From January to March 2009, the company achieved total operating income of 64.87 million yuan, down 45.7% from the same period last year; operating loss of 8.67 million yuan, operating profit of 14.76 million yuan for the same period last year; net loss of-9.06 million yuan, net profit of 12.66 million yuan for the same period last year; and basic earnings per share of-0.04 yuan. The company expects a net loss of 140 million to 19 million yuan for the first six months of 2009, corresponding to earnings per share of-0.06 yuan to-0.08 yuan.

Orders have improved month-on-month since March. The company's performance was severely affected by the financial crisis in the fourth quarter of 2008. During the reporting period, especially since March, the company's orders have recovered somewhat, and capacity utilization has gradually picked up. Although revenue still fell 14.5% month-on-month, gross profit margin rebounded to 0.9% in the first quarter, thus reducing the company's loss. During the reporting period, mainly due to the depreciation of the euro, the company's financial expense rate increased by 3.4 percentage points compared with the same period last year.

The revenue in the communications field accounts for a small proportion of the business, and the company's performance is relatively little driven by 3G investment. According to the downstream industry, the area that accounts for the largest proportion of the company's revenue is the field of automatic control equipment, but it only accounts for about 10%. Communications equipment and automotive electronics account for 8% and 7% of the company's revenue, respectively. In 2009, the electronic information industry is difficult to get rid of the depressed situation, only the demand brought by domestic 3G investment is relatively clear, but the company's business from the communications field accounts for relatively small, therefore, the domestic 3G investment has little impact on the company's performance. In addition, nearly 50% of the company's revenue comes from Europe, and the current economic disaster area in Europe will also bring great challenges to the company's operation in 2009.

It is expected that operating conditions will further improve in the second quarter of 2009 compared with the previous quarter, and the turning point in performance may occur in the second half of the year. We expect the operating rate to reach about 70% in April. At the same time, we know that compared with the short order structure in the first two months of 2009, the company has received some long orders one after another in the past month. After inventory digestion at the end of 2008 and early 2009, downstream manufacturers have a need to replenish inventory, so we believe that the increase in orders since March is not enough to support the conclusion that the industry has bottomed out. Whether orders can continue to grow in the second quarter still depends on the steady recovery of downstream demand. But in any case, the decentralization of long-term orders from downstream customers means, to some extent, an improvement in downstream manufacturers' expectations for the future. Under the circumstances that the operating rate is higher than that in the first quarter and the order structure in the second quarter is more reasonable, we expect the company's operating results to further improve in the second quarter compared with the previous quarter. The company's performance turning point may occur in the second half of the year.

It is estimated that the company's earnings per share in 2009 and 2010 are 0.08 yuan and 0.14 yuan respectively. In the current uncertain macroeconomic environment, it will take time for the printed circuit board industry to pick up, and the company is still facing the risk of further decline in domestic and foreign demand in the future. Maintain a "neutral" investment rating on the company.