In the first three quarters, the company achieved operating income of 671 million yuan, a year-on-year increase of 7.14%; operating profit of -7.96 million yuan, a year-on-year decrease of 120.27%; total profit of 11.62 million yuan, a year-on-year decrease of 71.09%; and net profit attributable to owners of the parent company was 10.42 million yuan, a year-on-year decrease of 66.45%. The basic earnings per share were realized at 0.03 yuan. The decline in gross margin and the increase in the period cost ratio led to a decline in performance. Due to the continuing impact of the financial crisis, the building ceramics market is sluggish, making it difficult for demand to increase. Increased price competition in the market has led to a decline in product prices, and the company's profitability has been affected. The gross margin for January-September 2009 was 27.9%, down 7.1 percentage points from the previous year. At the same time, the period fee rate was 28.9%, an increase of 1.1 percentage points over the previous year. The main reason is the increase in the financial expense ratio in January-September, which was 1.9%, an increase of 1.5 percentage points over the previous year. The large appreciation of the RMB in the same period last year, the year-on-year decline in interest rates, the decline in bank loans, and the reduction in special fund raising account deposits are the reasons for the decline in the financial expenses rate. The company's short-term solvency declined slightly. As of September 2009, the company's balance ratio was 42.26%, down 2.31 percentage points from the beginning of the year. The liquidity ratio was 0.95, down 0.21 from the beginning of the year. It shows that the increase in the company's current assets is lower than the increase in current liabilities. This is related to the company's new line of production and the decline in market demand. The third quarter results continued to rebound. The company continued to improve in the third quarter after its operating profit turned negative in the second quarter. The company achieved operating profit of 909 yuan in July-September 2009, a year-on-year decrease of 29.32%, a year-on-year decrease of 74.03% from the second quarter, and a year-on-year recovery of 44.71 percentage points from the second quarter. It also shows signs that market demand is beginning to pick up. Three production lines of Jiangxi Smick will be put into operation by the end of the year. The company's subsidiary, Jiangxi Smick, has 2 production lines and 1 production line, which were put into operation in April and August 2009, respectively. Three other production lines have also been commissioned and will be put into operation once the gas supply is normal. The company's gas sources are coalbed methane supplied by Ganghua Gas Company and gas generators for homemade gas projects. At present, gas can fully meet the normal production of the 3 production lines and 1 test line that have already been put into operation. It is expected that after completing 4 gas generators by the end of the year, the company will ensure that the other 3 production lines and 1 test line of Jiangxi Smick will be produced normally. Earnings forecasts and ratings. The company's earnings per share for 2009 and 2010 are expected to be 0.06 yuan and 0.14 yuan. Based on the calculation of the closing price of 10.31 yuan on the previous trading day, the company's corresponding dynamic PE is 172 times and 74 times. Based on the rebound period of the company's performance and the continuous commencement of new production lines by Jiangxi Smick, the company maintains the company's “neutral” rating. The ratings will be adjusted in a timely manner according to the company's situation later.