Key investment points: The first three quarters achieved operating income of 703 million yuan and net profit attributable to listed companies of 25 million yuan, down 27% from the previous year. The lithium battery separator fixed increase project was approved by the Securities Regulatory Commission for the application of wet separators to new energy vehicles, positioning the middle and high-end. Summary of the report: The company achieved operating income of 703 million yuan in the first three quarters of this year, and net profit attributable to listed companies was 25 million yuan, down 27% from the previous year. The main business has not improved. The company's traditional business, including color photosensitive materials, new materials, and photographic chemical materials, remained stable year on year. We believe that the company's traditional business has not improved significantly. The lithium battery separator fixed increase project was approved by the Securities Regulatory Commission. The company plans to increase 600 million yuan to invest in new lithium battery separators and solar battery backplane expansion projects. As a leading enterprise in the domestic color film and photo paper industry, the company has accumulated a large number of core technologies related to film formation, coating, and particle dispersion, and these mature technical support will help the company move faster and faster on the path of localization of high-end lithium battery separators. Wet diaphragms are used in new energy vehicles to position the middle and high-end. The company's fixed expansion projects include 40 million square meters of wet diaphragms and 15 million square meters of diaphragm coating. At present, the company's pilot products have successfully obtained certification from large downstream lithium battery manufacturers, and the feedback has been positive. We believe that the future development of new energy vehicles will drive a rapid increase in demand for lithium battery separators, and the company's wet coating diaphragms are expected to meet the stringent performance requirements of power batteries in all aspects. The strategy of positioning the middle and high-end will ensure that the company's diaphragms stand out from similar domestic products, thus giving new wings to the company's development. Profit forecast: We expect the company's EPS for 14-16 to be 0.13 yuan, 0.18 yuan, and 0.4 yuan, maintaining an increase in holdings rating.