According to the company's third quarterly report, in the first three quarters of 2009, the company realized operating income of 125 million yuan, down 30.62% from the same period last year; realized operating profit of 34.05 million yuan, down 477.08% from the same period last year; and realized net profit of 11.9 million yuan for shareholders of listed companies, an increase of 883.47% over the same period last year. Realize earnings per share of 0.03 yuan.

In the third quarter, the company realized operating income of 50.89 million yuan, down 37.17% from the same period last year; realized operating profit of-1.66 million yuan, down 84.91% from the same period last year; and realized net profit of owners of listed companies-820000 yuan, down 730.77% from the same period last year.

The financial crisis has had a comprehensive impact on the company's three major businesses. In the first three quarters of 2009, the company's revenue growth declined quarter by quarter: 13.28% in the first quarter, 38.05% in the second quarter and 37.17% in the third quarter. Under the influence of the financial crisis, the development of the company's chemical, retail and tourism and catering businesses are all in the doldrums. 1) Industrial business. The company's chemical business includes Zhengzhang washing and dyeing, chain laundry. As the company's main source of profit, under the influence of unfavorable factors such as increasingly fierce competition in the domestic market, rising raw material prices and high production costs, operating revenue fell 7.52% from January to June compared with the same period last year. 2) commercial business. One of the company's original commercial assets is Jing'an Temple Antique City. In 2008, the company plans to transform the commercial asset from an antique city to a business building. However, the investment of the property did not go well in 2008, which led to a decrease in rental income in that year. In addition, the company also holds a 30% stake in Shanghai Jiuguang Department Store. From January to June, the company's commercial business income decreased by 25.53% compared with the same period last year. We believe that it is still the main reason for Shenle Building (formerly Jing'an Temple Antique City) to attract investment; 3) Tourism, catering and service industries, the number of tourists affected by the financial crisis has declined, resulting in a sharp drop of 67.23% in the company's business revenue from January to June compared with the same period last year.

The sharp decline in income has led to a sharp rise in expense rates during the period. During the reporting period, the company's comprehensive gross profit margin increased by 5.94 percentage points compared with the same period last year due to varying degrees of increase in gross profit margin of each segment of business. However, due to the sharp decline in revenue, the expense rate during the period of the company soared year-on-year. In the first three quarters of 2009, sales expenses increased by 7.15% compared with the same period last year, which was the fastest growing item in the period. The company's overall period expense rate increased to 70.80% from 49.78% in the same period last year.

Non-recurring gains and losses surged, driving up profits. From January to September 2009, the company's net non-recurring profit and loss reached 63.04 million yuan, an increase of 37.25% over the same period last year. Among them, in the first half of the year, the company achieved an investment income of 46.67 million yuan by selling 7.8 million shares of Oriental Securities, accounting for 65.61% of the total investment income. However, non-operating expenses also increased to 24.68 million yuan. Excluding non-recurring profits and losses, the total profit of the company was-50.84 million yuan, down 15.86% from the same period last year.

Profit forecast and investment rating: we expect the company's EPS to be 0.02yuan and 0.01yuan respectively from 2009 to 2010. According to the closing price of 6.81yuan on October 29th, the corresponding dynamic PE is 401x and 970x respectively, maintaining a "neutral" rating.