Business transformation: In October 2008, Gaohong Co., Ltd. moved from the original communication technology development and communication equipment manufacturing business to IT retail business by acquiring the former Beijing Hengchang Pioneer Technology Co., Ltd. (Beijing Hengchang) and investing in the establishment of Beijing Datang Gaohong Electronic Technology Co., Ltd. (Gaohong Electronics). In the future, IT retail business will become the main source of the company's revenue and net profit; huge space: China's IT retail market is characterized by “a huge market, steady growth, and extreme fragmentation.” According to statistics from GFK and other authorities, the annual market capacity is over 400 billion yuan, and the average annual growth rate remains around 10%; on the other hand, the vast majority of the market share is scattered among many IT retail investors. Under the influence of the development rules of “chain, flat, and specialization” of the entire market, market share will accelerate in the future to chain enterprises with capital, brand, and model advantages. We believe that Gao Hong's IT retail business, supported by the financial strength of the Hengchang brand and Gao Hong, will achieve rapid growth in the future as market share tends to be concentrated; increase guarantee growth: the company's launch plan has recently been conditionally approved. It plans to issue no more than 80 million new shares at a price of no less than 6.46 yuan, raising 464 million yuan for the expansion of IT chain stores, mobile e-commerce systems, and the development of value-added Internet services. Once the capital raised is in place, it is expected that around 135 IT chain stores will be opened. The expansion plan in the development plan shows that in addition to continuing to consolidate the company's competitive position in the two core markets of Beijing and Shanghai, the company will focus on the layout of provincial capitals such as Kunming, Fuzhou, Chengdu, and Hangzhou, as well as wealthy second-tier cities such as Ningbo and Qingdao, in order to quickly establish a store network and market competitiveness in the second- and third-tier cities where demand is growing rapidly and competition is not obvious; long-term attention is recommended: With additional capital in place, rapid expansion of the company will be guaranteed in the future. Moreover, due to the company's low revenue base, the company's performance will be able to maintain a high growth rate in the next few years. We expect the company's revenue from 2009 to 2010 to be 1,529 million yuan and 2,073 billion yuan respectively, net profit attributable to shareholders of listed companies to be 19.59 million yuan and 28.78 million yuan, respectively, and diluted EPS of 0.058 yuan and 0.085 yuan, with year-on-year growth rates of 75.51% and 46.91%. We recommend that investors focus on the potential for continued growth of Gaohong Co., Ltd. after entering the IT retail market and business transformation, and we will also continue to follow up on the company.