They don't plan to raise capital at this stage. Rather they would prefer work with their partners to meet the excess contracts. If the share price dramatically after next year good earning results, they may raise capital in 2011.
Yes, out-sourcing wil cut into profit margin becasue they ned to share profit with their partners. Nevertheless, it still good profit for them.
Retained earning fell in that period becasue they had negative earning in that period.
Lastly, they thought that they could get their money back from the German raw material supplier. They perfer cash instead of raw material from the German supplier, presumely they could get the same quality of raw material from Chinese source at much lower price.
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