From January to September 2010, the company achieved operating income of 528 million yuan, a year-on-year increase of 32.21%; operating profit of 79.81 million yuan, a year-on-year decrease of 0.6%; net profit attributable to the parent company of 67.51 million yuan, a year-on-year decrease of 8.7%; and achieved basic earnings per share of 0.37 yuan/share. Judging from single-quarter data, in the third quarter of 2010, the company achieved operating income of 172 million yuan, a year-on-year increase of 20.49%; operating profit of 22.07 million yuan, a year-on-year decrease of 19.02%; net profit attributable to owners of the parent company was 18.63 million yuan, a year-on-year decrease of 29.33%; and earnings per share for the third quarter were 0.10 yuan/share. The sharp increase in financial expenses was the main reason for the decline in the company's third-quarter results. If the impact of increased financial expenses is deducted, the company's operating profit for the third quarter should have increased by more than 25% year-on-year in a single quarter. Overall gross margin declined. From January to September 2010, the company's comprehensive gross profit margin was 33.63%, a year-on-year decrease of 3.26 percentage points. Among them, the consolidated gross profit margin for the third quarter was 33.85%, down 3.27 percentage points from the previous year. Compared with the gross margin for the second quarter, it decreased 0.12 percentage points from month to month. The decline in gross margin was mainly due to lower settlement order prices in the first half of the year, and the company purchased more new equipment, increasing expenses on low consumables such as tooling and tools as equipment was used. The ability to control expenses was weakened during the period. From January to September 2010, the company's expenses rate for the period was 16.78%, an increase of 2.26 percentage points over the previous year. Among them, the sales expenses ratio was 4.96%, down 0.23 percentage points from the previous year; the management expenses ratio was 8.7%, up 0.43 percentage points from the previous year; and the financial expenses ratio was 3.11%, up 2.06 percentage points from the previous year. The increase in management expenses was mainly due to an increase in R&D expenses, depreciation, etc.; the significant increase in financial expenses was mainly due to the capitalization of loans invested in technology reform in the previous year, and financial expenses for the reporting period were included in current profit and loss. The increase in expenses for the period further weakened the company's profitability. The private additional distribution project has become a growth point for the company. If the project progresses smoothly, the compound growth rate of performance over the next 3-4 years will not be less than 40%. The company's two fund-raising projects are a modular gear motor technology transformation project with an annual output of 40,000 units and a large-scale wind power gearbox industrialization project with an annual output of 400 units. The two projects have broad market demand prospects. Profit forecast and investment rating: Earnings per share are expected to be 0.47 yuan, 0.71 yuan, and 0.87 yuan respectively in 2010-2012, corresponding to the latest closing price of 15.67 yuan. The price-earnings ratios are 34 times, 22 times, and 18 times, respectively, maintaining the company's “increase” investment rating.