During the reporting period, the company realized operating income of 98.0271 million yuan, an increase of 13.23% over the same period last year, and operating profit of 6.8704 million yuan, an increase of 56.23% over the same period last year. The net profit attributed to the owner of the parent company was 14.3027 million yuan, an increase of 210.35% over the same period last year. Earnings per share were 0.114 yuan, and basic earnings per share were 0.043 yuan after deducting non-recurring profits and losses.

The gross profit margin remains stable, and the company resists the pressure of continuous appreciation of RMB by increasing sales revenue in the domestic market and raising product sales prices. the company gives full play to its dominant position in the industry, strengthens operation and management, implements brand strategy, and keeps the company's main business stable, with a gross profit margin of 25.34%, an increase of 1.63 percentage points over the same period last year. The gross profit margin has been maintained at a high level, with gross profit margins of 26.71% for export, 27.89% for domestic sales and 36.42% for fireworks, respectively. With the improper development of the company's discharge business, gross profit margin is expected to remain high.

The domestic sales business achieved relatively rapid growth, and the domestic sales business met our expectations and achieved rapid growth, mainly because the company firmly grasped the opportunity of changing the ban and actively opened up the domestic market. during the reporting period, the company's domestic sales business realized sales income of 33.7979 million yuan, an increase of 57.33% over the same period last year. The company launched fireworks discharge business for the first time in 2008, including 7.114 million yuan in domestic sales income. The company's fireworks display team has a staff of 200, which is not only a supplier of fireworks for the Beijing Olympic Games, but also responsible for the fireworks display project of the Beijing Olympic Games. The company earns only 5% of the production profit of its export products, and traders account for 15-20 times the excess profit; but in the domestic sales business, the company has successively set up sales subsidiaries such as Guangzhou, Beijing and Taiyuan. It not only occupies the production profit but also obtains the trade profit of domestic products, so it is conducive to maintaining a stable gross profit margin in the process of rising raw material prices. However, in the long run, the development space of the domestic market does not change much.

According to the profit forecast, we expect the company's domestic sales business to achieve significant growth in 2008, and the company's export and domestic sales business will enter a period of stable development in 2009. The net profit in 2008 and 2009 is 26.24 million yuan and 30.6 million yuan, respectively, and earnings per share are 0.208 yuan and 0.243 yuan. Give a neutral rating.