The three-quarter report announced: The decline in performance fell short of expectations. Operating income for the first three quarters was 463 million yuan, and net profit attributable to shareholders of the parent company was 42.59 million yuan, up 10% year on year and down 24%, respectively. Quarterly revenue and net profit for the third quarter increased 23% and fell 24% respectively, while third-quarter revenue increased 16.6% month-on-month, and profit fell 9.5% month-on-month; full-year net profit decline is expected to be within the -30% to -10% range. Comment: Higher costs have led to lower profits, but gross profit recovery has also fallen short of expectations. The company's revenue growth was generally in line with expectations, but net profit for the third quarter was slightly lower than expected. The company's gross margin remained stable in the third quarter, but fell slightly below our expectations, and there was no significant recovery. The decline in net profit is mainly the increase in sales expenses and management expenses. Among them, management expenses accounted for a 1% increase in sales, a net increase of 2.5 million yuan. Looking ahead, we expect Tarim, Xinjiang Oilfield, Dagang Oilfield, and Changqing Oilfield to be the focus of the three mining markets. Other things being equal, the corresponding future market demand for new polymers in Tarim, Xinjiang Dagang, and Changqing Oilfields will exceed 160,000 tons. If the development of new markets goes smoothly, the company's market share is expected to increase further. New projects in the water treatment market and other companies may bring new growth points; valuation and investment recommendations. The 2012 performance was lowered from 0.18 yuan to 0.15 yuan, and the 2013-2014 EPS is expected to be 0.19 yuan, 0.24 yuan, and 0.42 yuan. According to the closing price on October 25, 2012, the corresponding PE is 70 times, 54 times, and 45 times. Maintain an increase in holdings rating.