In the economic downturn, revenue fell compared with the same period last year.

Kane shares (002012) third quarterly report: net profit in the third quarter of 2012 was down 40.59% from a year earlier; net profit in the first three quarters of 2012 was down 31.09% from a year earlier; and net profit in 2012 is expected to fall 10% to 40% year-on-year. The reason is that the macro-economy remains in the doldrums, the market demand has not improved significantly, and the company's (002012) sales revenue fell 15.41% from January to September 2012 compared with the same period last year, thus affecting the company's performance. Taxes and fees payable increased by 178.03% compared with the same period last year, mainly due to the retention of VAT payable in the previous period. However, as a leading company in the specialty paper industry, the gross profit margin of Kane shares remains high. The gross profit margin of the paper industry in the first half of this year was 37.64%, which was basically the same as that of last year and slightly higher than that of the year before last.

The cost of imported pulp is expected to reduce the appreciation of RMB and activate special paper plate.

The central parity rate of the yuan against the dollar was 6.2992 yuan on Oct. 29, up 18 basis points from the previous session and the highest since May 11. On the same day, the spot exchange rate of RMB against the US dollar hit another intraday high since the exchange rate reform in 2005.

Since 2010, due to the weakening demand and the depressed market, the price of papermaking raw materials has been falling all the way and is generally at an all-time low. Recently, although the price of pulp and waste paper has stabilized slightly due to the arrival of the peak season of the industry, the appreciation of the RMB makes the cost of papermaking enterprises using imported pulp as raw materials to be further reduced, causing the papermaking sector to rise against the trend. When the RMB is strong, it is directly beneficial to raw material importers and asset industries denominated in foreign currencies. Due to the low utilization rate of waste paper in China, there is a large amount of imported pulp in the papermaking industry. at present, 70% of the raw material pulp in the papermaking industry depends on imports, and the degree of external dependence remains high. therefore, the paper industry will benefit first and benefit most from the appreciation of the RMB, which will slow down the performance pressure of listed papermaking enterprises to a certain extent. Specifically, it will have an impact on the paper industry from two aspects: the reduction of the cost of imported raw materials and the reduction of exchange rate losses on product exports.