From January to September '09, the company achieved operating income of 222 million yuan, a year-on-year decrease of 4.02%; operating profit of 6.64 million yuan, an increase of 37.15%; net profit attributable to owners of the parent company of 6.75 million yuan, an increase of 9.21% over the previous year; diluted earnings per share of 0.06 yuan; the company expected a 0-30% increase in net profit for 2009. In a single quarter in the third quarter, the company achieved operating income of 76.79 million yuan, an increase of 24.21% over the previous year; operating profit of 3.06 million yuan, a loss of 1.59 million yuan in the same period last year; net profit attributable to the owner of the parent company of 2.79 million yuan, and a loss of 1.18 million yuan for the same period last year. Revenue has clearly rebounded. The company is mainly engaged in the production and sale of automotive interior fabrics and elastic fabrics. Revenue in the first three quarters was basically flat. The increase in the third quarter was significant, which was related to the low base for the same period last year. At the same time, domestic automobile sales were partially affected. Operating profit increased sharply, due to an increase in gross margin, while net profit was relatively stable, mainly due to a decrease in subsidies received and a decrease of 2.21 million in non-operating income. Profitability has improved. In the first three quarters, the comprehensive gross margin increased by 1.97 percentage points, mainly due to the strengthening of the company's cost control. The lower price of upstream raw materials was also partly due to a 0.53 percentage point increase in the cost ratio during the period, which was partly due to a 2 percentage point increase in the management fee rate, which was related to the company's strengthening of internal management. The financial expenses ratio fell 1.4 percentage points, mainly due to a reduction in loan amounts and a reduction in loan interest rates, which is normal. The single quarter showed a steady recovery. Looking at the single quarter, the performance showed a gradual upward trend. The gross margin reached 18.87% in the third quarter, which is already at a high level in history. We believe that it will take time for the industry's exports to recover, and strong domestic automobile sales may be a major benefit. Automotive interior fabrics are expected to drive significant growth in performance. Due to the relatively low base for the fourth quarter of 2008, profit growth will be guaranteed throughout the year. Failure in asset restructuring, or a factor that depressed stock prices. The company began planning asset restructuring matters in the first half of the year, and plans to get involved in the medical device field to boost overall performance, but the recent announcement was not approved by the Securities Regulatory Commission, which may later become a downward factor in stock prices. Profit forecasting and ratings. The company's earnings per share in 2009 and 2010 are expected to be 0.09 yuan and 0.11 yuan. The current stock price is 10.69, and the dynamic PE is 119 times and 102 times. The valuation is already too high, maintaining a “neutral” rating. Risk warning. Macroeconomic fluctuations increase risk.