From January to January 2010, the company achieved operating income of 1,555 million yuan, a year-on-year increase of 26.23%; operating profit - 12.29 million yuan, a year-on-year increase of 10.72 million yuan; total profit of 11.81 million yuan, a year-on-year decrease of 8.55 million yuan; net profit attributable to owners of the parent company - 12.83 million yuan, a year-on-year decrease of 8.65 million yuan; and earnings per share - 0.03 yuan. Subsidiaries are fully put into operation and the industry is recovering to improve operating performance. Competition in the industry slowed down in the first quarter of 2010, and product prices rebounded year on year. At the same time, the company's Jiangxi production base was fully put into operation, showing a cost advantage. The gross margin for the first quarter of 2010 reached 32.08%, an increase of 7.86 percentage points over the previous year. The gross profit from sales increased by about 12.41 million yuan due to the recovery in gross margin. Gross sales margin increased by 2017 million yuan year on year, up 68.65% year on year. As a result of these, although operating profit for the first quarter of 2010 was negative, it improved year over year. The cost rate for the period decreased, and income tax increased. The company's annual expense rate for the first quarter of 2010 was 39.95%, down 2.78 percentage points from the previous year. Among them, the sales expense ratio decreased by 3.24 percentage points, the financial expense ratio decreased by 0.93 percentage points, and the management expense ratio increased by 1.39 percentage points. The main reason was that the Jiangxi production base was fully put into operation, the sales scale was expanded, and the company's personnel expenses increased by 2.45 million yuan; at the same time, land use rights amortization increased by 840,000 yuan over the same period last year. Income tax for the first quarter of 2010 increased by 510,000 yuan over the same period last year, mainly due to income tax expenses for profits of subsidiaries in Jiangxi. The sharp decline in non-operating income over the same period last year affected the level of net profit. The company's non-operating income for the first quarter of 2010 was 686,300 yuan, a year-on-year decrease of 96.53%. The main reason is that in the first quarter of 2009, the Jiangxi subsidiary received 18 million yuan in subsidies from the Jiangxi Fengcheng government to support the construction of sales channels, and this revenue was reduced in 2010. While the company's operating profit increased year over year, its net profit level declined year over year due to non-operating income. Operating cash flow declined significantly in the first quarter. Net operating cash flow for the first quarter of 2010 was -163 million yuan, a year-on-year decrease of 110 million yuan. The main reason is that industry prosperity rebounded in the first quarter of 2010, production and procurement investment increased dramatically, and the company used cash to pay accounts payable at the beginning of the year. As a result, accounts receivable fell by 130 million yuan, while operating cash outflow increased sharply. The release of production capacity at the Jiangxi subsidiary has entered a period of performance contribution. In 2010, the six production lines of the subsidiary Jiangxi Smick were fully put into operation, and the company's production capacity will reach 25.3 million square meters. In 2010, while building on the high-end, the company's products expanded the low-end market, and at the same time, as the industry recovered, the company began to raise prices. Earnings forecasts and investment ratings. The company's earnings per share from 2010 to 2012 are expected to be 0.13 yuan, 0.14 yuan, and 0.15 yuan. Based on yesterday's closing price of 11.61 yuan, the corresponding dynamic PE is 96 times, 84 times, and 77 times, maintaining the company's “neutral” rating.