From January to September 2010, the company achieved operating income of 589 million yuan, a year-on-year increase of 47.38%; operating profit of 91.74 million yuan, a year-on-year increase of 97.36%; net profit attributable to the parent company of 75.75 million yuan, an increase of 110.04%; and basic earnings per share of 0.39 yuan. At the same time, the company expects net profit attributable to the parent company to increase 60%-90% year-on-year in 2010. Judging from single-quarter data, in the third quarter of 2010, the company achieved operating income of 205 million yuan, a year-on-year increase of 30.97%; operating profit of 22.47 million yuan, a year-on-year decrease of 9.09%; net profit attributable to owners of the parent company of 22.4 million yuan, an increase of 20.30% over the previous year; and basic earnings per share of 0.11 yuan. The company's operating income is growing steadily. In 2010, the company strengthened product channel construction and market promotion efforts, so that the company's product sales maintained steady growth, and the company's operating income increased quarterly. Product profitability has been greatly improved. By optimizing the product structure and strengthening cost control, the profitability of the company's products has been enhanced. Among them, the gross margin of products increased by 1.82 percentage points year on year, and the cost ratio for the period decreased by 3.05 percentage points year on year. As a result, the company's operating profit and net profit increased significantly compared to the same period last year. The company plans to issue shares privately. The company plans to issue non-public shares and obtain capital for the technological transformation project of an electrical paper production line with an annual output of 11,000 tons, a technical transformation project for the filter paper series special paper with an annual output of 1.4 tons, and a new construction project for lithium-ion power batteries for vehicles. The company is mainly engaged in specialty paper business and rechargeable battery business, and is the only manufacturer of electrolytic capacitor paper series in China. The implementation of this fund-raising project will help consolidate the company's leading position in electrical paper in the country, enhance the company's competitive strength in the field of filter paper series specialty paper, expand and strengthen the rechargeable battery business, and help enhance the company's profitability. Earnings forecasts and ratings. We expect the company's EPS for 2010, 2011 and 2012 to be 0.53 yuan, 0.64 yuan, and 0.73 yuan respectively, corresponding to the closing price of 19.36 yuan on October 27, 2010, and the dynamic price-earnings ratio of 37 times, 30 times, and 27 times, respectively, maintaining the company's “increased holdings” investment rating. Risk warning: 1) The price of raw materials is unstable; 2) the risk of falling gross margin due to declining market demand and increased market competition.