From January to September of 2009, the Binzhou Pistons achieved an operating income of 826 million yuan, a year-on-year decrease of 33.05%; an operating profit of 55 million yuan, a year-on-year increase of 16.75%; a net profit attributable to the parent company owner of 29 million yuan, a year-on-year increase of 14.07%; EPS It is 0.18 yuan.

Third quarter revenue decreased year-on-year. Binzhou Piston Co., Ltd.'s main products are mainly used for automotive pistons, special alloys, and agricultural machinery pistons. Among them, automobile pistons account for about 60% of the domestic piston vehicle's piston host market, and their business revenue accounts for about 60%. From July to September, the company’s operating income decreased by 21.27% year-on-year, which was better than the decrease of 38.09% in the first half of the year. We believe that the narrowing of the year-on-year decline in revenue is mainly attributable to the gradual increase in sales of trucks. It is expected that the decline in the fourth quarter will further narrow, with year-on-year revenue falling by about 25% year-on-year.

The increase in gross profit margin is obviously the main reason for the decrease in profit. In the first three quarters, the combined gross profit margin of Binzhou Pistons' products was 22.97%, an increase of 6.99 percentage points from the same period of last year, of which the consolidated gross margin in the third quarter was 23.22%, which was 8.07 percentage points higher than the same period of last year. The substantial increase in gross profit margin is the main reason for the year-on-year increase in profit when revenues fell year-on-year. At present, the price of metal aluminum, the main raw material of the product, has dropped by about 20% from the first half of 2008. It is expected that the company's gross profit rate for the year will increase to 23%.

The heavy-duty truck industry has been warming up, and the revenue growth of the automotive piston business is expected to increase. In the first half of this year, the revenue from the automotive piston business decreased by 29% year-on-year, which was mainly due to the fact that the implementation of the National 3 emission standards in the same period last year led to the heavy consumption of heavy trucks in advance. At present, the heavy-duty truck industry has been gradually warming up. From January to September this year, the cumulative sales of generalized trucks decreased by 5.56% year-on-year, and it is expected that the annual sales volume is expected to increase by about 10% year-on-year. The increase in sales volume of heavy trucks will boost the income of the piston business for automobiles. Revenue this year is expected to remain unchanged from the year-round.