The company's EPS for the first three quarters of 2012 was 0.0203 yuan, which was basically in line with our expectations. From January to September 2012, the company achieved operating income of 1,076 billion yuan, up 3.39% year on year; total profit of 27.667 million yuan, down 67.8% year on year; realized net profit attributable to shareholders of listed companies of 4.6817 million yuan, down 90.26% year on year; EPS was 0.0203 yuan, which is basically in line with our expectations. The slump in the glass industry led to a sharp drop in the volume and price of the company's products, and profitability declined sharply year on year. Currently, the company's downstream applications are mainly used in the glass industry and cement industry. The downturn in the downstream industry, especially the glass industry, led to a decrease in the company's orders in the first three quarters and a drop in product prices. Among the company's main products, cast zirconium corundum series, cast aluminum oxide series, and silicon-based refractory materials are mainly used in glass kilns. Due to the sharp year-on-year drop in orders from the company's main customers, flat glass companies, the sales volume and price of the company's products fell sharply, and the capacity utilization rate of cast refractory materials also dropped from over 90% last year to about 50%. The company's gross margin for the first three quarters was 22.51%, down 3.7 percentage points from the previous year due to a combination of factors such as volume and price declines, as well as rising raw material prices and depreciation costs. Looking at the single quarter, the company's gross profit margin for the third quarter was 21.98%, down 1.88 percentage points from the previous year, up 0.63 percentage points; the net profit margin for the third quarter was 0.63%, down 5.69 percentage points from the previous year, and up 0.36 percentage points from the previous month. The company's profit improved slightly from month to month in the third quarter. Downstream operating difficulties have led to a sharp increase in the company's accounts receivable. The company's accounts receivable reached 800 million yuan in the third quarter, an increase of 62.55% over the previous year. One reason is that the downstream industry is difficult to operate and efficiency has declined, making it difficult to recover payment. Another reason is that the company established a new Huadong Ruitai Technology Co., Ltd. and acquired and increased the capital of Hunan Xiangyi Fire. The increase in the scope of the merger led to an increase in accounts receivable. The sharp increase in accounts receivable this year is a common problem faced by all refractory companies. At present, the company has begun to take measures to recover the purchase price as soon as possible, and it is expected that the company's accounts receivable will drop significantly in the fourth quarter. We are optimistic about the future development space of the company's refractory materials sector for cement kilns. The company's cement sector has grown rapidly this year, and refractory materials for cement kilns have become the company's largest business, surpassing the glass sector. Because the glass sector showed a clear year-on-year decline, it overshadowed the growth of the cement sector. We expect that in the future, there will be only stocks of refractory materials used in cement kilns, and there will be about 1.2 million tons of replacement space every year. In the future, the cement sector will remain a key sector for the company's vigorous development. Valuation and investment recommendations. We expect the company's EPS to be 0.05 yuan, 0.12 yuan, and 0.23 yuan respectively in 2012-2014. Considering that the company's cement sector will continue to grow rapidly in 2013, the company will build a triangular structure of the international market, daily-use glass and flat glass in the glass sector, which will improve the glass sector, and we will continue to maintain the company's “increase” rating.