Release of the three-quarter report: Lao Fengxiang's revenue for the first three quarters was RMB 26.742 billion, down 1.69% year on year. Operating costs were RMB 24.514 billion, down 2.66% year on year. Net profit attributable to owners of the parent company was RMB 725 million, an increase of 14.6% over the previous year. The bill to establish a Canadian joint venture was passed: it was agreed to establish Lao Fengxiang Jewelry Canada Co., Ltd., with a registered capital of 5 million Canadian dollars, of which Lao Fengxiang invested 3.5 million Canadian dollars, accounting for 70%, and the foreign investment company Qida Co., Ltd. invested 1.5 million Canadian dollars. The joint venture is engaged in the processing, trading, wholesale, retail, import and export of gold and silver jewelry products and related products; engaged in jewelry processing trade and the import and export of jewelry raw materials. Comment: Lao Fengxiang's revenue declined year-on-year in the first three quarters, but net profit maintained a relatively rapid growth rate. The year-on-year increase was 14.6%, the gross profit margin was 8.3%, and 7.4% in the same period last year. In the third quarter, gross margin reached 9.02% in a single quarter. The pace of Lao Fengxiang's epitaxial expansion has accelerated this year, from forming an American company to planning to acquire 100% of Chenghuang Jewelry's shares, and now passing a bill to establish a Canadian joint venture. By increasing gross profit margin from within and expanding the market externally, the company is expected to develop rapidly. Continue to maintain Lao Fengxiang B's highly recommended rating. In 2014, it was 13.5 times PE, and the target price was $3.90.