The 2009 three-quarter report shows that in January-September, operating income was 1,4031 million yuan, a year-on-year increase of 0.54%; operating profit of 19.1 million yuan, a year-on-year decrease of 47.82%; net profit attributable to owners of the parent company was 14.43 million yuan, a decrease of 56.95%; and earnings per share of 0.025 yuan, lower than our expectations. The company's consolidated gross margin for January-September was 13.84%, down 2.89 percentage points from the same period. Judging from the semi-annual report by product, the gross margin of all products, including formulations, declined to varying degrees; during the reporting period, the company controlled management expenses and sales expenses, and the period expense ratio was 12.47%, down 1.57 percentage points from the same period. Among them, management expenses were reduced by 6.72, and sales expenses were reduced by 6. 32%. As interest rates on bank loans fell, financial expenses fell 27.87% year over year. Shandong Lugang Like Pharmaceutical Chemical Co., Ltd., in which the company participated, contributed 4.77 million yuan in investment income during the reporting period, which is similar to last year, but its share of operating profit increased from 15.03% to 28.6g%. Product prices have fallen, and overall gross margin has declined. The company is one of the four major antibiotic production bases in China, and is currently the only company in China with a complete production chain of three hemisyncytic antibodies. Overall gross margin declined 2.89 percentage points during the reporting period. Judging from the semi-annual report by product, the gross margin of pharmaceuticals fell 1.4 percentage points, antibiotic APIs fell 11.4 percentage points, veterinary antibiotics fell 2.6 percentage points, and hemivalent antibodies were still in a loss situation. The company's formulations are basically generic drugs. There are many manufacturers, and competition in the market is very motivating, so a drop in prices is inevitable. Veterinary antibiotics also faced the same problem. In the early stages, several veterinary antibiotic companies continued to sell at low prices in order to seize the export market, causing prices to drop again and again. Antibiotic APIs and semiconducting raw materials are mainly affected by cyclical fluctuations in penicillin and cephalosporin. After two boom cycles in 2007 and 2008, the prices of penicillin and cephalosporin have been constantly adjusted. Low prices have forced some companies to stop production or switch production. At the beginning of October, penicillin industrial salt took the lead in raising prices, starting a new cycle of price increases. According to current price calculations, the company's gross margin for anti-infective APIs in the fourth quarter will return to the same period last year. If the price increases of penicillins and cephalosporins continue, it will be very beneficial to the recovery of the company's performance. Multiple drug varieties have entered the essential drug catalogue. On August 29, the company announced that 21 varieties had entered the national essential drug catalogue. The main ones are penicillin injections, streptomycin injections, ampicin injections, pipera injections, head V injections, triaxone injections, amoxicillin oral regular release dosage forms, cephalexin regular oral dosage forms and granules, simvastatin oral regular release dosage forms, etc. The sales share of these products in 2008 was over 74.44% of the company's and subsidiary's pharmaceutical products.