From January to March 2010, the company achieved operating income of 41 million yuan, a year-on-year increase of 168.30%, a year-on-year decline of 32.82%; net profit attributable to the owners of the parent company was 8.55 million yuan, an increase of 391.03% over the previous year, an increase of 32.89% over the previous year; and EPS of 0.08 yuan, in line with expectations. Affected by rising raw material prices, the company's consolidated gross margin for the first quarter fell 4 percentage points year on year. The company's consolidated gross margin for the first quarter was 38.31%, down 3.99 percentage points from the previous year and up 0.91 percentage points from the previous month. The company's main raw material is enameled copper wire. Affected by rising copper prices, the company's consolidated gross margin declined year-on-year in the first quarter. Considering the impact of raw material prices, we expect the company's consolidated gross margin to fall to around 37% in 2010. The company's fee rate for the first quarter decreased by 11 percentage points month-on-month. The company's annual expense ratio for the first quarter was 16.23%, down 18.13 percentage points from the previous year and down 10.93 percentage points from the previous month. Among them, the sales expense ratio was 6.46%, down 12.02 percentage points from the previous year, down 8.26 percentage points from the previous year; the management expense ratio was 10.44%, down 13.85 percentage points from the previous year, down 2.27 percentage points from the previous year. The sharp decline in the sales expense ratio and management expense ratio was the main reason for the decline in the company's expense ratio during the period. Benefiting from the continued recovery of large and medium buses, the pace of the company's growth may accelerate in 2010. The company mainly produces three retarder products: B type, R type and M type. Among them, the B type and R type are mainly used for large and medium-sized buses, while the M type is used for heavy cargo trucks. Since heavy-duty cargo trucks are a newly opened distribution market, the majority of the company's revenue comes from B-type and R-type retarders supporting the bus market. In 2009, the company's B series retarder achieved sales revenue of 103 million yuan, a year-on-year decrease of 3.53%; R series retarders achieved sales revenue of 53 million yuan, an increase of 37.66% over the previous year. From January to March 2010, the country sold 22,800 large and medium-sized buses, an increase of 81.56% over the previous year, with an average monthly sales of 7,616 vehicles, higher than the 2009 monthly average of 7,402. Sales figures continued to improve. Against the backdrop of continued growth in sales of large and medium buses driven by the recovery in passenger tourism, we expect that while R series retarders continue to maintain steady growth, the sales growth rate of B series retarders will pick up at the same time, and the pace of the company's revenue growth in 2010 is expected to accelerate. Earnings forecasts, investment advice, and risks. The company's 2010-2012 EPS is estimated to be 0.33 yuan, 0.42 yuan, and 0.53 yuan respectively. Based on the current closing price of 22.39 yuan, the dynamic P/E corresponding to the company in 2010 is 69 times. The valuation is relatively high, and the “neutral” investment rating for the company is maintained for the time being. The company's risks are mainly reflected in the risk of declining profitability due to the rise in the price of the raw material copper, and the risk that sales volume in the large and medium bus market falls short of expectations, etc.