In 2008, domestic nitrocellulose demand fell 10-15% year on year. Nitrocellulose is widely used in the paint and ink industry. In 2007, global consumption was 250,000 tons, with an annual growth rate of 5%. According to company statistics, the domestic demand for nitrocellulose in 2007 was 78,000 tons, which has maintained a growth rate of 7-20% over the past ten years. However, due to the slowdown in demand in the automobile and furniture industry, domestic and foreign demand for nitrocellulose fell 10-15% year on year in 2008. Against the backdrop of bleak economic prospects, Beihua Co., Ltd. expects domestic and foreign demand to fall further by 10-15% year on year in 2009. The state of supply. Global nitrocellulose demand is monopolized by five to six suppliers, including Nobel in the UK, SNPE in France, NCI in Thailand, NQB in Brazil, Taiwan's Taiwan, and Beihua shares. In 2008, the domestic industry had a production capacity of 90,000 tons, some of which were small-scale producers. Against the backdrop of the current bleak economic outlook, these small producers are bound to be pushed out of the market. The company expects to form three major global manufacturer groups in the near future, including France and Taiwan, the United Kingdom and Thailand, and Beihua shares. Beihua Co., Ltd. believes that the company has the ability to expand its market share while the industry survives the winter. In 2008, profit fell by more than 30% year on year. Under the influence of many adverse factors such as snow disasters, earthquakes, transportation problems in the north during the Olympics, and falling demand due to the global economic slowdown, the company's profit for the first three quarters fell 14% year over year to 22 million yuan. The company expects sales of nitrocellulose to fall 15% year on year to 42,000 tons in 2008, and profit will decrease by at least 30% year on year. The company hopes that product sales in 2009 will increase by 5-7% year on year, although the price may drop 15% year on year to 12,000-13,000 yuan/ton. As a result, the company's profit in 2009 is likely to remain low.