According to the quarterly report for the third quarter of 2009, the company's operating income from January to September 2009 was 63.57 million yuan, down 29.3% from the same period last year. The net profit attributed to the owner of the parent company was-5.24 million yuan, compared with 2.81 million yuan in the same period last year, and EPS was-0.04 yuan. From July to September, the company achieved operating income of 24 million yuan, down 12.09% from the same period last year and 6.27% from the previous month. The net profit attributed to the owner of the parent company was-2.06 million yuan, compared with-4.56 million yuan in the same period last year, 650000 yuan in the second quarter of this year, and-0.02 yuan in EPS.

The gross profit margin rose 9.91 percentage points in the third quarter compared with the same period last year. The company's gross profit margin in the third quarter was 26.98%, up 9.91 percentage points from the same period last year and 4.86 percentage points higher than in the second quarter. The increase in gross profit margin is mainly due to the low operation of raw material prices and the decline in company costs. In addition, the company's expense rate during the third quarter was 33.04%, down 0.98 percentage points from the same period last year, up 1.98 percentage points from the second quarter and down 22.92 percentage points from the first quarter. The company's profitability has improved, but the expense rate during the period is still much higher than the gross margin, which is expected to be difficult to improve in the short term.

There is no significant improvement in performance, resumption of trading or hopelessness. The company's main business is automotive air conditioning and pressure vessels. Judging from the company's performance, it has not been able to benefit from the recovery of the automobile market, and it is now winter, the company's air-conditioning business is in the off-season period, it is expected that the fourth quarter performance will not improve much. The company has been suspended and delisted since 2006, considering that the company's performance has not improved significantly, its resumption of trading may be hopeless.

Profit forecasts, investment advice and risks. Considering that the company has been in a state of profit-loss balance, we will not give a profit forecast for the time being. In view of the company's weak profitability, we maintain a "neutral" investment rating. The company's risk is mainly reflected in the market system risk, macroeconomic risk, the decline of profitability risk caused by the rise in raw material prices and the uncertain risk of demand recovery.