From January to September 2009, the company achieved operating income of 67.74 million yuan, an increase of 148.7% over the previous year; operating profit of 1.34 million yuan, a loss in the same period last year; net profit attributable to the parent company of 4.31 million yuan; and basic earnings per share of 0.05 yuan. Revenue for the first three quarters increased year over year. Among them, revenue for the third quarter increased 158% year on year. The company's main business is the production and sale of lead-acid batteries. The reason for the increase in operating income is that in the same period last year, the company's revenue base was low due to the cessation of production due to the snow disaster and the financial crisis. This year, the company's production and operation were normal and the subsidiaries expanded their business scope, resulting in a significant increase in the company's operating income over the same period last year. Gross margin increased year over year. In the first three quarters, the company's consolidated gross margin increased 1.7 percentage points year-on-year to 8.1%. The main reason for the increase in gross margin is that the company's production and sales have returned to normal. It benefits from automobile-related policies, but the product structure alone affects the company's development. Downstream of the company is the automobile industry, so the company also benefits from the policy of driving to the countryside. However, the company has a single product structure. The only product is lead-acid batteries, and the sales radius is small. The sales scope is only in Sichuan, Chongqing, and Hubei, which affects the company's profitability. Profit forecast: The company's 2009-2010 EPS is expected to be 0.06 yuan and 0.09 yuan respectively. Based on the closing price of 10.59 yuan on October 29, the corresponding dynamic price-earnings ratio is 183 times and 122 times, giving a neutral rating. Risk warning: (1) the company has a single product structure; (2) the risk of policy changes in the automotive industry.