Event description Jialinjie (002486) released its 2013 three-quarter report today. The main operating results are as follows: during the reporting period, it achieved operating income of 70,84474 million yuan, an increase of 10.83% over the same period last year; and realized net profit attributable to shareholders of listed companies of 477.714,900 yuan, an increase of 49.47% over the same period last year. , achieving earnings of 0.11 yuan per share. Incident review Revenue grew rapidly in the third quarter, and gross margin increased in the first three quarters of 2013. In the first three quarters of 2013, the company achieved a 10.83% increase in operating income. Among them, the growth rate in the third quarter was faster than in the first half of the year, and the revenue growth for the quarter reached 19.39%. Against the backdrop of relatively rapid revenue growth, the company's gross margin continued to increase, reaching 26.97% in the third quarter. The sharp increase in management expenses led to an increase in the overall cost ratio. In the third quarter of 2013, the company's sales expenses were 266.329 million yuan, an increase of 6.20% over the previous year. Management expenses were 256.357 million yuan, an increase of 54.98% over the previous year. The sharp increase in management expenses led to an increase in the overall cost rate for the period to 23.33%. The growth rate of accounts receivable improved compared to the second quarter, and cash flow improved from the first half of the year. At the end of the third quarter, the company's accounts receivable were 122,0992 million yuan, an increase of 11.10% over the previous quarter. Meanwhile, prepaid accounts increased 118.05% year on year. Both caused the company's operating cash flow to fall 13.42% year on year, but compared with the third quarter, the company's accounts receivable increased significantly in the second quarter. The cash flow from the company's operating activities improved compared to the first and second quarters. Subsidiaries received government subsidies as the main reason for the sharp increase in net profit. In the third quarter, the company achieved net profit of 2.0702 million yuan, an increase of 82.62% over the previous year. Although the company's gross margin continues to rise, profits are being eroded by rising management expenses. The increase in net profit was mainly due to non-recurring profit and loss. At the end of September 2013, Hubei Jialinjie Textile Co., Ltd., a holding subsidiary of the company, received a special incentive fund of 19.66 million yuan for the high-tech industry issued by the People's Government of Jiayu County in Hubei Province, which is the main reason for the increase in net profit. The “prudent recommendation” rating was given because the company received government subsidies, and we raised the company's 2013 performance forecast. The company's profit forecasts for 2013-2015 were 0.13 yuan, 0.13 yuan, and 0.17 yuan, maintaining the “prudent recommendation” rating.