Q3 earnings PR:

"The steady gross margin in the third quarter of 2009 reflects the higher average unit selling price and the Company's continued efforts to improve manufacturing processes and cost controls."

But this company has traditionally experienced dramatic selling price decreases per Prospectus:

"In particular, our average selling price of our commercialized products decreased from RMB1,173,000 per metric ton in 2006 to RMB971,000 per metric ton in 2007 and to RMB455,000 (US$67,000) per metric ton in 2008."
=> Price more than halved in 2 or so years.

Sounds odd they had "higher average unit selling price" in a weak economic environment! On the conference call they admitted they experienced pricing pressure in some areas but overall price was kind of stable in Q2.

That was inconsistent. Can they be losing competition but is using industrial downturn as cover up?

Three months ago they projected whole year revenue of around RMB 1 billion. Now they are lowering it to 815 million or so.

They do not appear trustworthy.