The results of the three-quarter report were generally in line with expectations: revenue of 780 million yuan, up 49.7% year on year; net profit of 45.74 million yuan, earnings per share of 0.07 yuan, down 17.7% year on year, mainly due to investment income from subsidiaries falling 26.3% year on year; excluding the impact of investment income, the company headquarters lost 73.2 million yuan, a decrease of 30.8% year on year, slightly lower than our expectations. Investment income fell 26.3% year on year, an improvement from a sharp drop of 45.7% year on year in the first half of the year. We judge the main reason is ① the operating losses of Huafei, which the company participated in in May last year, had only 1 month and 6 months of impact on the company's 2007 and the first half of 2008, respectively, causing investment income in the first half of the year to fall a lot year on year; while the impact on the first three quarters of 2007 and 2008 was 4 months and 9 months, respectively, so the decline in investment income decreased. ② The loss in Sony Ericsson's 3 quarterly report may adversely affect Beijing Soi Putian (BMC), so we maintain our expectations of a year-on-year decline in investment income. The division's business continued to reduce losses: the loss of the headquarters in the first three quarters was 73.2 million yuan, a year-on-year decrease of 30.8%, slightly lower than our expectations, mainly due to asset impairment losses exceeding expectations. The company's main business continued to reverse losses mainly due to: ① the company's revenue increased rapidly by 49.7% year on year; ② gross margin increased slightly by 0.7 percentage points year on year to 17.1%; ③ the period fee rate fell 5.8 percentage points to 25.9% year on year: maintaining profit forecasts and “neutral” investment ratings for A shares and H shares: Although the company's main business revenue grew rapidly in the first half of the year, the division's business continued to reverse losses, but overall, we maintained earnings of 0.093 yuan, 0.126 yuan per share from 2008 to 2010 The forecast of $0.143 converted to HKD earnings per share is $0.109, $0.143, and 0.157, respectively. Corresponding to current stock prices, the price-earnings ratio of A shares from 2008 to 2010 reached 33.3 times, 24.7 times, and 21.8 times, respectively, and the valuations were high; the price-earnings ratios of H shares from 2008 to 2010 reached 5.4 times, 4.1 times, and 3.8 times, respectively, which is quite attractive. However, since the investment shareholding company has no control over the shares of the participating companies, it is difficult to accurately predict its investment returns, and its headquarters business has not yet reversed its losses, we think it is appropriate to show a certain discount compared to similar communication equipment companies in terms of valuation, so we maintain a “neutral” investment rating for A shares and H shares.