The main reason for the year-on-year increase in the net profit of Hongda Co., Ltd. in the 1st to 3rd quarter of 2007 was the rise in zinc prices. In the 1st to 3rd quarter of 2007, the average price of zinc on the London Metal Exchange was 3,457 US dollars/ton, an increase of 17% over the previous year. This is the main reason for the increase in the company's profit. The third quarter was affected by the low consumption season. The price of zinc fell from the second quarter. The average price of zinc was 3,225 US dollars/ton, slightly higher than the third quarter of last year. It is worth noting that the price of ammonium phosphate in the international market has rebounded recently, and the profit of the company's chemical business will rise somewhat. However, since the contribution of monoammonium phosphate to the company's profits is limited, the impact is not significant. Zinc prices are expected to remain high in 2008. Although zinc prices were weak in 2007 as we expected due to the rapid growth rate of zinc and zinc concentrate production, low inventories and the existence of a gap between supply and demand will continue to support the expectation that zinc prices will remain high. We continue to maintain the view that zinc prices will perform weakly in non-ferrous metal prices.