From January to September 2010, the company achieved operating income of 193 million yuan, a year-on-year decrease of 9.04%; operating profit of 42.68 million yuan, a year-on-year decrease of 20.71%; net profit attributable to owners of the parent company of 38.27 million yuan, a year-on-year decrease of 16.12%; and basic earnings per share of 0.38 yuan/share. Judging from single-quarter data, in the third quarter of 2010, the company achieved operating income of 63 million yuan, a year-on-year decrease of 9.11%; operating profit of 15.39 million yuan, a year-on-year decrease of 4.76%; net profit attributable to parent company owners of 13.7 million yuan, an increase of 0.17% year-on-year; and single-quarter earnings of 0.13 yuan/share in the third quarter. The recovery in overall gross margin and the increase in the company's interest income due to the availability of capital raised were the main reasons why the company's net profit stabilized in the third quarter. The consolidated gross margin rebounded in the third quarter. From January to September 2010, the company's comprehensive gross profit margin was 39.46%, down 0.94 percentage points from the previous year. Among them, the quarterly composite gross profit margin for the third quarter was 39.97%, down 0.52 percentage points from the previous year; compared with the gross margin for the second quarter, it increased 5.82 percentage points from the previous quarter. The recovery in overall gross margin was mainly due to companies increasing procurement volume in the first half of the year when steel prices were low, resulting in lower unit production costs carried over from the third quarter. The ability to control costs during the period was reduced. From January to September 2010, the company's fee rate for the period was 15.87%, an increase of 1.56 percentage points over the previous year. Among them, the sales expense ratio was 7.61%, up 1.72 percentage points from the previous year; the management expense ratio was 8.31%, down 0.03 percentage points from the previous year; and the financial expense ratio was -0.05%, down 0.12 percentage points from the previous year. The company's product market space is vast, and future performance will grow steadily. The couplings and other products produced by the company can be widely used in steel, machinery, shipbuilding, automobile and other industries, and the market space is broad. The company has now established a strategic partnership with China Yizhong. Therefore, while consolidating the existing steel industry market, the company has the ability to expand into other industries. Given the company's order situation, we expect the company's performance to remain stable in 2010. With the gradual recovery of steel investment in 2011 and the deepening of the company's market development, the company's performance in 2011 will improve. Profit forecast and investment rating: Earnings per share for 2010-2012 are expected to be 0.62 yuan, 0.84 yuan, and 1.59 yuan, respectively, corresponding to the latest closing price of 22.71 yuan, and price-earnings ratios of 37 times, 27 times, and 14 times, respectively. We are maintaining a “neutral” investment rating for the time being. Risk warning: The risk of a sharp decline in the macroeconomic economy and a decline in the competitiveness of the company's products.