From January to September 2009, the company's operating income was 25.61 million yuan, a year-on-year decrease of 5.74%; operating profit of 480,000 yuan, a year-on-year decrease of 94.79%; net profit attributable to owners of the parent company was 1.24 million yuan, a year-on-year decrease of 88.41%; and basic earnings per share of 0.013 yuan. From July to September 2009, the company achieved operating income of 7.28 million yuan, a year-on-year decrease of 22.68%, a year-on-year decrease of 27.69%; operating profit of 95,000 yuan, a year-on-year decrease of 101.41%, a year-on-year decrease of 120.94%; net profit attributable to owners of the parent company - 90,000 yuan, a year-on-year decrease of 114%, a decrease of 107% over the previous year; and basic earnings per share - 0.001 yuan. The company's main business is research and development of biopharmaceuticals, Chinese and Western medicines; production and sales of small-volume injections and lyophilized powder injections. The company's main products are rofloxacin hydrochloride capsules, hepatocyte growth-promoting hormone, and thymopeptide. Operating income declined sharply, but gross margin increased: In the third quarter of 2009, the company's operating income fell by 22.68% year on year and 27.69% month on month, and the main business contracted. However, gross margin in the third quarter reached 33.8%, an increase of 16.8 percentage points over the previous year and 8.4 percentage points over the previous year, and the company's ability to control operating costs gradually increased. The sharp increase in expenses during the period affected the company's profitability: in the third quarter of 2009, under the premise of a sharp decline in operating income, sales expenses increased, and management expenses remained high. The period expense ratio reached 34.2%, an increase of 4.5 percentage points over the previous year, and an increase of 14.2 percentage points over the previous year, seriously hampering the company's profitability. The company began losing money for two years in a row in 2005, and net profit attributable to the owners of the parent company became positive in 2007, but operating profit remained negative. Operating losses began to be drastically reduced in 2008, and operating profit in 2009 is expected to begin to be positive. The next two years are the key for the company. If efforts are made to increase gross profit margins and control period expenses, the company is expected to enter a normal development path. Profit forecast and company rating: We expect the company's earnings per share for 2009-2011 to be 0.01, 0.01, and 0.02 yuan, respectively. Since there is great uncertainty about the future of the company, no ratings will be given for the time being. Risk warning: Uncertainty about the company's future earnings; the company's cash flow is lacking, and financing capacity is weak.