Yang Jiakang pointed out that, if calculated in accordance with the non-International Financial Reporting Standards, in fact, Sky's net profit in last quarter increased by 42.69%. Even so, Sky's situation still triggered concerns of many investors. The biggest uncertainty faced by the company is that China is rapidly shifting from the feature phone market to the smart phone market, which may bring opportunities to Sky, and may also heavily strike the company. A senior person from a Shenzhen manufacturer who operates similar business as Sky told reporters that since the second half of last year, they have obviously felt the great impact on the feature phone mid-market brought by the thousand-yuan smart phones promoted by operators. The mobile phone purchase subsidy provided by operators has attracted a large number of low-end users to start abandoning feature phones and shift to smart phones. In Shenzhen, a big cell phone distribution center in China, the shipment of feature phones was greatly affected. Sky also expected in the analysts' teleconference that there would be a possibility for China's feature phone market to decrease by 30% to 45% year-on-year in 2012 - this is an astonishing figure. This phenomenon indicates that the speed at which China's mobile phone market updates from feature phones to smart phones is even faster than people expected. This means that many enterprises that used to survive on the feature phone market, including software stores like Sky and a large number of SPs and CPs, must make transformation as soon as possible. Sky was previously known as "a pirated version of App Store", mainly providing mobile phone software download services for China's vast number of low-end feature phones. These mobile phone soft wares complete payment through operators such as China Mobile, and Sky thereby gains profits. Sky's financial report shows that its revenue from operator channels in the third financial quarter was RMB128.4 million (about USD20.4 million), decreasing by 6.0% year-on-year. Content.