the company lost money for two consecutive years in 2007 and 2008, it is likely to lose money for the third consecutive year this year, so we will not give profit forecast and investment rating for the time being. Investors are asked to pay attention to investment risks.

Risk tips: the risk that accounts receivable cannot be recovered; the income from the disposal of related assets is uncertain; the risk of delisting.