According to the 2009 annual report, the company achieved annual revenue of 1,726 billion yuan, up 2.81% year on year; realized total profit of 149 million yuan, up 43.91% year on year; net profit attributable to the parent company was 86 million yuan, up 77.14% year on year; diluted EPS was 0.36 yuan. The strategic adjustments are beginning to bear fruit, and the core business is becoming more prominent. Since October 2009, the company has ceased to be engaged in the development of hotels, restaurants, commercial housing, etc., and has determined that the core business is R&D, production and sales of high-voltage insulators for power transmission and transformation, clean and environmental protection equipment and engineering, and integrated opto-mechatronics surveying and mapping instruments. At the same time, it is also involved in automobile sales and other fields, in an effort to form an operating industry pattern dominated by advanced manufacturing. The main business grew slightly, and the return on investment increased net profit. In order to make strategic adjustments and highlight its main business, the company successively completed the equity withdrawal and transfer of four subsidiaries in 2009, including Chuangyuan Shuangxi Dairy (Suzhou) Co., Ltd., Chuangyuan Real Estate, Xucheng Company, and Jingyuan Company. The above share transfer revenue was 87.3716 million yuan, and the total transfer income was 405.938 million yuan, which included the company's investment income and increased the company's profit in 2009. Launch a refinancing plan to support the strengthening of the main business. The company signed a relevant agreement with Fushun Hi-Tech and its shareholders in December 2009 to acquire 43% of Fushun Hi-Tech's shares and unilaterally increase its capital. At the same time, it is proposed to launch a refinancing plan using a non-public offering of shares. At present, the relevant matters have been approved by the Jiangsu Provincial State-owned Assets Administration Commission. Meanwhile, the China Securities Regulatory Commission has officially accepted the company's application for the non-public offering of shares. Big profits are expected in the future, but the timing is difficult to determine. After holding Fushun Hi-Tech, Fushun Hi-Tech will become another important platform for the company in the electric porcelain insulator business, and can complement the company's original advantages in terms of resources and business, exert synergy effects, and help the company continue to optimize its business structure. Fushun Hi-Tech is the main base for the development and production of electric porcelain insulators for high voltage and ultra-high voltage power transmission and transformation equipment in China, and its ultra-high voltage and ultra-high voltage electric porcelain production line construction projects have strong profitability. If the subsidiary project is successfully put into operation, it is expected to bring rich profits to the company in the future. However, the project itself has a certain construction period and an experimental period, and it is still difficult to determine when it will fully reach normal mass delivery. Profit forecast and investment rating: The company's 2010 and 2011 EPS are expected to be 0.44 yuan and 0.68 yuan, respectively. Based on the closing price of 11.96 yuan on February 12, the corresponding dynamic PE was 27 times and 18 times, respectively. We are maintaining the company's “neutral” rating for the time being. Risk warning: 1) uncertainty about the growth rate of downstream demand; 2) risk of fluctuations in the prices of raw materials such as energy.