On March 16, 2011, Demei Chemical issued an announcement to revise its performance report, raising the company's 2010 EPS from 0.43 yuan to 1.12 yuan. The adjusted EPS increased by 115.81% compared to 2009. The reason for the drastic change in the company's performance is due to changes in accounting treatment methods, which have brought huge fair value changes in the company's equity investment. In 2010, Tianyuan Group, where the company holds shares, and Oak Co., Ltd. were listed, and the company did not increase its capital in the same proportion. According to the requirements of the “Answers to the Questions on the Supervision of Listed Companies Enforcement of Corporate Accounting Standards” document, changes in the book value of shares held by the company are included in current profit and loss, totaling 212 million yuan. Excluding this portion of revenue, the company's net profit fell 19% year on year. The main reasons were: 1) the price of raw materials for printing and dyeing additives, the company's main business, rose sharply, and gross margin declined; 2) the company's direct investment income in Oak Co., Ltd. and Tianyuan Group declined due to equity dilution effects and raw material price increases. The main growth point for the company's future performance is equity investment and replicating the model of Tianyuan Group and Oak Co., Ltd. In the future, the company's investment income will account for more than 50% of total revenue, becoming the company's new main business. Currently, in addition to Tianyuan Group and Oak Co., Ltd., the company also holds 30% of Hunan Utel's shares and 60% of Zhejiang Lishui Doctor's shares. Also, in April of this year, the ban on Tianyuan Group shares held by the company will be lifted. Since Tianyuan Group's main chlor-alkali business is not related to the company's main business, the company may sell its shares. Profit forecasts and investment suggestions maintain the company's 2011 and 2012 EPS at 0.65 yuan and 0.79 yuan without considering the company's share sales, maintaining the recommended rating.